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Problem Solving and Decision Making

This document discusses problem solving and decision making. It defines a problem as a gap between the current and desired state. Problem solving is the process of closing this gap. Decision making involves choosing between alternatives to solve problems. The document outlines a rational decision making process that involves defining the problem, developing alternatives, evaluating options, choosing the best alternative, implementing the decision, and monitoring the results. It also discusses factors that can influence decision making and approaches to improve decision making abilities.

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Mehreen Sheyk
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108 views

Problem Solving and Decision Making

This document discusses problem solving and decision making. It defines a problem as a gap between the current and desired state. Problem solving is the process of closing this gap. Decision making involves choosing between alternatives to solve problems. The document outlines a rational decision making process that involves defining the problem, developing alternatives, evaluating options, choosing the best alternative, implementing the decision, and monitoring the results. It also discusses factors that can influence decision making and approaches to improve decision making abilities.

Uploaded by

Mehreen Sheyk
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 27

Problem Solving and

Decision Making

Lecture Dr. Bilal Anwar

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Problem
“In a day, when you don’t come across any
problems- you can be sure that you are
traveling in a wrong path.”
-Swami Vivekananda
A problem is a situation or a state of affairs
that causes difficulties for people. It is also a
gap between a current and a desired state.
The gap may be viewed as the difference
between 'what is' and 'what should be' or
'where we are' and 'where we want to be'.

3
Problem Solving

If a problem is a gap between two


states, then problem solving is 'the
process of closing that gap, i.e.
changing the current state into the
desired one.'

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Decision

“A decision is a judgment”
- Peter Drucker

A choice between or among


various alternatives

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Classification of Decisions
• Personal decisions to achieve own objectives.
• Organisational decisions to fulfill the obligations of
own position in the organisation.
- Programmed – usually made at lower level and are
usually routine in nature. Made on the basis of pre-
established rules / procedures.
- Non-programmed – established rules / procedures
are inadequate to deal with the new kinds of situations, and
the decision maker has to be innovative. The risks
involved are high. Decisions made about non-recurring
problems for which there are no pre-specified courses of
action.

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Decision Making

------ is an activity carried out in


the process of solving problems.

------ is the selection of one


behaviour alternative from two
or more possible alternatives.
-Terry

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Reactions to Problem / Situation
• Ignore or avoid
• Act without thinking
• Positively decide to do nothing
• Take decision only when there is a crisis or
pressure
• Take action only after gathering information
and giving some thought

10
Approaches to Decision Making
• Authoritarian - deciding
independently seeking no
contributions other than asking for
necessary information and passing
them down the line for
implementation.
• Democratic - jointly, as a team,
making a decision which has the
support of the whole group.
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Approaches / Styles to Decision Making
• No one style appropriate for all situations.
• Occasions when one style rather than any
other is more likely to produce better
quality decisions implemented with
greater success.
• Need to adopt a flexible approach by
varying style in response to the nature of
the decision and the context in which it is
made and ultimately implemented.
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Process of Decision Making
Rational DM Process

Evaluate Alternatives

Develop Alternatives Choose the Best Alternative


Identify/Define Problems Implement the Decision
Sense Effects Monitor the Implementation

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I Diagnose Problem/ Define the Objective

"A problem properly defined is a problem half solved.“


• Define the problem
• Identify the decision objectives (what will happen when the
problem has been solved)
• Identify the causes of problem
• What you are trying to achieve?
• What suggests that there is a problem?
• To who is it a problem?
• What kind of problem is it (attitude, understanding, competence)?
• Has this ever happened before?
• Is it a human performance or a technical problem?
• What is the potential magnitude of the problem if it remains
unresolved?

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II Develop Alternatives to Solve the Problem

This is a brainstorming step to generate alternatives, not


to evaluate them. Brainstorming suggests a range of
possible solutions.
Listing options (Thinking creatively) - the alternatives to
reach Pokhara?
- Nobody says "no“
- Nobody says "That will never work“
- Nobody says "That has already been tried
before“
- Nobody says "That is a stupid idea"
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III Evaluate Alternatives

• Realistic to Organisation Goals


• Helpful to Solve the Problem
• Timing
• Resources
• Acceptability
• Feasibility
• Risk
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IV Choose the Best Alternatives

Solution should be satisfactory rather than ideal. There are


four criteria for choosing the best from among the possible
solutions:
1. The risk - weigh the risks of each course of action
against the expected gains.
2. Economy of effort - which will give the greatest results
with the least effort?
3. Timing- situation in the organisation.
4. Limitations of resources - vision, competence, skill,
etc. of staff who carryout decisions. Do we have
resources to carryout decisions?
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V Implement the Decision

Putting a chosen solution into effect requires a


carefully drawn-up action plan.
SN Activities / By Required Critical
Actions Whom When Resource (s) Success
Factor (s)

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VI Monitor the Decision

• Set dates for monitoring. Who will monitor? How and


when?
• Is the solution effective?
• Are we still satisfied? Are there parts that need
reworking? In light of new data received, do we need to
make any changes?
• Has there been any permanent improvement?
• How adequate have our problem solving procedures
been?
• Are we learning from experience?
• What new problems have we identified?
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Problems in Decision Making (Contd.)

• Which problem to solve?


• What is a right decision?
• External and internal environment
• Individual's values, capabilities,
biasness / prejudice, experience
• Time
• Conflicting information
• For some “thinking” is not “work”
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Basic Approaches to Improve Decision Making
Ability

1. Improve analytical ability


2. Adopt systematic approach
3. Invite conflicting views
4. Consider factors influencing
decision making
5. Use imagination / Be creative
6. Implementation and follow-up
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1. Improve analytical ability
Opinions are perfectly good starting point.
Ask questions starting with:
– What,
– Why,
– When,
– How,
– Where, and
– Who.
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2. Adopt systematic approach

• Analyse the situation


• Identify possible courses of
action
• Weigh them up
• Decide what to do
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3. Invite conflicting views

• One should not expect a


bland consensus view
• The best decisions emerge
from a clash of conflicting
points of view
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4. Consider factors influencing decision making

•Availability of resources
•Environment- internal / external (PEST)
•Capability, values, experience of concerned people
•Knowledge
•Time
•Biasness / prejudice
•Customs and habits of people
•Psychological factors- emotion, ethics, values…
•Future as anticipated
•Superiors and subordinates
•Interest / Pressure groups
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5. Use imagination
Use 'lateral thinking' and 'brain-storming'.
You can develop your ability to think
creatively by:
• Breaking away from any restrictions
• Opening up your mind to generate
new ideas
• Delaying judgment until you have
thoroughly explored the alternative
ideas (for example, 'It won't work', 'It won't solve the
problem')
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6. Implementation and follow-up

A problem is not solved until the


decision is implemented. Think
carefully not only about how a
thing is to be done (who, what,
when) but also about its impact on
the people concerned and the extent
to which they will co-operate.
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