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DECISION MAKING AND
PROBLEM SOLVING
Submitted by,
ANTONY BRITTO
DEFINITION – Problem Solving
Problem solving is the system of
thoughts and actions that people take to
fix an issue for themselves or others.
Problem solving is a Cognitive
Processing directed at achieving a goal
where no solution method is obvious to
the problem solver.
 Something is a problem if:
 It makes you LATE
 It increases COST
 It degrades PERFORMANCE
Triple Constraint Principle
 Problem Solving is a Skill, a Tool and a Process.
 It is a Skill because once you have learnt it you can
use it repeatedly.
 Like the ability to ride a bicycle, or
 Add numbers or
 Speak a language.
 It is a Tool because it can help you solve an
immediate problem or to achieve a goal.
 It is also a Process because it involves taking a
number of steps
What does it Involve??
PROBLEM SOLVING
 Skill
 Process
 Tools
 Making Judgment
 Analytical Skills
 Decision Making
 Collecting Information
 Planning
Skill Sets in Problem Solving?
 Expert Problem Solvers
 SMAs (Subject Matter Analysts)
 People who can think of alternatives even when no
clear solutions seems apparent.
Problem Solving People
 Have a Better Memory for relevant details in the
problem.
 Classify problems according to their underlying
principles.
 Use well-established Procedures.
 Work forwards towards a goal.
Expert Problem Solvers
Content
Understanding
Domain-Dependent
Problem-Solving
Strategies
Self-Regulation
Self-Monitoring
Meta cognition Effort Motivation
Planning Self-Efficacy
Problem Solving Requirements
PROBLEM SOLVING PROCEDURE
 Define
 Information
Measures
 Analyze
 Generate
Alternatives
 Select Alternatives
 Decide & Implement
STEP 1
DEFINE
DEFINING THE PROBLEM
 Collect all the relevant
information.
 Clarify background
issues.
 What are the
constraints?
 Are there sub-problems
that can be dealt with
separately?
 Can the problem now be
formulated?
STEP 2
INFORMATION &
MEASURES
TYPES OF INFORMATION
QUANTITATIVE
 How Much?
 How Many?
 How Frequently?
 How Likely?
 How Quickly?
QUALITATIVE
 What ?
 Why?
 How?
TYPES OF INFORMATION
PRIMARY SECONDARY
DATA SOURCES
 Data gathered by you
directly for your
purpose.
 Research.
 Survey
 Gathered by others for
their purpose.
 By other Depts.
 Reference Books
 Databases.
 Journals.
 Published Reports.
 Govt. Statistics
DATA SOURCES
PRIMARY SECONDARY
STEP 3
ANALYSE
Problem
Seen
Un Seen
ANALYSE THE PROBLEM
Do not make the
mistake of assuming
you know what is
causing the problem
without an effort to
fully investigate the
problem you have
defined. Try to view the
problem from a variety
of viewpoints, not just
how it effects you.
Think about how the
issue affects others. It
is essential to spend
some time researching
the problem.
 What is the history of the problem? How long has it
existed?
 How serious is the problem?
 What are the causes of the problem?
 What are the effects of the problem?
 What are the symptoms of the problem?
 What methods does the group already have for
dealing with the problem?
 What are the limitations of the those methods?
 How much freedom does the group have in gathering
information and attempting to solve the problem?
 What obstacles keep the group from achieving the
goal?
 Can the problem be divided into sub problems?
QUESTIONS TO ASK WHEN
ANALYSING THE PROBLEM
STEP 4
GENERATE
ALTERNATIVES
 Brainstorming.
 Involve Outsiders.
 External Benchmarking
 Encourage members to step out of their traditional roles.
 Ask probing questions.
 Be willing to consider views differing from yours.
 Revisit abandoned alternatives.
TIPS FOR GENERATING
ALTERNATIVES
STEP 5
SELECT
ALTERNATIVES/
DECISION
MAKING
 Strategic Decision.
 Business Decision.
 Operational Decision
TYPES
Decision making:
 The process of choosing a
course of action for dealing
with a problem or
opportunity.
How are decisions made in
Organizations?
DECISION MAKING
 Environment
 Decision Making
Models
 Decision Making
Realities
 Authorities in
Decision Making
 Influencing Factors
in Decision Making
 7Cs
Decision Environments Include:
 Certain environment
 Exist when information is sufficient to predict the
results of each alternative in advance of
implementation.
 Certainty is the ideal problem solving and decision
making environment
 Risk environment
 Exist when decision maker lack complete certainty
regarding the outcome of various courses of action,
but can assign probabilities of occurrence.
 Probabilities can be assigned through objective
statistical procedures or personal institution.
How are decisions made in
Organizations?
Decision Environments Include:
 Uncertain environment
 Exist when managers have so little information that
they cannot even assign probabilities to various
alternatives and possible outcomes.
 Uncertainty forces decision makers to rely on
individual and group creativity to success over the
problem.
 Also characterized by rapidly changing :
 External Conditions
 IT requirements
 Personnel Influencing problem and choice
definition.
 These rapid changes are also called organized
anarchy.
How are decisions made in
Organizations?
 Classical Decision Theory.
 Behavioral Decision Theory.
DECISION THEORY
 Classical Decision Theory:
Views the decision maker as acting in a world of
complete certainty.
 Behavioral Decision Theory:
Accepts a world with bounded rationality and views
the decision maker as acting only in terms of what
he/she perceives about a given situation
What are the useful
decision making models?
 Classical Decision Theory:
The Classical Decision Maker:
 Faces a clearly defined problem.
 Knows all possible action alternatives and their
consequences.
 Chooses the optimum alternative.
It is often used as a model of how Managers should
make decisions:
The Classical Decision
Making Models?
 Behavioral Decision Theory:
Recognizes that human beings operate with:
 Cognitive Limitations.
 Bounded Rationality.
The Behavioral Decision maker:
 Faces a problem that is not clearly defined.
 Has limited knowledge of possible action
alternatives and their consequences.
 Chooses a satisfactory alternative.
The Behavioral Decision
Making Models?
 Classical Decision Theory:
May not fit well in a chaotic world.
Can be used towards the bottom of many firms, even
most high-tech firms.
 Behavioral Decision Theory:
Fits with a chaotic world of uncertain conditions and
limited information.
Encourages satisfying decision making.
What are the useful
decision making models?
 Most decision making in organizations goes beyond
step-by-step rational choice.
 Most decision making in organizations falls some
where between the highly rational and the highly
chaotic.
 Decisions must be made under risk & uncertainty.
 Decisions must be made to solve non-routine
problems.
 Decisions must be made under time pressures and
information limitations.
 Decisions should be ethical.
Decision Making Realities
 Deciding who should participate:
 Authority Decisions
 Made by the Manager or TL without involving
other people and by using information that he /
she possess.
 Consultative Decisions.
 Made by one individual after seeking input from
group members.
 Group Decisions
 Made by all members of the group.
Authority in Decision
Making
 Technology.
 Culture.
 Ethics.
What factors do influence
Decision Making Process?
 Increasingly complex problems and opportunities face
decision makers in organizations due to various
workplace trends.
 These workplace trends are changing the Who, When,
Where, and How of decision making.
IT and Decision Making
 Artificial Intelligence:
 The study of how computers can be programmed to
think like human beings.
 Will allow computers to displace many decision
makers.
 Expert systems that support decision making by
following “Either – or” rules to make deductions.
How do Tech., Culture & Ethics
influence Decision Making?
 Construct.
 Compile.
 Collect.
 Compare.
 Consider.
 Commit.
Six C’s of Decision Making
 Construct a clear picture of
precisely what must be decided.
 Compile a list of requirements
that must be met.
 Collect information on
alternatives that meet the
requirements.
Six C’s of Decision Making
 Compare alternatives that meet
the requirements.
 Consider the “What might go
wrong” factor with each
alternative.
 Commit to a decision and stick
to it.
Six C’s of Decision Making
STEP 6
IMPLEMENT
 Plan
 Do
 Check
 Act
Implement Process
 Communicate
 Train
 Execute
 Review
MANAGERIAL LEADERSHIP
WHO IS A LEADER ?
"a person who influences a group of
people towards the achievement of
a goal".
WHAT IS LEADERSHIP?
Leadership is a process by which a person
influences others to accomplish an objective
and directs the organization in a way that
makes it more cohesive and coherent.
LEADERSHIP
• Leadership is a fundamental component in any
organization and plays a very important role
in the different operations in an organization.
• An organization may perform better than the
other because of the better leadership that it
may have which is more effective and dynamic
in nature.
LEADERSHIP
 Leadership is defined as,
• Leadership = F ( f , g , w , s)
• f = followers
• g = goal
• w = a measure of willingness on the part of
subordinates
• s = a give situation
TYPES OF LEADERSHIP
• Formal leadership
formal leadership occurs when a person is
appointed or elected as an authority figure.
Example - any one who is appointed to the
job of a manager is given the authority to
exercise formal leadership in relationship to
his subordinates.
TYPES OF LEADERSHIP
• Informal leadership
informal leadership is defined as an individual
performing a natural leadership role without a
position. This generally happens in case of
those individuals who are skillful, intelligent in
their personality.
Example – Religious and civic leaders
LEADERSHIP CHARACTERISTICS
 A leaders has certain inherent qualities and
traits which assist him in playing a direct role
and wielding commanding influence over
others. some of the traits are,
• Energy, drive
• Appearance, presentability
• A sense of cooperativeness
• Enthusiasm
LEADERSHIP CHARACTERISTICS
• Personality ( height and weight )
• Initiative
• Intelligence
• Judgement
• Self confidence
• Sociability
• Tact and diplomacy
LEADERSHIP CHARACTERISTICS
• Moral courage and integrity
• Will power and flexibility
• Emotional stability
• Knowledge of human relations
These traits are not universal in
nature , nor do all the leaders have all these
traits.
LEADERSHIP STYLES
 The leadership styles can be classified
according to the philosophy of the leaders. A
style of a leadership is relatively enduring set
of behaviours which is a characteristic of the
individuals , regardless of the situation’.
• Autocratic or dictatorial leadership
• Participative or democratic leadership
• Laissez-faire or free- reign leadership
THANK YOU

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decision making and problem solving

  • 1. DECISION MAKING AND PROBLEM SOLVING Submitted by, ANTONY BRITTO
  • 2. DEFINITION – Problem Solving Problem solving is the system of thoughts and actions that people take to fix an issue for themselves or others. Problem solving is a Cognitive Processing directed at achieving a goal where no solution method is obvious to the problem solver.
  • 3.
  • 4.  Something is a problem if:  It makes you LATE  It increases COST  It degrades PERFORMANCE Triple Constraint Principle
  • 5.  Problem Solving is a Skill, a Tool and a Process.  It is a Skill because once you have learnt it you can use it repeatedly.  Like the ability to ride a bicycle, or  Add numbers or  Speak a language.  It is a Tool because it can help you solve an immediate problem or to achieve a goal.  It is also a Process because it involves taking a number of steps What does it Involve??
  • 6. PROBLEM SOLVING  Skill  Process  Tools
  • 7.  Making Judgment  Analytical Skills  Decision Making  Collecting Information  Planning Skill Sets in Problem Solving?
  • 8.  Expert Problem Solvers  SMAs (Subject Matter Analysts)  People who can think of alternatives even when no clear solutions seems apparent. Problem Solving People
  • 9.  Have a Better Memory for relevant details in the problem.  Classify problems according to their underlying principles.  Use well-established Procedures.  Work forwards towards a goal. Expert Problem Solvers
  • 11. PROBLEM SOLVING PROCEDURE  Define  Information Measures  Analyze  Generate Alternatives  Select Alternatives  Decide & Implement
  • 13. DEFINING THE PROBLEM  Collect all the relevant information.  Clarify background issues.  What are the constraints?  Are there sub-problems that can be dealt with separately?  Can the problem now be formulated?
  • 16. QUANTITATIVE  How Much?  How Many?  How Frequently?  How Likely?  How Quickly? QUALITATIVE  What ?  Why?  How? TYPES OF INFORMATION
  • 18.  Data gathered by you directly for your purpose.  Research.  Survey  Gathered by others for their purpose.  By other Depts.  Reference Books  Databases.  Journals.  Published Reports.  Govt. Statistics DATA SOURCES PRIMARY SECONDARY
  • 20. ANALYSE THE PROBLEM Do not make the mistake of assuming you know what is causing the problem without an effort to fully investigate the problem you have defined. Try to view the problem from a variety of viewpoints, not just how it effects you. Think about how the issue affects others. It is essential to spend some time researching the problem.
  • 21.  What is the history of the problem? How long has it existed?  How serious is the problem?  What are the causes of the problem?  What are the effects of the problem?  What are the symptoms of the problem?  What methods does the group already have for dealing with the problem?  What are the limitations of the those methods?  How much freedom does the group have in gathering information and attempting to solve the problem?  What obstacles keep the group from achieving the goal?  Can the problem be divided into sub problems? QUESTIONS TO ASK WHEN ANALYSING THE PROBLEM
  • 23.  Brainstorming.  Involve Outsiders.  External Benchmarking  Encourage members to step out of their traditional roles.  Ask probing questions.  Be willing to consider views differing from yours.  Revisit abandoned alternatives. TIPS FOR GENERATING ALTERNATIVES
  • 25.  Strategic Decision.  Business Decision.  Operational Decision TYPES
  • 26. Decision making:  The process of choosing a course of action for dealing with a problem or opportunity. How are decisions made in Organizations?
  • 27. DECISION MAKING  Environment  Decision Making Models  Decision Making Realities  Authorities in Decision Making  Influencing Factors in Decision Making  7Cs
  • 28. Decision Environments Include:  Certain environment  Exist when information is sufficient to predict the results of each alternative in advance of implementation.  Certainty is the ideal problem solving and decision making environment  Risk environment  Exist when decision maker lack complete certainty regarding the outcome of various courses of action, but can assign probabilities of occurrence.  Probabilities can be assigned through objective statistical procedures or personal institution. How are decisions made in Organizations?
  • 29. Decision Environments Include:  Uncertain environment  Exist when managers have so little information that they cannot even assign probabilities to various alternatives and possible outcomes.  Uncertainty forces decision makers to rely on individual and group creativity to success over the problem.  Also characterized by rapidly changing :  External Conditions  IT requirements  Personnel Influencing problem and choice definition.  These rapid changes are also called organized anarchy. How are decisions made in Organizations?
  • 30.  Classical Decision Theory.  Behavioral Decision Theory. DECISION THEORY
  • 31.  Classical Decision Theory: Views the decision maker as acting in a world of complete certainty.  Behavioral Decision Theory: Accepts a world with bounded rationality and views the decision maker as acting only in terms of what he/she perceives about a given situation What are the useful decision making models?
  • 32.  Classical Decision Theory: The Classical Decision Maker:  Faces a clearly defined problem.  Knows all possible action alternatives and their consequences.  Chooses the optimum alternative. It is often used as a model of how Managers should make decisions: The Classical Decision Making Models?
  • 33.  Behavioral Decision Theory: Recognizes that human beings operate with:  Cognitive Limitations.  Bounded Rationality. The Behavioral Decision maker:  Faces a problem that is not clearly defined.  Has limited knowledge of possible action alternatives and their consequences.  Chooses a satisfactory alternative. The Behavioral Decision Making Models?
  • 34.  Classical Decision Theory: May not fit well in a chaotic world. Can be used towards the bottom of many firms, even most high-tech firms.  Behavioral Decision Theory: Fits with a chaotic world of uncertain conditions and limited information. Encourages satisfying decision making. What are the useful decision making models?
  • 35.  Most decision making in organizations goes beyond step-by-step rational choice.  Most decision making in organizations falls some where between the highly rational and the highly chaotic.  Decisions must be made under risk & uncertainty.  Decisions must be made to solve non-routine problems.  Decisions must be made under time pressures and information limitations.  Decisions should be ethical. Decision Making Realities
  • 36.  Deciding who should participate:  Authority Decisions  Made by the Manager or TL without involving other people and by using information that he / she possess.  Consultative Decisions.  Made by one individual after seeking input from group members.  Group Decisions  Made by all members of the group. Authority in Decision Making
  • 37.  Technology.  Culture.  Ethics. What factors do influence Decision Making Process?
  • 38.  Increasingly complex problems and opportunities face decision makers in organizations due to various workplace trends.  These workplace trends are changing the Who, When, Where, and How of decision making. IT and Decision Making  Artificial Intelligence:  The study of how computers can be programmed to think like human beings.  Will allow computers to displace many decision makers.  Expert systems that support decision making by following “Either – or” rules to make deductions. How do Tech., Culture & Ethics influence Decision Making?
  • 39.  Construct.  Compile.  Collect.  Compare.  Consider.  Commit. Six C’s of Decision Making
  • 40.  Construct a clear picture of precisely what must be decided.  Compile a list of requirements that must be met.  Collect information on alternatives that meet the requirements. Six C’s of Decision Making
  • 41.  Compare alternatives that meet the requirements.  Consider the “What might go wrong” factor with each alternative.  Commit to a decision and stick to it. Six C’s of Decision Making
  • 43.  Plan  Do  Check  Act Implement Process  Communicate  Train  Execute  Review
  • 45. WHO IS A LEADER ? "a person who influences a group of people towards the achievement of a goal".
  • 46. WHAT IS LEADERSHIP? Leadership is a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent.
  • 47. LEADERSHIP • Leadership is a fundamental component in any organization and plays a very important role in the different operations in an organization. • An organization may perform better than the other because of the better leadership that it may have which is more effective and dynamic in nature.
  • 48. LEADERSHIP  Leadership is defined as, • Leadership = F ( f , g , w , s) • f = followers • g = goal • w = a measure of willingness on the part of subordinates • s = a give situation
  • 49. TYPES OF LEADERSHIP • Formal leadership formal leadership occurs when a person is appointed or elected as an authority figure. Example - any one who is appointed to the job of a manager is given the authority to exercise formal leadership in relationship to his subordinates.
  • 50. TYPES OF LEADERSHIP • Informal leadership informal leadership is defined as an individual performing a natural leadership role without a position. This generally happens in case of those individuals who are skillful, intelligent in their personality. Example – Religious and civic leaders
  • 51. LEADERSHIP CHARACTERISTICS  A leaders has certain inherent qualities and traits which assist him in playing a direct role and wielding commanding influence over others. some of the traits are, • Energy, drive • Appearance, presentability • A sense of cooperativeness • Enthusiasm
  • 52. LEADERSHIP CHARACTERISTICS • Personality ( height and weight ) • Initiative • Intelligence • Judgement • Self confidence • Sociability • Tact and diplomacy
  • 53. LEADERSHIP CHARACTERISTICS • Moral courage and integrity • Will power and flexibility • Emotional stability • Knowledge of human relations These traits are not universal in nature , nor do all the leaders have all these traits.
  • 54. LEADERSHIP STYLES  The leadership styles can be classified according to the philosophy of the leaders. A style of a leadership is relatively enduring set of behaviours which is a characteristic of the individuals , regardless of the situation’. • Autocratic or dictatorial leadership • Participative or democratic leadership • Laissez-faire or free- reign leadership