Problem solving and

decision making
D K Das
Asstt. General Manager &
Faculty
State Bank Staff College,
Hyderabad
Version 03/ 08-09
 Life is Difficult – That’s the
Norm!
"To put the world in order, we must first put the nation in order; to
put the nation in order, we must put the family in order; to put the
family in order, we must cultivate our personal life; and to cultivate

our personal life, we must first set our hearts right." – Confucius
 We should take into
cognizance of the fact that..
• No problem is ever totally solved.
Every problem has a solution, but
every solution with it brings a new
problem. Some well-known
management techniques emphasis
the idea of continuous improvement
and successful problem solving is
seen as part of such continuous
improvement”
Prof. jeff Malpas
 What is a problem?
• Problem is an opportunity for
improvement
• Every problem has a gift for you in its
hands- Richard Bach
• A problem is the difference between the
actual state and desired state
• A problem results from the recognition of
present imperfect and the belief in the
possibility of a better future
 When confronted with
problem, we are likely to
adopt ..

• Stop it, or
• Mop it
 What do we do in ‘stop it’
approach?
A ‘stop it’ approach seeks to solve a
problem, so that the problem no
longer exists. Its three forms are..
• Prevent it
• Eliminate it
• Reduce it
 What do we do in ‘mop it’
approach?
A ‘mop it’ approach focuses on the
effects of a problem
• Treat it
• Redirect it
 Decision Making……..

Decision Making is the Process of

Thought and Action that results in choice of

Behaviours
What it the good management
about problem solving?
• Willingness to adapt the situation
• Recognise the ongoing and partial
character of all attempts to manage
or to solve

Look around the world, keep asking

‘Why?’ and ‘Why not?’, and you will
soon see new opportunities
 Key approach to problem
solving
• Rationale Problem- solving
 Identify the problem
 A precise and complete description of the
problem
 Causes of the problem
 Identify the decision criteria
 Rank the decision criteria in order of
importance
 Rate each alternative in each criteria
 Compute the optimal decision
 Creative Problem-Solving
• Does not follow a standard set of
procedures
• Subconscious process based on past
distilled experiences
• Based more on gut feeling
• The creative problem solving is
flexible
 However, a few ideas of
creative problem solving..
• Objective findings- problem-
brainstorming-list of objectives-goals
• Fact finding
• Solution finding
• Acceptance finding
 6.evaluate 1. Identify

5. implement 2. explore

4. select 3. Set goals

3.Look at
alternatives
 Identifying the problem
• Comparison with others
• Monitor for weak signals
• Check lists
• Brainstorming
• Listing complaints
 Exploring the problem
• Ask who (says this is a problem/ caused or is
causing the problem/ whom does it or will it
affect/ has done something about the problem
• Ask what( happened/ will happen/ are the
symptoms/are the consequences for others/
circumstances surround the occurrence of the
problem/ is not functioning as desired
• Ask when (did it or will it happen/ why did it
happen/did it first occur)
• Ask where ( is the problem occurring/ did it or
will it have an impact)
• Ask why (is this a problem/ did it or will it occur/
was nothing done to prevent the problem from
occurring/ did no one recognize and do
something about the problem at the earliest)
• Ask how (should the process be working/ are
others dealing with this or similar problems/ do
you know this is a problem/ what supporting
information do you have)
 Set goals
• Helps to clarify the direction to take
in solving the problem; and
• Gives them something definite to
focus on
 Look at alternatives
• A creative and practical step
• Mind mapping
• Techniques
Analysis of past solutions/ reading
Researching
Thinking/ discussion/ asking
questions
brainstorming
Viewing the problem with fresh eyes
 Select the best solution
• Priorities the solution by their
effectiveness – slow process of
solution
• There may be possible suggestions
that may be immediately eliminated
• Narrow down the choices to one best
possible solution which wil promise
the best or optimal outcomes
 Implementation
• Crucial part of problem solving and
decision making process
• Communication is must
 So, the essentials are..
• A clear description of the problem
• A description of limiting (or negative) factors/
constructive (or positive) involved in the problem
• A clear description of the scope of the problem
• A clear description of the consequences of the
problem if not solved
• A list of brainstormed solutions
• A system of ranking the solution to finalise the
decision making
• A clear description of myself as a problem solver
• Determination to follow through on the solution
decided upon jointly
 Causes of poor problem
solving..
• Bounded Rationality
Limitation of the human mind
The structure within which the mind
operates
• Satisficing i.e. identifying and
implementing a solution that is ‘good
enough’
 Causes of poor problem
solving..
• Group thinks
• Some of the symptoms:
 Members Ignore obvious danger, take extreme
risk, are overly optimistic
 Members discredit and explain away warning
contrary to group thinking
 Members believe their decisions are morally
correct, ignoring the ethical consequences of their
decisions
 Pressure for conformity
 Self censorship
 Member perceives that everyone agrees with the
group’s decision, silence is seen as consent
 Causes of poor problem
solving..
• Group shift:
 Familiarisation => comfortable => bold
and daring
 Who will take the risks
 Diffuses responsibility
• Fixation
• Insufficiency of hypothesis
• Other obstacles like personal beliefs,
misunderstanding of information etc.
 Group Decision Effectiveness

Sum of
Independent
Process Gains
Individual Process losses
(e.g., group
Group Effort (e.g., lost
stimulates
(each person time,
Decision = contributes to + individual _ blocking roles,
Effect- motivation,
-iveness the sum total communication
creativity,
of problems,
and problem
knowledge group think)
understanding
about
problem
 SOLVING THE
PROBLEM IS THE
GOAL…NOT
WINNING!
Decision & acceptance

Practical Gentleman

Great Assertive
 The Decision Making And Problem
Solving Process
Decision Making

Identify a Monitor,
Make a Implement
Problem Review,
Choice the Choice
or a Goal Follow-up

Judge &
Develop
Evaluate
Alternatives Alternatives

Information Search Judgment & Choice Implementation & Follow-up

PROBLEM SOLVING
 Decision Making Styles

3. Intuitive
2. Autocratic
3. Participating
4. Delegating
5. Using Groups
 A Continuum of Decision Making
Behaviour

Use of authority by the

Manager
Area of freedom for subordinates

Manager
Manager Manager Manager
Manager Manager Permits
Presents Presents defines
Makes Manager Presents Subordinates to
Tentative Problem, Limits, asks
Decisions ‘sells’ Ideas and Function
Decisions Gets Group to
And decisions Invites Within limits
Subject to Suggestions Make decision
Announces it questions Defined by
change Makes decision
superior

Autocratic Participating Delegating

“People will often delegate-or fail to
delegate-for all the wrong reasons. They
hold on to a task because they like doing it,
or want to do it, or are afraid of not doing it,
and they will pass down some task because
they find it distasteful or ‘beneath them’ or
have rationalised that it is not the best use
of their time.”
- Mark McCormak
Successful CEO and author of
‘What they don’t teach you at
Harvard Business School’