2. OUTLINES
1. Introduction
2. Definitions of decision making
3. Types of decision making
4. Factors affecting decision making
5. Decision making process
6. Barriers of decision making
7. Improving decision making
8. Qualities of successful decision maker
9. Definition of Problem Solving
10. Types of Problem
11. Importance of problem solving skills
12. Steps of the problem solving cycle
3. Decision Making
Decision making has been called a central
process inadministration, the heart beat of
organizations activities and the key to good
management.
4. Definitions
It is the last step in the process by which an
individual chooses one alternative from several to
achieve a desired objective.
It described as the process of converting
information into action.
It is defined as a choice among alternative
where the outcome is uncertain.
5. Types of decisions
1.Management decision are of three types:
Strategic:- are those made by top executives
that commit valuable agency resources to
achieve major , long term goals.
2.Administrative Decisions:-
are those made by mid level managers to
solve unusual problems and develop methods
for improving agency function.
6. 3. Operational decisions:-
are routine decisions governing day to day
events that have been delegated to first level
managers and are made according to pre
established rules and regulations.
Management decision may be
*Programmed:- Are structured decision needed
in problem situations where information is
needed and where the information can be
obtained and well defined strategies are
available
7. *Non programmed decisions:- are novel ,
unstructured, creative decisions that are made to
solve problems for which no well defined strategies
are available.
8. Characteristics of Decisions:-
1- Mental process
2- Choice of alternatives
3- Uncertainty of results
( Decision is predictive for future)
4- Affected by feeling
5- Resolve organizational conflicts
6- personal conflicts
9. Factors affecting decision making
A- Internal factors;-
Includes variables such as , decision makers
physical and emotional state, personal
characteristics, cultural, social and past
experience.
B- External factors:-
Including, environmental condition.
time.
10. Decision making process (steps)
1- Determining agency goals and priorities
2-Identify the problem or opportunity:-
accurate problem definition is crucial to effective
decision making.
3- Explore the alternatives:-
the choices that the decision maker has to decided
on are alternative that really counts is the one
judged best among those considered.
11. 4- Evaluates alternatives:-
is comparing alternatives, each possible action
should be contrasted with the current
course to assess relative efficacy in meeting
objectives (considered cost effectiveness).
5- Choose the most desirable alternative.
The ability to select the best course of action from
several possible alternatives, often separates
successful managers from less successful one.
12. 6- Implement the action:-
The decisions is not put into action is useless
7- Evaluates the results:-
The final steps is evaluation of the results of
the implementation of the chosen alternative.
13. Barriers of Decision Making
1- Inadequate fact finding ( Decision should be
based on accurate information,).
2- Time constrains (Pressures of time, resources
and priorities render the decision- making more
complex, It is not always possible to obtain all
the necessary facts , This produces a degree of
uncertainty, especially when multiple
alternatives are identified).
14. 3- Poor Communication:Communicating the decision
to appropriate individuals as essential as following up
to determine if results are as expected.
4- Failing to systematically follow the steps of
decision- making process will likely result in
unanticipated results.
5- Individuals resistance to change and risk of new
idea.
15. Improving Decision Making
1- Educating people (Subordinates) so they know how to
make decision.
2- Support of top management for decision making at
the lowest possible level.
3- Establishing decision making checkpoints with
appropriate time limits.
16. Qualities of a successful decision maker
1- Courage is of particular importance and involves the
willingness to take risks.
2- Sensitivity good decision makers seen to have some sort
of antenna that makes them particularly sensitive to
situation and others.
3- Energy people must have the energy
4- Creativity successful decision makers tend to be creative
thinkers they develop new ways to solve problems
.
17. Thinking:
formation of a new mental representation through the
transformation of information by complex interaction of the
mental attributes of judging, abstracting, reasoning,
imagining, and problem solving.
Problem Solving:
thinking directed toward the handling of a particular
situation involving both the formation of responses and
the selection among possible responses.
DEFINITIONS
18. TYPES OF PROBLEMS
1-Defined problems –
*defined problems, as the name suggests, are those
problems which are not defined properly.
*These are the problems that do not have any clear goals, or
information, or solution paths, or any clear expected
solutions. In defined problems, it is not clear what
information one should start from.
*It is also not clear when the solution has been reached, or
what rules apply in finding out
that solution.
.
25. 4. Organization of Information
– You have to organize the available information in a way
that enables you to implement the strategy
– You organize the information strategically, finding a the
most suitable representation
5. Resource Allocation
– We have limited resources (time, money, equipment,
space,…)
– We have to decide how much we want to invest into the
problem solving
26.
27. DIFFERENCE BETWEEN DECISION MAKING AND PROBLEM
SOLVING
PROBLEM SOLVING DECISION MAKING
1. Any difference
between an actual
situation and a desired
situation.
2. It is focus on the past.
3. A logical, step by step
process that leads one
toward making a
successful decision.
1. It is the act of making
choice between two or
more options.
2. It is focus on the future.
3. Process of analyzing
critical data to determine
the best action.