Problem Solving and Decision Making Skills

Session Outline Problem /Problem Solving, Decision / Decision Making Approaches / Styles of Decision Making Factors affecting decision making Decision making process Issues / Challenges / Problems in Decision Making Approaches to improve ability to make decisions and solve problems effectively

Problem “In a day, when you don’t come across any problems- you can be sure that you are traveling in a wrong path.” Swami Vivekananda A problem is a situation or a state of affairs that causes difficulties for people. It is also a gap between a current and a desired state. The gap may be viewed as the difference between 'what is' and 'what should be' or 'where we are' and 'where we want to be'.

Problem Solving If a problem is a gap between two states, then problem solving is 'the process of closing that gap, i.e. changing the current state into the desired one.'

A decision is one when there are different things you can do and you pick one of them.

Forethought Some are easy like… Some are difficult like…

Decision Making A matter of choice Basic action of our life Essence of managerial job ‘Wh’ Questions in every aspects of personal or professional life

Decision making Combination of mental, physical and behavioral processes related to: Rationale Resources Results Resolution

“A Decision is a Judgment.” Peter Drucker INTUTION (Gut Feeling – past experience and personal values) REASONING/JUDGEMENT (Facts and Figures)

Decision Making Decision making is a cognitive process leading to the selection of a course of action among the alternatives, and enabling to act for producing desired results. Decision making is a series of logical steps to reach at the agreement for moving forward. Systematic response to a problem situation or forward moving through intelligence, understanding, analysis, rational logical selection, preparedness for implementation.

As an officer, sometimes we know everything we can know As an officer, sometimes we know everything we can know. Sometimes we know only something, but not everything. And sometimes we know absolutely nothing- but we still have to decide !

A correct/right decision makes our life better and gives us some control over life. On the other side, a bad decision may force us to make another one which could be even worse. Like the old saying, if the first button at one’s coat is wrongly buttoned, all the rest will be crooked.

Decision making- essence of managerial function

Decisions in Planning What are the organization’s long term goals? What strategies best achieve these objectives? What should the organization’s short term objectives be? How difficult should individual goals be?

Decisions in Organizing How many employees should I have report directly to me? How much centralization should there be in the organization? How should jobs be designed? When should the organization implement a different structure?

Decisions in Leading How do I handle employees who appear to be low in motivation? What is the most effective leadership style in a given situation? How will a specific change affect worker productivity? When is the right time to stimulate conflict?

Decisions in Controlling What activities in the organization need to be controlled? How should those activities be controlled? When is a performance deviation significant? What type of management information system should the organization have?

Factors Influencing Decision Making Cognitive and personal biases Emotional bias Skills and competencies Situational factors Instrumental factors Political and legal factors Economic and financial factors Technological factors Socio-Cultural factors

Ethical Decision Making Ethical Dilemma_(360p).mp4

Ethical Framework for Decision Making Five Sources of Ethical Standards for Decision Making The Utilitarian Approach The ethical action is the one that will produce the greatest balance of benefits over harms. The Rights Approach The ethical action is the one that most dutifully respects the rights of all affected. The Fairness or Justice Approach The ethical action is the one that treats people equally, or if unequally, that treats people proportionately and fairly. The Common Good Approach The ethical action is the one that contributes most to the achievement of a quality common life together. Virtue Approach The ethical action is the one that embodies the habits and values of humans at their best.

Exercise – Assessment – Test Yourself

Result A score ranging from 41 to 48 is ‘above average’ to ‘’excellent’ and suggests a strong capacity for decision making. A score ranging from 30 to 40 is ‘average’, while a score of 29 or lower is ‘below average’.

Rational Decision Making Process Issue or problem: agenda setting Analysis of issue or problem: Interpretation, identification and understanding SWOT ANALYSIS PEST ANALYSIS STAKEHOLDER ANALYSIS SPOILER ANALYSIS Designing alternatives Examination/assessment of alternatives Pre-decision phase Problem Setting : Separate fact from opinion and speculation Avoid stating the problem as disguised solution State the problem explicitly Specify underlying causes Identify what standard is violated by the problem

Re-decision phase Decision phase Post-decision phase Ranking the alternatives Determination Choice Preparedness for implementation Action plan Monitoring Feedback Evaluation Re-decision phase Acknowledging the lessons learnt Reformed/improved decision making

Assumption of rational decision making Problem clarity Known options Clear preference Constant preference Not time or cost constraints Maximum pay off

Common terms Rationality/bounded rationality Satisficing Intuition Well structured/poorly structured problems Programmed and non-programmed decisions

Levels of decision making

Decision Making Style Conceptual Analytic Directive Behavioral High Low Rational Intuitive Way of thinking Tolerance for ambiguity

Decision Making Style Conceptual Analytic Directive Behavioral High Low Rational Intuitive Way of thinking Tolerance for ambiguity

Decision making styles

Modes of thinking Let’s work on Group Divide the participants into six groups Each group have 15 minutes for group discussion The discussion issue – “The age of Retirement to be extended to 60 years in the Civil Service of Nepal” One participant from each group will present their group’s idea (s)(5 minutes for each participants) in small group of six comprised one person from each group Decide on the issues (5 minutes)

Six Thinking Hats- Team Decision Making

Six Thinking Hats- Team Decision Making

Six Thinking Hats- Team Decision Making

Six Thinking Hats- Team Decision Making meta - cognition

Benefits of Six Thinking Hats’ Method Create awareness that there are multiple perspectives on the issue at hand Convenient mechanism for “switching gears” Rules for the game of thinking Lead to more creating thinking Improve communication Improve decision making

Six Cs of Decision making Construct Compile Collect Compare Consider Commit

Personal trap in decision making Not willing to come out of comfort zone Fear and biasness in thinking and analysis Getting lost in minutia Seeking unanimous approval Willing to decide beyond authority

System trap in decision making Too little, inaccurate or wrong information Overlook viable alternatives or waste time considering alternatives beyond realistic prospects Not following the six Cs Failure to clearly define the expected results Worst of all, failure to reach a decision

“Maybe pushing on that wall to the left will give some space.” System thinking is crucial “Maybe pushing on that wall to the left will give some space.”

“Oops!”

Considerations Priority Ethics Standards Implementation Teams and Network Technicalities Indecisiveness and Decline Diversity Risk propensity

“WE SELDOM HAVE TIME FOR THE IMPORTANT BECAUSE WE ARE WORKING ON THE IMMEDIATE AND THE IMMEDIATE IS SELDOM THE IMPORTANT” - Peter Drucker

“Think Laterally, and be creative.”

Score Interpretation 18-42 Your decision-making hasn't fully matured. You aren't objective enough, and you rely too much on luck, instinct or timing to make reliable decisions. Start to improve your decision-making skills by focusing more on the process that leads to the decision, rather than on the decision itself. With a solid process, you can face any decision with confidence. We'll show you how. 43-66 Your decision-making process is OK. You have a good understanding of the basics, but now you need to improve your process and be more proactive. Concentrate on finding lots of options and discovering as many risks and consequences as you can. The better your analysis, the better your decision will be in the long term. Focus specifically on the areas where you lost points, and develop a system that will work for you across a wide variety of situations. 67-90 You have an excellent approach to decision-making! You know how to set up the process and generate lots of potential solutions. From there, you analyze the options carefully, and you make the best decisions possible based on what you know. As you gain more and more experience, use that information to evaluate your decisions, and continue to build on your decision-making success. Think about the areas where you lost points, and decide how you can include those areas in your process.

How to Overcome Indecisiveness Avoid decidophia: fear of making wrong decisions Be entrepreneurial Better preparedness Ability (knowledge, skill, information) Willingness (desire, aptitude, confidence) Do analysis Develop team and teamwork Networking with like-minded persons Manage stress Dialogue for negotiation Avoid passing buck and rent- seeking tendencies Logically frame the problem realities Use time management skills Balance value and fact