Problem Solving & Decision Making

One day Prof Mandi started a discussion on a very interesting topic called problem solving and decision making .The discussion was very productive and i got to learn a lot of new things which i will be sharing in this blog.

Problem Solving: Problem-solving is a mental process that involves discovering, analyzing and solving problems. The ultimate goal of problem-solving is to overcome obstacles and find a solution that best resolves the issue.

Decision Making: Decision making is the mental process resulting in the selection of a course of action among several alternatives. Every decision making process produces a final choice in an action or an opinion of choice. If a person neither takes and action nor gives an opinion, this is also decision.

Difference Between Problem Solving and Decision Making

It is important to differentiate between problem analysis and decision making. The concepts are completely distinct from each another. Traditionally, it is argued that problem analysis must be done first, so that the information gathered in that process may be used towards decision making. A problem is a deviation from performance standards - that is, what occurred is different from what was expected to have occurred. In decision making, the objectives are first established, and a choice is made among alternatives for action or for an opinion. A decision that results in doing nothing - no action, nor an opinion rendered - is also considered a decision.

In any organization decision making and its implementation can happen in the following 4 ways:-

1.       Individual Decision, Individual Implementation

2.       Individual Decision, Group Implementation
3.       Group Decision, Individual Implementation4.       Group Decision, Group Implementation

Individual Decision:-In this case decision is taken by an individual and is a fast way of decision making.

Group Decision:-In this case decision is taken by a group of individuals and the decision is made only when they reach a mutual consensus.This way takes more time.

The Steps in Problem-Solving:-

1.       Problem Identification : In this step we identify the problems and prioritize them.
2.       Problem Analysis : In this step we define the problem statement on the basis of all the gathered data both from internal sources and external sources.
3.       Plan Development :In this step a plan is developed for tackling the problem and finding a feasible solution for it                          
4.      Plan Implementation:In this step the solution is implemented

5.  Plan Evaluation:In this the implemented solution is evaluated

Learning management by objectives

Like most of his previous classes one day Prof Mandi brought ab object in the class.This the object was simple magnet and as i was wondering that what management concept could we possibly learn from a magnet he asked us a simple question why does a magnet attracts.The question appeared a simple one as we had read about it in school and most of gave the answer for it.But the final statement we came down to was that a magnet attracts is because all the molecules align them them selves together.
Then Prof Mandi started to explain this concepts relevance in modern management.When ever management aligns itself with the human resources the tasks are successfully accomplished.

We then discussed a key concept called management by objectives.Management by objectives (MBO), also known as management by results (MBR), is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization in order to achieve them. The term "management by objectives" was first popularized by Peter Drucker in his 1954 book The Practice of Management.

The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employee’s actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.

Drucker outlined the six-step process for MBO

Some of the important features and advantages of MBO are:

1. Motivation – Involving employees in the whole process of goal setting and increasing employee empowerment. This increases employee job satisfaction and commitment.
2. Better communication and coordination – Frequent reviews and interactions between superiors and subordinates helps to maintain harmonious relationships within the organization and also to solve many problems.
3. Clarity of goals
4. Subordinates tend to have a higher commitment to objectives they set for themselves than those imposed on them by another person
5. Managers can ensure that objectives of the subordinates are linked to the organization's objectives.
6. Everybody will be having a common goal for whole organization. That means, it is a directive principle of management

What can Navrang cube teach us

One fine day Dr Mandi brought with him a colourful cube which resembled a regular rubik's cube in it shape but was differed from it in its colours and one more difference was that it was detachable.At first i wan't sure what it was and what it was for but i was excited and knew it going to be fun. Then Prof Mandi told that the cube was called a Navrang cube and posed a challenge to our class. He asked us to arrange the cube in such a way that all 9 colours fall on all the 6 faces of the cube.

1. Solve it in a ramdom manner.Try to solve it on a trial and error basis with any plan or prior analysis.

1. The other way it to solve it methodologically with a proper plan and prior analysis

All of us accepted the challenge and tried to solve but failed.We struggled for about an hour but couldnot solve it.Then Prof Mandi took the cube from us and solved it in less than 2 minutes.We were amazed that how could he solve it such a short duration.We got our answer as the lecture progressed.We failed because our method for solving it was not correct.We did not have any plan nor did we know the process of solving it.We were quite random in our approach.We didn't any prior analysis before trying to attempt to solve the puzzle.But when Prof Mandi started solving the cube he was very much organized and followed a particular method of solving it as consequence of which he solved it in less than 2 min.

Learnings from this exercise were that there are two ways of solving a problem

It doesn't Einstein to guess which way is a better choice.

He then told us about Frederick Taylor’s theory of scientific management.There are 4 principals of scientific management which are as follows:-

Taylor's four principles are as follows:

1.   Replace working by "rule of thumb," or simple habit and common sense, and instead use the scientific method to study work and determine the most efficient way to perform specific tasks.

2.   Rather than simply assign workers to just any job, match workers to their jobs based on capability and motivation, and train them to work at maximum efficiency.

3.   Monitor worker performance, and provide instructions and supervision to ensure that they're using the most efficient ways of working.

4.   Allocate the work between managers and workers so that the managers spend their time planning and training, allowing the workers to perform their tasks efficiently.

      In the same way in an organizational structure different positions and their responsibilities are
well defined.Every organization has an objective and all its employees work to achieve it.Every organization has a specific way of working and all its employees are allocated specific tasks that are to be performed by them and the organization also has specified methodology according to which they work.

Learning Management with 3 idiots crossing the valley

All of us know that team work is important but do we actually know how important it actually is.Just think for a second Steve Jobs a well known entrepreneur founded Apple but did he make Apple what it is today all by him self..the answers is no.He needed different people to work together to achieve a common goal.In life there are many things which cannot be achieved by a single person and can only be achieved when a group of people work together.This fact was illustrated by our Prof Mandi in our class room through an interactive exercise he asked us to do in the class with him.

The exercise of 3 idiots crossing the valley:-

·         Three people have to cross a valley carrying a rod on their shoulders.The gap between the valleys is more than one step long but less than two steps. At any time, all the three people have to hold the rod and using synchronous movements cross the valley.

·         Any person, while on top of the valley (the “risky” position to be in) will be supported by other two people. All the three members here have interchanging roles in the completion of task. As can be noticed in the above image, all the three members have equal distribution of risky, half-risky and safe situations.

·         The success of this exercise will depend upon how closely the three people work as part of a team, coordinate and communicate with each other through sound/signals and follow a synchronous movement   

      This task is impossible to achieve for a person doing it alone.It can only be achieved when a minimum of 3 people do it together with proper team work and they trust in each other.

     The explanation of 3 people doing it is given below:-

Persons	First Person	Second Person	Third person
Step
1	Safe	Safe	Safe
2	Half Risky
3	Full Risky
4	Half Risky	Half Risky
5		Full Risky
6		Half Risky	Half Risky
7			Full Risky
8			Half Risky
9	Safe	Safe	Safe

Half Risky – One leg in the air and the other leg has support
Full risky - Both the legs are in the air without any support
Half risky – One leg is in the air and the other leg has support
Safe - Both the legs have full support

1. Innovation:For every problem there is a solution we just need to find it.

1. Common Goal:Every organization and every task should have a common goal.

1. Trust:All the members working together in a team should have trust in each other.

1. Training:All the workers should be provided with proper training.They should be inculcated with all the skills required for the job they are recruited for.

1. Communication:The communication between all the members working in a team is really necessary.

1. Accountability:Every member in a team has a certain allocated responsibility and if that task is not done then he should be held accountable for that. 

     Safe - Both the legs of the person have full support

Hence from this activity we can conclude that the task is achievable and surety of full safety only when 3 people worke  together in a synchronous manner with each other.

Other learnings from the excercise are as follows:-

Muhammad Yunus - Concept of Grameen Bank and Micro-credit

Muhammad Yunus is a Bangladeshi banker,economist and a Nobel peace prize recipient.To be honest i didn't know much about Muhammad Yunus before our Prof. Dr Mandi asked us to watch a speech that Muhammad Yunus had delivered in Emory University. I was curious why our Prof asked us to watch this particular speech.After watching this speech i got to learn a lot of new things which i will share here.

I got to learn about a concept called Microcredit and its importance.Muhammad Yunus was a professor of economics in USA when his country Bangladesh became an independent country after attaining freedom from Pakistan.The economic condition of his homeland was grim as there was a lot of poverty.One of the big factors to fact why poor people were still poor and why there economic condition was not improving was the fact that they were not given big loans by the banks.Hence they were not able to start their businesses or to afford good education for their children and were finding it hard to improve their financial condition.This motivated him to start a new institution called Grameen Bank which had a sole aim of upliftment of the poor people in Bangladesh.Grameen Bank was different from conventional banks in the following ways:-

1. Conventional Banks lended money to people who were already rich and hence could easily repay it with interest where as it thought that poor people were not credit worthy and would not be able to repay the loans.
2. Borrowers from conventional banks were mostly men where as most of the loan borrowers from Grameen bank were women(nearly 97%)
3. Unlike conventional banks, Grameen banks are free from lawyers as they do not need collateral to give loans to people neglecting the past issues of these people

       The main aim of Grameen Banks was to eradicate poverty from Bangladesh and give opportunities to poor people to start their own business and create subsequent employment and to make poor people provide their children with good education so that they can get good jobs when they grow up.All the above mentioned things would not have been possible if the poor people were not given loans.The lesson to learned here a a good system results in a flourishing society where as a bad system ruins the society.

        Grameen Bank concept has also been implemented in the USA with the name Grameen America 

        In 2006 Yunus and Grameen Bank received the Nobel Peace Prize for their efforts through microcredit to create economic and social development.

       In February 2011, Yunus together with Saskia Bruysten, Sophie Eisenmann and Hans Reitz co-founded Yunus Social Business - Global Initiatives (YSB).YSB creates and empowers social businesses to address and solve social problems around the world. As the international implementation arm for Yunus’ vision of a new, humane capitalism, YSB manges Incubator Funds for social businesses in developing countries and providing advisory services to companies, governments, foundations and NGOs.

        Now let us try and define what micro-credit is after what what i have written so far.Micro-credit is the extension of very small loans (microloans) to impoverished borrowers who typically lack collateral, steady employment and a verifiable credit history. It is designed not only to support entrepreneurship and alleviate poverty, but also in many cases to empower women and uplift entire communities by extension. In many communities, women lack the highly stable employment histories that traditional lenders tend to require. Many are illiterate, and therefore unable to complete paperwork required to get conventional loans.

      

        The concept of micro-credit was given birth by Muhammad Yunus and he has earned our respect for that.Helping the helpless is what we all should strive to do as well.We should not just learn economic concepts from him we should also learn that we should help those who need it.