Problem Solving And Decision Making

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Introduction:
Definition of a Problem:
A problem exists when there is a gap between what you expect to happen
and what actually happens.
* Problems must be resolved for organizations to function properly.
* Supervisors must be aware of current situations to recognize whether a
problem exists.
Problem solving refers to active efforts to discover what must be done to
achieve a goal that is not readily attainable.
Problem solving: is the process of taking corrective action in order to
meet objectives.
Effective problem solving requires a controlled mixture of analytical
and creative thinking.
Decision: Is a solution chosen from among alternatives.
Decision-making process: is the process of selecting an alternative course
of action that will solve a problem.
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Decision making and Problem-Solving Steps:

* Define the problem (deal with the real problem not its
symptoms)
* Gather information (information that pertains to or can
influence the situation)
* Develop alternatives (Brain storm, Openness)
* Weigh alternatives (Identify important criteria, Identify
important advantages & Constraints)
* Select the best alternative (Suitable, Feasible, Flexible)
* Implement the solution
* Monitor progress and follow up

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The Difference between Decision Making and

Problem Solving
While both processes are systematic, problem solving involves
defining a problem and creating solutions for it.
Decision making is selecting a course of action from among
available alternatives. Problem solving always involves
decision making. However, not all decision making involves
solving a problem.
For example, a supervisor may have to make decisions about
employees, resources, workload, etc. without having a problem to
solve.
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Decision Making Techniques:

* Paired Comparison Analysis:
Evaluating the relative importance of different options
* Grid Analysis:
Selecting between good options. Evaluate a larger set of options
based on numerous criteria, then weight the importance of each
criterion to derive the best choice.
* Decision Trees:
Choosing between options by projecting likely outcomes
* Six Thinking Hats:
Looking at a decision from all points of view
* Cost/Benefit Analysis:
Seeing whether a change is worth making
* Multivoting:
Narrows a large list of possibilities to a smaller list of the top
priorities or to a final selection.
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Four Territory Zones:

- Work Space:
Space used or required for one's work, as in an office or home.
- Intimate Zone/Distance:
Only certain people are allowed into close proximity. We reserve this space for people with
whom we are emotionally close.
- Personal Zone/Distance:
This is the zone where people are able to shake hands or at arms length from each other. It is
less in case of informal outgoing people whereas in case of stiff and reserved people it is large.
- Social Zone/Distance:
It is the distance we maintain with people we interact with but dont know very well. This is
the zone where people are at an audible distance. (4 - 7 feet)
- Public Zone/ Distance:
This is could be distance between 12-25 feet. A distance suitable for lectures or conferences.

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Intimate distance for embracing, touching or whispering

Close phase less than 6 inches (15 cm)
Far phase 6 to 18 inches (15 to 46 cm)
Personal distance for interactions among good friends or family
Close phase 1.5 to 2.5 feet (46 to 76 cm)
Far phase 2.5 to 4 feet (76 to 122 cm)
Social distance for interactions among acquaintances
Close phase 4 to 7 feet (1.2 to 2.1 m)
Far phase 7 to 12 feet (2.1 to 3.7 m)
Public distance used for public speaking
Close phase 12 to 25 feet (3.7 to 7.6 m)
Far phase 25 feet (7.6 m) or more.

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A Case on Paramount Enterprises Limited

Paramount Enterprises Limited was formed in 1985 as a result of
Amalgamation of Paramount Sales Limited & Sigma Industries
Limited. Paramount Sales was promoted by S. Srinivas in 1978
to take up agency business in electrical fans, sewing machines,
refrigerators & Air conditioners etc.
Before forming Paramount Sales, Srinivas served as a sales
manager in a large company manufacturing and marketing
refrigerators and other consumer durables. The agency business
of Paramount Sales progressed at a very fast rate and the firm
earned substantial profit.
In 1995, Srinivas decided to enter manufacturing. However, it
was felt that the firm was primarily a marketing organization and,
therefore, it was thought that the undertaking manufacturing
project through grass-root level was not advisable.
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It was decided to takeover controlling interest in Sigma Industries

Limited which was engaged in manufacturing electrical fans of
different types. While assessing the acquisition bid, criteria used
were addition of managerial talent in manufacturing so as to have
synergy with the existing marketing functions. Paramount sales
and Sigma Industries limited were merged and a new entity was
named as Paramount Enterprises Limited.
In 2003, the company decided to take over a company of a
substantial size to make its presence felt in business field. The
only criterion that was laid down was the synergy that would
result to Paramount through takeover. Finance was not a limiting
factor as the company was having large cash surplus.
The team evaluated several targets for takeover and arrived at a
conclusion that BCL electronics limited manufacturing TV sets
and Plasma limited manufacturing washing machines would be
good targets.
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Both the companies were having good technology but did not do
well because of poor marketing infrastructure. The team
submitted report to Srinivas.
After reading the report, he discussed the matter with his wife
Shakti, who is an MBBS but Srinivas did not persuaded her to
practice. On the takeover mater, she suggested to takeover a
pharmaceutical company as this business was evergreen.
Srinivas was slightly perplexed but ultimately agreed for the
proposal. Next morning the same proposal he put forward with
the top-management managers who had contributed with other
ideas.
* Was Srinivas rational in making the decision to takeover the
pharmaceutical business?
* In what way, will or will not the marketing capability of
Paramount be relevant to the pharmaceutical business?
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