1. Problem Solving and Decision Making Skills

2. 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

3. 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'.

4. 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.'

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

6. Forethought
Some are easy like…
Some are difficult like…

7. 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

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

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

12. 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.

13. 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 !

14. 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.

15. Decision making- essence of managerial function

16. 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?

17. 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?

18. 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?

19. 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?

21. 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

22. Ethical Decision Making
Ethical Dilemma_(360p).mp4

23. 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.

24. Exercise – Assessment – Test Yourself

25. 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’.

26. 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

27. 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

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

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

30. Levels of decision making

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

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

33. Decision making styles

34. 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)

35. Six Thinking Hats- Team Decision Making

36. Six Thinking Hats- Team Decision Making

37. Six Thinking Hats- Team Decision Making

38. Six Thinking Hats- Team Decision Making meta - cognition

39. 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

40. Six Cs of Decision making
Construct
Compile
Collect
Compare
Consider
Commit

41. 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

42. 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

43. “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.”

44. “Oops!”

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

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

48. “Think Laterally, and be creative.”

49. 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.

50. 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