1. Problem Solving and Decision Making
Supervision:
Concepts and Practices
of Management,
Second Canadian Edition
Hilgert, Leonard,
Shemko, and Docherty
© 2005 by Nelson, a division of Thomson Canada Limited

2. Learning Objectives
Explain the importance of decision-making skills in supervisory management.
Describe the types of decisions made in organizations.
Describe and apply the basic steps of the decision-making process.
Explain why a supervisor should not make hasty decisions.

3. Decision Making
Decision making—process of defining problems and choosing a course of action from among alternatives

4. Types of Decisions
Programmed decisions—solutions to repetitive and routine problems provided by existing policies, procedures, and rules
Non-programmed decisions—solutions to new or unusual problems that require adaptive problem-solving behaviour

5. Decision-Making Process
7. Follow Up and Appraise Results
6. Select the “Best” Alternative
5. Evaluate the Alternatives
4. Develop Alternatives
Redefine the Problem
3. Establish Decision Criteria
2. Analyze the Problem
1. Define the Problem

6. Define the Problem What is the problem?
How do you know there is a problem?
Where has the problem occurred?
When has the problem occurred?
Who is involved in, or affected by the problem?

7. Analyze the Problem Assemble facts and pertinent information.
Objectively weigh tangible factors, such as reputation, morale, discipline, and personal biases.
Use a cause-and-effect diagram.

8. Establish Decision Criteria
Determine standards or measures for evaluating alternatives.
Determine which criteria are necessary.
Determine their order of priority.

9. Sample Decision Criteria
Work assignments completed on time
Incurs no financial cost
Doesn’t impede quality of service
Puts no job in jeopardy
Allows differentiation
Has no negative impact
Alleviates problem within one week

10. Develop Alternatives
Consider as many solutions as can be reasonably developed.
Use brainstorming.
Be creative.
Use nominal group technique (NGT).
Consider ethical implications.

11. Brainstorming
Brainstorming — a free flow of ideas within a group, while suspending judgment, aimed at developing many alternate solutions to problems

12. Brainstorming
Nominal group techniques(NGT) — a group brainstorming and decision-making process by which individual members first identify alternative solutions privately and then share, evaluate, and decide on them as a group

13. Brainstorming Allow no criticism of ideas Seek many ideas
Encourage free wheeling
Combine, add on to, and rearrange ideas

14. Ethics in Decision Making
Legal/compliance test
Public-knowledge test
Long-term-consequences test
Examine-your-motives test
Inner-voice test

15. Evaluate the Alternatives
Try to foresee probable desirable and undesirable consequences of each alternative.
Eliminate alternatives that don’t meet decision criteria and ethical standards.
Evaluate how many of the most important criteria each alternative meets.

16. Select the Best Alternative
Optimizing—selecting the alternative that seems best
Satisficing—selecting an alternative that meets minimal decision criteria

17. Select the Best Alternative
Bases for choosing the best alternative:
Experience
Intuition
Advice from others
Experimentation
Quantitative decision making

18. Follow Up and Appraise the Results
The task of decision making isn’t complete without some form of follow-up and action appraisal.
When consequences are good, the decision was sound.
When consequences are not as anticipated, the decision-making process starts all over again.

19. Tips for Decision Making
Take time
Seek opinions and suggestions
Gather ample facts
Stretch your mind
Use objective criteria
Admit and rectify errors

20. Impact of Time Take time to ask employees questions:
How extensive is the problem? Does it need an immediate response?
Who else is affected?
What do you think the end result should be?
What do you recommend? Why?