Problem solving and Decision making.ppt

Steps in Problem solving and making decisions

1. Prepared by Rashmi.K.R.
BSB-Outcome 3
Problem-solving and Decision
Making

2. Prepared by Rashmi.K.R.
BSB-Outcome 3
Introduction
•Problem solving and decision-making are
important skills for business and life. Problem-
solving often involves decision-making, and
decision-making is especially important for
management and leadership. There are
processes and techniques to improve decision-
making and the quality of decisions. Problem-
solving and decision-making are closely linked,
and each requires creativity in identifying and
developing options.

3. Prepared by Rashmi.K.R.
BSB-Outcome 3
Problem-solving
•Problem solving is a process in which we
perceive and resolve a gap between a
present situation and a desired goal, with
the path to the goal blocked by known or
unknown obstacles. In general, the
situation is one not previously
encountered, or where at least a specific
solution from past experiences is not
known.

4. Prepared by Rashmi.K.R.
BSB-Outcome 3
Decision-Making
•In contrast, decision making is a selection
process where one of two or more
possible solutions is chosen to reach a
desired goal.
•The steps in both problem solving and
decision making are quite similar. In fact,
the terms are sometimes used
interchangeably

5. Prepared by Rashmi.K.R.
BSB-Outcome 3
Decision making
•The process through which managers
identify organizational problems and
attempt to resolve them.

6. Prepared by Rashmi.K.R.
BSB-Outcome 3
Skill categories
•Technical skills
•Interpersonal skills
•Problem-solving and Decision-making skills

7. Prepared by Rashmi.K.R.
BSB-Outcome 3
Classification of Problems
•Crisis problem
•Non-crisis problem
•Opportunity problem

8. Prepared by Rashmi.K.R.
BSB-Outcome 3
Crisis problem
•A serious difficulty requiring immediate
action.
•Eg: The discovery of a serious cash-flow
deficiency that results in serious losses.

9. Prepared by Rashmi.K.R.
BSB-Outcome 3
Non-crisis problem
•An issue that requires resolution but not
simultaneously have the importance and
immediacy characteristics of a crisis.
•Eg: A factory that needs to be brought
into conformity with new antipollution
standards.

10. Prepared by Rashmi.K.R.
BSB-Outcome 3
Opportunity problem
•A situation that offers a strong potential
for significant organizational gain if
appropriate actions are taken.
•Taking advantage of opportunities.
•Involve new ideas and novel directions,
major vehicles for innovation.

11. Prepared by Rashmi.K.R.
BSB-Outcome 3
Types of Managerial decisions
•Programmed decisions
•Non-Programmed decisions

12. Prepared by Rashmi.K.R.
BSB-Outcome 3
Programmed decisions
•Decisions made in routine, repetitive, well-
structured situations through the use of
pre-determined decision rules.

13. Prepared by Rashmi.K.R.
BSB-Outcome 3
Non-programmed decisions
•Decisions for which pre-determined
decision rules are impractical because the
situations are novel or ill-structured.
•Such decisions involve considerable
amounts of uncertainty and risk.

14. Prepared by Rashmi.K.R.
BSB-Outcome 3
Example
•Eg: For an Automobile manufacturer,
determining union employee pay rates is a
programmed decision but selecting a new
car design may be an non-programmed
decision.

15. Prepared by Rashmi.K.R.
BSB-Outcome 3
Steps in effective decision-
making/problem-solving
•Problem-identification
•Generate alternative solutions
•Evaluate alternative solutions
•Choose the best solution
•Implement and monitor the chosen
solution.

16. Prepared by Rashmi.K.R.
BSB-Outcome 3
Problem identification
•A problem can be identified much clearly ,
if managers go through diagnosis and
analysis of the problem.
•It helps to clarify what is needed and
where the alternatives for doing the thing
can be sought.

17. Prepared by Rashmi.K.R.
BSB-Outcome 3
Generate alternative solutions
•Sources for identifying alternatives are
ones own past experience, practices
followed by others and using creative
techniques.

18. Prepared by Rashmi.K.R.
BSB-Outcome 3
Evaluate alternative solutions
•Considering the advantages and
disadvantages of each alternatives before
choosing one of them.

19. Prepared by Rashmi.K.R.
BSB-Outcome 3
Choose the best solution based on
six general factors.
•Feasibility
•Quality
•Acceptability
•Costs
•Reversibility
•Ethics

20. Prepared by Rashmi.K.R.
BSB-Outcome 3
Implement and monitor the chosen
solution.
•Successful implementation depends on careful
planning, communication and getting the
support and acceptance of sub-ordinates in
putting the decision into action.
•Monitoring is making sure that things are
progressing as planned and the problem that
triggered the decision-making process has been
resolved.

21. Prepared by Rashmi.K.R.
BSB-Outcome 3
Problem-solving Techniques
(Focus more on logic and critical
thinking)
•A. Analysis--the identification of the
components of a situation and consideration of
the relationships among the parts
•B. Backwards planning--a goal selection process
where mid-range and short-term conditions
necessary to obtain the goal are identified
•C. Categorizing/classifying--the process of
identifying and selecting rules to group objects,
events, ideas, people, etc.

22. Prepared by Rashmi.K.R.
BSB-Outcome 3
Problem-solving Techniques
•D. Evaluating/judging--comparison to a
standard and making a qualitative or
quantitative judgment of value or worth
•E. Thinking aloud--the process of
verbalizing about a problem and its
solution while a partner listens in detail for
errors in thinking or understanding

23. Prepared by Rashmi.K.R.
BSB-Outcome 3
Problem-solving Techniques
•F. Network analysis--a systems approach
to project planning and management
where relationships among activities,
events, resources, and timelines are
developed and charted
•G. Task analysis--the consideration of
skills and knowledge required to learn or
perform a specific task

24. Prepared by Rashmi.K.R.
BSB-Outcome 3
Problem-solving Techniques
(Focus more on creative and divergent
thinking)
•A. Brainstorming--attempting to spontaneously generate
as many ideas on a subject as possible; ideas are not
critiqued during the brainstorming process; participants
are encouraged to form new ideas from ideas already
stated
•B. Imaging/visualization--producing mental pictures of
the total problem or specific parts of the problem
•C. Incubation--putting aside the problem and doing
something else to allow the mind to unconsciously
consider the problem

25. Prepared by Rashmi.K.R.
BSB-Outcome 3
Problem-solving Techniques
•D. Outcome psychodrama--enacting a
scenario of alternatives or solutions
through role playing
•E. Synthesizing--combining parts or
elements into a new and original pattern
•F. Taking another's perspective--
deliberately taking another person's point
of view

26. Prepared by Rashmi.K.R.
BSB-Outcome 3
You should be clear about…
•What is problem solving and decision-
making?
•Types of problems/decisions
•Steps in decision-making
•Problem-solving techniques