IMPROVING DECISION
MAKING AND PROBLEM
SOLVING SKILL
Session Outline
2
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Problem /Problem Solving, Decision / Decision
Making
Approaches / Styles and Process of Decision
Making
Rational decision making process
Ethical Decision Making
Issues / Challenges / Problems in Decision
Making
Approaches to improve ability to make decisions
and solve problems effectively
Importance of Decision Making
3
Whatever you do, you do through making
decisions
 No organisations can be run without making
decisions
 Carries long-term implications. Organisations
grow or fail as a result of decisions made by
its decision makers
 The wellbeing of an organisation depends
almost entirely on the quality of its decisions
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Problem
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“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
6
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.'
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8
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Krishna Seekh - Impact of decision making in our
lives.mp4
Decision
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“A Decision is a Judgment.”
-
Peter Drucker
A decision is a Choice between
or among various alternatives.
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Decision Making
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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.
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Classification of Decisions
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1.
Personal decisions to achieve own
objectives.
2.
Organisational decisions to fulfill the
obligations of own position in the
organisation.
Levels of Decisions
12
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Strategic Level
 Vision
 Mission
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Policy Level
 Goals
 Objectives
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Tactical Level/Functional Level
Operational Level
Levels of …
13
Structured
Unstructured
Level of decision making - Scope
Strategic
Operational
Top Level
Managerial
Middle Level
Lower Level
Conceptual Skills
Human Skills
Technical skills
Organizational Decisions can
be
14
Ill-structured
Type of
Problem
Well-structured
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Programmed
Decisions
Top
Level in
Organization
Bottom
Programmed Decision
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Nonprogrammed
Decisions
A decision that is repetitive and routine and can be made
by using a definite, systematic procedure.
Nonprogrammed Decision
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A decision that is unique and novel.
Nine
dots
Exercise
15
Let’s find ourselves on
which approach we
belong to:
Basic Styles in Decision Making
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Autocratic
 Benevolent
 Exploitative-manipulative
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Democratic
 Consultative
 Participative
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The Authoritarian Approach. Deciding
independently seeking no contributions other than
asking for necessary information and passing them
down the line for implementation. Officers assume the
authority to take decisions alone and to pass them
down the line for implementation.
 The Democratic Approach. Jointly, as a team,
making a decision which has the support of the whole
group. The responsibility for decision making is
shared between the officer and members of a team.
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Range of Decision Making Styles
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Authoritarian Style  The officer makes decisions and announces
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Democratic Style
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them
The officer sells the decision to the team
The officer presents the idea and invites
questions
The officer presents a tentative decision
subject to change
The officer presents a problem, gets inputs
from the team and then decides
The officer defines the limits and asks the
group to make the decision
The officer permits the team to make
decisions with predefined limits
The officer allows team members complete
freedom of action
Rational Decision Making Process
19
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Pre-decision phase
 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
Decision phase
 Ranking the alternatives
 Determination
 Choice
20
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Post-decision phase
 Preparedness
for implementation
 Action
plan
 Monitoring
 Feedback
 evaluation
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Re-decision phase
 Acknowledging
the lessons learnt
 Reformed/improved decision making
Problems in Decision Making
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Real life Decision Makers must cope with:
Inadequate information about the nature of the
problem and its possible solutions,
 The lack of resources to acquire more complete
information,
 Distorted
perceptions of the information
available,
 The inability of the human memory to retain
large amount of information, and
 The limits of their own intelligence to determine
correctly which alternative is best. - Herbert Simon
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Exercise - Assessment
23
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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.
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1.
2.
3.
4.
5.
6.
Basic Approaches to Improve
Decision Making Ability
Improve analytical ability
Adopt systematic approach
Invite conflicting views
Consider factors influencing
decision making
Use imagination / Be creative
Implementation and follow-up
1. Improve Analytical Ability
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Opinions are perfectly good starting
point. Ask questions starting with:
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What,
Why,
When,
How,
Where, and
Who.
2. Adopt Systematic Approach
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Analyse the situation
Identify possible courses of
action
Weigh them up
Decide what to do
3. Invite Conflicting Views
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One should not expect a
bland consensus view
The best decisions emerge
from a clash of conflicting
points of view
4. Consider Factors Influencing
Decision Making
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Availability of resources
Environment- internal / external (PEST)
Capability, values, experience of concerned
people
Knowledge
Biasness / prejudice / interest
Customs and habits of people
Psychological factors- emotion, ethics, values…
Future as anticipated
Superiors and subordinates
5. Use Imagination
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Use 'lateral thinking' and 'brain-storming'.
You can develop your ability to think
creatively by:
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Breaking away from any restrictions
Opening up your mind to generate
new ideas
Delaying judgment until you have
thoroughly explored the alternative
ideas (for example, 'It won't work', 'It won't solve
the problem')
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Nine Dots
6. Implementation and Follow-up
30
A problem is not solved until the
decision is implemented. Think
carefully not only about how a thing
is to be done (who, what, when) but
also about its impact on the people
concerned and the extent to which
they will co-operate.
Some Tips for Effective Decision
Making
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It is not choice between right or wrong, rather
choosing from among alternatives
What is right, not who is right
Consider those affected by the decision (involve if
feasible)
Mentally rehearse implementation of your choice
View a ‘problem’ as an ‘opportunity’
Decision must meet the situation, and be acceptable
to as large number of people as possible
Choosing the right alternative at the wrong time is
not any better than the wrong alternative at the right
time, so make the decision while still have time
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“WE SELDOM HAVE TIME
FOR THE IMPORTANT
BECAUSE WE ARE WORKING
ON THE IMMEDIATE
AND THE IMMEDIATE IS
SELDOM THE IMPORTANT”
- Peter Drucker
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Lord Krishna introspects the basis on which we
make our decisions.mp4
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“Think Laterally,
and be Creative.”
Good luck