How to Make Decisions

2. Systems problems
Something happens that affects how people, things, and processes work together.

3. Economic problems
The typical economic problem faced by offices is that too much money is being spent for the amount of output resulting.

REMEMBER there are sometimes controllable and uncontrollable variables to a problem—the problem solver should only be concerned with the controllable variables—since nothing can be done about the uncontrollable variables.

Use creative thinking as a means of devising problem solving solutions.
Ø Brainstorming is a very good procedure to find possible solutions.

Ask yourself what is the present situation or condition that does not equal or agree with my objective?

STEPS TO DECISION-MAKING:

1. Recognize the problem (symptoms only vs. actual problem)

2. Define the problem
Decide what is the main issue.

3. Collect relevant information

• What is the real problem, and what are the principal components or elements making up the problem?
• Where did the problem occur? Why did it occur there?
• When did the problem occur? Why did it occur at that time?
• How did the problem occur? Why did it occur in that way?
• To whom did the problem occur? Why did it occur to him/her/them?

4. Analyze the information

• Which parts of the problem are only symptoms?
• Who can help me solve this problem?
• Who knows about the problem?
• Which factors in the problem can be controlled and which cannot?
• How does your personal life relate to the problem?
• Is there a deadline to solve the problem?
• What are the viewpoints of other people involved?
• How extensive or important does the problem seem?
• Does everyone see the same problem?

5. Develop possible solutions to the problem(s) – Hypotheses
Options:

• Rearrangement
• Modification
• Substitution
• Combination
• Elimination

6. Choose the BEST solution
WHY did you select this alternative?

7. Implement the solution and be sure to FOLLOW-UP to assure that the problem is solved.

8. Evaluate the solution
If the solution is unsatisfactory, repeat the entire problem solving process again.