Problem solving & decision making
Download as PPTX, PDF0 likes1,109 views
This document discusses problem solving and decision making. It defines problem solving as the process of finding a way to get from the current situation to a more desirable one. Decision making is the process of choosing between options and determining the potential consequences. Problem solving is focused on analyzing past issues, while decision making is more creative and strategic. The document provides various frameworks for problem solving, such as the five whys technique and fishbone diagrams. It also outlines systematic processes for decision making, including defining the problem, gathering information, weighing alternatives, and evaluating outcomes. Team-based approaches are recommended, but the challenges of group decisions are noted. The consensus grid tool is presented as a way to build agreement within a team.
Problem solving & decision making
- 1. By Dr Satyanarayana Dash, IAS (Retd.) Ex-Secretary (Heavy Industry) to Government of India
- 2. Problem Solving is cognitive processing directed at achieving a goal where no solution method is obvious to the problem solver. Problem Solving is the art of finding the way to get from where you are to where you want to be. The “Problem” is, therefore, the gap between the present situation and a more desirable one. Running away from the problem only increases the distance from the solution . The easiest way to escape from the problem is to solve it.
- 3. Something is a Problem, if it increases your time and cost of achieving your goal thereby requiring more resources, affecting your performance adversely. Time, Cost and Resources form the Triangle of the Triple Constraint Principle. Problem solving is bridging the gap between the way things are and the way they should be. Problems at the workplace could arise due to (i) working with different types of people (ii) unable to meet targets and deadlines (iii) working within tight budgets (iv) getting approval from the supervisor (v) working within norms and culture of the organization.
- 4. Decision making is the art of narrowing down the possibilities, choosing a course of action and determining the potential consequences of such action. Decision making is a broader concept, i.e. making a choice between two or more options. While Problem Solving is focused on the past, usually analytical or operational and usually done at lower levels, Decision Making is often creative, directional and usually done at senior levels.
- 5. Thus problem solving is a part of Decision making and usually a subset of Decision Making. Problem Solving is a Skill, Tool and a Process. Skill acquired can be used repeatedly like riding a bi cycle or learning a language. Tools help us in solving immediate problems or achieving a goal. Process involves taking a number of steps It is not a problem that we have a problem. It is a problem if we do not deal with the problem--- Mary Kay Utech
- 6. Communication Problems (Your Boss may be rude and not empathetic) Attitude Problems (Arise due to egoistic Boss or Colleagues) Interpersonal Challenges between Supervisor and Subordinate (Boss does not approve your proposal in spite of meticulous efforts made by you) Poor Performance (Facing problems for not meeting targets)
- 7. Discrimination or Harassment (Not getting Promotion in spite of hard work or women facing sexual harassment at Work Place) Policies unique to your organization ( Not giving Maternity/Paternity Leave for bringing up Children) Processes to be followed for work related issues (Taking approval of proposal at several levels ) Type of Clients serviced by the Organization (meeting clients who are abusive and exhibiting bad behavior)
- 8. Inadequate resources or equipment ( lack of sufficient number of computers) Problems of the Culture of your Organization (Your values are not in tune with values of your organization) Ethical Problems ( Your organization does not believe in ethical decision making or behavior)
- 9. Specific steps you take to resolve problems in your organization Solving problems based on your mood or mood of the problem creator Watching your subordinate’s reaction to your method of solving problems Your Success Rate ? (Say in the Scale of 1-10)
- 10. Acknowledge and understand the existence of the Problem Learn about the situation and listen to the stakeholders about the problem Overcome Impatience and Motivate others to support you in finding solutions Ask relevant questions and visualize the solution. Restate the problem in your own words and explain to others.
- 11. Use your prior experience in the matter, collect all relevant data and study the pattern. Sometimes solution may be required based on available imperfect knowledge. Generate all alternative solutions , select the best alternative and decide. Test, Use and Evaluate– Check each step and be sure that each step is correct.
- 12. Trial & Error Method – Solve by trying many methods, hoping one method will work Experimentation- By conducting experiments on smaller scale and testing of theory to enhance knowledge & understanding Affinity Map- Used to organize Ideas and Data Problem Solving Model- Take definite steps towards Problem Solving Five “Why ?”s Analysis Fishbone Analysis- By drawing Cause & Effect Ishikawa Diagram
- 13. Recognize the existence of the problem and define it in clear understandable simple language Gather Information by asking questions like Who, What, Why , When, Where & How Analyze the Information gathered and see if any past solutions to such problems have been attempted
- 14. Develop Solutions and Choose the Best- Identify the features of an ideal solution including the conditions it should satisfy. Identify risks associated with each solution Implement the Solution- Take appropriate action to monitor its effects Evaluate the Solution-Review the Consequences of actions taken to implement the Solution
- 15. Problem Solving Model will be the result of facts and analysis rather than of opinions and feelings Identification of real problem is extremely important If wrong cause and its solution is selected, the problem will linger
- 16. Problem : Customers of the Company are unhappy, because Products do not meet their specifications Q: Why are Customers unhappy ? A:Because they are being shipped bad products. Q: Why are Customers being shipped bad products ? A:Because the manufacturer built the Products different from what customers want & salesperson agreed to. Q:Why did manufacturer built the Product to a different specification than what the Customer & the Salesperson wants ?
- 17. A: Because the Salesperson called the Head of Manufacturing i.e. Director (Production) directly to tell about the Specification of Products. This is to expedite work. But error happened when specifications were written down or sometimes forgotten to be communicated. Q: Why does the Salesperson call the Director (Production) instead of following the protocol ? A: Because, the work order requires the approval of Director (Sales) before the work can begin and this slows manufacturing process( or even stops it when the Director is out of the office).
- 18. Q:Why does the Work Order form require the approval of Director (Sales) ? A: Because the Sales Director needs to be continually updated on Sales for discussion with the CEO of the Company. Normally, by asking Five Whys ?, we reach the root cause of the Problem. It may actually be Five Why? Questions or even less or more. It is one of the methods to arrive at the root cause of the Problem. Five number is just a norm.
- 19. Problem:Washing Machine stops working Q1: Why did the Washing Machine stop working? A: The Fuse blew. Q2: Why did the Fuse blow? A:Because the Motor overheated. Q3: Why did the Motor overheat ? A:Because its shaft was misaligned. Q4:Why was the shaft misaligned? A:Because the shaft bearing was damaged. Q5: Why was the shaft bearing damaged ? A:Because the Shaft seal was missing.
- 20. For want of a Nail, the shoe was lost For want of a shoe, the horse was lost For want of a horse, the warrior was lost For want of a warrior, the battle was lost For want of a battle, the Kingdom was lost All for want of a Nail
- 21. * Fishbone Analysis is a systematic way of understanding a Problem and find the Root Cause of the Problem. It is called so because the design of the Diagram looks like the Skeleton of the fish. It was developed by Dr Kaoru Ishikawa, a Quality Control Statistician. It nicely categorizes many potential causes of the Problem in a systematic way and helps identify the root cause.
- 22. The Central Problem is marked in the head of the Fish Skeleton which are divided into branches indicating different contributing causes of the problem. Each contributing cause is further subdivided into branches having sub causes which result in the contributing cause of the problem. Usually, the Main contributing causes could be categorized into templates as follows:- For Production Processes, 6 M’s: Methods, Machines, Materials, Manpower, Measurement & Management
- 23. For doing different services:6 P’s- People, Process, Policies, Plant, Program, Place For various technical glitches:4 S’s- Surroundings, Suppliers, Systems, Skills For each category, identify factors that account for the problem by asking “Why is this happening ?”. Put in additional factors till you do not get any further useful information.
- 24. Analyze the results of Fishbone Analysis by looking at items appearing in more than one category– these are the most likely causes. List them in order of priority . The first item is the most likely Root Cause of the Problem. Some Examples of Fishbone Analysis (Multiple Causes to One Effect), Reverse Fishbone Analysis (One Cause to Multiple Effects) are shown in slides next.
- 28. Confidence in his ability to learn and ability to solve problems Reliance on their own judgement Not fearful of being wrong or making mistakes They are not fast answerers They are flexible and often capable of seeing more than one answer to a question or a problem
- 29. Knows difference between fact and opinion and understands need for valid evidence Understands that we do not need an absolute, final and irrevocable solution to every problem Knows methods of approaching and solving problems They continually sharpen their approaches and problem solving tools for future problems
- 30. They have a Positive “Can Do” Attitude They take commitments from all parties for consensus building on the solution They strive their maximum cases of Win-Win solutions They should be capable of applying financial tools like Net Present Value Analysis (NPA), Break Even Analysis (BEA), Payback Period, Internal Rate of Return (IRR) for solving Financial Problems
- 31. Supervisor is not expected to solve all problems coming before him--- He can delegate appropriately & refer the problem to other people. He needs to take full responsibility to get the facts needed to solve problems He avoids making major issue out of every problem and makes good planning to avoid crisis.
- 32. He puts each issue into perspective to evaluate alternatives so that appropriate amount of time is devoted to finding solutions He avoids inappropriate responses to failures He acknowledges problems but does not agonize over these– he learns the lessons and moves on He consults colleagues and outside experts when required He does not make tall problems to subordinates or boss, which can not be met.
- 33. Decisions could be of three types * Routine: Routine decisions are made on the basis of well defined rules, guidelines or on the basis of well established precedents, like shortage of application forms etc *Adaptive: These are decisions made when problems and alternative solutions are somewhat unusual and only partially understood like changing office timings, work patterns or methods of assignment
- 34. Innovative: These are decisions made when problems are unusual and unclear and creative solutions are necessary How does one approach each type of decision? Would you delegate? Would you pass it on to your Boss ? Would you consult a Colleague or Outside Expert ? Would you take input from Team Members ? What Process would you use ? Would you rely on your judgement or rely on the judgement of outside experts?
- 35. Knowledge & Experience Creative Thinking Stress Interpersonal Conflict Time available, money & energy Routine versus non routine decisions Risks associated with the decision Critical nature of work
- 36. Written guidelines in the matter Organization’s attitude towards decision making Amount & Type of Information available Degree of acceptance of decision & support Manager’s personal ability Understanding of Financial Analysis for financial decision making
- 37. Follow a Systematic Process– Similar to the Problem Solving Process involving 5-8 steps Involvement of the Team Delegate: Routine Decisions Brainstorm: This gives a variety of alternatives to a decision Be Objective: No Emotional attachment to a particular decision Be Creative
- 38. Conducted in a systematic & comprehensive way of thinking Consequences of implemented decision are determined They result in positive outcomes and fewer negative consequences Based on Goal oriented analysis of the situation
- 39. Define the Problem– State the Problem in broad terms Gather Relevant Information- From Stakeholders, Facts & Data (Primary/Secondary/research Studies/Interviews with Experts/ Observed Events/ Experimental Studies) Develop & Weigh Alternatives-Evaluate all alternatives without prejudice, no matter how appealing or distasteful; Consider all criteria- Decision may be non workable due to lack of resources, budget or people may not accept.
- 40. Select the Best Alternative- No alternative may be a perfect solution, consider your intuition or consult a trusted outsider Implement the Decision- Until acted upon, a decision is only a good intuition Monitor Progress- Monitor the of implementation of the decision made Evaluate the decision- To learn lessons for the future
- 41. Work with others as a Team– Team members contribute more alternatives than an individual, Team has a broader perspective since team experience is broader than individual experience, Improves moral of subordinates and enhances self esteem , Recognition of contribution is a powerful motivator However Group Decisions are slower, involves opportunity cost of employee’s time, sometimes one person dominating resulting in loss of group inputs
- 42. Supervisor should involve subordinate in some, but not all decisions– like in Emergency situations, supervisor should take decisions . For building support to a decision, team process is useful . If consequences of decision are serious, team’s collective wisdom is worth the time. Supervisor should concentrate on listening and encouraging the input of others Brainstorm: This helps in generating Ideas which could be recorded. All members should participate. The Supervisor should ensure this
- 43. Be Creative- Generating Alternatives which are innovative in nature or different from what has been used in the past. Thinking out side the box is required for innovative solutions Evaluation of Solutions- Think of as many alternatives as possible and don’t evaluate them till the list is complete
- 44. This tool supports Team Decision Making. There is no 100% agreement or Disagreement among team members on an issue. This identifies various “shades” between the two extremes and helps the Supervisor to determine whether there is strong or weak support to the decision. It helps identify where each team member stands on an issue and builds self awareness and ownership in the decision making process
- 45. Building Consensus in the Team is important— Each team member actively support the decision even if they thought it was not the best decision. There could be Eight Gradients of the Agreement– (1) Enthusiastic Full Support (2) Endorsement with Minor concerns– “I basically like it” (3) Agree with reservations– I can live with it (4) Abstain—I have no Opinion (5) Stand Aside– I don’t like this, but I don’t want to hold back team (6) Disagreement, but willing to go with Majority– I want my Disagreement noted, but I will support the decision (7) Disagreement with non involvement in implementation (8) Strong Objection– I don’t support the decision
- 46. Numbers could be used to indicate the level of support of Team Members– 1 for strong Support and 8 for strong Objection. Ask team members to express their level of support by show of hands or writing down on a piece of paper and handing over. For sensitive issues, it could be taken by secret ballot. When every one has finished, the ballots can be collected and results recorded
- 47. The supervisor gets an idea about implementing the decision and whether there is strong support for the decision among team members. This will in turn enhance the Commitment from team members. This tool provides team members with a wider choice of vocabulary to indicate their level of support for a decision and also gives supervisor an indication of how strong the support is for a decision Such Collaborative Decision Making helps team to arrive at a broad support for the decision and enhances commitment for its implementation.
- 48. Interpret information in as many ways as possible Set criteria for success beforehand Ask other people or Experts Scrutinize the decision making process Change the way of deciding and reevaluate based on the past learning experience Involve all team members
- 49. Be Rational & Objective- Detach yourself emotionally from the decision Train & Educate people for taking appropriate decisions Seek Support of Top Management for decision making at lowest possible level– Decentralize Decisions should be taken at appropriate level of Management and credit must be given to the decision maker Delegate routine decisions to subordinates to gain their trust, loyalty and to raise their self esteem
- 50. Classical Decision Theory: Decision making in a world of complete certainty- All alternatives and their consequences are known. Choose an optimum alternative Behavioral Decision making: Decisions under uncertainty– Problem not clearly defined, limited number of alternatives and knowledge of their consequences– Accepts a world with bounded rationality– Choose satisfactory alternative
- 51. Decision making under uncertainty is based on the decision maker’s Intuition and Judgement. Simplifying strategies or Rule of Thumb is used to make decisions Creativity and Out of Box thinking based on one’s intuition is needed in such cases In Emergency circumstances, the manager takes decisions by using information he possesses
- 52. Construct Compile. Collect Compare Consider Commit Authorities for Decision Making- Authority, Consultative & Group Decision Makers
- 53. Technology: Wide use of IT, Artificial Intelligence & Machine Learning, Neural Networks, Fuzzy Logic in making decisions Culture: Affects the way in which group decisions are taken– like decisiveness in North American Culture, meticulousness in Japanese Culture Ethics: Affected by legality and traditions, rights
- 54. Develop a Code of Ethics & follow the same Establish Procedures for reporting violations Involve Employees in identifying Ethical Issues Reward Ethical behaviors Publicize Ethical Efforts.