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Decision making and problem solving in administration

Table of contents:

Anonim

Introduction

In the life of the human being in an excessive way, the need to make decisions for the solution of some or some problems has been present. The relationship between personal leadership and decision-making is so intertwined that it is difficult to know whether improving decision-making skills improves leadership or whether improving leadership develops decision-making skills.

Currently, in many sectors of the world, the person capable of making decisions in order to meet some need is missed, and even better if a situation is resolved with this. Although most of the decisions of individuals do not have the slightest importance. Decisions are made regarding the transcendent realities of life, but not regarding the great issues of life.

People make decisions based more on common sense than on reason, this indicates a lack of true goals in life; This lack really prevents him from making objective decisions by not being clear about the truth of things. The people who make the best decisions are those who have a very solid and stable internal structure. The decisions they make are the result of their personal convictions.

Decision making

Decision-making is defined as the selection of a course of actions among alternatives, that is, there is a plan, a commitment of resources of direction or reputation.

A truly important aspect in decision-making is the degree of communication and the application of the art of listening. In the field of personal leadership, there is no greater talent than a person's communication skills. In a leader it does not matter what his self-motivation is, if he cannot transmit his ideas to others. That's when the importance of effective communication is understood.

The process that leads to decision making is:

  • Elaboration of premises Identification of alternatives Evaluation of alternatives, in terms of goals to be achieved Selection of an alternative, that is, make a decision

Communication as part of decision making

A leader must be able to make his ideas known and in turn must understand the ideas of others in order to guide them. In human relationships, most differences and disagreements originate from a lack of understanding between people. Communication is difficult, it is an art. It requires more than just brainstorming; it is also an exchange of feelings, attitudes and emotions.

Empathy in communication

Empathy is about seeing things from the other person's point of view and agreeing with them. It is the ability to get along with people. It is a kind of perception and understanding of the behavior of the other person, which leads to a sensitivity to their needs and a flexibility to know how to handle them fairly and objectively. It means understanding the other, even if you do not agree with him or his views are not fully accepted.

This is a bit of the secret of communication, achieving understanding of the other as a means of establishing two basic principles of effective communication.

Anyone has a series of interests that they have created to protect themselves from unwanted ideas. Empathy is the key to penetrating through that iron curtain that selects a person's ideas.

Ideas are expressed in words, but these are only images of those. As long as you don't know a person well, communication is always difficult and imperfect. Here empathy should help to understand what a person is like.

The art of listening

Empathy helps develop better communication, but some people cannot easily improve their empathy. Science has been developed largely by the art of reading and writing, but not the art of listening. It is impossible to understand a person unless we listen to her, when as individuals we demand to be listened to, some necessary measures must be used to achieve it

  • Always be aware of the ideas contributed Be objective, and listen clearly Avoid being defensive (open mind) Practice the art of listening Listen to remember (reflection necessary)

Tools for decision-making

The human being must demand to overcome obstacles that will arise along the way. These obstacles translated into problems must be solved as they arise, thus avoiding variations in the various processes.

For this it is necessary to be based on facts and not be guided only by common sense, experience or audacity. Relying on these three elements can cause that when obtaining results contrary to the expected, no one wants to take responsibility.

A series of tools and techniques that can be used in decision making will be listed below:

  1. Data CollectionBrainstormingParetto DiagramGantt DiagramFlow DiagramInterviewsIshikawa DiagramAmong others…

Data collection

The collection allows to unite and classify the information according to certain categories of an event or problem that one wishes to study. It is important to emphasize that this instrument is used both for the identification and analysis of problems and causes.

The use it should have is to use the collection as a source to facilitate the analysis in an automated way. Since once the phenomenon to be studied is established and the categories that characterize it are identified, the data is recorded in a list that facilitates the management of information on observable characteristics.

Once this is done, it is important that some aspects are analyzed, as illustrated below:

  • The information is qualitative or quantitative What procedure will be followed to collect the data What will be the use of the information collected How the analysis will be carried out Who will be in charge of collecting the data How often the analysis will be performed Where will it be carried out

Brainstorming

Technique that consists of giving the opportunity, to all the members of a gathered group, to give their opinion or suggest on a certain matter that is studied, be it a problem, an improvement plan or something else, and thus take advantage of the creative capacity of all participants.

And you can have two situations when solving a problem:

  1. That the solution is so obvious that we only have to take the necessary steps to implement it. That we have no idea what the causes or the solutions may be. This is where the brainstorming session comes in handy. When it is required to better preselect ideas, before presenting them.

Paretto diagram

This is a graph that is represented by vertical bars from highest to lowest importance, these bars represent specific data corresponding to a specific problem, the highest bar is on the left side and the smallest, as it decreases in size, is located to the right.

This diagram helps us to direct more attention and effort to really important problems, or to determine the main causes that contribute to a certain problem and thus make difficult things simple. This principle is applicable in any field, in the investigation and elimination of causes of a problem, organization of time, tasks, visualization of before and after a problem is solved, or in all cases in which the final effect is the result of the contribution of various causes or factors.

Ishikawa's diagram

This diagram is a cause and effect analysis for problem solving, relating an effect to the possible causes that cause it.

It is used when you need to find the root causes of a problem. It considerably simplifies the analysis and improves the solution of each problem, helps to visualize them better and make them more understandable, since they group the problem, or situation to be analyzed and the causes and sub-causes that contribute to this problem or situation. Among others it is also known as: Fishbone Diagram or Cause-Effect Diagram.

Fig. 1 Ishikawa diagram

Bases for Decision Making

The leader is a person who habitually makes decisions for himself or for others; It is one of the fundamental aspects of her leadership. Nothing will replace this capacity, nor the ability in human relationships, nor the personal charm. Decision-making styles are closely related to characteristics of one's own personality.

Some suggested suggestions are the following:

  • The leader should not be obsessed with all the problems that surround him, but only worry about those that concern him. He must seek himself in a climate of inner freedom and not let himself be pressured. Since decisions are usually related to each other, it is convenient not to have Hurry, take the necessary time and see how you can influence another decision. For decision making, you must observe the pros and cons of each problem and decide accordingly. It is about not making mistakes; one must be aware that in life there is no absolute security and no decision is free of risk. And the lack of decision is a sign of lack of confidence and determination. Every decision must always include an alternative to follow in the event that unforeseen circumstances intervene.It takes personal courage to admit that the decision made is a mistake and to reverse the decision when it is still possible.

Decision-making process

The separation of the process into stages can be as brief or as extensive as desired, but we can mainly identify the following stages:

1. Identification and analysis of the problem

This stage consists of understanding the condition of the moment of visualizing the desired condition, that is, finding the problem and recognizing that a decision must be made to reach the solution of it. The problem may be current, because there is a gap between the actual present condition and the desired, or potential, because it is estimated that such a gap will exist in the future.

It is necessary to have a clear and objective vision, and to have a clear commitment to listen to the ideologies of others in order to formulate a possible collective solution.

2. Identify the decision criteria and weigh them

It consists of identifying those aspects that are relevant when making the decision, that is, those on which the decision to be made depends. The weighting is to assign a relative value to the importance of each criterion in the decision that is made, since all are important but not equal in any way.

On a number of occasions, the identification of the criteria is not carried out in a conscious way prior to the following stages, but decisions are made without making them explicit, based on the personal experience of the decision makers.

3. Define the priority to address the problem

The definition of priority is based on the impact and urgency of addressing and solving the problem. That is, the impact that describes the potential to which it is vulnerable, and the urgency shows the time available to avoid or at least reduce this impact.

4. Generate alternative solutions

It consists in developing different possible solutions to the problem. Although it is not possible in most cases to know all the possible paths that can be taken to solve the problem, the more alternatives there are, the more likely it is to find one that is satisfactory.

However, developing an exaggerated number of alternatives can make the choice extremely difficult, and therefore it is not necessarily favorable to continue developing alternatives indefinitely.

To generate a large number of alternatives, a significant amount of creativity is necessary in decision makers.

5. Evaluation of alternatives

It consists of making a detailed study of each of the possible solutions that were generated for the problem, that is, determining their advantages and disadvantages individually with respect to the decision criteria and one with respect to the other, assigning them a weighted value.

This analysis should make use of alternatives as quantitative methods for evaluation. And critical analysis is very important as a quality of the decision maker.

6. Choosing the best alternative

In this step, the alternative that according to the evaluation will obtain better results for the problem is chosen. There are techniques that can help assess multiple criteria. The following terms can help make decisions based on the desired result:

  • Maximize: make the best possible decision Satisfy: Choose the first option that is minimally acceptable, thus satisfying a goal or objective sought. Optimize: The one that generates the best possible balance between different goals.

7. Application of the decision

It consists of starting the decision made in order to evaluate whether the decision was correct or not. The implementation will likely lead to new, minor decisions.

8. Evaluation of the results

After implementing the decisions made, it is necessary to evaluate whether the problem was solved or not, that is, whether the decision is having the expected result or not. If the result is not what was expected, you should analyze why, and give a little more time to obtain the results or if the decision was definitely not the right one, in this case you should start the process again to find a new one. decision.

The new process that is started in the event that the solution has been wrong, will have more information and will have knowledge of the errors made in the first attempt, in addition, it must be aware that these decision processes are constantly changing, it is In other words, the decisions that are made continuously will have to be modified, due to the evolution of the system or due to the appearance of new variables that affect it.

Fig. 2 Decision Making Process

Cognitive processes involved in Decision Making

Like critical thinking in decision-making, certain cognitive processes are used, such as:

  • Observation: is to carefully apply the senses to an object or a phenomenon, to study them as they actually appear, it can be occasional or causally. Comparison: Relationship of similarity between the issues discussed. Fixing attention on two or more objects to discover their relationships or estimate their differences or similarities.Coding: Making or forming a methodical or systematic body of laws. Using the rules of a code to transform the formulation of a message. Organization: arrangement or order arrangement. Rule or way that is observed to do things. Classification: Sort arranging by classes / categories. It is a systematic ordering of something. Resolution: term or conclusions of a problem, part in which the results are shown. Evaluation: marking the range.Analysis and reflection of the previous reasoning and conclusions. Feedback: the process of sharing observations, concerns and suggestions, with the intention of gathering information, individually or collectively, to try to improve the functioning of an organization or of any group formed by beings humans.

Decision making under conditions of certainty, uncertainty and risk

Virtually all decisions are made in an environment of certain uncertainty. However, the degree will vary from relative safety to great uncertainty. In addition, there are certain risks involved in making decisions.

In a situation of certainty, there is reasonable certainty about what will happen when a decision is made. The information is affordable, it is considered reliable and the cause and effect relationships are known.

In a situation of uncertainty, on the other hand, there is only a limited database, it is not known whether these are reliable or not, and it is not known whether the situation can change or not. Also, the interactions of the variables cannot be evaluated.

In a risky situation, objective information may be available, but it may be incomplete. To improve decision making, the objective probabilities of an outcome to be used can be estimated.

Decision-making styles

Satisfactor (less information) Maximizer (more information
Single focus (only alternative) DECISIVE
  • This style of decision is direct, efficient, fast and firm. Action is valued. Once the plan is set, you stick with it. When dealing with people you value honesty, clarity, loyalty and brevity. In public, This action-oriented style manifests itself as task-oriented.
HIERARCHICAL
  • People who apply this highly analytical and focused style expect their decisions, once made, to be final and stand the test of time.In public, this complex style manifests itself as highly intellectual.
Multiple focus (many alternatives) FLEXIBLE
  • This style is built on speed and adaptability. Executives make decisions quickly and change course just as quickly to keep pace with immediate and changing situations. This style values ​​fair information. In public, this flexible style is highly social and receptive.
INTEGRATOR
  • In the integrative mode, people frame problems broadly, using input from many sources, and make decisions that involve multiple courses of action that could evolve over time as circumstances change. In public, this creative style manifests itself as highly participatory.

There are some factors in decision making and they are named below:

  • Personal values ​​and organizational culture: in the strategic planning model, it has been seen that an important variable that influences the direction of the company refers to personal values, mainly of high-level managers. However, values ​​influence decision-making at all organizational levels, managerial and non-managerial alike. What is true for individuals is also true for the organization as a whole. What is true for individuals is also true for the organization as a whole. Thus, the pattern of behavior, shared beliefs and members of an organization influence decision-making.Group decision-making: In modern organizations, decisions are often made by groups of individuals, such as committees to which teams.Creativity and innovation: effective decision-making requires creativity and innovation.

Problem solving

issue

In the process of problem solving, in a very broad sense, it encompasses very different activities, heterogeneous, however, strictly speaking, it would encompass: those tasks that require different relatively complex reasoning processes and not a simple associative or routine activity.

Duncker (1945) defines the problem-solving process as: a person faces a problem when a task is accepted, but does not know in advance how they are going to do it.

In general, the problem solving process and the reasoning process have been treated as two independent areas. However, to solve a problem, the subject must start a reasoning process, so in reality, it is difficult to draw the dividing line between research on problem solving and on other reasoning processes.

Therefore, authors such as: Holland, Holyoak, Nisbett and Thagard (1986), consider that the process of solving problems by analogy, is a type of inductive reasoning process. Although in reality, the degree of complexity is very different, and the type of problem is very varied, there are a number of characteristics common to all problems and the troubleshooting process.

Problem solving is directive thinking, a type of process that requires the existence of an initial state of uncertainty and a series of intermediate solutions until the final state (solution) is reached.

Depending on the degree of definition of objectives, the problems can be divided as follows:

Well-defined problems: the subject is given all the information necessary to solve the problems. Both the solution and the paths to reach the solution are well defined, clearly specified from the beginning.

Poorly defined problems: there is no clear and explicit certainty that the solution has been reached. The subject does not have all the information he needs to reach the solution and neither does it appear clearly specified what the lawful movements would be to reach the solution.

Most of the research in thought psychology focuses on well-defined problems because they are easier when studying the strategy followed by the subject in order to reach the conclusion.

Phases in problem solving

Preparation phase

It is based on understanding the problem. It involves an analysis and interpretation of the available data.

Production phase

The subject develops and implements a strategy: a set of operations to reach the solution.

Prosecution phase

Reflection and evaluation of the solution generated, comparing it with the solution criterion proposed by the task statement. This phase can be easy when the problem is well defined.

Types of problems

There are different classifications of the different types of problems, and Greeno's are listed:

  • Transformation problems: they consist of an initial situation, a goal and a set of intermediate operations that transform this initial stage into the final solution. Structural induction problems: these are problems whose solution requires discovering structural analogies between elements that belong to disparate domains; Although the type of processes that allow discovering structural analogies is not clear, what is clear is the basic process of understanding similarity relationships. Verbal problems: problems that conform to the format A is to B as C is to D. The first terms (A and B) maintain an explicit relationship in the problem and the subject's task is to discover an incognito term D that maintains a relationship with C similar to the one that exists with A and B, and that appears explicit in the problem. complex:According to the theory of information processing, a problem consists of 3 elements; an initial stage, a final stage and a set of intermediate strategies or operators that transform the initial stage into the final one. Ordering problems: the subject receives a series of elements and her task is to reorganize them to reach a criterion. Social problems:

Problem Solving Process

The ability to make decisions must find its maximum expression in the ability to solve problems. A decision is not such as long as it is not expressed in action. The entire problem-solving process is a decision-making exercise. These additional skills must be developed for personal leadership.

  • Be aware: There are people who prefer to ignore problems. They think that by not facing them they disappear. Being aware that problems exist is the first step to solving them. Objectivity: after knowing them, you have to define them, and this requires an objective analysis to discover where it is. Otherwise, solutions are applied to what is the real problem. Vision: Sometimes you have the true solutions to a problem, but you are afraid to face them. But if the real problem is not solved, there is no progress. Knowledge: solving a problem implies knowing the matter. A person who does not know mechanics should not open not even the radiator of a car. Open mind: There are no obvious solutions to problems, because then they would have already been used. You have to have flexibility Selection of alternatives:When there are solutions to a problem, first of all you have to accept them, even if they may seem contradictory to each other. Consult: the leader should have no qualms about consulting others so that their decisions are the most correct and do not waste useless time.

Study methods in the problem solving process

It is about studying what happens in the minds of the subjects when it comes to solving a problem. And three different types of strategies are pointed out:

The method par excellence is the experimental (experiment)

Ideal methodology because it allows the use of very precise execution measures on the thought processing process and also, comparing the execution in different tests together with different very precise measurement indices, allows manipulating the variables that the experimenter wants to use as well as the use of specific variables.

Computer simulation models

Psychologists who employ this have been influenced by the management engineering perspective, however, when speaking of simulation a difference must be made between computer program design and computer simulation models of human behavior.

Thought aloud protocol analysis

This methodology allows to know what is the problem space that the subject elaborates when trying to solve a task. It consists of asking the subject to tell what is going through her mind as she solves the problem. These verbalizations are then analyzed sentence by sentence to try to know the type of processes and strategies that the subject has put in place.

Solution Strategies

While using a strategy requires mastery of its component techniques, a troubleshooting strategy cannot simply be reduced to a series of techniques. The strategies to the north with the control processes in the execution of these techniques, which also require a certain degree of meta knowledge or awareness of the problem solving processes themselves. This meta-knowledge, which is a product of reflection not only on problems, but on how to solve them, requires training to make strategic use of their skills, especially in relation to two essential tasks: selection and planning the most effective techniques for each type of problem.

Hierarchical and departmental organization of a company

In organizations in general and in companies in particular, there is usually a hierarchy that determines the type of actions that are carried out within it, and consequently, the type of decisions that must be made, administrative science divides the company into 3 Hierarchical levels:

  1. Strategic level: senior management, comprehensive enterprise-wide planning Tactical level: business subsystems planning Operational level: developing day-to-day operations

As one moves up the hierarchy of an organization, the ability to make unstructured or unscheduled decisions acquires more importance, since these types of decisions are those that concern at these levels. Therefore, most of the programs for development of Managers aim to improve their skills in making unscheduled decisions, usually by teaching them to analyze problems systematically and to make logical decisions.

As you move down the hierarchy, the tasks performed are increasingly routine, so decisions at these levels will be more structured. Additionally, an organization will also be divided into several functional sections, there are several division proposals that have been raised for a company in a generic way, although the most accepted is the one that considers the following departments or functional units.

conclusion

In organizations, decision-making for the probable resolution of a problem is a factor in some cases determined by the degree of leadership in senior management. It is also a determining factor in the area of ​​acquired resources, easily in fact if correct choices are made based on historical facts, however there are other ways to make decisions and face possible solutions.

Bibliographic references

  • Koontz Harold, Weihrich Heinz. Administration. Mc Graw Hill. Ninth edition. Mexico 1993. Pages 154-159.R. Hampton David. Administration. Mac Graw Hill. Third edition. México 1993. Pages 219-234.Electronic Referenceshttp: //www.mailxmail.com/curso-liderazgo/toma-decision-solucion-problemashttp: //www.gestiopolis.com/herramdamientos-basicas-para-la-solucion- de-problems / http: //www.mujeresdeempresa.com/los-estilos-de-toma-de-decisiones/3/http: //www.mailxmail.com/curso-liderazgo/comunicacion-arte-escucharhttps: // es.wikipedia.org/wiki/Toma_de_decisioneshttp://www.mujeresdeempresa.com/los-estilos-de-make-de-decisiones/2/

To conclude, we suggest the following video, from IESE Business School, in which professors Miguel Ángel Ariño and Pablo Maella propose 10 principles to achieve optimal decision-making.

Decision making and problem solving in administration