0% found this document useful (0 votes)
71 views

Situation Appraisal

The document discusses decision making processes and situation appraisal. It describes the diversity of skills needed on a management team and challenges of coordinating them. There are four basic patterns of thinking - clarification, cause and effect, choice, and anticipating the future. These lead to four rational processes - situation appraisal, problem analysis, decision analysis, and potential problem analysis. Situation appraisal involves recognizing concerns, separating and clarifying issues, and setting priorities to efficiently address multiple activities. Dimensions like timing, trend, and impact are evaluated to prioritize concerns.

Uploaded by

meidianiza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
71 views

Situation Appraisal

The document discusses decision making processes and situation appraisal. It describes the diversity of skills needed on a management team and challenges of coordinating them. There are four basic patterns of thinking - clarification, cause and effect, choice, and anticipating the future. These lead to four rational processes - situation appraisal, problem analysis, decision analysis, and potential problem analysis. Situation appraisal involves recognizing concerns, separating and clarifying issues, and setting priorities to efficiently address multiple activities. Dimensions like timing, trend, and impact are evaluated to prioritize concerns.

Uploaded by

meidianiza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 39

Decision Making Processes

INTRODUCTION

Problem Solving / Decision Making Chapter 1 - 1


A Management Team
 Leader/Entrepreneur - aggressive,
driven, quick
 Finance - analytically focused, thorough
 Sales - enthusiastic, sometimes
impatient
 R&D - balance between feasible and
desirable
 Production - reality driven
Problem Solving / Decision Making Chapter 1 - 2
The Paradox
 We need this diversity on a
management team to provide the
necessary expertise to make the
organization successful.
 BUT, with so many different mindsets,
how can we coordinate their efforts in
an effective and efficient way.

Problem Solving / Decision Making Chapter 1 - 3


The Solution
 We need simple, common, sensible
guidelines and procedures expressed in
commonly understood language.
 for gathering, sharing, and using
information
 for solving problems
 for making decisions
 for protecting the organization’s future

Problem Solving / Decision Making Chapter 1 - 4


The Human Nature Aspect
 People generally resist change
 BUT, people will embrace change that
seems good for them and the things
they care about.
 A system for change must
 facilitate introduction of ideas
 provide means for implementation
 offer rewards

Problem Solving / Decision Making Chapter 1 - 5


Four Basic Patterns of
Thinking
 EVERY productive activity is related to one of
four basic patterns of thinking.
(1) What is going on? - clarification
(2) Why did this happen? – cause and effect
(3) Which course of action should we take? -
choice
(4) What lies ahead? – looks into future

Problem Solving / Decision Making Chapter 1 - 6


The Four Thinking Patterns
Just How Important Are They?
 These four patterns have not altered
substantially since the emergence of the
human race.
 They are universally applicable to any
situation.
 Survival is guaranteed by the ability to
use these patterns.

Problem Solving / Decision Making Chapter 1 - 7


The Four Basic Rational
Processes
 Applying the four basic thinking
patterns in an organizational setting
leads to systematic procedures for using
and sharing information about
organizational concerns.
 Known as the 4 basic rational processes,
they are universally applicable
regardless of cultural setting or content.
Problem Solving / Decision Making Chapter 1 - 8
The Four Basic Rational
Processes
 Situation Appraisal
 What is Going On?
 Breaks down complex into components
 Separates relevant from irrelevant

 Sets priorities and delegates responsibilities

 Identifies
 Problems to be solved
 Decisions to be made

 Future events to be analyzed

Problem Solving / Decision Making Chapter 1 - 9


The Four Basic Rational
Processes
 Problem Analysis
 Why Did This Happen?
 Based on the cause-and-effect thinking pattern
 Enables us to:
 identify, describe, analyze, and resolve
 situation in which something has gone wrong
without explanation
 Methodical means to extract relevant and
useful information about a situation
Problem Solving / Decision Making Chapter 1 - 10
The Four Basic Rational
Processes
 Decision Analysis
 Which Course of Action?
 Based on the choice-making thinking pattern
 Methodical means to examine:
 the purpose of the decision
 the available options

 the risks of each alternative

Problem Solving / Decision Making Chapter 1 - 11


The Four Basic Rational
Processes
 Potential Problem Analysis
 What Lies Ahead?
 Based on the anticipating the future thinking
pattern
 Methodical means to:
 avoid possible negative consequences
 turn situations to our advantage

Problem Solving / Decision Making Chapter 1 - 12


Problem Solving / Decision Making Chapter 1 - 13
Problem Solving /
Decision Making

SITUATION APPRAISAL

Problem Solving / Decision Making Chapter 1 - 14


Evaluative Techniques of
Situation Appraisal
 Where to Begin
 How to recognize situations that require
action
 How to break apart overlapping and
confusing issues
 How to set priorities
 How to manage a number of simultaneous
activities efficiently

Problem Solving / Decision Making Chapter 1 - 15


Where to Begin?
 When faced with a situation, we may
experience confusion and uncertainty
over where to begin.
 We may struggle to recognize and
break apart actions that overlap and are
required to address the situation.

Problem Solving / Decision Making Chapter 1 - 16


Where to Begin
A manager who is skilled at the three basic
rational processes of PA, DA, and PPA is
more efficient than one who is not.
 These three rational processes are analytical in
nature - there purpose is to analyze and resolve
 But to be more effective, a manager must also
be skilled at another rational process:
Situation Appraisal (SA)
 SA is an evaluative technique leading to the
proper selection and use the analytical techniques
Problem Solving / Decision Making Chapter 1 - 17
Stages of Situation Appraisal

Problem Solving / Decision Making Chapter 1 - 18


Recognize Concerns
Four Activities
 Listcurrent deviations, threats, and
opportunities
 Review progress against goals
 Look ahead for surprises
 Search for improvement

Problem Solving / Decision Making Chapter 1 - 19


Recognize Concerns
Specific Questions
 Where are we not meeting standards?
 What problems remain unsolved?
 What recommendations are we working
on?
 What decisions need to be made?
 What major projects, systems, or plans are
about to be implemented?
 What bothers us about …..?

Problem Solving / Decision Making Chapter 1 - 20


Separate and Clarify
Concerns
 Most issues are more complex than they
first appear
 “It is unlikely that employing the
separation step of Situation Appraisal
will be a waste of time.”

Problem Solving / Decision Making Chapter 1 - 21


Separate and Clarify
Specific Questions
 Do we think one action will resolve this?
 Do we agree on the reason for our concern?
 What evidence do we have that this is a
concern?
 What do we mean by ….?
 What is actually happening in this
situation? Anything else?
 What actions are suggested?

Problem Solving / Decision Making Chapter 1 - 22


Separate and Clarify
Specific Questions
 Together, these questions get below the
surface
 They shift us from subjective opinion to
verifiable information
 FACTS and DATA!

Problem Solving / Decision Making Chapter 1 - 23


Separate and Clarify
Specific Questions
 “Without the separating questions, it is
entirely possible for people to sit
through an entire meeting in the
mistaken certainty that their individual,
disparate assessments of a situation
represent the understanding of the
group at large.”

Problem Solving / Decision Making Chapter 1 - 24


Setting Priority
A practical and systematic process for
determining dimensions of importance
 How much time urgency does it have to keep the
concern from becoming difficult, expensive, or
impossible to resolve – TIMING
 Will the concern get worst? What is the best
estimate of its probable growth? - TREND
 How serious is the current impact on people,
safety, cost, productivity, organization etc.? -
IMPACT

Problem Solving / Decision Making Chapter 1 - 25


Setting Priority
 Each dimension is evaluated based on 3
degrees of concern:
 High (H)
 Medium (M)
 Low (L)

Problem Solving / Decision Making Chapter 1 - 26


Setting Priority
 Postpone any concern that ranks low in
all three dimensions
 “Experienced managerial teams …. can
usually pick out the top five (concerns)
in a relatively short time.”
 Don’t be unnecessarily swayed by
activities you enjoy or activities from
demanding people.
Problem Solving / Decision Making Chapter 1 - 27
Problem Solving / Decision Making Chapter 1 - 28
Problem Solving / Decision Making Chapter 1 - 29
Plan for Resolution:
Problem Analysis
 Does the situation require explanation?
 Is there a deviation from expected
performance?
 Is the cause of the deviation unknown?
 Would knowing the cause help us to
take more effective action?

Problem Solving / Decision Making Chapter 1 - 30


Plan for Resolution:
Decision Analysis
 Does a choice have to be made?
 Is there a dilemma around the best
action to take?
 Do objectives need to be set in order to
undertake some activity?

Problem Solving / Decision Making Chapter 1 - 31


Plan for Resolution:
Potential Problem Analysis
 Has a decision been made that has not
been implemented, and is it necessary
to act now to avoid possible future
trouble?
 Does a plan need to be made to
safeguard a decision or future activity?
 Can we generate additional value by
implementing a plan or decision?
Problem Solving / Decision Making Chapter 1 - 32
Selecting the Right Rational
Process
 The kind of answer we need determines
the choice of Rational Process
 How much of an answer we need
determines whether we will use all the
process or only part of it.
 Partial use of the rational processes is
common

Problem Solving / Decision Making Chapter 1 - 33


Problem Solving / Decision Making Chapter 1 - 34
Problem Solving / Decision Making Chapter 1 - 35
Determine Help Needed
 Often responsibility for resolving
concerns must be shared or assigned to
others
 Who needs to be involved for:
 Information Approval
 Commitment Development
 Implementation Creativity
 Analysis Presentation

Problem Solving / Decision Making Chapter 1 - 36


Determine Help Needed
(continued)
 What needs to be done and when?
 Who will do it?
 Who will document the process and the
results?

Problem Solving / Decision Making Chapter 1 - 37


Summary
 “Far too much time is wasted trying to
make sense of concerns that are
unactionable collections of concerns,
each with its own unique features and
requirements.”
 Formal and informal use of SA can
significantly reduce this waste of time
and energy.
Problem Solving / Decision Making Chapter 1 - 38
Problem Solving / Decision Making Chapter 1 - 39

You might also like