Problem Solving vs. Decision Making

Problem Solving

• Involves identifying and analyzing a problem, then implementing a chosen solution after critically evaluating alternative solutions.

Decision Making

• A part of problem-solving where a solution is chosen, aimed at finding the best solution or course of action to a problem.

Differences Between Problem Solving and Decision Making

• Problem-solving can be done by a group/team or an individual, while decision-making is often done by one person or a senior manager.
• Problem-solving generates and evaluates alternative solutions, while decision-making considers various alternatives before deciding on the best one.
• Problem-solving is a process of analyzing a situation to identify strategies for change, while decision-making is a part of the problem-solving cycle.

Problem Solving Steps

• Identify the problem.
• Define the problem.
• Identify possible solutions.
• Select the most appropriate alternative.
• Develop an action plan.
• Implement the action plan.
• Monitor the implementation.
• Evaluate the implemented solution.

Application of Problem Solving Steps

• Identify the problem: Acknowledge and identify the exact problem.
• Define the problem: Precisely define the nature and possible causes of the problem and gather relevant information.
• Identify alternative solutions: Decide on the cause and identify all possible solutions.
• Evaluate alternative solutions: Use critical evaluation skills to consider the advantages and disadvantages of each solution.
• Choose the best solution: Set criteria, such as time/cost/risk, to identify the most appropriate solution that matches the business's resources and size; if not appropriate, redefine the problem.
• Develop an action plan: Arrange resources and delegate tasks with a timeline and deadlines.
• Implement the action plan: Carry out planned actions and communicate tasks/deadlines to employees.
• Evaluate the solution/action plan: Assess if the problem is solved partially or entirely and continuously monitor the action plan, reformulating the problem if needed.

Creative Thinking

• Creative thinking is the ability to think of original, varied new ideas or new approaches to develop new products, marketing strategies, to solve conflict, and encourage teamwork.

Advantages/Benefits of Creative Thinking

• Generates better and unconventional ideas/solutions.
• Gives businesses a competitive advantage through unique solutions/ideas/strategies.
• Improves motivation among staff.
• Provides employees with a feeling of accomplishment and contribution to the business's success.

Problem Solving Techniques

• Delphi technique
• Force field analysis
• Brainstorming
• Nominal group technique

Impact of the Delphi Technique

• Positives/Advantages:
  • Complex business problems are solved using information from experts.
  • Businesses use experts without gathering them in one place.
  • Experts offer honest opinions without direct/personal interest in the business.
  • Dominating employees will not take over.
• Negatives/Disadvantages:
  • It is expensive due to administration costs.
  • May be time-consuming to analyze data from experts.
  • Some experts may be unwilling to give feedback.
  • Some experts may lack in-depth knowledge of certain topics.

Impact of the Force-Field Analysis

• Positives/Advantages:
  • Employees feel included and understood.
  • Employees develop with the business.
  • Provides a visual summary of factors supporting and opposing an idea.
  • Businesses understand the timeline and requirements of resources.
• Negatives/Disadvantages:
  • It's time-consuming to make changes.
  • Requires the participation of all business units.
  • The analysis depends on the skill level of the group.

Impact of Brainstorming

• Positives/Advantages:
  • Collective contributions develop better solutions.
  • Employees are motivated when contributing to problem-solving.
  • Stimulates creative thinking in the workplace.
  • People build on each other's ideas.
• Negatives/Disadvantages:
  • It is time-consuming.
  • Some team members may dominate discussion.
  • Fear of criticism may prevent full participation.
  • Discussions may result in conflicts.

Impact of the Nominal Group Technique

• Positives/Advantages:
  • Participants have time to think in silence before responding.
  • Voting is anonymous and may be more reliable.
  • Generates many ideas quickly and democratically prioritizes them.
  • Prevents conformity to group pressure.
• Negatives/Disadvantages:
  • Minimizes discussion, limiting the development of ideas.
  • Suggestions may not be as creative.
  • Small, pre-selected groups limit participation.
  • Hard to implement effectively with large groups.

Application of the Delphi Technique

• Invite a panel of experts to research customer complaints.
• Contact experts individually and design a questionnaire to improve product quality.
• Request panel members to respond individually and return the questionnaire.
• Summarize responses in a feedback report.
• Send the report and a second questionnaire for further input.
• Distribute a third questionnaire based on the second round feedback.
• Prepare a final summary report with all methods to improve product quality.
• Choose the best solution/proposal after reaching consensus.

Application of Force-Field Analysis Technique

• Describe the current problem and the desired situation.
• List all driving/pros and restraining/cons forces that will support and resist change.
• Allocate a score (1-5) to each force, 1 being weak and 5 being strong.
• Weigh up the positives and negatives to decide if the project is viable.
• Choose the force with the highest score as the solution.
• If the project is viable, find ways to increase the forces for change.
• Identify priorities and develop an action plan.

Application of Nominal-Group Technique

• Define the problem clearly to ensure all small groups work on the same problem.
• Divide employees into smaller groups.
• Request each employee to brainstorm ideas silently on how to improve quality and write them down.
• Each employee shares one idea with a short explanation.
• Appoint an employee to record the ideas on a large sheet of paper or computer screen.
• Allow each employee to give a second solution until all solutions are recorded.
• Encourage employees to ask questions for clarity.
• Discourage criticism to prevent others from holding back.
• Eliminate duplicate ideas.
• Each employee rates the suggestions anonymously, giving the highest points for the best solution.
• Collect the ratings and calculate total points.
• Small groups present the solution deemed best according to scores in their groups to the larger group.

Creating an Environment that Promotes Creative Thinking

• Reward creativity with schemes for teams/individuals.
• Train staff in innovative techniques/creative problem-solving skills.
• Respond enthusiastically to all ideas to create inclusivity.
• Make time for brainstorming sessions.