Decision Making Process Lecture 10

Decision Making Process

• A problem is a difficult situation requiring a solution, and it usually has multiple possible solutions.
• Managers should follow a systematic approach to solve problems, which includes identifying the problem, listing possible solutions, analyzing the solutions, selecting the best solution, and implementing it.
• Identifying the problem involves being careful not to identify a symptom as the problem, and reviewing plans and performance regularly to detect potential problems.

Steps of Problem Solving

• Identify the problem: define the problem and its root causes.
• List possible solutions: brainstorm, review past solutions, discuss with others, and consider employee and customer suggestions.
• Analyze the solutions: examine the strengths and weaknesses of each solution, and consider conducting experiments to test solutions.
• Select the best solution: choose the best solution based on analysis, and determine the best implementation plan.

A Manager as a Leader

• A manager who earns the respect and cooperation of employees to effectively accomplish the organization's goals is known as a leader.
• Leadership is the ability to influence individuals and groups to cooperatively achieve organizational goals.
• Leaders have excellent human relations skills.

Leadership Characteristics

• Intelligence: leaders use their intelligence to study, learn, and improve their management skills.
• Judgment: leaders make informed decisions by considering all facts and applying knowledge, experience, and new information.
• Objectivity: leaders are able to look at all sides of a problem and make unbiased judgments.
• Initiative: leaders have ambition and persistence in reaching goals, and encourage others to take action.
• Dependability: leaders are consistent in their actions, and others can rely on them.
• Cooperation: leaders understand the importance of teamwork and work well with others.
• Honesty: leaders are honest and have high standards of personal integrity.
• Courage: leaders possess the courage to make unpopular decisions and try new approaches in solving problems.
• Confidence: leaders have a great deal of self-confidence and trust their own judgment.
• Stability: leaders are not highly emotional, and can help others to solve problems and reduce conflicts.
• Understanding: leaders recognize the importance of others' feelings and ideas, and try to understand the people they work with.

Learn about the decision making process and the role of a manager as a leader. Identify the steps of decision making and know how to find the best solution to a problem.