Problem Solving and Managerial Decision Making

Relationship between Problem Solving and Decision Making:

 

Decision making is the key to a manager's success. To be a good decision maker one needs to first understand the relationship between Problem Solving and Decision making. The latter is a subset and outcome of the Problem solving process as shown in the below Venn Diagram:

Steps in Problem Solving:

A.SITUATION ANALYSIS

- Valuing and Examining the solutions 

- Priority setting - Agree on problem

B. PROBLEM ANALYSIS

- Information Getting 

- Problem definition

C. SOLUTION ANALYSIS 

- Getting Ideas - Generate ideas 

- decision Making - Select idea 

D.  IMPLEMENTATION ANALYSIS

 - Participation  - Involve Others

- Planning - Construct Plan

Decision making and Implementation can be done at either Individual level or team-wise. Thus if we draw a matrix we can get four combinations:

Of all the combinations one colored yellow is the most complex at it it involves complexities due to the involvement of the group in which different candidates may have different views regarding the problem. The one where both the decision and implementation is done by individual is an example of Craftsmanship. In Modern Management system all the decisions are made in groups.

Are problems complex?

This is a misnomer that a problem is tough or complex because a problem would not have been a problem, if it was not tough. 

Only solutions can be simple or complex. The real issue is to identify the root cause or the real problem. Once that is done we can easily reach to a solution and then implement it.