Decision Making and Creative problem solving:

So what do we mean by problem solving and decision making and how are they related to one another?

Problem Solving: Is a set of activities designed to analyze a situation systematically and generate, implement and evaluate solutions.

Decision making: Is a mechanism for making choices at each steps of the problem solving process.

Decision making is part of problem solving and decision making occurs at every step of the problem-solving process.

Creative problem solving – Mediocre problem solving

And comes another jargon “Creative problem solving”. So what is this Creative problem solving?

Well creative problem solving is the mental process of creating a solution to a problem. It is special form of problem solving in which the solution is independently created rather than learned with assistance. So obviously Creative problem solving Always Involves “Creativity”.

On contarary the approach to problem solving where solution is reached with assistance of existing practices, principles or other assistances can be termed as mediocre problem solving.

Clearly what this category of problem solving lacks is “Creativity”.

To qualify as creative problem solving the solution must aeither have value, clearly solve the stated problem, or be appreciated by someone for whome the solution improves.

Following a mediocre problem solving insists a solution most of time with just one constraint it being mediocre i.e. Nothing new.

Types of Decision Making:

1. Individual Decision Vs Group Decision making: Decision making without group's input or a decision made regardless of the groups' opinion is naturally and individual decision. This is the more tradiational decision making approach and can work effictively for a manager when group's input is not required or desired.

On the other hand side group decision making involves either consennsus or consultation amongst the group members. Both methods requires the group's participation and call for a manager who respects the opinions and input of the group in the decision making process.

2. Rational Decision making : The rational decision making model is a process for making logically sound decisions. This multi-step model aims to be logical and follow the orderly path from problem identification through solution. Steps of rational decision making can be written as :

1. Verify, define and detail the problem
2. Generate all possible solutions
3. Generate objective assessment criteria
4. Choose the best solution generated.
5. Implement the preferred alternative.
6. Monitor and evaluate outcomes and results.
7. Feedback

3. Participative Decision Making – Unilateral decision making : Autocratic leaders make their own decisions while participative leaders involve others in making decisions. Supposedly good leaders vary their decision making style according to the situation. They make decisions unilaterally or use degree if participation as appropriate. A participative style should be used whenever employee commitement is required. Unilateral decision must be made on occasion, especially when time is short.

Bounded Rationality (BR) : Bounded rationality is the idea that in decision making, rationality of individuals is limited by the information they have, the congnitive limitations of their minds,, and the finite amount of time they have to make the decision.

Bounded rationality is a school of thought about decision making that developed from dissatisfaction with the “comprehensively rational” economic and decision theory model of choice. Those models assume that preferences that decision makers maximize their net benefits or utilities by choosing the alternative that yeilds the highest level of benefits. A major implication of the approach is that behavior is determined by mix of incentives facing the decision maker. A second implication is that behavior is determined by the mix of incentives facing the decision maker.

Problems with unbounded rationality:

1. Decision maker is a satisficer : i.e one seeking a satisfactory solution rather than optimal one.
2. Human minds have limited time and cognitive ablities to make optimal choices.

Japnes Ringi system :

The ringi system is a collective process of decision making by circular letter (ringisho) that is known to be specific to large bureaucratic organizations and companies in Japan. The ringi system of sharing authority is a practice that dates back to the Tokugawa shogunate during the Edo period (1600/1603–1868). A proposal is initiated at the middle or lower level of management. It then takes the form of a written proposal that is circulated among the interested parties through the organizational hierarchies, as well as at the divisional and corporate levels for consultation, comment, and approval. After each individual involved has signified agreement by stamping a personal seal (hanko) on the document, it is returned to the original person in charge for implementation. From this process, a final decision emerges that will be enacted by the authority of the organization or company. This process is called ringiseido (request for decision system), which emphasizes the importance the Japanese place on group decisions. In negotiations, it means that the confidence of the entire group will have to be reached. In the end, the decision can be implemented quickly and with full cooperation because it already has unanimous support.

Ankur Shree

IM – 19

Roll : 220 Sec A