4. ICEBREAKER
• What is your leisure activity?
• Who , living or dead , do you most admire ,
and why?
• What is your greatest achievement?
• What are your positive qualities?
• If you had unlimited resources , what would
you buy which would give you most pleasure?
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5. PROGRAMME OBJECTIVE
• To clarify and define the problem.
• To understand the usefulness of collaborative
problem solving and decision making.
• To examine different decision
making models.
• To utilize creativity in the problem solving/decision
making process.
• To plan, practice, and problem solve with making
decisions through case studies, role playing and
group discussions.
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6. Please write a One Sentence
Definition of
PROBLEM SOLVING
and
DECISION MAKING.
Please write a One Sentence
Definition of
PROBLEM SOLVING
and
DECISION MAKING.
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7. DEFINITION –PROBLEM SOLVING
A systematic approach to defining the
problem and creating a vast number of
possible solutions without judging these
solutions.
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8. PROBLEM SOLVING
Problem solving is a cognitive processing
directed at achieving a goal where no
solution method is obvious to the problem
solver.
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9. PROBLEM SOLVING
Problem Solving is …..
• “….. the art of finding ways to get
from where you are now to where
you want to be (assuming you do
not already know how).
• The ‘problem’, therefore, is the
gap between the present situation
and a more desirable one.”
(Nolan 1989)
Is this Problem Solving?
A B
?
10. TRIPLE CONSTRAINT
PRINCIPLE
• Something is a problem if:
it makes you late
it increases costs
it degrades performance.
time cost
performance
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11. If none of these occur, it’s
NOT a problem,
just a hindrance.
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12. DEFINITION – DECISION MAKING
The act of narrowing down the
possibilities, choosing a course of action,
and determining the action’s potential
consequences.
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13. “It's not a
problem that we
have a problem.
It's a problem if
we don't deal
with the
problem.”
--Mary Kay
Utech
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14. WHAT DOES IT INVOLVE?
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15. • Problem solving is a skill, a tool and a process.
• It is a skill because once you have learnt it you
can use it repeatedly, like the ability to ride a
bicycle, add numbers or speak a language.
• It is a tool because it can help you solve an
immediate problem or to achieve a goal.
• It is also a process because it involves taking a
number of steps.
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17. WHAT SKILLS DO YOU USE INWHAT SKILLS DO YOU USE IN
PROBLEM SOLVING?PROBLEM SOLVING?
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18. • Making judgements
SKILL SETS IN PROBLEMSKILL SETS IN PROBLEM
SOLVING?SOLVING?
• Analytical skills
• Decision making
• Collecting information
• Planning
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19. PROBLEM SOLVING PEOPLE?
Experts.
People who know the area of
knowledge thoroughly. Solving
problems becomes more natural.
People who can think of
alternatives even when no clear
solutions seems apparent.
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20. Have a better memory for relevant
details in the problem.
Classify problems according to their
underlying principles.
Use well-established procedures.
Work forwards towards a goal
(rather than backwards).
EXPERT PROBLEM SOLVERSEXPERT PROBLEM SOLVERS
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22. ANSWER AND RATIONALE
• The answer is Neptiminus.
Rationale
1. The dimensions of the zin indicate that it contains 50,000 cubic feet of stone blocks.
2. The blocks are 1 cubic foot each, therefore, 50,000 blocks are required.
3. Each worker works 7 schlibs in a day (2 schlibs are devoted to rest).
4. Each worker lays 150 blocks per schlib, therefore each worker lays 1050 blocks per
day.
5. There are 8 workers per day, therefore 8,400 blocks are laid per working day.
6. The 50,000th block, therefore, is laid on the sixth working day.
7. Since work does not take place on Daydoldrum,the sixth working day is Neptiminus.
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23. TEA
11.00 AM – 11.15 AM
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25. Understanding the Process:Understanding the Process:
‘‘How to Solve it’How to Solve it’
Engage: I want to and I can
– Read the problem (and all
the information)
– Listen
– Learn about the situation
that poses the problem
– Motivation
– Overcome panic
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26. Understand the problem: define
Put in the time to define the problem:
– Discuss.
– Ask questions.
– Visualize.
– Restate the problem in your own words.
– Explain the problem to someone else.
Understanding the Process:Understanding the Process:
‘‘How to Solve it’How to Solve it’
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27. Plan a procedure to solve
the problem
– Prior experience.
– Data available.
– Content knowledge.
– Patterns.
– Estimation.
– Alternate solutions.
– Feasibility.
Understanding the Process:Understanding the Process:
‘‘How to Solve it’How to Solve it’
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28. Collect data & the knowledge
required
– A solution may be required
based upon imperfect
knowledge.
Understanding the Process:Understanding the Process:
‘‘How to Solve it’How to Solve it’
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29. Select the preferred solution: test, use and evaluate
– Check each step
– Can you determine clearly
that each step is correct?
– Can you prove that each step
is correct?
Understanding the Process:Understanding the Process:
‘‘How to Solve it’How to Solve it’
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30. Reflect on the process
– Are you certain you solved the problem?
– Can you check the result and your argument?
– Can use alternate solutions?
– What did you actually do?
– Can you explain this to another?
– Can you use the result &/or method for
another problem?
Understanding the Process:Understanding the Process:
‘‘How to Solve it’How to Solve it’
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33. Collect all the relevant information.
Clarify background issues.
What are the constraints?
Are there sub-problems that can be
dealt with separately?
Can the problem now be
formulated?
Defining The ProblemDefining The Problem
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34. PROBLEM/OPPORTUNITY STATEMENT
WORKSHEET
What is the area of concern?
What impact this problem already had? What evidence do you have that it is really a
problem worthy of attention?
What will happen if the business doesn’t address this problem?
Summarize the above information in a concise statement
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36. ACTIVITY 2
• Problem 1
I am in the habit of coming late to office
• Problem 2
We could not meet production targets
• Problem 3
Take an issue in work situation. Define the problem.
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40. ACTIVITY
• Imagine that you were going to buy a house in
a new area. List ten things that you would
want to know about a house before you gave
it serious consideration . Tick any of these
things that you could find out from the agent’s
information. How could you find out the other
things?
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41. • Do we have all of the information and
data we need?
• Collect data and digest the information.
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42. TYPES OF INFORMATION
• QUANTITATIVE
• QUALITATIVE
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43. Quantitative
• How much?
• How many?
• How frequently?
• How likely?
• How quickly?
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45. DATA SOURCES
• Primary
Data gathered by you directly for your
purpose
• Secondary
Gathered by others for their purpose
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49. ACTIVITY 4A
• In a production line, the output of a particular
machine has come down drastically. There
was a hue and cry that the operator is
intentionally slowing down production.
• What all information need to be collected
before commencing any action?
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50. ACTIVITY 4B
• First batch of Vacuum Circuit Breakers
supplied by a Company in India in the year
1981 failed miserably
• The Technical collaborators, the
Manufacturers and the Customers were trying
to resolve the issue
• What all information need to be collected?
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51. ACTIVITY 4C
• On a piece of paper, draw a map of the people
you know. Put yourself in the middle and
connect the people you know very well in the
first circle. Add people you know through
these network in the next layer and connect
them with spokes. Do three levels.
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52. REVIEW AND SHARING BY
INDIVIDUALS
3.00 PM – 3.15 PM
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55. ANALYZE THE PROBLEM
Do not make the mistake of assuming you know what is
causing the problem
without an effort
to fully investigate the problem
you have defined.
Try to view the problem from a
variety of viewpoints, not just how it affects you.
Think about how the issue
affects others.
It is essential to spend some time
researching the problem.
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56. Questions to Ask When Analyzing the
Problem:
• What is the history of the problem? How long has it
existed?
• How serious is the problem?
• What are the causes of the problem?
• What are the effects of the problem?
• What are the symptoms of the problem?
• What methods does the group already have for dealing with
the problem?
• What are the limitations of those methods?
• How much freedom does the group have in gathering
information and attempting to solve the problem?
• What obstacles keep the group from achieving the goal?
• Can the problem be divided into sub problems for definition
and analysis
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57. MAKING SENSE OF NUMBERS
• Averages(Mean,Median,Mode)
• Grouping of data
• Distribution
• Trends
• Correlation
• Pie charts
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58. ANALYSE
• Data Analysis
Exploring
Generating Theories about causes
Verifying/eliminating causes
• Process Analysis
Exploring
Generating Theories about causes
Verifying/eliminating causes
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59. `
DATA ANALYSIS PROCESS ANALYSIS
EXPLORING Examine data to discover
clues
TOOLS
Pareto Charts, Run
Charts, Histograms
Understand what actually
happens in the process
TOOLS
Basic flowchart,Depolyment
flow charts
GENERATING
HYPOTHESIS
Generate ideas about
the causes
TOOLS
Brainstorming, Cause
and Effect Diagram
Use the process maps to
identify areas
TOOLS
Brainstorming, Value
Analysis
VERIFYING
CAUSES
Gather additional data to
verify hypothesis
TOOLS
Scatter Diagram,
Stratification
Quantify delays/lost time in
various process steps
Experiment with changes
TOOLS
Process maps
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60. Use Pareto Charts to find the
“Vital few”
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61. Use run/trend charts to find
“patterns over time”
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63. When should a fishbone diagram be
used?
• Need to study a problem/issue to determine
the root cause?
• Want to study all the possible reasons why a
process is beginning to have difficulties,
problems, or breakdowns?
• Need to identify areas for data collection?
• Want to study why a process is not
performing properly or producing the desired
results
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64. How is a fishbone diagram
constructed?
• Draw the fishbone diagram....
• List the problem/issue to be studied in the "head of the fish".
• Label each ""bone" of the "fish". The major categories typically
utilized are:
• The 4 M’s:
– Methods, Machines, Materials, Manpower
• The 4 P’s:
– Place, Procedure, People, Policies
• The 4 S’s:
– Surroundings, Suppliers, Systems, Skills
• Note: You may use one of the four categories suggested, combine
them in any fashion or make up your own. The categories are to
help you organize your ideas.
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65. How To Complete The 5 Whys
1. Write down the specific problem. Writing the issue
helps you formalize the problem and describe it
completely. It also helps a team focus on the same
problem.
2. Ask Why the problem happens and write the answer
down below the problem.
3. If the answer you just provided doesn't identify the
root cause of the problem that you wrote down in step
1, ask Why again and write that answer down.
4. Loop back to step 3 until the team is in agreement
that the problem's root cause is identified. Again, this
may take fewer or more times than five Whys.
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66. 5 Whys Examples
Problem Statement: Customers are unhappy because they are being
shipped products that don't meet their specifications.
1. Why are customers being shipped bad products?
- Because manufacturing built the products to a specification that is
different from what the customer and the sales person agreed to.
2. Why did manufacturing build the products to a different specification
than that of sales?
- Because the sales person expedites work on the shop floor by calling
the head of manufacturing directly to begin work. An error happened
when the specifications were being communicated or written down.
3. Why does the sales person call the head of manufacturing directly to
start work instead of following the procedure established in the
company?
- Because the "start work" form requires the sales director's approval
before work can begin and slows the manufacturing process (or stops it
when the director is out of the office).
4. Why does the form contain an approval for the sales director?
- Because the sales director needs to be continually updated on sales for
discussions with the CEO.
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70. 1/02/2007 Business Process Management 70
Types of Flow ChartsTypes of Flow Charts
Linear FlowchartLinear Flowchart
Deployment FlowchartDeployment Flowchart
Opportunity FlowchartOpportunity Flowchart
71. 1/02/2007 Business Process Management 71
Linear FlowchartLinear Flowchart
Start
Collect inputs
Draft Circular
Type rough
Submit to A
Sign(A)
Retype
Make Copies Distribute
Type smooth
OK?
Yes
No
End
72. 1/02/2007 Business Process Management 72
Deployment FlowchartDeployment Flowchart
AA BB CC
Collect Input
Draft
Retype
Submit to C
Make Copies
Type rough
Type smooth
Distribute
Accept?
Yes
NO
Sign
73. PROCESS
MAP
Customerpullstime-
stamped ticket
Customer parks car
Customer returns to
car toleave
Customer drives to
cashier at exit
Cashier System
Customer exits
Recieve ticketfrom
customer
Stampexit timeon
ticket
Readindicator stamp
for fee
Observeexacttimefor
borderlinerate
Place ticket instorage
bin
Enter charge on
register
Accept payment and
returnchange
Raisegatearm for
customer to exit
Accounting department
getsreport
Complete dailyreport
(End of Day)
Customer System Cashier System
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74. Value and Cycle Time Worksheet
Process Step 1 2 3 4 5 6 7 8 9 10 Total Percentage
VALUE
Value added
Value enabled
Non value
added
TIME
Work time
Wait time
Total Time
Total Value added
time
Percentage value added
time
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76. Past Experience: Future Problems
Have we ever encountered a
problem like this before?
Do we have all of the information and
data we need?
Is there any pattern to what we know?
Can we construct a table or a picture?
What might the solution be?
What would assist us in getting to a
solution?
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77. END OF DAY 1
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80. Good decisions emerge from a
set of feasible alternatives
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81. Tips for Generating Alternatives
• Brainstorm
• Involve outsiders
• External Benchmarking
• Encourage members to step out of their
traditional roles
• Ask probing questions
• Be willing to consider views differing from yours
• Revisit abandoned alternatives
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83. What is Vertical Thinking?
Basing our thought process on
prior knowledge and experience.
Using logic that relates only to our
immediate experience.
Constraining our creativity and
ability to solve problems.
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84. What is Lateral Thinking?
• Changing orientation and perception.
• Generating new ideas and visions.
• Exploring multiple possibilities and
approaches.
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85. • Vertical Thinking is selective
• One may reach a conclusion by a valid series
of steps
• Lateral Thinking is generative
• Vertical Thinking develops the ideas
generated by Lateral Thinking
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89. How would you divide a square
into four equal pieces
Give at least 6 alternatives
• Time 15 minutes
• EXERCISE
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90. • Make a
square
out of
this
• 10
• minutes
• Exercise
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92. The Dog, the Goose and the Bag of Corn
The farmer takes the goose across and leaves
the dog with the corn. The farmer then goes
back across the stream and gets the corn. He
takes the goose back across with him because
he cannot leave it with the corn. He then gets
the dog and takes it across leaving it on the
other side with the corn. He then goes back
across once again, gets the goose and returns to
the other side of the stream with all safely
across and not eaten!
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93. Exercise
5 minutes
• You have a pile of 24 coins. 23 of them have
the same weight. But one of them is heavier
than the rest. You are given a scale but no
weights. Your task is t identify the heavy coin
in no more than three uses of the scale.
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94. Exercise
3 minutes
• A conference room contains three separate wall-
mounted spotlights - right, left and front of stage.
Each is controlled by its own on-off switch. These
three switches are numbered 1, 2 and 3, but they
are in a back-room which has no sight of the
spotlights or the conference room (and there are
no reflections or shadows or mirrors, and you are
alone). How do you identify each switch correctly
- right, left, front - if you can only enter the back-
room once
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95. Exercise
5 minutes
• Four men, one of whom was known to have
committed murder, made the following
statements to the police.
• Arun: Dave did it
Dave: Tony did it
George: I did not do it
Tony: Dave lied when he said I did it
If only one of these four statements is true, who
was the guilty man?
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96. Exercise
5 minutes
• You are the treasurer in charge of the Royal mint,
which produces a single type coin, the Grote.
There are ten machines producing Grote, one
machine is producing Grote weighing one gram
less than they should, each coin should weigh 10
grams. You have a set of broken scales which can
be fixed to provide one single weigh of a single
amount (no weight changes are allowed). Using
the scales once you must identify the single
faulty machine.
• How do you do it?
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102. ACTIVITY 5
• List three personal decisions you’ve made in
the last one or two years.
• List three decisions you need to take in the
next one year in your personal life.
• Classify them into Strategic , Business and
Operational
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103. How are decisions made
in organizations?
Decision making.
– The process of choosing a course of action for
dealing with a problem or opportunity.
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104. DECISION MAKING
• ENVIRONMENT
• DECISION MAKING
MODELS
• DECISION MAKING
REALITIES
• AUTHORITIES IN DECISION
MAKING
• INFLUENCING FACTORS IN
DECISION MAKING
• 7 Cs
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106. How are decisions made
in organizations?
Decision environments include:
– Certain environments.
– Risk environments.
– Uncertain environments.
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107. How are decisions made
in organizations?
Certain environments.
– Exist when information is sufficient to predict the
results of each alternative in advance of
implementation.
– Certainty is the ideal problem solving and decision
making environment.
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108. How are decisions made
in organizations?
Risk environments.
– Exist when decision makers lack complete
certainty regarding the outcomes of various
courses of action, but they can assign probabilities
of occurrence.
– Probabilities can be assigned through objective
statistical procedures or personal intuition.
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109. How are decisions made
in organizations?
Uncertain environments.
– Exist when managers have so little information
that they cannot even assign probabilities to
various alternatives and possible outcomes.
– Uncertainty forces decision makers to rely on
individual and group creativity to succeed in
problem solving.
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110. How are decisions made
in organizations?
Uncertain environments — cont.
– Also characterized by rapidly changing:
• External conditions.
• Information technology requirements.
• Personnel influencing problem and choice definitions.
– These rapid changes are also called organized
anarchy.
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112. • Classical decision theory
• Behavioural decision theory
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113. What are the useful
decision making models?
Classical decision theory.
– Views the decision maker as acting in a world of
complete certainty.
Behavioral decision theory.
– Accepts a world with bounded rationality and
views the decision maker as acting only in terms
of what he/she perceives about a given situation.
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114. What are the useful
decision making models?
Behavioral decision theory.
– Recognizes that human beings operate with:
• Cognitive limitations.
• Bounded rationality.
– The behavioral decision maker:
• Faces a problem that is not clearly defined.
• Has limited knowledge of possible action alternatives
and their consequences.
• Chooses a satisfactory alternative.
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115. What are the useful
decision making models?
Classical decision theory.
– The classical decision maker:
• Faces a clearly defined problem.
• Knows all possible action alternatives and their
consequences.
• Chooses the optimum alternative.
– Is often used as a model of how managers should
make decisions.
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116. What are the useful
decision making models?
Classical decision theory:
– May not fit well in a chaotic world.
– Can be used toward the bottom of many firms,
even most high-tech firms.
Behavioral decision theory:
– Fits with a chaotic world of uncertain conditions
and limited information.
– Encourages satisfying decision making.
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119. Decision making realities
– Most decision making in organizations goes
beyond step-by-step rational choice.
– Most decision making in organizations falls
somewhere between the highly rational and the
highly chaotic.
– Decisions must be made under risk and
uncertainty.
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120. Decision making realities
– Decisions must be made to solve non-routine
problems.
– Decisions must be made under time pressures
and information limitations.
– Decisions should be ethical.
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121. How do intuition, judgment, and creativity
affect decision making?
Intuition.
– The ability to know or recognize quickly and
readily the possibilities of a given situation.
– A key element of decision making under risk and
uncertainty.
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122. How do intuition, judgment, and creativity
affect decision making?
Judgment
– Simplifying strategies or “rules of thumb” used to
make decisions.
– Makes it easier to deal with uncertainty and
limited information.
– Can lead to systematic errors that affect the
quality and/or ethics of decisions.
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124. ACTIVITY 6
• Imagine that you are driving across country to
an important meeting that will start in an
hour’s time, along a route you have travelled
several times before. You are thirty miles from
your destination and the road is clear ahead
of you. You see a signpost pointing up to a
narrow side road that you have not noticed on
earlier journeys. It indicates 20 miles to your
destination.
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125. ACTIVITY 6
1. Would you turn into the side road without
further thoughts?
2. Ignore the side road and continue on your
existing route?
3. Stop the vehicle, consult a map and then
decide whether to drive up the side road?
Why?
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127. AUTHORITY IN DECISION MAKING
Deciding who should participate.
– Authority decisions.
• Made by the manager or team leader without involving other
people and by using information that he/she possesses.
– Consultative decisions.
• Made by one individual after seeking input from group members.
– Group decisions.
• Made by all members of the group.
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129. ACTIVITY
• Give three examples of decisions that you
would refer to a senior manager in your
organisation.
• Do these decisions have anything in common?
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133. How do technology, culture, and ethics
influence decision making?
Increasingly complex problems and
opportunities face decision makers in
organizations due to various workplace
trends.
These workplace trends are changing the who,
when, where, and how of decision making.
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134. How do technology, culture, and ethics
influence decision making?
Information technology and decision making.
– Artificial intelligence.
• The study of how computers can be programmed to think like
human beings.
• Will allow computers to displace many decision makers.
– Expert systems that support decision making by following
“either-or” rules to make deductions.
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135. How do technology, culture, and ethics
influence decision making?
Information technology and decision making
— cont.
– Fuzzy logic and neural networks that reason
inductively.
– Computer support for decision making.
• The Internet.
• Company intranets.
• Decision support software to facilitate virtual
teamwork.
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136. How do technology, culture, and ethics
influence decision making?
Cultural factors and decision making.
– Culture is “the way in which a group of people solves
problems.”
– North American culture stresses decisiveness, speed, and
the individual selection of alternatives.
– Other cultures place less emphasis on individual choice
than on developing implementations that work.
– The most important impact of culture on decision making
concerns which issues are elevated to the status of
problems solvable with the firm.
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137. How do technology, culture, and ethics
influence decision making?
Ethical issues and decision making.
– Ethical dilemma.
• A situation in which a person must decide whether or
not to do something that, although personally or
organizationally beneficial, may be considered
unethical and perhaps illegal.
– Ethical dilemmas are often associated with:
• Risk and uncertainty.
• Non-routine problem situations.
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138. How do technology, culture, and ethics
influence decision making?
Ethical decision-making checklist.
– Is my action legal?
– Is it right?
– Is it beneficial?
– How would I feel if my family found out about
this?
– How would I feel if my decision were printed in
the local newspaper?
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139. How do technology, culture, and ethics
influence decision making?
Suggestions for integrating ethical decision making
into the firm.
– Develop a code of ethics and follow it.
– Establish procedures for reporting violations.
– Involve employees in identifying ethical issues.
– Monitor ethical performance.
– Reward ethical behavior.
– Publicize ethical efforts.
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140. How do technology, culture, and ethics
influence decision making?
Implications of ethics for decision making.
– Morality is involved in:
• Choosing problems.
• Deciding who should be involved in making decisions.
• Estimating the impacts of decision alternatives.
• Selecting an alternative for implementation.
– Moral conduct does not arise from after-the-fact
embarrassment.
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142. ACTIVITY 8
• One of the best performing employees
working under you was caught carrying one
stapler belonging to the company at the gate.
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143. 6 Cs OF DECISION MAKING
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144. Six C's of Decision Making (1 of 3)
Construct
Compile.
Collect.
Compare.
Consider.
Commit.
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145. Decision Making (Six C's) (2 of 3)
Construct a clear picture of
precisely what must be decided.
Compile a list of requirements
that must be met.
Collect information on
alternatives that meet the
requirements.
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146. Decision Making (Six C's) (3 of 3)
Compare alternatives that meet
the requirements.
Consider the "what might go
wrong" factor with each
alternative.
Commit to a decision and stick
to it.
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147. Inherent Personal: Traps (1 of 2)
Trying too hard to play it safe.
Letting fears and biases tilt your
thinking and analysis.
Getting lost in the minutia.
Craving unanimous approval.
Trying to make decisions which are
outside your realm of authority.
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148. Inherent System: Traps (2 of 2)
Willing to begin with too little,
inaccurate, or wrong information.
Overlooking viable alternatives or
wasting time considering alternatives
which have no realistic prospects.
Not following the six C's.
Failing to clearly define the results you
expect to achieve.
Worst of all, failing to reach a decision.
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149. FINANCIAL TOOLS FOR EVALUATING
ALTERNATIVES
• ROI
• Payback
• Net present value
• Internal rate of return
• Breakeven analysis
• Sensitivity analysis
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151. ACTIVITY
• List four or five decisions you made at
work/home regardless of their size or
importance . For each decision, consider
whether you really needed to make it or
whether the decision could have been
handled in some other way. Perhaps it could
have been dealt with by someone else. Or
perhaps there was not a decision to make at
all.
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