Problem Solving andDecision Making Skills

- Tarak Bahadur KC, Ph.D.tarakbkc@nasc.org.np

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The moment we all open our eyes in the morning, the decision process begins, and continues to happen all throughout our day until we fall asleep at the end of it, whether we are aware of said process or not. We are thus all decision makers. Whether we are right decision makers or not is the question. However, even if one is not a right decision maker, one need not fret – it is an ability that can be learned by anyone.

Discussion Issues Meaning of Problem Solving and

Decision Making Classification of Decisions Approaches / Styles / Process and

Influencing Factors of Decision Making

Problems in Decision Making Approaches to Improve Ability to

Make Decisions and Solve Problems Effectively

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Importance of Decision Making A key role of a manager Whatever a manager does, he does through

making decisions No organisations can be run without making

decisions Carries long-term implications. Organisations

grow or fail as a result of decisions by its managers.

The wellbeing of an organisation depends almost entirely on the quality of its decisions.

Objective of decision making is solving problem

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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'. 6

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Do you have a problem?

Actual Situation Desired Situation

Is there a differenceNo

Do you want to do something about that difference?

Do you know what to do and when to do it?

You do have a problem You do not havea problem

No

Yes

Yes

No

Yes

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 to solve problems

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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 the selection of one behaviour alternative from two or more possible alternatives.

-Terry

------ is an activity carried out in the process of solving problems.

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Reactions to Problem / Situation Ignore or avoid Act without thinking Positively decide to do nothing Take decisions only when there is a

crisis or pressure Take action only after gathering

information and giving some thought

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Approaches / Styles 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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Authoritarian Style

Democratic Style

The officer makes decisions and announces them

The officer sells the decision to the teamThe officer presents the idea and invites

questionsThe officer presents a tentative decision

subject to changeThe officer presents a problem, gets inputs

from the team and then decidesThe officer defines the limits and asks the

group to make the decisionThe officer permits the team to make

decisions with predefined limitsThe officer allows team members complete

freedom of action

Range of Decision Making Styles

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. 16

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Decision-Making ProcedureAlthough people can learn at different rates – some more quickly than others of course – there are no short cuts to learning and everyone has to follow a similar learning process to learn how to make right decisions. One of the things that can be learned is a specific process to make a decision.

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Rational Decision-Making Procedure

1. Diagnose Situation or Problem

2. Generate / develop potential solutions / alternatives

3. Rate each alternative

4. Make the decision! Select the best alternative

5. Communication and implementation

6. Monitoring the implementation

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Creative Decision Making Process Understand the barriers to creative thinking

- perceptual blocks, - emotional blocks and - cultural / environmental blocks

Develop capacity for creative thinking by:- looking at the situation differently- exchanging ideas with other creative people- thinking outside the box- leaving it for a while

Use collective capacities of group to develop new ideas by “brainstorming”

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Techniques for Creative Decision Making

Brainstorming Ideas writing Lateral thinking

Factors Influencing Decision Making

Availability of resources Environment Capability, values, experience

of concerned people Knowledge Biasness / prejudice

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Problems in Decision Making

Real life Decision Makers must cope with:

Inadequate information about the nature of the problem and its possible solutions,

The lack of resources to acquire more complete information,

Distorted perceptions of the information available,

The inability of the human memory to retain large amount of information, and

The limits of their own intelligence to determine correctly which alternative is best.

- Herbert Simon22

Problems ……(Contd.)

Which problem to solve? What is a right decision? External and internal environment Individual's values, capabilities,

biasness Influencing factors Conflicting information For some “thinking” is not “work”

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Some Common Decision-Making Mistakes Relying too much on “expert ”

information. Experts are only human and have biases and prejudices like the rest of us. Seek information from a lot of different sources.

Overestimating the value of information received from others. They may not know as much about the problem as you may. Their values may be different. The bottom line is that it is important to keep their opinions in perspective.

Underestimating the value of information received from others. We may tend to discount information we receive from individuals such as children, low status groups, blue-collar workers or even women. We should not do so as information from these and other such groups can help us gain a better perspective of the problem as a whole, and

Only hearing what you want to hear or seeing what you want to see. Be aware of your prejudices and expectations.

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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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Ethics and Morality in Decision-Making

Ethics is defined as the branch of philosophy that defines what is good for the individual and society, and which establishes the nature of obligations or duties which people owe both themselves and one another.

Making ethical decisions in business is often difficult because business ethics is not just an extension of either an individual’s or a society’s ethics. However, the following support being ethical:

Trustworthiness - others believe in us and hold us in high esteem; concerns qualities such as honesty, reliability, integrity and loyalty

Respect – we should treat everyone with respect regardless of who they are and/or what they have done

Responsibility – we have to be accountable for what we do and who we are

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Fairness – adherence to a balance standard of justice without relevance to one ’s feelings or inclinations

Caring – the heart of ethics and ethical decision-making; we should consciously cause no more harm than is reasonably necessary to perform our duties

Citizenship – this includes civic virtues and duties which tell us how we ought to behave as part of a community 29

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Some Tips for Effective Decision Making

Effective decision making means you make things happen instead of letting things happen. You will find that making decisions are required in every activity. These decisions will take place in a situations and problems and can range from the very simple to very complex. You as a senior officer must make the right decisions to direct and guide events and actions into a planned course instead of letting events fall to chance. Making right decisions is a skill like any other and needs to be practiced.

Some Tips for Effective Decision Making It is not choice between right or

wrong, rather choosing from among alternatives

Avoid snap decisions What is right, not who is right Consider those affected by the

decision (involve if feasible) Mentally rehearse

implementation of your choice31

Some Tips (Contd..)

View a ‘problem’ as an ‘opportunity’

Decision must meet the situation, and be acceptable to as large number of people as possible

Choosing the right alternative at the wrong time is not any better than the wrong alternative at the right time, so make the decision while still have time

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Conclusion

Effective decision making / problem solving requires creativity. Creative thinking is hindered by perceptual blocks, emotional blocks and cultural / environmental blocks. Therefore, first thing is to overcome from the blocks and be creative in different course of action, likely causes, possible solutions, and a variety of outcomes.

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Never base your life decisions on advice from people who don’t have to deal with the problem.

“Think Laterally, and be Creative.”

Good luck and Thank you.