decision making dr latifa tawfik

Slide 2: 

prepared by DR / LATIfA TAWfIK LECTURER OF NURSING ADMINISTRATION

Objectives : 

31/10/2009 Dr/ latifa tawfik Objectives By the end of this lecture students should be able to:- Define Decision Making, Problem Solving, And Critical Thinking. Differentiate Between Decision Making And Problem Solving Enumerate Types Of Managerial Problems and decisions List Decision Making Condition. Discuss The Significance Of Decision Making. Discuss Decision Making Process Discuss Decision Making Style

Outlines : 

31/10/2009 Dr/ latifa tawfik Outlines Definition of Decision Making, Problem Solving, And Critical Thinking. Decision Making And Problem Solving Types Of Managerial Problems and decisions Decision Making Condition. The Significance Of Decision Making. Decision Making Process Decision Making Style

Definition : 

31/10/2009 Dr/ latifa tawfik Definition Decision making. -Is the process of choosing a course of action for dealing with a problem or opportunity.

Definition : 

31/10/2009 Dr/ latifa tawfik Definition *Problem solving. - Is part of decision making , it is a systematic process that focuses on analyzing a difficult situation.

Definition : 

31/10/2009 Dr/ latifa tawfik Definition *Critical thinking . - Is a purposeful, outcome-directed thinking that is based on a body of knowledge derived from research and other sources of evidence .

Decision Making and Problem Solving : 

31/10/2009 Dr/ latifa tawfik Decision Making and Problem Solving * Problem solving is concerned with overcoming obstacles in the path toward an objective. * Problem solving may or may not require action. * A decision making is an act requiring judgment that is translated into action. * Decision making is much more comprehensive than problem solving. * The terms are interrelated, but not interchangeable.

Types of managerial problems : 

31/10/2009 Dr/ latifa tawfik Types of managerial problems The problems which mangers face are: 1- structured problems. 2- unstructured problems. 3- crisis problems.

1- structured problems : 

31/10/2009 Dr/ latifa tawfik 1- structured problems These are familiar, straightforward, and clear with respect to the information needed to resolve them. They can be expected, and managers can plan ahead and develop specific ways to deal with them, or even can take action to prevent their occurance.

2- unstructured problems. : 

31/10/2009 Dr/ latifa tawfik 2- unstructured problems. Involve ambiguities and information deficiencies , and often occur as new or unexpected situation. They usually require novel solutions.

3- crisis problems : 

31/10/2009 Dr/ latifa tawfik 3- crisis problems A crisis problem is an unexpected problem that can lead to disaster if not resolved quickly and appropriately. Managers are installing early-warming crisis information system and developing crisis management plans to deal with them in the best possible ways.

Types Of Managerial Decisions : 

31/10/2009 Dr/ latifa tawfik Types Of Managerial Decisions 1- Programmed decisions. Involve routine problems that arise regularly and can be addressed through standard responses. 2- Nonprogrammed decisions. Involve nonroutine problems that require solutions specifically tailored to the situation at hand

Relationship between Types of managerial problems and Types of decisions : 

31/10/2009 Dr/ latifa tawfik Relationship between Types of managerial problems and Types of decisions

The Significance of Decision Making : 

31/10/2009 Dr/ latifa tawfik The Significance of Decision Making *Decision making is the one truly distinctive characteristic of managers. *Decisions made by top managers commit the total organization toward particular courses of action. *Decisions made by lower levels of management implement the strategic decisions of top managers in the operating areas of the organization. *Decisions invariably involve organizational change and the commitment of scarce resources.

Decision making process : 

31/10/2009 Dr/ latifa tawfik Decision making process

Decision making process : 

31/10/2009 Dr/ latifa tawfik Decision making process Step 1: Identify, define and structure the problem, issue or opportunity Step 2: Identify and analyze alternative courses of action, and estimate their effects on the problem or opportunity. Step 3: Choose a preferred course of action. Step 4: Implement the preferred course of action. Step 5: Evaluate the results and follow up as necessary.

Step 1: Identify, define and structure theproblem, issue or opportunity : 

31/10/2009 Dr/ latifa tawfik Step 1: Identify, define and structure theproblem, issue or opportunity Problem: what is wanted/ expected versus the actual situation the way a problem is originally defined can have a major impact on how it is eventually resolved.

Three common mistakes may occur at this step : 

31/10/2009 Dr/ latifa tawfik Three common mistakes may occur at this step Mistake 1:- Is defining the problem too broadly or too narrowly. Mistake 2:- Is focusing on symptoms instead of causes. Mistake 3:- Is choosing the wrong problem to deal with. Managers should set priorities and deal with the most important ones first

Step 2: Identify and analyze alternative courses of action, and estimate their effects on the problem or opportunity. : 

31/10/2009 Dr/ latifa tawfik Step 2: Identify and analyze alternative courses of action, and estimate their effects on the problem or opportunity. At this stage more information is gathered, data analyzed, and the pros and cons of possible alternatives are identified. common errors in this stage include selecting a particular solution too quickly, and choosing an alternative that has damaging side effects.

Typical criteria for evaluating alternative : 

31/10/2009 Dr/ latifa tawfik Typical criteria for evaluating alternative 1- benefits 2- costs 3-timelines 4- acceptability 5-ethical soundness

Step 3: Choose a preferred course of action. : 

31/10/2009 Dr/ latifa tawfik Step 3: Choose a preferred course of action. At this point, a decision is made to select a particular course of action. In some situation, the best alternative may be selected using a cost-benefit criterion, in others, additional criteria may come into play.

Step 4: Implement the preferred course of action. : 

31/10/2009 Dr/ latifa tawfik Step 4: Implement the preferred course of action. After selecting the preferred solution, appropriate action plans must be established and implemented. Managers need the ability and willingness to implement the decision. Difficulties at this stage is the lack –of- participation , or the failure to involve those whose support is necessary

Step 5: Evaluate the results and follow up as necessary : 

31/10/2009 Dr/ latifa tawfik Step 5: Evaluate the results and follow up as necessary The decision making is not complete until results are evaluated. If the desired results are not achieved, the process must be renewed to allow for corrective action. In any evaluation, both the positive and negative consequences of the chosen course of action should be examined.

Decision making condition : 

31/10/2009 Dr/ latifa tawfik Decision making condition Conditions or environments in organization are usually one of the following: 1- Certainty. 2- Risk. 3- Uncertainty.

Certainty Decision Making Condition. : 

31/10/2009 Dr/ latifa tawfik Certainty Decision Making Condition. There is sufficient information for the decision maker to know the possible alternatives and what the results of each would be. This is an ideal condition, but few managerial problems occur in certain environment.

Risk Decision Making Condition. : 

31/10/2009 Dr/ latifa tawfik Risk Decision Making Condition. The decision maker lacks complete information on action alternatives and their consequences, but has some of the probabilities associated with their occurrence

uncertain Decision Making Condition. : 

31/10/2009 Dr/ latifa tawfik uncertain Decision Making Condition. Information is so poor that managers are unable even to assign probabilities to the likely outcomes of alternative that are known. Uncertainty forces managers to rely heavily on creativity in solving problems.

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31/10/2009 Dr/ latifa tawfik Decision Making Styles

Decision making style : 

31/10/2009 Dr/ latifa tawfik Decision making style There are 4 major decision styles 1- directive 2- analytical 3- conceptual 4- behavioral

The directive decision style : 

31/10/2009 Dr/ latifa tawfik The directive decision style It is used by people who prefer simple, clear-cut solution. Managers who use this style often make decision quickly because they do not like to deal with a lot of information and may consider only one or two alternatives. People who prefer this style generally are efficient and rational and prefer to rely on exiting rules or procedures.

The analytical decision style : 

31/10/2009 Dr/ latifa tawfik The analytical decision style Manager like to consider complex solutions based on as much data as they gather. Manager carefully consider alternatives and often based their decisions on objective, rational data. They search for the best possible decision based on the information available.

The conceptual decision style : 

31/10/2009 Dr/ latifa tawfik The conceptual decision style People like to consider a broad amount of information. However they are more socially oriented than those with an analytical style and like to talk to others about the problem and possible alternatives for solving it. They like to solve problems creatively.

The behavioural decision style : 

31/10/2009 Dr/ latifa tawfik The behavioural decision style Managers have a deep concern for others as individuals. They like talk to people one-to-one and understand their feelings. They are usually concerned with personal development of others and may make decisions that help others achieve their goals.

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31/10/2009 Dr/ latifa tawfik Thank You