1. Mod 2: Problem solving and decision making (Chapter 7),
p.152-164 1
2. 2
3. 7.1 Definitions Problem: a doubtful or difficult question.
It can also 3 be a situation where some relevant facts are known
and others are unknown. Problem solving: involves a procedure which
includes identifying matters that need to be improved or changed,
and making a series of decisions aimed at improving or changing
such matters. Decision: is defined as the settlement of a question,
formal judgement, making up ones mind. Decision making: a
deliberate act of selection (or choice) of an alternative from a
set of competing alternatives, in the hope that the chosen
alternative will accomplish certain goals.
4. 7.2 Interdependence of concepts Problem solving and decision
making these two concepts are interdependent. 4
5. 7.3 Role of communication factors which contribute to
sensible decisions N4: Can you remember? 1)Frame of reference 2)
Ability to reason logically 3) Personality 4) Emotions 5
6. 7.3 Role of communication factors which contribute to
sensible decisions Other factors: 1. Frame of reference: adequacy
of available information 2. Frame of reference and logical
reasoning: Intelligence, education and experience of the
decision-maker 3. Personality traits of the decision-maker 4.
Personality: insight and intuition of the decision maker 5.
Emotional factors 6
7. 7.4 Unpredictable and uncontrollable factors Unexpected
problems can develop into opportunities in a completely unexpected
and uncontrolled manner. Correct decisions are sometimes made by
mere The demand on coincidence 7 personalised number plates
increased after New York State decided to charge an additional levy
on all personalised vehicle number plates. Instead of decreasing
the amount of plates, it created a demand for these
8. 7.5 General decision making process 1. 2. 3. 4. 5. 6. 7. 8.
8 Identify and define the problem Investigate the problem Formulate
the exact problem in writing Develop alternative solutions Evaluate
the alternative solutions Select the best alternative Implement the
selected alternative/selection Evaluate and control the implemented
decision
9. 7.6.1 Identifying and defining the problem (p.155) 1.
Acknowledge that a problem exists; symptoms include: 2. 9 Previous
pattern of action or performance is interrupted or broken
Expectations are not realised Complaints are received Excessive
rivalry could become 3. Investigate the problem evident Collect and
Identify and define the problem analyse data Determine the origin
of Identify problem, people involved, any Location contributing
factors Magnitude Determine true magnitude of Timing problem and
influence on other
10. 7.6.2 Formulating the exact problem in writing p.158 You
gain the following when formulating the exact problem in writing:
It forces one to think about and formulate the problem logically,
objectively and systematically It helps one to understand the
problem better It could serve as a framework for further action, as
well as a measure of control. 10
11. 7.6.3 Developing alterative solutions p. 158 Theoretical
aspects Applied to example Standard, obvious Ask the taxi company
to solution Creative solution Relying on expertise Drawing on past
solutions 11 Brainstorming session change their schedule Institute
own shuttle service Higher productivity would neutralise cost of
shuttle service Discussions with taxi owners 6 months ago led to
temporary solution Allow employees to discover
12. 7.6.4 Evaluation of alternative solutions p.159 Thorough
investigation into each alternative solution that has been proposed
Proposed solution should enable the organisation to realise its
objectives. The proposed solution should be affordable, in terms of
the available 1) Financial resources 2) Manpower resources The
proposed solution should be acceptable to Those who would be
affected by its implementation Those who are required to implement
it Each alternative should be evaluated in terms of its
consequences for the organisation 12 Each alternative should be
judged in terms of which problem it would solve, as well as which
further problem
13. 7.6.4 Evaluation of alternative solutions p.159 (continued)
The risk factor of each alternatives should be considered The
proposed solution should be an alternative which could improve the
current situation; not one which would have worked in the past
Various techniques can be applied during the process of evaluation:
Experimentation Simulation Using Knowledge 13 Experience
14. 7.6.5 Selection of the best alternative page 160 List the
alternative solutions in order of preference Take other factors
into account: Non-measurable factors like company morale and image
Psychological factors like personality Social and cultural factors
like community values and religion It could also mean that a
compromise between two or more alternatives may have to be decided
upon 14
15. 7.6.6 Implementation of the selected alternative/decision
p.161 15 A decision can only be effective if it leads to action.
Once selected the implementation procedure must be explained.
Employees may have to be persuaded to accept it. Tasks and
resources have to be allocated and a means of monitoring it
determined. The following aspects must be considered before
implementing the decision: A realistic budget A realistic timetable
Tasks should be delegated appropriately Regular feedback Means of
detecting and
16. 7.6.7 Evaluation and control of the implemented decision
p.162 Evaluation required an objective judgement of the extent to
which the implementation of the decision has solved the problem.
The judgement can be based on: A set of objective, measurable goals
(or standards) Subjective, non-measurable feedback Decisions can be
qualified into three categories Optimum decisions: lead to
favourable results (maximising results) Satisfactory decisions:
minimum standard of satisfaction (adequate, acceptable, passable
and OK Suboptimum: lead to undesirable outcomes. Their 16
consequences affect the organisation and its employees
17. Notes Although the judgement of a decision must be
objective, economic as well as non-economic criteria should be
taken into account during the evaluation process. A business
venture could be an economic success, but become a major
responsibility which has a negative influence on ones personal
life. In addition to profit, factors such as personal satisfaction,
absence of stress and social good should all be considered when
evaluating a decision. 17