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