Decision Making - A fundamental to Problem Solving*IIHMLEADERSHIP

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What is a problem and how we can solve it?Types of problems and decisionsDecision Making modelDecision making stylesDecision making techniques

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A problem is basically a deviation from the norm, serious enough to require correction.

A problem is a gap between the way things are and the way we would like them to be.

A problem is a gap between the goal and the actual state of affairs.*IIHM

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Problem-solving is the process we use to bring these two elements back into alignment. Its how we close the gap.*IIHM

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Fix it problem &Do it problem*IIHM

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Problem is a gap between the way things are and the way we would like them to be

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A decision is a choice between two or more alternatives. It may involve a crisp yes or no answer or it may mean choosing the best from set of alternatives which are all satisfactory.*IIHM

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Problem solving concerns itself with things that have already happened.

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Decision-making focuses on building and shaping the future.*IIHM

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The Need for a Range of Skills:Communication SkillsInterpersonal SkillsConceptual Skills are especially important for decision-makingTechnical Skills

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Planning, Controlling, Organizing and Leading. *IIHM

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Organisational Decision making:The process of responding to a problem by searching for and selecting a best solution or course of action that will create value for organisational stakeholders.

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Programmed decisions A repetitive decision the can be handled by a routine approach

Non-programmed decisionsDecision that are unique and non-recurring.Decision that generate unique responses.

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CharacteristicsProgrammed decisionsNon-programmed decisionsType of problemStructuredUnstructuredManagerial levelLower levelUpper levelFrequencyRepetitiveNew,unusualInformationReadily availableAmbiguous or incompleteTime frame for solutionShortRelatively longSolution relies on Procedures, rules, and policiesJudgment and creativity

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Stage 1 Problem awareness and diagnosisStage 2 Set objectivesStage 3 Search for alternative solutionsStage 4 Compare and evaluate alternative solutionsStage 5 Choose among alternative solutionsStage 6 Implement the solution selectedStage 7 Follow-up and control*IIHM

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Types of Decision Makers:* Directive Use minimal information and consider few alternatives.* Analytic Make careful decisions in unique situations.* Conceptual Maintain a broad outlook and consider many alternatives in making decisions.* Behavioral Avoid conflict by working well with others and being receptive to suggestions.

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OverconfidenceImmediate GratificationAnchoring EffectSelective PerceptionframingAvailabilityRepresentationRandomnessSunk costsSelf-servingHindsightDecision-Making Errors *IIHM

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Some techniques for improving decision makingBrainstorming Nominal group technique (NGT)Delphi techniqueConsensus mapping*IIHM

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Idea generation for decision making. (A 1) Brainstorming *IIHM

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Problem outlined, presentation of solution in written form, discussion over written solutions, and final decision.Nominal group technique (NGT) *IIHM

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Decision made on the basis of questionnaire filled by the respondents.Delphi technique *IIHM

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It helps teams structure ideas into organized and interrelated setsConsensus mapping*IIHM

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Guidelines for making decisions more effectiveCategorical interpretation- The problem should be defined properly.Adequate information- More quantity of reliable information leads to effective decision making.Considering other views- Various views at the same point are taken into account for quality decision.Well-timed- Decision should be made at proper time to meet the competitive advantage.

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Q& A?*IIHM

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Managers need to employ four types of skill in order to perform their tasks successfully, independent of whether the management is of a small scale enterprise or a global organization.*In order to be able to carry out the above functions, leaders/ managers need to determine what needs to be done in each activity. The process of making that determination is decision-making.

Clearly, the range of decisions need to be made will vary greatly, depending on thesituation, the level within the organisation, the importance attached to the decision, etc.However, what can always be said is that the better the quality of the decision-makingprocess, the more likely it is that good decisions will be made.Decisions may be conscious or unconscious, but whatever the circumstances, there arealways a number of common elements which underpin them. This unit is concerned with thedecision-making process and looks at general rules and techniques which can be applied toit in order to enhance that quality.

*Types of Programmed Decisions

Policy* a general guideline for making a decision about a structured problem.Procedure* A series of interrelated steps that a manager can use to respond ( applying a policy) to a structured problem.Rule* an explicit statement that limits what a manager or employee can or cannot do.

***->5 min->Brainstorming : What do U mean by leadership ?What attributes are needed for a good leadership?*