This contains details about process of solving problems and methods of taking decisions.

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.