MIDTERM I LABMAN
organizational members.
TOPIC 2: DECISION MAKING & PROBLEM
SOLVING
DECISION
▪ A conscious choice
▪ A process of choosing one alternative
from among a set of alternatives
CHARACTERISTICS OF A GOOD DECISION
▪ Based on a complete investigation
▪ Identify and evaluate alternatives
▪ Select the best solution
▪ Effective strategy for implementation
Types of Decision
Programmed and Non-Programmed Decisions
▪ The programmed decisions are of
routine and repetitive natures which
are to be dealt with according to
specific procedures. But the non-
programmed decisions arise of
unstructured problems.
Operational and Strategic Decisions
▪ Tactical or routine decisions are made
repetitively following certain
established rules, procedures and
policies. The strategic decisions relate
to policy matters and so require a
thorough fact finding and analysis of
the possible alternatives.
Organizational and Personal Decisions
▪ Organizational decisions are those
which a manager takes in his official
capacity. But personal decisions, which
relate to the manager as an individual
and not as a member of the
organization.
Individual and Group Decisions
▪ When a decision is taken by an
individual in the organization, it is
known as individual decision. Groups or
collective decisions refer to the
decisions which are taken by a group of
Policy and Operating Decisions
▪ Policy decisions are of vital importance
and are taken by the top management.
They affect the entire enterprise. But
operating decisions are taken by the
lower management in order to put into
action the policy decisions.
CONTINUUM OF DECISION STYLES
▪ A range of action related to the degree
of authority used by the manager and
to the area of freedom available to non-
managers in arriving at decisions.
Decision Making Process
RISKS
- Risk is based on uncertainty.
- The greater the outcome uncertainty of
the alternative chosen, the greater the
risk.
▪ Anchoring trap - Placing
disproportionate weight on first or
more superficial information found
during information gathering
▪ Status-quo trap - A bias toward doing
what you’ve always done despite better
alternatives
▪ Sunk-cost trap - Tendency to
perpetuate mistakes of the past
▪ Confirming evidence trap - Bias toward
information and judgment that
supports an existing predilection
▪ Framing trap - Misstating the problem,
focusing on a symptom
▪ Overconfidence trap - Overestimation
of accuracy of information
▪ Prudence trap - . Being overcautious
about the degree of risk
 ▪ Recallability trap - Placing undue weight
on recent, dramatic experiences
Good decision making relies on knowledge of
both the importance and components of the
process. It requires an awareness of personal
skills to determine the best way to reach the
highest-quality decision with the greatest
acceptance in the amount of time available.
Good decision making requires experience and
learning from one’s mistakes (reference 23, p.
66–68). Good decision making requires the
ability to reflect on information, then decide
(15, 25)
Step 1: Identify the problem or determine the
objectives. Identifying the problem requires a
manager to first diagnose the situation. Too
often a symptom of the problem is
misidentified as the root cause. For example, a
manager who identifies poor morale in the
laboratory has misdiagnosed the situation. Poor
morale is a symptom of an underlying problem.
The range of root causes could be low pay,
unappreciative supervisors, or lack of respect
from coworkers, among other causes. Failure to
define the problem in step 1 will negate all
subsequent steps to solve the problem.
Similarly, clear definition of objectives for a
decision provides a constant point of reference
when subsequently gathering information and
developing alternatives
Step 2: Gather facts and evaluate information.
At this step, the manager will learn whether he
is dealing with a programmed
nonprogrammed decision. Are there rules,
policies, and procedures that need to be
followed? Has someone already solved this
problem, and if so, how similar are the
characteristics to this situation? Is there a need
to get group input, and if so, individually or
collectively, and from whom? Figure 1.4 shows
the influence of the manager’s perceptions of
information gathered as data are evaluated. The
natural tendencies to either rely on the five
senses to identify factual details (sensing) or to
use hunches and a more holistic view (intuition)
will be part of this step.
Step 3: Develop and evaluate alternative
solutions and options. Some possible solutions
will be obvious; other solutions will be more
creative. The tendency to quickly adopt the first
viable solution may be time efficient but lead to
a lower-quality decision or solution. In general,
the more important the decision, the more
alternatives should be developed. At this step,
as shown in Fig. 1.4, the evaluation of options
will be influenced by the judgments of the
decision maker. The use of both subjective
values and objective analysis will lead to a
better sorting of potential options.
Step 4: Select the best alternative. After
considering each option in light of the situation
or objectives to be achieved, the manager
chooses the one most likely to be the highest
quality with the greatest acceptance within the
time available for decision making.
Step 5: Implement solution and follow up
consequences. The chosen alternative is
implemented, and over time the manager
determines if the problem has been solved or
the objectives met. The potential pitfall here is
to ensure that once the chosen alternative is
implemented, the process is complete. Two key
questions need to be answered: (1) Did the
chosen alternative work? (2) Are there
unintended consequences to the decision that
now must be addressed?
PROBABILITY ANALYSIS
or
▪ A PRIORI PROBABILITY
o Predictions obtained by
deductions based on assumed
conditions
▪ EMPRICAL PROBABILITY
 o Determined from the recording
of actual events over a specific
period of time
▪ SUBJECTIVE PROBABILITY
o Based on the knowledge and
experience of the decision
maker
Decision Making Techniques
▪ GROUP DISCUSSION
▪ BRAINSTORMING
▪ SYNECTICS
▪ NOMINAL METHOD
▪ DELPHI METHOD
BOOK
Decision Making
▪ Is the act of choosing one alternative
from among a set of alternatives
CODE DESCRIPTIONS
AI AND AII (autocratic)
AI – you solve the problem or make the decision
yourself, using information available to you.
AII – you solve the problem or make the
decision yourself, using information from
subordinates. They may or may not be aware of
the decision-making process and their role in it.
CI AND CII (consultative)
CI – you share the problem with relevant
subordinates individually, getting their ideas.
Then you make the decision yourself, accepting
or rejecting subordinate advice.
CII – you share the problem with relevant
subordinates at a group meeting, getting their
ideas. Then you make the decision yourself,
accepting or rejecting subordinate advice.
▪ Consultative approach may be done by
the manager sharing the problem with
employees one at a time to seek their
input or all employees at the same
time. The latter approach will have both
the benefits and limitations of group
social interaction.
GI AND GII (group)
GI – you share the problem with subordinates
individually, and together analyse the problem
and arrive at a mutual solution. You both
contribute.
GII – you share the problem with relevant
subordinates at a group meeting and together
analyse the problem and arrive at a group
decision. You do not try to influence the group,
and you are willing to accept and implement
what the group recommends.
DI – You delegate the problem to a subordinate,
providing him with relevant information and
giving him sole responsibility for the problem.
PROBLEM SOLVING
- A laboratory manager is a problem
solver. Every day, there will be
situations that require a high level of
decision making in reaction to a
situation where a problem is
confronted, isolated, and avoided or
eliminated.
- Problem solving is a skill that can be
developed, and it improves with
confidence and repetition.
- To be an effective problem solver, a
manager must approach problems in a
structured, creative way, much as a
 scientist deploys novel techniques to
surpass existing problems.
- Problem solving is a process that
contains several key elements. The
manager must be able to determine the
exact source and nature of the problem,
which is often difficult in complex
situations where many people or
processes are involved.
- In the laboratory setting, root problems
in technique or procedure often
compound at each ensuing step,
causing amplified impact further
downstream. In these situations, the
true cause of the problem is not
obvious, since it becomes visible at a
point that is far removed from the
source.
- Therefore, the manager must be a
dedicated detective, gathering evidence
and pulling together as much
information as possible to identify the
root cause of the flawed process.
- A skillful manager makes his or her
employees feel that they are part of the
solution instead of making them feel
that they are responsible for the
problem
- The final phase of problem solving is
follow-up. Once the solution is
implemented, it is absolutely necessary
to measure outcomes. The manager
must gauge the effectiveness of the
solution in a structured way at
prescribed intervals to make sure that
the problem was truly corrected. The
solution might create a new set of
unanticipated problems. Monitoring the
situation to ensure that the desired
results have been achieved is an
essential final step. Monitors are as
unique as the problems, but they
should be consciously considered and
applied.
The simple, seven step approach described here
allows the manager the flexibility to modify
when necessary but still have some basic
guidelines to follow:
Step One: Definition of the Problem – One
pitfall many managers encounter as they begin
a problem-solving process is the temptation to
hypothesize about what should have been done
earlier so the problem would not have
developed. Some problems will be inherited,
some resulting from decisions made elsewhere
in the organizational hierarchy, and still others
from one’s own doing. Regardless of the origin
of the problem, the solution must still be made
within the framework of the situation.
Step Two: Fact Gathering – Once the problem
has been identified, the manager can begin to
gather information needed for developing
alternative solutions.
Step Three: Development of Alternative
Solutions – The generation of possible solutions
calls for creative thinking. Often when faced
with this step, a manager will draw on his past
experience; in most cases this will be adequate.
Today’s manager must supplement his
creativity by seeking information from others
who have solved a similar problem or from
individuals directly involved in the situation. It is
wise to keep an open mind and not prejudge
ideas as they are generated.
Step Four: Weighing of Alternative Solutions –
This step requires the analysis of alternative
solutions by stating the advantages and
disadvantages of each possible course of action.
The manager must consider the ramifications of
each potential solution. Consideration should
be given to the question of whether a chosen
alternative will eliminate recurrence of the
problem or generate another in its place.
Step Five: Selection of Solutions – Choosing the
best possible course of action is an integrated
process. Considerable fact gathering and
planning have already occurred. Even though
alternatives have been scrutinized, any single
approach is not always “best”. There is
generally more than one way to solve a
problem.
Step Six: Implementation of the solution – Of
all the steps in the problem-solving process, the
implementation step is usually the most time
consuming. At the same time, even the best
decision, if not properly implemented, is
useless. As in the decision-making process,
implementation must involve those who are
directly affected by the solution.
Step Seven: Measurement of the
Consequences – Not all decisions rendered will
have the effect that was planned. An analysis of
what occurred, whether predicted or not,
provides an ever-increasing basis of experience
from which future problems can be solved.
Decision making is by definition a thoughtful,
conscious process that requires a rational
consideration of cause and effect. In most
cases, decisions are made to create
improvement in a given situation. If the
manager has a lucid understanding of what is
intended to be accomplished through the
decision-making process, and furthermore takes
into consideration a wide range of possible
actions, the resulting decisions will be quality
ones.

Before attempting to make any management

decisions, there are several general areas of
concern to which a laboratory manager must be
sensitive:

▪ Quality of the Decision – In order to

make a quality decision, a manager
must determine if he has all of the
appropriate information available. The
manager may need to seek out
information regarding specific skills
necessary to complement a given
alternative.
▪ Acceptance of Commitment to the
Decision – It is important to consider
not only the degree of acceptance by
the subordinates affected directly by
the decision but also the degree of
acceptance at other levels of
management within the organization.
▪ Speed of the Decision – The time
element must be considered. Even if it
is not essential that the decision be a
quick one, the laboratory manager must
consider the length of time it will take
to involve appropriate parties.
▪ The nature of the Value Judgments of
the Decision – All decisions involve a
value judgment in terms of what is
beneficial or nonbeneficial and
important or not important in
projecting the probable outcomes of
the decision