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understanding problem solving and decision making techniques

Problem Solving And Decision Making: 10 Hacks That Managers Love

Understanding problem solving & decision making, why are problem solving and decision making skills essential in the workplace, five techniques for effective problem solving, five techniques for effective decision making, frequently asked questions.

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Steps in problem solving and decision making

  • Improved efficiency and productivity: Employees with strong problem solving and decision making skills are better equipped to identify and solve issues that may arise in their work. This leads to improved efficiency and productivity as they can complete their work more timely and effectively.
  • Improved customer satisfaction: Problem solving and decision making skills also help employees address any concerns or issues customers may have. This leads to enhanced customer satisfaction as customers feel their needs are being addressed and their problems are resolved.
  • Effective teamwork: When working in teams, problem solving and decision making skills are essential for effective collaboration . Groups that can effectively identify and solve problems together are more likely to successfully achieve their goals.
  • Innovation: Effective problem-solving and decision-making skills are also crucial for driving innovation in the workplace. Employees who think creatively and develop new solutions to problems are more likely to develop innovative ideas to move the business forward.
  • Risk management: Problem solving and decision making skills are also crucial for managing risk in the workplace. By identifying potential risks and developing strategies to mitigate them, employees can help minimize the negative impact of risks on the business.

Problem solving techniques

  • Brainstorming: Brainstorming is a technique for generating creative ideas and solutions to problems. In a brainstorming session, a group of people share their thoughts and build on each other’s suggestions. The goal is to generate a large number of ideas in a short amount of time. For example, a team of engineers could use brainstorming to develop new ideas for improving the efficiency of a manufacturing process.
  • Root Cause Analysis: Root cause analysis is a technique for identifying the underlying cause of a problem. It involves asking “why” questions to uncover the root cause of the problem. Once the root cause is identified, steps can be taken to address it. For example, a hospital could use root cause analysis to investigate why patient falls occur and identify the root cause, such as inadequate staffing or poor lighting.
  • SWOT Analysis: SWOT analysis is a technique for evaluating the strengths, weaknesses, opportunities, and threats related to a problem or situation. It involves assessing internal and external factors that could impact the problem and identifying ways to leverage strengths and opportunities while minimizing weaknesses and threats. For example, a small business could use SWOT analysis to evaluate its market position and identify opportunities to expand its product line or improve its marketing.
  • Pareto Analysis: Pareto analysis is a technique for identifying the most critical problems to address. It involves ranking problems by impact and frequency and first focusing on the most significant issues. For example, a software development team could use Pareto analysis to prioritize bugs and issues to fix based on their impact on the user experience.
  • Decision Matrix Analysis: Decision matrix analysis evaluates alternatives and selects the best course of action. It involves creating a matrix to compare options based on criteria and weighting factors and selecting the option with the highest score. For example, a manager could use decision matrix analysis to evaluate different software vendors based on criteria such as price, features, and support and select the vendor with the best overall score.

Decision making techniques

  • Cost-Benefit Analysis: Cost-benefit analysis is a technique for evaluating the costs and benefits of different options. It involves comparing each option’s expected costs and benefits and selecting the one with the highest net benefit. For example, a company could use cost-benefit analysis to evaluate a new product line’s potential return on investment.
  • Decision Trees: Decision trees are a visual representation of the decision-making process. They involve mapping out different options and their potential outcomes and probabilities. This helps to identify the best course of action based on the likelihood of different outcomes. For example, a farmer could use a decision tree to choose crops to plant based on the expected weather patterns.
  • SWOT Analysis: SWOT analysis can also be used for decision making. By identifying the strengths, weaknesses, opportunities, and threats of different options, a decision maker can evaluate each option’s potential risks and benefits. For example, a business owner could use SWOT analysis to assess the potential risks and benefits of expanding into a new market.
  • Pros and Cons Analysis: Pros and cons analysis lists the advantages and disadvantages of different options. It involves weighing the pros and cons of each option to determine the best course of action. For example, an individual could use a pros and cons analysis to decide whether to take a job offer.
  • Six Thinking Hats: The six thinking hats technique is a way to think about a problem from different perspectives. It involves using six different “hats” to consider various aspects of the decision. The hats include white (facts and figures), red (emotions and feelings), black (risks and drawbacks), yellow (benefits and opportunities), green (creativity and new ideas), and blue (overview and control). For example, a team could use the six thinking hats technique to evaluate different options for a marketing campaign.

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Aastha Bensla

Aastha, a passionate industrial psychologist, writer, and counselor, brings her unique expertise to Risely. With specialized knowledge in industrial psychology, Aastha offers a fresh perspective on personal and professional development. Her broad experience as an industrial psychologist enables her to accurately understand and solve problems for managers and leaders with an empathetic approach.

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understanding problem solving and decision making techniques

3 Ways to Improve Your Decision Making

by Walter Frick

understanding problem solving and decision making techniques

Summary .   

To make a good decision, you need to have a sense of two things: how different choices change the likelihood of different outcomes and how desirable each of those outcomes is. In other words, as Ajay Agrawal, Joshua Gans, and Avi Goldfarb have written , decision making requires both prediction and judgment.

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Making decisions and solving problems are two key areas in life, whether you are at home or at work. Whatever you’re doing, and wherever you are, you are faced with countless decisions and problems, both small and large, every day.

Many decisions and problems are so small that we may not even notice them. Even small decisions, however, can be overwhelming to some people. They may come to a halt as they consider their dilemma and try to decide what to do.

Small and Large Decisions

In your day-to-day life you're likely to encounter numerous 'small decisions', including, for example:

Tea or coffee?

What shall I have in my sandwich? Or should I have a salad instead today?

What shall I wear today?

Larger decisions may occur less frequently but may include:

Should we repaint the kitchen? If so, what colour?

Should we relocate?

Should I propose to my partner? Do I really want to spend the rest of my life with him/her?

These decisions, and others like them, may take considerable time and effort to make.

The relationship between decision-making and problem-solving is complex. Decision-making is perhaps best thought of as a key part of problem-solving: one part of the overall process.

Our approach at Skills You Need is to set out a framework to help guide you through the decision-making process. You won’t always need to use the whole framework, or even use it at all, but you may find it useful if you are a bit ‘stuck’ and need something to help you make a difficult decision.

Decision Making

Effective Decision-Making

This page provides information about ways of making a decision, including basing it on logic or emotion (‘gut feeling’). It also explains what can stop you making an effective decision, including too much or too little information, and not really caring about the outcome.

A Decision-Making Framework

This page sets out one possible framework for decision-making.

The framework described is quite extensive, and may seem quite formal. But it is also a helpful process to run through in a briefer form, for smaller problems, as it will help you to make sure that you really do have all the information that you need.

Problem Solving

Introduction to Problem-Solving

This page provides a general introduction to the idea of problem-solving. It explores the idea of goals (things that you want to achieve) and barriers (things that may prevent you from achieving your goals), and explains the problem-solving process at a broad level.

The first stage in solving any problem is to identify it, and then break it down into its component parts. Even the biggest, most intractable-seeming problems, can become much more manageable if they are broken down into smaller parts. This page provides some advice about techniques you can use to do so.

Sometimes, the possible options to address your problem are obvious. At other times, you may need to involve others, or think more laterally to find alternatives. This page explains some principles, and some tools and techniques to help you do so.

Having generated solutions, you need to decide which one to take, which is where decision-making meets problem-solving. But once decided, there is another step: to deliver on your decision, and then see if your chosen solution works. This page helps you through this process.

‘Social’ problems are those that we encounter in everyday life, including money trouble, problems with other people, health problems and crime. These problems, like any others, are best solved using a framework to identify the problem, work out the options for addressing it, and then deciding which option to use.

This page provides more information about the key skills needed for practical problem-solving in real life.

Further Reading from Skills You Need

The Skills You Need Guide to Interpersonal Skills eBooks.

The Skills You Need Guide to Interpersonal Skills

Develop your interpersonal skills with our series of eBooks. Learn about and improve your communication skills, tackle conflict resolution, mediate in difficult situations, and develop your emotional intelligence.

Guiding you through the key skills needed in life

As always at Skills You Need, our approach to these key skills is to provide practical ways to manage the process, and to develop your skills.

Neither problem-solving nor decision-making is an intrinsically difficult process and we hope you will find our pages useful in developing your skills.

Start with: Decision Making Problem Solving

See also: Improving Communication Interpersonal Communication Skills Building Confidence

IMAGES

  1. Problem-Solving Process in 6 Steps

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  2. Introduction to Problem Solving Skills

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  3. Problem Solving and Decision Making (Online Training)

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  4. 12.2 Making Decisions in Different Organizations

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  5. Problem Solving And Decision Making: 10 Hacks That Managers Love

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  6. Problem Finding, Problem Solving, and Decision Making: Critical Skills in Today’s World

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COMMENTS

  1. Problem-Solving Strategies: Definition and 5 Techniques to Try

    In insight problem-solving, the cognitive processes that help you solve a problem happen outside your conscious awareness. 4. Working backward. Working backward is a problem-solving approach often ...

  2. Decision-Making and Problem-Solving: What's the Difference?

    Decision-making is the process of choosing a solution based on your judgment, situation, facts, knowledge or a combination of available data. The goal is to avoid potential difficulties. Identifying opportunity is an important part of the decision-making process. Making decisions is often a part of problem-solving.

  3. Problem Solving And Decision Making: 10 Hacks That Managers Love

    Here is a brief explanation of the difference between problem solving and decision making: Problem solving: Problem solving is identifying, analyzing, and resolving problems or issues. It involves specifying the root cause of a problem and finding solutions to overcome it. Problem solving requires critical thinking, creativity, and analytical ...

  4. Tips And Techniques For Problem-Solving And Decision-Making

    There are two main approaches to problem-solving and decision-making: vertical thinking and horizontal thinking. Both approaches have strengths and weaknesses, so understanding the differences ...

  5. The Power Of Critical Thinking: Enhancing Decision-Making And Problem

    Critical thinking enhances decision-making, problem-solving and communication abilities by fostering logical reasoning, analytical skills and an open mindset. It enables individuals to overcome ...

  6. To Solve a Tough Problem, Reframe It

    Read more on Decision making and problem solving or related topics Organizational decision making, Business management, Innovation, Strategy formulation and Customer strategy JB

  7. Why Problem-Solving Skills Are Essential for Leaders

    4 Problem-Solving Skills All Leaders Need. 1. Problem Framing. One key skill for any leader is framing problems in a way that makes sense for their organization. Problem framing is defined in Design Thinking and Innovation as determining the scope, context, and perspective of the problem you're trying to solve.

  8. How to Make Great Decisions, Quickly

    The right people with the relevant expertise need to clearly articulate their views to help you broaden your perspective and make the best choice. Great decisions are made as close as possible to ...

  9. 3 Ways to Improve Your Decision Making

    Third, brush up on your understanding of probability. Research has shown that even basic training in probability makes people better forecasters and helps them avoid certain cognitive biases. To ...

  10. Decision-Making and Problem-Solving

    The relationship between decision-making and problem-solving is complex. Decision-making is perhaps best thought of as a key part of problem-solving: one part of the overall process. Our approach at Skills You Need is to set out a framework to help guide you through the decision-making process. You won't always need to use the whole framework ...