EXCLAMADOR, KHRIS P.

AUGUST 6, 2017
MM-PM

HUMAN BEHAVIOR IN ORGANIZATION

Assigned topic: problem solving and decision making

I. PROBLEM SOLVING
WHAT IS A PROBLEM?
- A doubtful or difficult matter requiring a solution.
- Something hard to understand or accomplish or deal with.

2 COMMON FEATURES OF A PROBLEM

1. GOALS
2. BARRIERS

1. GOALS
- Problems involve setting out to achieve some objective or desired state of affairs and can
include avoiding a situation or event.
2. BARRIERS
- If there were no barriers in the way of achieving a goal, then there would be no problem.
Problem solving involves overcoming the barriers or obstacles that prevent the immediate
achievement of goals.

WHAT IS PROBLEM SOLVING?

- It is the process of identifying a problem, prioritizing, selecting alternatives for a solution, and
evaluating outcomes.
- Consists of using generic or ad hoc methods, in an orderly manner, for finding solutions to
problems. Some of the problem-solving techniques developed and used in artificial intelligence,
computer science, engineering, mathematics, or medicine are related to mental problem solving
techniques studied in psychology.

SKILLS SET IN PROBLEM SOLVING

1. Making Judgement
2. Analytical Skills
3. Decision Making
4. Collecting Information
5. Planning

WHO ARE EXPERT PROBLEM SOLVERS?

- 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.
PROBLEM SOLVING PROCEDURE

1. DEFINE
2. INFORMATION AND MEASURES
3. ANALYZE
4. GENERATE ALTERNATIVES
5. SELECT ALTERNATIVES
6. DECIDE AND IMPLEMENT

DEFINING THE PROBLEM

 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?
INFORMATION AND MEASURES
 TYPES OF INFORMATION:
1. Quantitative
 How much?
 How many?
 How frequently?
 How likely?
 How quickly?
2. Qualitative
 What?
 Why?
 How?
 DATA SOURCES:
1. PRIMARY
 Data gathered by you, directly for your purpose
Ex:
Research
Survey
2. SECONDARY
 Gathered by others for their purpose
By other Depts.
Reference Books
Databases
Journals
Published Reports
Govt. Statistics
 ANALYZE
 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?
GENERATE ALTERNATIVES
 TIPS FOR GENERATING ALTERNATIVES
 Brainstorming
 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
SELECT ALTERNATIVES
DECIDE AND IMPLEMENT

II. DECISION MAKING

THE NATURE OF DECISION MAKING

 Making effective decisions, as well as recognizing when a bad decision has been made and
quickly responding to mistakes is a key ingredient in organizational effectiveness.
 Some experts believe that decision making is the most basic and fundamental of all
managerial activities.
 Decision Making is most closely linked with the PLANNING function.
 However, it is also part of ORGANIZING, LEADING AND CONTROLLING.

WHAT IS DECISION MAKING?

 Is the act of choosing one alternative from among a set of alternatives.
 Is the process of identifying and choosing alternatives based on the values, preferences and
beliefs of the decision maker.
Decisions can be made through either an INTUITIVE or REASONED process, or a combination of the
two:

1. INTUITION
- is using your ‘gut feeling’ about possible courses of action.
 PAST EXPERIENCES
 PERSONAL VALUES
2. REASONING
- is using the facts and figures in front of you to make decisions.

INTUITION is a perfectly acceptable means of making a decision, although it is generally more

appropriate when the decision is of a simple nature or needs to be made quickly.
An EFFECTIVE DECISION MAKING process, therefore, needs to ensure that you are to do so.

Sometimes effective decisions must be made to:

1. OPTIMIZE- some set of factors such as profit, sales, employee welfare and market share, or;
2. MINIMIZE- loss, expenses, or employee turnover or;

WHAT CAN PREVENT EFFECTIVE DECISION MAKING?

1. Not enough information

2. Too much information
3. Too many people
4. Vested Interests
5. Emotional Attachments
6. No Emotional Attachments

DECISION MAKING PROCESS

1. IDENTIFY THE DECISION

2. GATHER RELEVANT INFORMATION
3. IDENTIFY THE ALTERNATIVES
4. WEIGH THE EVIDENCE
5. CHOOSE AMONG ALTERNATIVES
6. TAKE ACTION
7. REVIEW YOUR DECISION AND ITS CONSEQUENCES

COMMON TYPES OF DECISION MAKING PROCESSES

1. Majority Decision Making Process

2. Hierarchical Decision Making Process
3. Proportional Decision Making Process
4. Consensus Decision Making Process
TYPES OF DECISIONS

1. A COMMITMENT TO ACTION (USE OF RESOURCES)

- At all levels- focus here is organizational
- Visible decisions embedded in a wider process of decision making before and after.
2. STRATEGIC OR OPERATIONAL
- Future directions or current issues
3. PROGRAMMED OR NON-PROGRAMMED
4. DEPENDENT OR INDEPENDENT
- Influence of history and consequential links.

DECISION MAKING CONDITIONS

1. CERTAINTY
- All information available
2. RISK
- Enough information to estimate
3. UNCERTAINTY
- Goals clear, but lack information to decide action

INDIVIDUAL vs. GROUP DECISION MAKING

In ESTABLISHING OBJECTIVES
Groups are probably superior to individuals because of the greater amount of knowledge
available to groups.
In IDENTIFYING ALTERNATIVES
The individual efforts of group members encourage a broad search in various functional
areas of the organization.
In EVALUATING ALTERNATIVES
The collective judgement of the group, with its wider range of viewpoints, seems superior to
that of the individual decision maker.
In CHOOSING AN ALTERNATIVE
Group interaction and the achievement of consensus usually result in the acceptance of
more risk than would be accepted by an individual decision maker.
IMPLEMENTING A DECISION
Whether or not it was made by a group, is usually accomplished by individual managers.