Lecture : 5
Problem Identification And
Problem solving.
MANAGERIAL ROLES (Mintzberg):
Interpersonal: figureheads & leaders
Informational: receive; disseminate critical info
Decisional: initiate activities; handle disturbances; allocate resources; negotiate conflicts
Definition
Decision : is a solution chosen from among alternatives .
Decision-making process : is the process of selecting an alternative course of action that will solve a problem.
Problem solving: is the process of taking corrective action in order to meet objectives.
Decision making and Problem-Solving Steps:
Define the problem Gather information Develop alternatives Weigh alternatives Select the best alternative Implement the solution Monitor progress and follow up
Step 1: Define the problem
To express the issue in a clear, one-sentence problem statement.
Identify root causes, limiting assumptions, system and organizational boundaries and interfaces.
Identify resources.
Step: 2 Gathering Information.
This is the initial activity of decision-making in which you think about all of the possibilities related to the problem and the decision.
Step: 3 Identification of Alternatives
Alternatives: Optional courses of action from which a decision maker is expected to choose that are obtained from memory, vendor search, research and development.
Step : 4 Weigh Alternatives
Criteria: the characteristics or requirements that each alternative must possess to a greater or lesser extent. Usually the alternatives are rated on how well they possess each criterion.
These decision criteria identify what will guide the decision-making process. They are the important facts relevant to the problem as defined .
Choose The Most Desirable Alternative
The number and quality of alternatives depend largely on the creativity and productivity of managers and their staff.
Manager could assess the potential consequences of each alternative .
Uncertainty is a state in which the decision-maker judges the different possible outcomes of each alternative but lacks any feeling for their probabilities of success.
ORGANIZATIONAL MODELS OF DECISION MAKING
RATIONAL : Maximize organization’s benefits and common goals by selecting the best solution to achieve the desired outcomes.Disadvantage : unrealistic expectations, long time
BUREAUCRATIC: Follow standard operating procedures (SOP),routine,APPS,formal .Disadvantage: limited alternative solutions ,depends on
history.POLITICAL: Key groups compete and bargain ,win-win
situations,majority and negotiations.Disadvantage: limited alternative solutions
LEVELS OF DECISION MAKING
STRATEGIC: Long-term objectives; resources; policies
MANAGEMENT CONTROL: Monitor use of resources; performance
KNOWLEDGE-BASED: Evaluate potential innovations; knowledge
OPERATIONAL: How to carry out specific day-to-day tasks
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Decision Making Techniques
1. Brainstorming
2. Nominal Group Technique
3. Consensus
4. Voting
5. Ranking
With these tools you will be able to map out the likely consequences of decisions, work out the importance of individual factors, and choose the best course of action to take.
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BrainstormingHelps group generate ideas to improve
productivity and creativity
1. State as many alternatives as possible2. Encourage creative ideas3. Examines ideas for improvement or
combination4. Accept all ideas without criticism5. Evaluate ideas after idea generation is
complete
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Nominal Group Technique Independent idea generation phase
1. Members silently write ideas2. Facilitator records ideas
Interactive phase to discuss ideas3. Group discusses each for clarification4. Vote to narrow number of ideas5. Discuss ideas that received most votes6. Repeat steps 4 & 5 until one idea remains
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ConsensusDiscussion to achieve agreement to support
the group’s decision1. One member facilitates the discussion2. Facilitator uses discussion ideas to
formulate proposals3. Recorder writes down each proposal4. Throughout discussion, recorder reads
proposals 5. Recorder reads aloud final decision for
approval or modification
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VotingGroup casts votes in support of or against a
specific proposal1. Group members discuss to produce clear
proposals2. Decide how vote will be taken3. Decide how many votes needed to decide an
issue4. Restate proposal before voting
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RankingReveal member preferences by assigning
numerical value to each alternative
1. Discuss ideas to produce clear proposals2. Each member assigns numerical value to
each alternative3. Sum individual ranks; total for the group4. Read final decision aloud for approval or
modification
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Choosing a ProcedureSelect procedure or combination of
procedures that:Meets group’s communication needs Satisfies five functions of group decision
makingAnalyze type of taskAll member must agree to using a procedure
for benefits to be achieved
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Paradox of Using ProceduresProcedures take timeMembers may resist using procedures if they
are unaccustomed to using themPractice can helpTailor procedures to group’s needsConsider an external facilitator to guide your
group the use of a new procedure
Decision Strategies
Decision making strategies: rational intuitive creative
Rational decision making models Rational decision making models involve a
cognitive process where each step follows in a logical order from the one before. By cognitive it is based on thinking through and weighing up the alternatives to come up with the best potential result.
Intuitive decision making indicate that there may be no rationale or logic behind the choices made.
Creative Thinking TechniquesBrainstorming:is an idea generating
technique. Think freely. Freewheeling, wild thoughts
are fine. Checklists:is a standard collection of items
(things, verbs, questions, approaches, attributes) used to remind the creative thinker of possible ways to approach a problem or shape a solution.
Description of the
problemGenerating
ideasIdeaselection
and refinement
Ideaimplemen-
tation
Evaluationand analysis
of actionplan
The Map of Creative Problem Solving
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