Decision making report

Decision
Making and
Problem
Solving
LBM MD3Y1-7
Group 1

subcategories under attributes, skills, and
actions.
Leadership starts at the top, with the
character of the leader, with your character. In

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.

 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.

 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.

 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.

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

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.

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 .

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.

 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.

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.

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.

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

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

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.

 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.


 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 .

 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,

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 report

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