decision making and problem solving

DECISION MAKING

Decision making is the selection from among alternatives of a course of action.

Acc MC FARLAND A decision is an act where in an

executive forms a conclusion about what must be done in a given situation

CHARACTERSTIC OF DECISION MAKING

Decision are taken for fulfillment off predetermined objectives.

Decision may be positive or negative. Decision are not end but they are means

to the end. Decision is done by the concerned

officers or by a committee. Time is an important factor of decision

making.

IMPORTANCE OF DECISION MAKING

It is a basis of business policies.

It facilitates efficient performance of managerial function.

It helps in maintaining cordial industrial relations.

STEPS OF DECISION MAKING

Understand the problem Analysis the problem Determining and developing the possible

alternatives Evaluation of alternatives Selection of the best alternatives Execution of decision Review and revision

PRINCIPLES OF DECISION MAKING

Principle of participation

Principle of alternatives

Principle of limiting factor

Mathematical theory

Psychological theory

Marginal theory

TECHNIQUES OF DECISION MAKING

Traditional techniques 1:-Programmed decision

habits standard operating procedures organizational structure

2:-Non programmed decision

MODERN TECHNIQUES

Programmed decision

Defining the objectives Defining the problem Designing the hypothesis Collection of facts Working on different alternatives Taking decision

Cont…..

Non programmed decision

Creative technique Participative technique

Define the Problem

What? Where?How?When?With whom?Why?

PROBLEM SOLVING

Problem-solving is a mental process that involves discovering, analyzing and solving problems.

Problem solving is concerned with overcoming obstacles in the path toward an objective.

Problem solving may or may not require action.

Types of Problems

Structured problems Goals are well defined. Information about the problem is

available and complete. Unstructured problems Problems that are new or unusual and for

which information is ambiguous or incomplete.

Problems that will require custom-made solutions.

TECHNIQUES OF PROBLEM SOLVING

Brainstorming Hypothesis testing Trial and error Reduction

STEPS IN PROBLEM SOLVING

Identifying the problem Defining the problem Identifying Possible Solutions Selecting the Best Solutions Evaluating Solutions Develop an Action Plan Implement the Solution