Decision Making and

Problem Solving

LBM MD3Y1-7Group 1

Decision-making and problem-solving are basic ingredients of leadership.

More than anything else, the ability to make sound, timely decisions separates a leader from a non-leader.

It is the responsibility of leaders to make high- quality decisions that are accepted and executed in a timely fashion.

A good decision: resolves an issue or responds

effectively to an event. considers those who must implement

it.anticipates negative consequences

and aims for a preponderance of benefits.

It does not require that everyone be happy with the result or agree with the decision-maker.

It reflects the integrity of the decision-making process. In short, good decisions work.

What is a good decision?

Integrity Commentators routinely bemoan the absence of

integrity, whether in the form of CEOs’ and political leaders’ shortcomings, celebrities’ moral lapses, or the media’s repeated violations of public sensibilities. Few who use the term “integrity” define what they mean. Most speak only about the space left when integrity is missing in action.

Some authors define integrity as a dimension of a decision-maker’s character.

Others define it as a stand-alone quality of a decision or action, without regard to process or context.

a decision-maker builds integrity as she goes. Complete decisions, decisions made with integrity, feature three elements: they are whole, coherent, and transparent. The process of reaching such a decision is deliberate and always makes space for reflection. Even when decisions must be made quickly, reflection is always possible, always important. Without it, any decision is incomplete and more likely to fail.

Characteristic of a Good Decision

First, decisions made with integrity are whole. A building has structural integrity when all

necessary supporting components are present, solid, and connected, from the foundation to the roof.

An important decision requires similar attention if it is to stand and endure.

The foundation stones for all significant decisions are our values. We choose and decide based on what is important to us.

A decision is whole and sound when we’ve done the homework and understand what is involved. We’ve talked with, or at least thought about, others who deserve to be considered.

Finally, before we act, we have reflected on what really matters. We have covered the bases.

Characteristic of a Good Decision

Second, decisions made with integrity are coherent. Coherence comes when the reasons we give for

our decision actually align with the decision itself. It is not accidental. We create it. When we

deliberately integrate our beliefs and actions, we walk our talk.

There is more to good decision-making than facing difficult situations with courage, acting with resolve, and believing that doing so is sufficient.

Missing is the up-front work of considering important values, others’ and ours. When our reasons and values resonate with our decisions, coherence is obvious. Good decisions are coherent.

Characteristic of a Good Decision

Finally, good decisions are transparent. Without direct, on-the-level communication,

integrity suffers. Every week, newspapers feature exposés of

political corruption, government cover-ups, or business scandals.

Op-ed columnists lament the absence of accountability in public and political arenas.

Nationwide, our citizens report that they just don’t believe what they read and hear.

Accountability and trust rest on openness and honesty.

When we speak directly and candidly to others about our decision and its impact, we become accountable for our choice. Integrity requires telling the truth, including the hard parts.

Characteristic of a Good Decision

A good decision, one that is whole, coherent, and transparent, succeeds at each step

A decision’s integrity mirrors the quality of the decision-maker’s process

character and intent matter, as does the ethical content of the final decision, no book can dictate to you what a good decision is in your particular situation

Characteristic of a Good Decision

The Human Element Leaders must be able to reason under the most

critical conditions and decide quickly what action to take.

If they delay or avoid making a decision, this indecisiveness may create hesitancy, loss of confidence, and confusion within the unit, and may cause the task to fail. Since leaders are frequently faced with unexpected circumstances,

it is important to be flexible — leaders must be able to react promptly to each situation.

Then, when circumstances dictate a change in plans, prompt reaction builds confidence in them.

Steps in Making a sound decision SEVEN-STEP PROBLEM-SOLVING, DECISION-MAKING

PROCESS

1. Identify (recognize/define) the problem.

2. Gather information (facts/assumptions).

3. Develop courses of action (solutions).

4. Analyze and compare courses of action (alternatives/solutions).

5. Make a decision; select the best course of action (solution).

6. Make a plan.

7. Implement the plan (assess the results).

Decision Making Techniques

1. Group decision making: A number of studies have shown

that professional people do not function well under micromanagement.

Group problem solving casts the manager in the role of facilitators and consultant.

Compare to individual decision making , group can provide more input and better decision.

2. Nominal group technique (NGT)

It is eliciting written questions, ideas, and reactions from group members.

Consists of :- Silently generating ideas in written.- Round-robin presentation by group members

of their ideas on a flip chart.- Discussing each recorded idea and evaluate.- Voting individually on priority ideas, with

group solution being derived mathematically through rank ordering.

Decision Making Techniques

3. Delphi technique

judgment on a particular topic are systematically gathered from participants who do not meet face to face.

Useful when expert opinions are needed .

Decision Making Techniques

4. Statistical aggregation:

Individuals are polled regarding a specific problem and their responses are tallied .

like Delphi technique , does not require a group meeting.

no opportunity for group members to strength their interpersonal tie or interaction.

Decision Making Techniques

5. Brainstorming

The idea generating technique wherein a Group

members meet and generate diverse ideas about

the nature, cause , definition, or solution to a

problem without regard to questions of feasibility

or practicality. Through this technique, individuals

are encouraged to identify a wide range of ideas.

Usually, one individual is assigned to record the

ideas on a chalkboard. Brainstorming may be used

at any stage of the decision- making process, but

it is most effective at the beginning, once a

problem has been stated.

Decision Making Techniques

Brainstorming is most effective for simple, well-defined problems. It encourages enthusiasm and competitiveness among group members in generating ideas. It also prevents group members from feeling hopeless about the range of possibilities in a given situation. Two methods are more frequently used.

Decision Making Techniques

6. fishbone diagram (causes and effect)

Is drawn after a brainstorming session, the central problem is visualized as the head of the fish, with the skeleton divided into branches showing contributing causes of different parts of the problem.

Decision Making Techniques

7. Thomas Saaty's Analytical Hierarchy Matrix

Thomas Saaty's Analytical Hierarchy Matrix

List alternatives in columns and rows as depicted in the matrix above. Starting with Alternative A, go across columns in the matrix and rate each alternative against all the others.When the alternative under consideration has more value than the others,Then give the more valuable alternative a score of When the alternative has less value than the others.Then give the less valuable alternative a score of Add the scores for each row/alternative; highest score is the highest rated alternative according to the criteria you used. In the matrix above, Alternative C scores highest, so it's the highest rated alternative.

8. Pareto Analysis

Selecting the Most Important Changes To Make.

It uses the Pareto principle - the idea that by doing 20% of work you can generate 80% of the advantage of doing the entire job

is a formal technique for finding the changes that will give the biggest benefits.

How to use tool:

1.write out a list of the changes you could make

2.  Then score the items or groups.

3.The first change to tackle is the one that has the highest score

Decision Making Techniques

9. Paired Comparison Analysis Working Out the Relative Importance of Different Options.

helps you to work out the importance of a number of options relative to each other. It is particularly useful where you do not have objective data to base this on.

easy to choose the most important problem to solve, or select the solution that will give you the greatest advantage .

How to use tool:

list your options. Then draw up a grid with each option as both a row and a column header.

use this grid to compare each option with each other option

decide which of the two options is most important

Decision Making Techniques

10. PMI ('Plus/Minus/Implications' )

Weighing the Pros and Cons of a Decision.

How to use :

focused on selecting a course of action from a range of options.

check that it is going to improve the situation

draw up a table headed up with: 'Plus', 'Minus',

In the column underneath 'Plus', write down all the positive results of taking the action. Underneath 'Minus' write down all the negative effects. In the 'Implications' column write down the implications and possible outcomes of taking the action, whether positive or negative.

Decision Making Techniques

11. Six thinking hats

Looking at a Decision from All Points of View

  It is used to look at decisions from a number of important perspectives. This forces you to move outside your habitual thinking style, and helps you to get a more rounded view of a situation.

'6 Thinking Hats‘

How to the Tool:

Each 'Thinking Hat' is a different style of thinking.

Decision Making Techniques

White Hat: With this thinking hat you focus on the data

available. Look at the information you have, and see what you can learn from it.

Red Hat: you look at problems using intuition, gut

reaction, and emotion . Try to understand the responses of people

who do not fully know your reasoning.

Black Hat: look at all the bad points of the decision .

Decision Making Techniques

Yellow Hat:The yellow hat helps you to think positively. It is the optimistic viewpoint that helps you to see all the benefits of the decision and the value in it

Green Hat:The Green Hat stands for creativity. This is where you can develop creative solutions to a problem

Blue Hat:The Blue Hat stands for process control. This is the hat worn by people chairing meetings. When running into difficulties because ideas are running dry, they may direct activity into Green Hat thinking. When contingency plans are needed, they will ask for Black Hat thinking,

Decision Making Techniques

12. Decision grid: A decision making process grid is a matrix for

comparing multiple options when there are also several criteria to consider.

It has many names, including Pugh matrix, solution matrix, decision making matrix, decision grid, problem selection grid.

It is a rational model and is also classed as a visual decision tool.

When the complexity of the decision increases these decision making tools and techniques can prove useful. Especially as the number of options and criteria increase.

Decision Making Techniques