Problem Solving and Decision
Making
Learning Outcomes:
At the end of the lesson, students should be able
to:
1.Define what is problem solving and decision
making.
2.Identify the different steps in solving problems
and coming up with well-informed decisions.
3.Understand the importance of problem solving
skills and decision making skills in daily living.
1
Problem Solving and Decision
Making
A Process
Seven steps that provides
a rational and analytical
way of looking at
decisions.
2
Decision Making Process
* Identify the Problem
* Collect Relevant Information
* Develop Alternatives
* Evaluate each Alternative
* Select the Best Alternative
* Implement the Decision
* Follow-up and Evaluate 3
What is a Problem?
A discrepancy between an
existing and a desired state of
affairs.
&
Identifying the real problem is
no easy task.
4
Problem Identified
What are the surrounding
circumstances
&
Is there more than one way to
resolve the issues
??? 5
Alternatives Developed
Identify the strengths and
weakness of each alternative
&
Select the one that best
addresses the salient
discrepancies
6
Make a Decision
Implement the decision and
take the steps necessary to
ensure correct timing and
execution.
Follow-up and evaluate the
results
7
Decision Tools
* Expected Value Analysis
It permits decision makers to place a
monetary value on the various
consequences likely to result from
the selection of a particular course of
action.
8
Decision Tools
* Decision Tree
Encompass’ expected value analysis
by assigning probabilities to each
possible outcome and calculating
payoffs for each decision path.
9
Decision Tools
* Marginal Analysis
Analyzing decisions in terms of their
incremental costs.
* MIS
A mechanism to provide the manager
with needed and accurate
information on a regular and timely
basis.
10
Decision Making
Styles
Everyone brings their own unique
personalities and experiences to the
decisions they make.
Notwithstanding however,
The decision-style model outlined in
your text has identified four principle
styles.
11
Decision Making
Styles
The decision-style model assumes
that people differ along two
dimensions:
* Their way of thinking
(How they process information)
* Tolerance for Ambiguity
(How clear does everything have to be)
12
Directive
Low tolerance for ambiguity.
Seeks rationality.
Efficient and logical.
Makes quick decisions.
Short term focus
13
Analytic
High tolerance for ambiguity.
Requires more information.
Considers more alternatives.
Careful and adaptable.
14
Conceptual
Very broad in outlook.
Considers many alternatives.
Good at finding creative
solutions.
Focus long range.
15
Behavioral
Work well with others.
Concerned with achievements
of subordinates.
Receptive to suggestions.
Avoids conflict.
Seeks acceptance.
16
Ethics in Decision Making
Common Rationalizations
* “Its not really illegal or immoral.”
* “Its in my (Organization’s) best interest”
* “No one will find out”
* “Since it benefits the organization it will
be protected”
* “Everybody does it”
17
Ethics in Decision Making
Different Views of Ethics
* Utilitarian
Decisions are made solely on the basis of
their outcomes. The greatest good for the
greatest number.
* Rights View
Decisions emphasize respecting and
protecting the basic rights of individuals.
18
Ethics in Decision Making
Different Views of Ethics
* Justice View
A view that requires individual to impose and
enforce rules fairly and impartially so there is
an equitable distribution of benefits and
costs.
19
Group Decision Making
Advantages
* Provides more complete
information.
* Generates more alternatives.
* Increases acceptance of a solution.
* Increases legitimacy.
20
Group Decision Making
Disadvantages
* Time consuming
* Minority domination
* Pressure to conform (Groupthink)
* Ambiguous responsibility
21
Group Decision Making
Tends to be:
* More accurate
* More creative
* More acceptable
* More time consuming
22
Group Decision Making
Special Techniques
* Brainstorming
* Nominal Group Technique
* Electronic Meetings
23
ACTIVITY
Complete the following Decision Making Mat
24
Rubrics
Note: Clarity – 5 points
Organization – 10 points
Uniqueness – 5 points
Total – 20 points
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