This document discusses decision making and problem solving. It describes the differences between programmed and non-programmed decisions, with strategic decisions and complex problems requiring non-programmed decisions. The steps in problem solving and decision making are identified as identifying and diagnosing the problem, developing alternative solutions, evaluating alternatives, choosing a solution, implementing it, and evaluating and controlling the outcome. Factors that influence decision making include bounded rationality, personality, cognitive intelligence, emotional intelligence, information quality and accessibility, politics, uncertainty, crisis, values, and procrastination. Group decision making techniques like nominal group are also covered, along with managing for creativity and innovation.

2. DECISION MAKING AND PROBLEM SOLVING
• A PROBLEM IS A
DISCREPANCY
BETWEEN IDEAL AND
ACTUAL CONDITIONS.

4. • A DECISION IS
CHOOSING AMONG
ALTERNATIVES.
DECISION MAKING AND PROBLEM SOLVING

5. NONPROGRAMMED VERSUS
PROGRAMMED DECISIONS
A PROBLEM THAT TAKES
ANEW AND AN UNFAMILIAR
FORM OR ONE THAT IS
COMPLEX OR SIGNIFICANT
CALLS FOR A NON-
PROGRAMMED DECISION

6. NONPROGRAMMED VERSUS PROGRAMMED DECISIONS
•ALL STRATEGIC DECISIONS
ARE NON-PROGRAMMED.
• A WELL-PLANNED AND HIGHLY
STRUCTURED ORGANIZATION
REDUCES THE NUMBER OF
NON-PROGRAMMED
DECISIONS.

7. PROGRAMMED DECISIONS
ARE REPETITIVE, OR
ROUTINE, AND MADE
ACCORDING TO A SPECIFIC
PROCEDURE.
NONPROGRAMMED VERSUS PROGRAMMED DECISIONS

8. STEPS IN PROBLEM SOLVING AND
DECISION MAKING
•LEARNING TO SOLVE PROBLEMS AND MAKE
DECISIONS PROPERLY IS IMPORTANT.
•MANY MANAGERS DO NOT PAY CAREFUL ATTENTION
TO THE SYSTEMATIC APPROACH OF DECISION
MAKING.

10. 1. IDENTIFY AND DIAGNOSE THE PROBLEM
• PROBLEM SOLVING AND DECISION
MAKING BEGIN WITH THE
AWARENESS THAT A PROBLEM
EXISTS.
• BEING ATTENTIVE TO THE
ENVIRONMENT HELPS THE MANAGER
IDENTIFY PROBLEMS

11. • A THOROUGH DIAGNOSIS OF THE
PROBLEM IS IMPORTANT BECAUSE
THE REAL PROBLEM MAY BE
DIFFERENT FROM WHAT IS
SUGGESTED.
• TO DIAGNOSE A PROBLEM
PROPERLY, YOU MUST CLARIFY ITS
TRUE NATURE.
1. IDENTIFY AND DIAGNOSE THE PROBLEM

12. 2. DEVELOP ALTERNATIVE SOLUTIONS
•INTELLECTUALLY
FREEWHEELING ASPECT OF
DECISION MAKING.
•ALL KINDS OF POSSIBILITIES
ARE EXPLORED, EVEN SOME
THAT SEEM UNREALISTIC.
•AMAZON, ENTREPRENEUR

13. 3. EVALUATE ALTERNATIVE SOLUTIONS
• THE PROBLEM SOLVER EXAMINES
THE PROS AND CONS AND
CONSIDERS THE FEASIBILITY OF
EACH.
• COMPARING RELATIVE VALUE
OFTEN MEANS PERFORMING A
COST AND SAVINGS ANALYSIS OF
EACH ALTERNATIVE.
• I.E. REDUCED WAGES.

14. 4. CHOOSE ONE ALTERNATIVE SOLUTION
• THE PROCESS OF WEIGHING THE
ALTERNATIVES MUST STOP AT SOME
POINT.
• HUMAN RESOURCE DECISIONS ARE
OFTEN THE MOST AMBIGUOUS
BECAUSE MAKING PRECISE
PREDICTIONS ABOUT HUMAN
BEHAVIOR IS SO DIFFICULT.

15. 5. IMPLEMENT THE DECISION
•A FRUITFUL WAY OF
EVALUATING THE MERIT OF
DECISION IS TO OBSERVE ITS
IMPLEMENTATION.
•A DECISION IS SELDOM GOOD
IF THE PEOPLE RESISTS ITS
IMPLEMENTATION

16. 6. EVALUATE AND CONTROL
• INVESTIGATE HOW EFFECTIVELY THE
CHOSEN ALTERNATIVE SOLVED THE
PROBLEM.
• CONTROLLING MEANS ENSURING
THAT THE RESULTS THE DECISION
OBTAINED ARE THE ONES SET THE
FORTH DURING THE PROBLEM-
IDENTIFICATION STEP

17. BOUNDED RATIONALITY AND
INFLUENCES ON DECISION MAKING
BOUNDED RATIONALITY
THE OBSERVATION THAT PEOPLE’S
LIMITED MENTAL ABILITIES, COMBINED
WITH EXTERNAL INFLUENCES OVER
WHICH THEY HAVE LITTLE OR NO
CONTROL, PREVENT THEM FROM MAKING
ENTIRELY RATIONAL DECISIONS

18. • SATISFICING DECISIONS- THOSE
THAT SUFFICE IN PROVIDING A
MINIMUM STANDARD OF
SATISFACTION.
• HEURISTICS- A RULE OF THUMB IN
DECISION MAKING.
BOUNDED RATIONALITY AND
INFLUENCES ON DECISION MAKING

19. INTUITION
INTUITION IS AN EXPERIENCE-
BASED WAY OF KNOWING OR
REASONING IN WHICH
WEIGHING AND BALANCING
EVIDENCE ARE DONE
UNCONSCIOUSLY AND
AUTOMATICALLY.

20. PERSONALITY AND COGNITIVE
INTELLIGENCE
• THE PERSONALITY AND COGNITIVE
INTELLIGENCE OF THE DECISION
MAKER INFLUENCE HIS OR HER
ABILITY TO FIND EFFECTIVE
SOLUTIONS.
• DECISIVENESS- THE EXTENT TO
WHICH A PERSON MAKES UP HIS OR
HER MIND PROMPTLY AND
PRUDENTLY.

21. PERSONALITY AND COGNITIVE
INTELLIGENCE

22. PERSONALITY AND COGNITIVE
INTELLIGENCE

23. • PERFECTIONISM EXERTS A
NOTABLE IMPACT ON DECISION
MAKING.
• PEOPLE WHO SEEK THE PERFECT
SOLUTION TO A PROBLEM ARE
USUALLY INDECISIVE BECAUSE
THEY HESITATE TO ACCEPT THE
FACT THAT A PARTICULAR
ALTERNATIVE IS GOOD ENOUGH.
PERSONALITY AND COGNITIVE
INTELLIGENCE

24. • COGNITIVE (OR TRADITIONAL)
INTELLIGENCE CARRIES A PROFOUND
INFLUENCE ON DECISION-MAKING
EFFECTIVENESS.
• IN GENERAL, INTELLIGENT AND WELL-
EDUCATED PEOPLE ARE MORE LIKELY TO
IDENTIFY PROBLEMS AND MAKE SOUND
DECISIONS THAN ARE THOSE WHO HAVE
LESS INTELLIGENCE AND EDUCATION.
PERSONALITY AND COGNITIVE
INTELLIGENCE

25. EMOTIONAL INTELLIGENCE
•EMOTIONAL INTELLIGENCE
REFERS TO QUALITIES SUCH
AS UNDERSTANDING ONE’S
OWN FEELINGS, EMPATHY
FOR OTHERS, AND THE
REGULATION OF EMOTIONS
TO ENHANCE LIVING.

26. KEY FACTORS OF EMOTIONAL
INTELLIGENCE
•SELF-AWARENESS
THE ABILITY TO
UNDERSTAND YOUR OWN
EMOTIONS IS THE MOST
ESSENTIAL OF THE FOUR
EMOTIONAL INTELLIGENCE
COMPETENCIES.

27. KEY FACTORS OF EMOTIONAL
INTELLIGENCE
•SELF-MANAGEMENT
THE FACTOR IS THE ABILITY
TO CONTROL ONE’S
EMOTIONS AND ACT WITH
HONESTY AND INTEGRITY IN
A CONSISTENT AND
ADAPTABLE MANNER.

28. •SOCIAL AWARENESS
THIS COMPETENCY
INCLUDES HAVING EMPATHY
FOR OTHERS AND HAVING
INTUITION ABOUT
ORGANIZATIONAL
PROBLEMS
KEY FACTORS OF EMOTIONAL
INTELLIGENCE

29. RELATIONSHIP MANAGEMENT
• THIS COMPETENCY INCLUDES
THE INTERPERSONAL SKILLS OR
CLEAR AND CONVINCING
COMMUNICATION, THE ABILITY
TO DISARM CONFLICTS, AND THE
ABILITY TO BUILD A STRONG
PERSONAL BONDS.
KEY FACTORS OF EMOTIONAL
INTELLIGENCE

30. QUALITY AND ACCESSIBILITY OF
INFORMATION
• THE ABILITY TO SUPPLY MANAGERS
WITH HIGH-QUALITY INFORMATION
FORMS THE MAJOR JUSTIFICATION
FOR INFORMATION SYSTEMS.
• ACCESSIBILITY MAY BE EVEN MORE
IMPORTANT THAN QUALITY IN
DETERMINING WHICH INFORMATION IS
USED OR NOT USED.

31. • ANCHORING
OCCURS DURING DECISION
MAKING WHEN HE MIND GIVES
TOO MUCH WEIGHT TO THE
FIRST INFORMATION IT
RECEIVES.
QUALITY AND ACCESSIBILITY OF
INFORMATION

32. POLITICAL CONSIDERATIONS
• POLITICAL FACTORS
SOMETIMES INFLUENCE
WHICH DATA ARE GIVEN
SERIOUS CONSIDERATION
IN EVALUATING
ALTERNATIVES.
• THE STATUS QUO TRAP
TIES DECISIONS TO
POLITICAL FACTORS.

33. •REVENGE IS BOTH A
POLITICAL AND AN
EMOTIONAL FACTOR IN
DECISION MAKING
POLITICAL CONSIDERATIONS

34. DEGREE OF CERTAINTY
• DEGREE OF CERTAINTY IS DIVIDED
INTO THREE CATEGORIES:
CERTAINTY, RISK AND
UNCERTAINTY.
• A CONDITION OR CERTAINTY
EXISTS WHEN THE FACTS ARE
WELL KNOWN AND THE OUTCOME
CAN BE PREDICTED ACCURATELY.

35. CRISIS AND CONFLICT
• IN A CRISIS, MANY DECISION MAKERS
PANIC.
• DECISION MAKERS WHO ARE
ADVERSELY AFFECTED BY CRISIS
PERCEIVE IT TO BE A STRESSFUL
EVENT.
• A RECOMMENDATION FOR BECOMING
MORE ADEPT AT MAKING DECISIONS
UNDER CRISIS CONDITIONS IS TO
ANTICIPATE CRISES.

36. VALUES OF THE DECISION MAKER
ALL DECISIONS ARE
BASED ON VALUES.

37. PROCRASTINATION
PROCRASTINATION
TO DELAY IN TAKING ACTION
WITHOUT A VALID REASON.

38. DECISION-MAKING STYLES
• THE VARIOUS FACTORS THAT INFLUENCE
THE QUALITY OF DECISION IN MAKING ALSO
CONTRIBUTE TO A MANAGER’S TYPICAL
PATTERN OF MAKING DECISION.
• DECISION STYLES DIFFER INTO
FUNDAMENTAL WAYS:
• HOW INFORMATION IS USED AND;
• HOW OPTIONS CREATED.

39. •DECISIVE (ONE OPTION, LESS
INFORMATION).
DECISION MAKERS VALUE
ACTION, SPEED, EFFICIENCY AND
CONSISTENCY.
DECISION-MAKING STYLES

40. GROUP PROBLEM SOLVING
•THE PROCESS OF
SEVERAL PEOPLE
CONTRIBUTING TO A FINAL
DECISION.

41. ADVANTAGES OF GROUP DECISION
MAKING
•HIGHER QUALITY OF DECISION
•EVALUATION OF EACH OTHER’S
THINKING
•HELPS IN GAINING ACCEPTANCE
AND COMMITMENT
•UNBLOCKS MINDS

42. DISADVANTAGES OF GROUP DECISION
MAKING
•TIME CONSUMING.
•COMPROMISING.

43. NOMINAL GROUP TECHNIQUE
• NGT IS A GROUP DECISION-MAKING
TECHNIQUE THAT FOLLOWS A
HIGHLY STRUCTURED FORMAT.
• THE TERM NOMINAL MEANS THAT
FOR MUCH OF THE ACTIVITY, THE
PARTICIPANTS ARE A GROUP IN
NAME ONLY; THEY DO NOT
INTERACT.

44. 1. GROUP MEMBERS (CALLED THE TARGET GROUP) ARE
SELECTED AND ASSEMBLED.
2. THE GROUP LEADER PRESENTS A SPECIFIC
QUESTION.
3. INDIVIDUAL MEMBERS WRITE DOWN THEIR IDEAS
INDEPENDENTLY, WITHOUT SPEAKING TO OTHER
MEMBERS.
NOMINAL GROUP TECHNIQUE

45. 4. EACH PARTICIPANT, IN TURN, PRESENTS ONE IDEA TO
THE GROUP, PROJECTED ON A LARGE SCREEN.
5. AFTER EACH GROUP MEMBER HAS PRESENTED HIS OR
HER IDEA, THE GROUP CLARIFIES AND EVALUATES THE
SUGGESTIONS.
6. THE MEETING ENDS WITH A SILENT, INDEPENDENT
RATING OF THE ALTERNATIVES. THE FINAL GROUP
DECISION IS THE POOLED OUTCOME OF THE INDIVIDUAL
VOTE.
NOMINAL GROUP TECHNIQUE

46. CREATIVITY AND INNOVATION IN
MANAGERIAL WORK
CREATIVITY
THE PROCESS OF DEVELOPING
NOVEL IDEAS THAT CAN BE PUT
INTO ACTION.

47. THE CREATIVE PERSONALITY
•EMOTIONALLY OPEN AND
FLEXIBLE
•BREAK THE RULES SOMETIMES
AND UNCONVENTIONAL

48. CONDITIONS NECESSARY FOR
CREATIVITY
•EXPERTISE, CREATIVE-THINKING
SKILLS, AND INTERNAL
MOTIVATION
•ENVIRONMENTAL NEED PLUS
CONFLICT AND TENSION
•ENCOURAGEMENT FROM OTHERS

49. EXPERTISE, CREATIVE-THINKING
SKILLS, AND INTERNAL MOTIVATION
•EXPERTISE REFERS TO
NECESSARY KNOWLEDGE TO
PUT FACTS TOGETHER.
•FLOW EXPERIENCE : A
CONDITIONED HEIGHTENED
FOCUS, PRODUCTIVITY, AND
HAPPINESS.

50. ENVIRONMENTAL NEED PLUS CONFLICT
AND TENSION
AN ENVIRONMENTAL NEED
MUST STIMULATE THE
SETTING IF A GOAL, WHICH IS
ANOTHER WAY OF SAYING,
"NECESSITY IS THE MOTHER
OF INVENTION"

51. ENCOURAGEMENT FROM OTHERS
•A MANAGER WHO ENCOURAGES
IMAGINATIVE AND ORIGINAL
THINKING, AND DOES NOT PUNISH
PEOPLE FOR MAKING HONEST
MISTAKES, IS LIKELY TO RECEIVE
CREATIVE IDEAS FROM
EMPLOYEES.

52. WORKING AT GOOGLE

53. THE CREATIVE AND INNOVATIVE
ORGANIZATION
1. CHALLENGE.
GIVING EMPLOYEES THE
RIGHT TYPE AND AMOUNT
OF CHALLENGE HELPS
PROVIDE S CREATIVE
ATMOSPHERE

54. 2. FREEDOM.
TO BE CREATIVE,
EMPLOYEES SHOULD HAVE
THE FREEDOM TO CHOOSE
HOW TO ACCOMPLISH A
GOAL, BUT NOT WHICH GOAL
TO ACCOMPLISH.
THE CREATIVE AND INNOVATIVE
ORGANIZATION

55. 3. RESOURCES
MANAGERS MUST ALLOT TIME
AND MONEY CAREFULLY TO
ENHANCE CREATIVITY.
THE CREATIVE AND INNOVATIVE
ORGANIZATION

56. 4. REWARDS AND RECOGNITION
FOR INNOVATIVE IDEAS.
EVEN THOUGH INTERNAL
MOTIVATION IS ESSENTIAL FOR
INNOVATION, EXTERNAL
REWARDS AND RECOGNITION
ARE ALSO HELPFUL.
THE CREATIVE AND INNOVATIVE
ORGANIZATION

57. 5. ALLOCATING TIME FOR
INNOVATIVE THINKING.
WORKERS NEED TIME TO
THINK IN ORDER TO BE
CREATIVE
THE CREATIVE AND INNOVATIVE
ORGANIZATION

58. 6. BUILDING ON IDEAS OF
OTHERS.
AS DESCRIBED EARLIER,
ENCOURAGEMENT
FACILITATES CREATIVITY.
THE CREATIVE AND INNOVATIVE
ORGANIZATION

59. ORGANIZATIONAL PROGRAMS FOR
CREATIVITY
•CREATIVITY TRAINING
•BRAINSTORMING
•SYSTEMATICALLY GATHERING
IDEAS
•APPROPRIATE PHYSICAL
SURROUNDINGS

60. SIX SPECIFIC CREATIVITY-BUILDING
SUGGESTIONS
1. KEEP TRACK OF YOUR ORIGINAL IDEAS BY MAINTAINING
AN IDEA NOTEBOOK OR A COMPUTER FILE.
2. STAY CURRENT IN YOUR FIELD AND BE CURIOUS ABOUT
YOUR ENVIRONMENT.
3. IMPROVE YOUR SENSE OF HUMOR, INCLUDING YOUR
ABILITY TO LAUGH AT YOUR OWN MISTAKES.

61. 4. ADOPT A RISK-TAKING ATTITUDE WHEN YOU TRY TO FIND
CREATIVE SOLUTIONS.
5. IDENTIFY THE TIMES WHEN YOU ARE MOST CREATIVE
AND ATTEMPT TO ACCOMPLISH MOST OF YOUR CREATIVE
WORK DURING THAT PERIOD.
6. WHEN FACED WITH A CREATIVITY BLOCK, STEP BACK
FROM THE PROBLEM AND ENGAGE IN A LESS MENTALLY
DEMANDING TASK FOR A BRIEF PAUSE, OR EVEN A DAY.
SIX SPECIFIC CREATIVITY-BUILDING
SUGGESTIONS

62. SELF HELP TECHNIQUES IN IMPROVING
CREATIVITY.
•PLAY THE ROLES OF EXPLORER,
ARTISTS, JUDGE AND LAWYER.
•ENGAGE IN APPROPRIATE
PHYSICAL EXERCISE.