Problem Solving and Decision Making

Problem Solving and Decision Making

Relationship: Decision making is a subset of the total process of problem solving. Organizations employ a scientific approach to solve the critical problems that are quite a common phenomena in today's complex business processes. And at some of these steps managers have to take decisions in order to progress towards problem resolution. The problems can be classified into several categories as explained below:

Types of problems:

1. Urgent vs Important 

 As shown in the adjacent matrix, it is of utmost important for managers to identify problems as Urgent or Important. This way, the priority of problems can be decided and vital resources can be assigned accordingly.

2. Structured problems vs Unstructured problems

Structured Problems:

These are familiar, straightforward, and clear

with respect to the information needed to

resolve them. They can be expected, and

managers can plan ahead and develop

specific ways to deal with them, or even can

take action to prevent their occurrence.

Unstructured Problems:

Involve ambiguities and information

deficiencies, and often occur as new or

unexpected situations. They usually require

novel solutions.

Steps in Problem Solving

1. Situation Analysis

It involves deciding priorities and agreeing on problem at hand. 

One of the important methods to do this is SWOT analysis.

2. Problem Analysis

This is a stage of information gathering, information processing, and deliberation.

                                                 

  It often begins with the appearance of

  problem symptoms which signal the

  presence of a performance deficiency or

  opportunity. 

3. Solution Analysis

At this stage more information is gathered, data are analyzed, and the pros and cons of

  possible alternatives are identified. The involvement 

  of other persons is important in order to maximize 

  information and build commitment.

  Common errors in this stage include selecting a 

       particular solution too quickly, and choosing an alternative 

       that has damaging side effects.

        Criteria for evaluating alternatives: Benefits, Cost, 

        Timeliness, Acceptability, Ethical Soundness. 

4. Implementation Analysis 

After selecting the preferred solution appropriate action plans must be

established and implemented. Nothing new can or will happen 

according to plan unless action is taken.

  Managers  need the ability

  and willingness to implement the decision.

  Difficulties at this stage often can trace to

  the lack-of-participation error, or the 

  failure to involve those whose support is 

  necessary.