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Your responsibility
Check & Systemize your thinking habits.
Use Precise Questioning Techniques to find
out and evaluate all important information.
Prepare and Make Decisions systematically.
Ensure successful carrying-out of a plan.
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Be prepare to commit to:
Attend all classes
Participate fully
Take risks
Take notes
Ask questions
Enjoy yourself
Note: As a courtesy to others, please set mobile phones to the silent mode.
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Solving Problems, Preparing Decisions
This subject presents the individual steps of the
following four different processes :
1 - Situation Analysis
2 - Problem Analysis ( Detecting causes )
3 - Decision Analysis ( Preparing decision )
4 - Potential Problem Analysis
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Practical application of the method
enables all managerial staff to:1 - Deal with the situations.
2 - Become more secure in decision - making.
3 - Direct sphere of activity better, without having to
know technical details.
4 - Arrive at solutions faster, save time and money.
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Management and organizational
effectivenessAn organization: is intended to operate as one
unit, with all its parts in efficient coordination.
But too often it does not. Parts operate :
At different levels of efficiency .
Overlap.
Work against one anothers best interest.
Act in misunderstanding & miscommunication.
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OUR MAIN OBJECTIVE
Improvement of the organizational
effectiveness
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GROUP Vs. TEAMInteracting in a common cause, people can:
Become a unified group.
Understand one another as individuals.
Become consciously sensitive to one another.
know how to adapt to individual characteristics.
Acquire Common relation and psychological
benefits.
Such group is not a team!
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GROUP Vs. TEAM
A team is built primarily on the technical capabilities
of its members working in pursuit ofspecific goals,
only secondarily on attraction among the members as
individuals. The members of a team must be able to
tolerate one another enough to work closely together.
Beyond this, all the members must be committed to a
common goal and the set of procedures for achievingthat goal.
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Team members must be:
Able to tolerate one another working together.
Committed to a common goal.
Committed to the same set of procedures forachieving that goal.
Keeping the overall goal of the team .
Knowing what to do.
Knowing how to coordinate their efforts.
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Building a Management Team
Entrepreneur, aggressive nature, quick insights;
Financial expert,
Sales & Marketing executives; Director of R&D;
Production Manager
Their efforts is coordinated by the presidents
guidelines for gathering, sharing, and usinginformation to solve problems, make decisions,and safeguard organizations future
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Lesson from Canada Geese
The race
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1- All members are working at one organization.
2- By using common approaches to problems and
decisions, they can work together cooperatively as part
of one organization.
3- Everyone will use these approaches, beginning with
the president.
A Case History
The Rational Management
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4- Everyone can think, the knowledge and
experience are important.
5- What everyone do with these approaches willhave an important impact on the organization.
6- Everyone is valuable member of the management
team.
A Case History
The Rational Management
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He made a PLANNED INTERVENTION into his
organization.
He introduced the KINDS Of MAJOR CHANGES
he believed would do the most good.
He introduced A NEW IDEA to his people.
He introduced a MEANS BY WHICH thinking
could be coordinated.
Finally, he MODIFIED THE SYSTEMS ANDPROCEDURES of the organization.
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A president let his people know
He believed they could think.
He wanted them to express their ideas
He would listen to them.
They must listen to each other.
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Types of managers
There are three types of leaderships:
1. The autocratic leadership (high productivity).
2.The developmental leadership (high moral
and productivity).
3.The laissez-faire leadership (high moral).
Questionnaire 1
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1- Circle the item number for items:8, 12,
17, 18, 19, 30, 34, and 35
2 Write the number 1 in front of a
circled item number if you responded
S or N to that item.
3Also write a number 1 in front of item
numbers not circled if you responded A
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4 Circle the number 1s which you have
written in front of the following items: 3, 5, 8,
10, 15, 18, 19, 22, 24, 26, 28, 30, 32, 34, and
35.
5Count the circled number 1s. This is your
score for concern for people. Record thisscore.
6 Count the uncircled number 1s. This isyour score for concern for task. Record this
score.
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Shared Leadership Results
T Plow
Medium
High
5
10
15
20
5
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Example of Autocratic Manager
Boss rules
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Characteristics of Developmental Manager
-Consider ideas that conflict with their own.
-Allow a reasonable margin for error.
-Try to help others learn from their mistakes.
-Have consistency high expectations.
-Encourage people to reach in new directions.
-Help people understand the objective of their jobs.
-Allow people to make their own commitments.
-Set objectives with people.
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The boss is someone you have to follow, like it or
not.
The leader is someone you want to follow.
The boss tends to motivate out offear.
The leader motivates by suggestion, invitation,
persuasion.
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CHARACTERISTICS OF LEADERS AND
BOSSES A BOSS
Demands respect
Is a taskmaster
Is critical
Rules by fear
CommandsMakes work a burden
Punishes mistakes
A LEADER
Earns respect
Is a coach
Is encouraging
Guides by example
InspiresMakes work fun
Rewards success
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How to be good manager
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How to improve your memory
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ACTIVITIES OF MANAGERS
1LOWERLEVEL MANAGER:
Supervising operations and subordinates,
performing detailed reviews of operating results.
2MIDDLE MANAGERS:
Management control activities.
3TOP MANAGERS:
Planning activities, overall reviews, critical
problems to the organizations well-being,
leadership and ceremonial activities.
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Managerial levels w.r.t. Time orientation
1LOWER LEVEL: concerned with results of
past operations & conducting current operations.
2TOP MANAGERS: concerned with thefuture of the organization.
3MIDDLE MANAGERS: in the range
between 1 & 2
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Managerial levels w.r.t. types of Decision
1- LOWER-LEVEL: repetitive and structured decisions.
2- TOP-MANAGERS: decisions about goals and
strategies.
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TECHNICAL LEADERSHIP
Technical leadership must:
-Set goals and drive directly to meet them.
-Have the courage to stick with it.
-Drive to overcome all obstacles.
-Gather people for another try when they are readyto give up.
-Attract followers to the cause.
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LEADERS AND THEIR FOLLOWERS
A leader must first attract followers to the cause.
Without followers no leader has the power to
perform.
A leaders power stem from the ability to attract
willing followers.
Leaders must care about their followers.
All leaders are actual power holders, but not
all power holders are leaders.
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Transformational leadership
Transformational leadership is a
leadership style where one or more
persons engage with others in such a
way that leaders and followers raise
one another to higher levels ofmotivation and morality
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TRANSFORMATIONAL LEADERSHIP
Transformational leader must:
-Excite peoples imagination.
-Build on their dreams and aspiration.
-Convince their followers to dedicate themselves to
their goals.
Leaders practicing transformational leadership.
Such leadership is useful for everybody involved.
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TRANSACTIONAL LEADERSHIP
Leadership based on legitimate power is called
TRANSACTIONAL LEADERSHIP.
It can motivate action, but it also has limitations.
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TRANSACTIONAL LEADERSHIP
People are motivated by reward and punishment.
Social systems work best with a clear chain of
command.
When people have agreed to do a job, a part of the
deal is that they cede all authority to their manager.
The prime purpose of a subordinate is to do whattheir manager tells them to do
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THE LEADERS VISION
The most vital single characteristic of the leader is
vision.
Leaders have a clear picture of what they see theirgroup becoming or doing in the future.
There's a difference between eyesight and vision.
Vision is the ability to get MEANING from
eyesight.
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THE COMMITMENT ETHICS
The discipline of commitment is hard to live
with, but it can be a great comfort.
When technical groups must coordinate their
efforts to produce a coherent result, schedules
are needed and must be based on mutual
commitments.
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THE ELEMENTS OF COMMITMENT
When a person makes a pact with another and they
both expect it to be kept, that is a commitment.
The motivation to meet commitment is largely theresult of the way the commitments are made.
First, the commitment must be freely accepted.
Persons feel bound by the promise only if they feel
that they undertook it willingly.
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OVER COMMITMENT
One trick of the optimist is to get manage-
ment so committedto the project that it cant
be canceled.
we must know that advice is often needed to
balance the enthusiasts, for a technical team
that has gotten himself in a trouble will rarely
get itself out without help.
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CHANGING COMMITMENTS
The other side of the coin is the problem of
deciding when to change an existing plan.
Every plan is a commitment, but it must bea basis for managing the work.
when the plan is unrealistic, coordination is
practically impossible.
It is very important for managers to sense
when a tight commitment ceases to motivate
their people.
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THE IMPORTANCE OF
PROFESSIONALISM
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ELEMENTS OF PROFESSIONALISM
The two key elements of professionalism are:
The knowledge of what to do
The discipline to do it.
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ELEMENTS OF PROFESSIONALISM
Technical knowledge is the true mark of
professionals, for it sets them above their less
learned fellows.
Technical blindness has many costs, but one of the
most important is legal.
With the Continuing rapid advance of technology,product development grows more complex.
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THE BENEFITS OF AWARENESS
Technical awareness has important benefits.
The cost of technical blindness can be severe.
New concept generally appears almostsimultaneously.
If one new idea can replace or improve a key product,
it is essential to learn about it before the competitiondoes.
Professionals who keep themselves informed provide
the only practical protection against the risk.
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MANAGING AWARENESS
Most professionals make little effort to stay
technically current.
Reading is the most effective way to staycurrent, but technical meetings are also
helpful.
The formal papers are one source of input,but the informal exchange of ideas with other
attendees is often even more valuable.
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The seven Habits of Highly
Effective People
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Be Proactive
Take the initiative and make things happen.
Aggressively seek new ideas andinnovations. Dont let a negativeenvironment affect your behavior anddecisions. Work on things that you can do
something about. If you make a mistake,acknowledge it and learn from it.
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Begin with the end in mind
Know where you are going and make sure all
the steps you take are in the right direction.
First determine the right things toaccomplish and then how to best
accomplish them.Write a personal mission
statement describing where you want to go,what you want to be, and how to
accomplish these things.
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Put first things first
List your top priorities each day for the
upcoming week and schedule time to work
on them. Continually review and prioritizeyour goals. Say NO to doing unimportant
tasks. Focus on the important tasks, the ones
that will have impact if carefully thoughtout and planned.
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Think Win/ Win
Win/ Win is the frame of mind that seeks
mutual benefits for all people involved in
solutions and agreements. Identify the keyissues and results that would constitute a
fully acceptable solution to all. Make all
involved in the decision feel good about thedecision and committed to a plan of action.
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Seek first to Understand, Then to
be UnderstoodLearn as much as you can about the situation.
listen, listen, listen Try to see the problem
from the other persons perspective. Bewilling to be adaptable in seeking to be
understood. Present things logically, not
emotionally. Be credible, empathetic, andlogical.
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Synergize
Make the whole greater than the sum of all
parts. Value the differences in the people
you work with. Foster open and honestcommunication. Help everyone bring out
the best of everyone else.
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Renewal
Renew the four dimensions of your nature:
Physical: Exercise, nutrition, stress management
Mental : Reading, thinking, visualizing, writingSpiritual: Value clarification and commitment,
study and mediation.
Social/Emotional: Service, empathy, self-esteem, synergy.
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The seven habits of highly effective people
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FirstWorld.ppt
P bl S l i i t t
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Problem Solving requires two types
of mental skills:
1 - Analytical or Logical Thinking
such as ordering, comparing, evaluating and
selecting. Possessing these skills enables one to
construct a logical framework for problem solving.(Convergent Process)
2 - Creative Thinking
Divergent Process, using the imagination tocreatea large range of ideas for solutions.
Effective problem solving requires a controlled
mixture of analytical and creative thinking.
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The Human Brain
The human brain consists of two sides:
1. The left side: deals with logic, language,
reasoning, number, linearity, and analysis(academic activities).
2. The right side: deals with rhythms, music,images, imagination, color, parallelprocessing, day dreaming, facerecognition & pattern or map recognition.
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The Human Brain
The left side The right side
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Whats Creative Thinking
Creative thinking is a term used when we
need to expand our ideas and to approach
things from different angle.
It refers to a set of ideas that use the right
brain as well as the left brain- to release thefull capacity of our mind.
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When to use Creative Thinking
When you want to try something new
When you come up with new ideas for
approaching old problems
When you have apparently reached a dead
end
When things seem to have got bogged downand you are going round in circles.
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When to avoid Creative Thinking
When gathering facts
When you are at the implementation stage
and things are going well
When you are already over-burdened with
ideas and need to rationalize them
When preparing an argument.
Creative thinking skills can be
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Creative thinking skills can be
divided into:
1 - Fluency : producing many ideas
2 - Flexibility : producing a broad range of ideas
3 - Originality : producing uncommon ideas
4 - Elaboration : developing ideas5- Intuition : producing conclusions based on
impressions and feelings rather than hard facts.
6 - Incubation : time-out stage of the process, ideas
grow and correct solutionilluminates7 - Invention : creation of new meaningful ideas or
concept
8 - Innovation : putting new ideas or concept to
practical use
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Example for Creativity
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Questionnaire #2
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Questionnaire Analysis
Questions 1-5
These questions were looking at types of
behavior that hinder the problem solvingprocess.
If you ticked any of the statements then this
displays some negative tendency towardsproblem solving.
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Questionnaire Analysis
Questions 6-10
These questions are looking at how
methodical you are in your approach toproblem solving.
Ticks to questions 6,8,and 10 indicate areasonably methodical approach.
Ticks to questions 7 and 9 indicate a lessmethodical approach.
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Questionnaire Analysis
Questions 11-15
This set of questions looks at how creative or
analytical you are in your approach.Ticks to questions 11,13,and 14 indicate a
creative inclination, and 12 and 15 an
analytical bent.
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Questionnaire Analysis
Questions 16-20
These questions look at general attitudes
towards problem solving. Ticks to questions16, 18, and 20 point towards a healthy
enquiring problem solving approach to
work.
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Formula 4 success
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Improving your Creative Abilitie
Keep track of your ideas all times. Pose new questions to yourself every day.
Keep abreast of your field.
Learn about things outside your specialty.
Avoid rigid, set patterns of doing things.
Be open and receptive to ideas (yours and
others).
Be alert in your observations.
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Improving your Creative Abilities
Adopt a risk-taking attitude.
Keep your sense of humor.
Engage in creative hobbies. Have courage and self-confidence.
Learn to know and understand yourself.
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The solution
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An exercise
The solution
IQ Test
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Sins of Negative Thinking
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Techniques for generating ideas
Daydreaming
Group problem solving
Brainstorming
Cause and effect analysis
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Daydreaming
One of the basic tools of a good problem solver.Can be characterized in a number of ways:
1. Seen as a time-out exercise.
2. Can be fitted into spare moments.
3. Risk free as it involves only thoughts and notactions.
4. Helps to develop plans
5. Inventors do it all the time
6. Often involves people looking for best possiblesolution.
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Day Dreaming
G bl l i
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Group problem solving
If used at the right time, it can have many advantages:-Increased output.
-Cross-fertilization of ideas.
- Prospect of shared responsibility.
-Improved quality of solutions due to diversity and
richness of ideas, skills and knowledge.
B i i
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Brainstorming
This technique concentrates on generation of ideas
by group 5-20.
A facilitator should work with group, stimulating
participants.
B i i
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Brainstorming
There are four basic rules of brainstorming:
1 - No evaluation is allowed during the session2 - Freewheel where any ideas are allowed however
outrageous
3 -Cross-fertilize where participants reword and
rework other Peoples ideas4 - Quantity is important, a large number of ideas
should be encouraged.
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Leaders Role
Start and stop the process.
Ensure the problem is well defined at the
start and remembered throughout thesession.
Help the session to run smoothly.
Make sure that everything is being written.
Put forward ideas when others dry up.
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Assessing the Brainstorming Output
Highlight attractive ideas.
Delete obvious no-hopers.
Group similar ideas under headings.
Match ideas against the problem definition.
Identify ideas to explore further.
Identify ideas with additional information.
Use ranking and rating techniques.
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Cause & Effect Analysis
Its a technique for identifying the
possible causes affecting a problem
or project, by recording those
causes and relating them to their
effect.
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Cause & Effect Analysis
Why use it?
To help generate ideas.
To record ideas generated.
To reveal hidden relationships.
To investigate root causes.
To highlight important relationships.
C & Eff t A l i
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Cause & Effect Analysis
ways of identifying the causes
1Brainstorming
2 - The 4M approach
Machines, Methods, Materials, Manpower
3 - The PEMPEM approachPlant, Equipment, Materials,
People, Environment, Methods.
Identify all possible causes
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Identify all possible causes
Methods
Machines
Man Power
Materials
ComputerData-entry
Errors
- No pre-entry checks
- Batches too big
- Not enough rest-breaks
- No automated checking
- Lack of Supervision
- Untrained staff
- New Staff
- Temp Staff
- Pressure of work
- Untrained staff
- Illegible Handwriting
- Incorrect data
Illegible copy
- Lack of regular breaks
- No time
- Old Technology
- Keyboard Bounce
- Sticky Keyboard
Inadequate software
- Poor Ergonomics
Seating
Lightening
Heat
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Six Thinking Hats
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The four basic pattern of thinking
These patterns are reflected in the four questions
managers ask usually:
Whats going on?
Why did this happen?
Which course of action should we take?
What lies ahead?
Wh t i ?
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Whats going on?
It asks for a sorting out, a breaking down, a key to
the map of events, a means of achieving and
maintaining control.
It reflects the pattern of thinking that enables
imposing order where all had been disorder,
uncertainty or confusion.
Wh did thi h ?
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Why did this happen?
Indicates the need for Cause-and-effect thinking,
the second basic pattern.
It is the pattern that enables us to move from theobserving the effect of a problem to understand
its cause.
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Which course of action should we take?
Implies that some choice must be made.
This basic pattern of thinking enables us to
decide on the course of action most likely toaccomplish a particular goal.
What lies ahead?
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What lies ahead?
We use this fourth pattern of thinking when we
attempt to assess the problem that mighthappen,
the decision that might be necessary tomorrow,
next month, next year, or in five years.
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SITUATION ANALYSIS
Situation Analysis
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Situation Analysis
Situation Analysis assists you:
-To systematically take stock of the situations and
tasks you are concerned with.
-To establish priorities and to assign them to the
corresponding Thought Process.
Situation Analysis enable you by asking Pertinentquestions , to break down Complex and Multilayer
Situations into their component Sub-situations.
What Are Situations?
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What Are Situations?
Situations, ( in particular, critical situations) are
Matters that require Action on your part.
Situation is something need to be done and you
are in a position to do something about it.
They develop into tasks which you have to
perform.
How To Probe a Critical Situation
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How To Probe a Critical SituationBy asking :
Where are we not meeting standards?
What problems from . Remains unsolved?
What recommendations are we currently working onor will be coming up in the near future?
What decisions need to be made now?
What decisions are being made now and will have to
be implemented when a choice is made?
What major projects, systems, or plans are about to be
implemented.
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Situation Appraisal
Situation Appraisal consists ofevaluative
techniques that lead to proper selection and
use of one of theanalytical techniques (PA,DA, or PPA)
It enable managers to make best possible use
of the analytical techniques by clarifying tothem:
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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 simultaneousactivities efficiently
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Situation Analysis Stages
ARecognize concerns
B - Defining and break down situations.
C - Establishing Priorities
D - Assigning Situations to Thought
Processes.
1 Recognizing Concerns
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1- Recognizing Concerns
Many managers have found that it helps to
breakthe process of searching of situations
into four activities: List current deviations, threats, and opportunities
Review progress against your goals
Look ahead for surprise (within your organization
and the external environment)
Search for improvement.
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2 Separating Concerns into Manageable Components
In order to break down any situation into its components, We
ask more questions:
Do we think one action will resolve this concern?
Are we talking about one thing or several things?
What evidence do we have that says this is a concern?
What do we mean by?
Whats actually happening in this situation?
What do we see,hear, feel that tells us we must take action?
Whats really troubling us about this situation?
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3 - Setting priorities
Systematic setting of priorities remains frustrating
and difficult for many managers.
Practical and systematic process for determining
importance is to consider each concern in terms of
three dimensions:
Howserious is the current impact?
How muchtime urgency it have?
Whats the best estimate of itsprobable growth?
Situation can have
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Situation can have
- a high (H) , medium (M) or low (L) cost factor- a high (H) , medium (M) or low (L) time factor
- a steady, rising, or descending trend.
A- Situation: must be dealt with at once or within 2-
3 Hours
B - Situation: should be dealt with this veining or
tomorrow morningC - Situation: can be left for a few days or weeks
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4 - Assigning Situations to
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4 - Assigning Situations to
Thought Processes.Of these remaining high-priority concerns,
some are easy to identify for partial or full
PA, DA, or PPA. But its not always so cutand dried.
To ensure that we choose the correct
technique or combination of techniques, wehave to answer the following questions:
SituationAnalysis
Situation Analysis Chart
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Detect CausePA
Make DecisionDA
Safeguard ProgramPPA
Find NewFacts
No
No
No
No
No
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Discrepancy
CauseUnknown
Want toknow cause
Decisionrequired
Alternatives
Planexisting
Cansomethinggoes wrong
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Situation Analysis quiz
Method of Situation Analysis
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Method of Situation Analysis
1 - Prepare a list of situations (tasks)Must I intervene?
Must I act ? Yes
2 - Define and break down situations
Is the situation unambiguous and clear?
Substitutions
What does it mean, exactly?
Which - How exactly?
Method of Situation Analysis
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Method of Situation Analysis
3 - Establish PrioritiesImportance
Urgency
Tendency
4 - Assign the appropriate thought processIs there a discrepancy? Yes
Is the Cause unknown? Yes PA
Do I want to know the cause? Yes
Is a Decision required? Yes DAHave I got a choice? Yes
Is there a program? Yes
Can something go wrong? Yes PP
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Case 1
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PROBLANALYSISEM
Problem Analysis
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Problem Analysis
(Detecting Causes)
With the aid of this methodology you will
be in a position to detect causes ofdiscrepancies by using a precise
technique of questioning to collect critical
information.
What is a problem?
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What is a problem?
A problem is a situation where we experience
difficulty or uncertainty in achieving something
we want to achieve.
Problems arise when an obstacle prevents onereaching an objective.
Objective: something we have decided we need to
achieve.
Obstacle : anything that prevents us achieving anobjective.
Objective + Obstacle = PROBLEM
Problems can be divided into two
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Groups:
1 - Closed or Maintenance Problems
Where the current situation is not what was
expected.
2 - Open-Ended or Achievement Problems
Where we want to change our current
situation in some way but find there is anobstacle preventing us from doing so.
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Outline of Problem Analysis
Starting thinking about the problem
The Techniques of Problem
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Analysis
The techniques are divided into these major
categories:
1. Definition of the problem.
2. Description of the problem in four dimensions:Identity, Location, Timing, and Magnitude.
3. Extraction of key information in the four
dimensions to generate possible causes.
4. Testing for most probable cause.5. Verification of the true cause.
IDefinition of the Problem,
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or The Deviation Statement
We must first define a problem exactly before
we can describe, analyze, and explain it.
We define it with the deviation statement, or
name of the problem.
It is important to state this name precisely.
Th C i i T D fi P bl
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The Criteria To Define a Problem
The following are typical examples of problems. It
meets our definition of a problem because in each one
an expected level of performance is not being
achieved, and the cause of the unacceptableperformance is unknown.
From the day we introduced the computer, weve had
nothing but trouble in getting our inventories tobalance. I just dont understand it.
C
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Cont..
Mr. X was referred to us as an outstanding
engineer, but he certainly hasnt fulfilled
expectations in this department.
Our number eleven paper machine never produces
more than 80% of its design capacity no matter what
we try.
C
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Cont.
Some days we meet our schedules without any
trouble. Other day we cant meet them at all. There just
doesnt seem to be any good reason for the
discrepancy.
The system worked well for months. Then, in the
middle of the morning three weeks ago, it went dead.
Its still dead and we dont have the slightest idea of
what happened.
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The real problem
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Ill-Defined problems
II- Description of the problem
i f di i
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in four dimensions
Once we have a precise deviation statement, the next
step in problem analysis is to specify it in its four
dimensions:
IDENTITY what it is were trying to explain? LOCATION where we observe it?
TIMING when it occurs?
MAGNITUDE how serious, how expensive it is?
A basis of comparison
(IS d IS NOT)
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(IS and IS NOT)
Usually we know that our problem IS , whatwould we gain by identifying something that could
be happened but IS NOT?
Such data would give us what we need to conductan analysis: a basis of comparison.
Once we have identified COULD BE but IS NOT
data, we will also be able to identify the peculiarfactors that isolate our problem.
These peculiar factors will lead us closer to the
problems cause.
A basis of comparison
(IS d IS NOT)
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A discrepancy is described by defining What, Where,When and How much.
(IS - sphere = Problem - sphere)
In order to orientates ones search for possible causes
it is necessary to mark off this problem - sphere as
closely as possible by setting up an IS NOT - sphere.
It is essential, in order to clearly limit the problem
area, to search only for changes, which apply to the
IS- sphere but not to the IS-NOT - sphere.
(IS and IS NOT)
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DISTINCTIONS
The differences between ISand IS NOT are called
How are distinctions established?
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Ask:
- Which characteristics apply to IS but not to IS NOT ?
- In what way does IS differ from IS NOT?
- By what distinctions does IS differ from IS NOT?
If discrepancies appear in well run - in processes, its
the CHANGES in the distinctions that are the cause.
Changes
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g
Managers who may never have heard ofproblem analysis know that a decline in a
formerly acceptable performance suggests that
something has changed; common sense tells
them to look for the change.
Such a search can be extremely frustrating when
the manager is faced with an array of changes,
changes that are known and planned, changesthat are unforeseen, which Continually creep into
every operation.
How do you determine CHANGES?
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Ask: - What changed or was changed in the
distinction ?
- What changed or was changed relative
to the distinction
- What changed or was changed withinthe scope of the distinction ?
Note: You can substitute one of the following
terms for Changed in the above questions:
- Made new - Made more efficient- Improved - Remodeled
- Refined - Replaced
- Converted - Overhauled
Cont..
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It is important to mark the changes with the
date of occurrence.
The possible causes are now derived fromthese changes and distinctions.
Now you draw up a statement, which could
explain how, and in what circumstances, thechange in a particular distinction could be the
cause of the discrepancy.
III Extraction of Key Information
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III-Extraction of Key Information
In order to generate the possible causes of the problem
it is important to extract the key information in the
problems four dimensions, identity, location, timing,and magnitude.
As the question What is distinctive? is applied to
the four dimensions of a problem, our analysis beginsto reveal important clues to the cause of the problem,
just clues, not answers or explanations.
Problem Analysis
Specifying Performance Closest What is Does the
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p y g
Questions deviation logicalcomparison
distinctive
aboutdistinctive
suggest a
change?
Identity Whats the unit withthe malfunction?
Whats the mal-
function?
IS No1
Filter
IS leakingoil
Could be
but IS
NOT No 2-
5Is Not no
logical
comparison
No 1 has a
square
cornered
gasket; theother
rounded
Squared
cornered
gasket is a
new typeused 3 days
ago
Location Where is the malfunction observed?
IS at thenorth east
corner of
filter house
IS NOT atother filter
locations
The locationis nearest to
feed water
pump,
exposing filter
1 to higher
level of
vibration than
other filters
Nothing.Location and
level of
vibration
have been
the same for
years
Problem AnalysisS if i Performance Closest What is distinctive Does the
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Specifying
Questions
Performance
deviation
Closest
logical
comparison
What is distinctive
about
Does the
distinctive
suggest a
change?
Timing
When the
malfunction
was first
observed?
When has it
been
observed
since?
When in the
operating
cycle of the
unit is the
malfunction
first observed
IS first
observed 3
days ago
IS
Continually,
all shifts
IS first
observed as
soon as oil
goes into
filter
IS NOT
before 3
days ago
IS NOT
when unit
is not in use
IS NOT at a
time later on
in shift
There was a monthly
check just prior to 3
days ago.
Oil flows through
unit under
pressure on use
only
First time oil
comes into filter
under pressure
New type
gasket,
installed for
first time 3
days ago
Nothing
Nothing
Problem Analysis
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Problem Analysis
Specifying
Questions
Performance
deviation
Closest
logical
comparison
What is
distinctive about
Does the
distinctive
suggest a
change?
Magnitude
Whats the
extent of the
malfunction
How many
units areaffected?
IS 5-10
gallons of oil
leaked/shift
IS No 1filter only
IS NOT less
than 5 gallons
Generation of possible causes
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Generation of possible causes
Somewhere in the lists of distinctions and changes
that emerge during problem analysis lies the
explanation of CAUSE .
The way to generate possible causes is to ask each
item in the categories of the distinction and change,
How could this distinction (change) have produced
the deviation as described in the deviation statement?
How are these possible causes
(hypotheses) established?
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(hypotheses) established?
Ask: - How can the change have brought about
the discrepancy ?
- How can the change in a distinction have
caused the discrepancy ?
- How can one change, together with
another change, have caused the
discrepancy?
IV-Testing for most probable
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cause
In the testing step of the problem analysis:
Let the facts in the specification perform the function
of judging the relative likelihood of possible causes.Ask of each possible cause, If this is the true cause
of the problem, then how does it explain each
dimension in the specification?
The true cause must explain each and every aspect of
the deviation, the IS and IS NOT facts.
How do you test?
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You ask the following question:
- Does this hypothesis explain WHY the discrepancy
occurred in IS but not in IS NOT ?
You go through all IS and IS NOT lines with this
question.
Cont
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Cont
The hypothesis dies as soon as it leaves a line
unexplained.
The most likely cause may have you be proved.Proof, turning the most likely cause into the real
one, but, it is not part of this THOUGHT
PROCESS.
V Verification of the true cause
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V- Verification of the true cause
Verification is easy to perform once you have
identified a likely cause.
It consists of asking an additional question or two
or setting up an experiment.
It depends on bringing in additional information
and taking an additional action.
Cont
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Cont.
Verification is an independent step taken to prove a
cause-and-effect relationship.
You have to investigate the actual situation.
Sometimes no verification is possible and we must
rely on the testing step alone.
Before starting to prove, ask yourself the
f ll i ti
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followingquestions:
- Do I need additional information in order to prove
that this is the cause? if yes what information is
required?
- Did I make sure that the cost of obtaining additional
information and evidence does not exceed the
importance and cost of the discrepancy?
- Am I in a position to produce the evidence, or do I
have to call in a specialist?
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P1 Sales volume has fallen off
C1 P2 M bli i t d f lli
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C1P2 Men grumbling instead of selling
C2P3 Men resent inside Sales Assistant
C3P4 Inside Sales Assistant throwing his weight around
C4 Assistant not recognized by men
Supervisory responsibility of Inside Sales
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Puzzling Poem
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Case #2
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PA Case
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Case 2
SUMMARY
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SUMMARY
Deviation from achieved or planned standards,
specifications and what is supposed to happen, is
inevitable in a work - process subjected toContinuous changes.
In the event of trouble the search for a culprit is not
important; what is important is the determination of
the cause.
SUMMARY
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SUMMARY
If we assume that a change or a distinction causes a
discrepancy, then these factors must be determined
by appropriate questions. The basis to start from is
the description of:What
When
Where IS/IS NOT
How much
SUMMARY
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SUMMARY
Using the above description of a discrepancy we
contrast the sphere involved (IS) with the sphere not
involved , IS NOT , and working from the distinctions
and changes we have drawn up ,we establishHypotheses about possible causes.
These hypotheses are then tested for probability
against the description of the facts.
This test only establishes a degree of probability to
make a possible cause into an actual cause we need
proof.
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DECISION ANALYSIS
Decision Analysis
(making the right decision)
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(making the right decision)
Decision - Making is the most difficult and most
essential task in a manager performs.
The decision may be connect with problem or not
connect with problem.
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Decision Making
What is a Decision?
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What is a Decision?
Decision is a choice between various ways of
getting a practical thing done or an end
accomplished.
Decision will be compromise between what the
manager wants, in an ideal sense, and what can
actually be done.
Types of Decisions
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Types of Decisions
1 - The complex decision that requires
examination of a large amount of
information, and involve the judgment of
many people.
2 - The Yes/No decision that involves only
two alternatives: to take or reject a course
of action
Types of Decisions (cont..)
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Types of Decisions (cont..)
3The decision as to whether a single proposed
course of action is sound enough to be
implemented.
4The decision in which an original alternativemust be developed by the decision maker.
5The routine decision: hiring, purchasing,
development of personnel policies, and otherevery day decisions.
Kinds of actions
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Kinds of actions
1 - Interim action
2 - Adaptive action
3 - Corrective action
4 - Preventive action
5 - Contingency action
Decision Making
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Decision Making
Decision making is the study of identifyingand choosing alternatives based onthe values
and preferencesof the decision maker.
Making a decision implies that there are
alternative choices to be considered, and in such
a case we want to choose the one that
(1) has the highest probability of success or
effectiveness.
(2) best fits with our goals, desires, lifestyle,
values, and so on.
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Concepts and Definitions
Information
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This is knowledge about the decision, the effectsof its alternatives, the probability of each
alternative, and so forth. A major point to make
here is that while substantial information isdesirable, the statement that "the more
information, the better" is not true. Too much
information can actually reduce the quality of a
decision.
Alternatives
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These are the possibilities one has to
choose from. Alternatives can be identified
(that is, searched for and located) or even
developed (created where they did not
previously exist). Merely searching for
preexisting alternatives will result in less
effective decision making
Criteria
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These are the characteristics or
requirements that each alternative
must possess to a greater or lesser
extent. Usually the alternatives are rated
on how well they possess each criterion.
Goals
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What is it you want to accomplish?
Strangely enough, many decision
makers collect a bunch of alternatives(say cars to buy or people to marry) and
then ask, "Which should I choose?"
without thinking first of what their
goals are, what overall objective they
want to achieve.
Value
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Value refers to how desirable a particular
outcome is, the value of the alternative,
whether in dollars, satisfaction, or other
benefit.
Preferences
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These reflect the philosophy and moral
hierarchy of the decision maker. We could
say that they are the decision maker's"values,. If we could use that word here, we
would say that personal values dictate
preferences. Some people prefer excitement
to calmness, certainty to risk, quality to
quantity, and so on.
Decision Quality
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Q y
This is a rating of whether a decision is
good or bad. A good decision is a logical
one based on the available information and
reflecting the preferences of the decision
maker.
Acceptance
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p
Those who must implement the decision or
who will be affected by it must accept it
both intellectually and emotionally.
Acceptance is a critical factor because it
occasionally conflicts with one of the
quality criteria. In such cases, the best thing
to do may be to choose a lesser quality
solution that has greater acceptance
Risking
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Because making decisions involves a degree
of risk, it would be helpful to examine risk
and risk analysis in this chapter in order to
gain an understanding of what is involved.
Risk and uncertainty create anxiety, yet they
are necessary components of an active life
General Comments on Risk Taking
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1. Only the risk takers are truly free. All
decisions of consequence involve risk. Without
taking risks, you cannot grow or improve or
even live.
General Comments on Risk Taking
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g
2. There is really no such thing as
permanent security in anything on
earth. Not taking risks is really notmore secure than taking them, for
your present state can always be
changed without action on your part.
General Comments on Risk Taking
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3. You are supposed to be afraid when
you risk. Admit your fears--of loss, of
rejection, of failure.
General Comments on Risk Taking
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4. Risking normally involves a degree of
separation anxiety--the anxiety you feel
whenever you are removed from something
that makes you feel secure. The way to
overcome separation anxiety is to build a
bridge between the familiar and secure and
the new.
Decision Analysis
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With the aid of this methodology you will be in a
position to prepare and make decisions byfollowing a precise procedure when collecting
information essential for decision - making.
Decision Analysis
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The process of DA makes the decision transparent.
It shows why this decision was made and not
another.
Another advantage is that this process may be madea team - process ,the decision being transferred from
a single person to the team.
This DA can rarely meet all demands of a single
individual but will always achieve the best possiblecompromise for the parties involved in the decision.
The Elements of Good Choice
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1. The quality of ourdefinition of specific
factors that must be satisfied.
2.
The quality of our evaluation of theavailable alternatives.
3. The quality of our understanding of what
those alternatives can produce- for better
or worse.
The process of making the right decision is
divided into four steps:
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p
1- OBJECTIVES / Selection criteria
a - Stipulate
b - Classifying
c - Weighing
2 - Alternatives / Evaluation of alternatives
3 - Risk Assessment
4 - Final Decision
Objectives
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I- Stipulate
You have to stipulate generally acceptable objectives.
These objectives are derived from the results aimed at,
demanded or desired.They are limited by the means available.
Objectives / selection - criteria may be determined step
by step.
Basic objectives are laid down first, then general
objectives and finally exact objectives.
Example: buying a motor car
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Basic objective
- Lowest cost
General objective
- Lowest purchase price
- Lowest Maintenance costExact objective
- Low purchase price
- Little maintenance
- Low petrol consumption- favorable tax-class
- favorable insurance class
To determine the objectives ask the following
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questions:
- What do I want to achieve, where, when, to what
extent?
- What do I want to avoid, where, when, to whatextent?
- What means are available, where, when, to what
extent?
Cont.
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These questions enable you to clearly define an
objective.
Try to achieve a balance of objectives, e.g. not fivecriteria about money and one objective concerning
manpower only.
To avoid this you can draw up a list of basic objectives,on the basis of which the selection criteria can be
established.
Cont.
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These basic objectives can be then assigned points
or percentages, which must not be exceeded, to
avoid bias in judging selection criteria.
From what categories of significance can we
determine objectives with appropriate weighting?
Objectives - Selection Criteria
Purpose of Decision Person Responsible
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Goals:
Basic General Exact
%
% %
%
% % %
%
% %
%
% % %
%
% %
%
% % %
II-Classifying
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The objectives developed from the abovequestions now have to be investigated to see
whether they represent MUST or WANT
objectives
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MUST Objectives
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MUST- objectives must be realistic.
All non-measurable or non-mandatory objectives
are WANT- objectives.
WANT- objectives can be derived from MUSTobjectives.
In practice, decisions are frequently made on
WANT- objectives only.
III- Weighing
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The WANT objectives are weighted (from 10 down
to1) to set their relative values.
If the number of WANT objectives is so large thatthe general picture disappears (40 or more selection
criteria), it is a good idea to draw up basic objectives
under which the WANT objectives can be listed.
Decision analysis is applied to each basic objective
(including risk assessment)
Want Objectives
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ObjectiveGrade (1)
English (2)
IQ (3)GK (4)
Computer skills (5)
Personality (6)
Talent (7)
Want Objectives
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ObjectiveGrade (1)
English 1 (2)
IQ 3 3 (3)GK 1 2 3 (4)
Computer skills 5 5 5 5 (5)
Personality 6 6 3 6 6 (6)
Talent 1 2 3 7 5 6 (7)
Weighing Want Objectives
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Objective 1 2 3 4 5 6 7
Frequency 3 2 4 0 5 6 1
Weight 7 6 8 4 9 10 5
Want Objective A B C D Total Final
Grade 7 10 5 6 28 7
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Grade 7 10 5 6 28 7
English 6 8 10 9 33 9
IQ 8 9 8 10 35 10
GK 4 5 7 4 20 4
Comp. Skills 9 7 6 8 30 8
Personality 10 6 4 7 27 6
Talent 5 4 9 5 23 5
Alternatives
Alternatives are possible avenues to reach an
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Alternatives are possible avenues to reach an
objective. Alternatives emerge from ones ownexperience or from the experience of others.
Where can you find inspiration for alternatives?
Trade-fairs
Developments
Public tenders
Catalogues
Inventions
Conversations
Exhibitions
Quotations
Advertisements
Evaluation of alternatives
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To compare and evaluate alternatives we needinformation that describes the alternatives in the
light of WANT objectives.
After the alternatives have been compiled, we
check which of these alternatives meet the MUST
objectives.
This way we eliminate the unrealistic andimpractical alternatives.
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Evaluation of alternatives
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We determine the degree of the compliance.
Information compiled for the different alternatives in
the light of WANT objectives is entered on the form.Thereafter we determine for each objective which of
the alternatives fits it best.
Evaluation of alternatives
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Having evaluated all information, we multiply the
score figures by the weight figures assigned to the
objectives.
The weighted scores are now added up.
The alternative with highest score-weight is the
provisional (tentative) decision.
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Risk assessment
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Every alternative has its risks, which impair
efficiency.
We must assess the effects of possible disadvantages,
which we may have to put up with.
Sources for risk assessment
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Limits of MUST objectives Alternative evaluation (highly weighted WANTS poorly
satisfied)
Forgotten objectives
Experience by others with the same or a similar
alternative
Professional fault-finders
Categories of comparison for the determination of
objectives.
Adversary effects of alternatives
How possible
of occurrenceof AE
1-10
How big are
implicationswhen AE
occur
1-10
Probability *
importance = risk
factor
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Total risks
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Adversary effects of alternatives
How possible
of occurrenceof AE
1-10
How big are
implicationswhen AE
occur
1-10
Probability *
importance = risk
factor
E 2 2 4
F 4 6 24
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F 4 6 24
Total risks 28
The Result
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Alt. A Alt. B Alt. C
Provisional
Decision 446 411 398
Risk Factor 107 71 28
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SUMMARY
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DA ensures systematic procurement and
processing of information .It makes a decision
transparent by showing what information led to
the decision . It also makes the decision
verifiable and storable
SUMMARY
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The individual steps of the decision process are:
-Establish objectives / selection criteria ( basic,general, and exact Objectives)
- Classify into MUST and WANT - objectives
- Weighting of WANT - objectives
- Specify and develop alternatives.
SUMMARY
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- Testing of alternatives with regard to MUST
objectives.
- Evaluation of alternatives for WANTobjectives.
- Determine risk - factors and calculates probabilityand implications of these risk factors.
- Make final decision.
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DA
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Risk Assessment
Final Decision
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Provisional
Decision
Risk factor
Alt 1 Alt 2 Alt 3 Alt 4 Alt 5
Provisional
Decision
165 366 340 264 292
Risk Factor 70 32 80 116 148
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POTENTIAL PROBLEM ANALYSIS
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Example
Example-2
Potential Problem Analysis( Safeguard - program)
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Problem must not be allowed to arise in the firstplace.
For this reason, this methodology is concerned
with the events and the problems of the future.
One should however, not confuse safeguard -
programs with Planning Although both are
concerned with the future.
The difference is that the safeguard-program
guarantees the success of a plan.
Potential problem analysis is a Procedure that
Potential problem analysis
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Potential problem analysis is a Procedure that
enables us to walk into the future, see what it may
hold, and then return to the present to take action
now.
PPA is the pattern of thinking that enables us tochange and improve the future.
It is a protective process through which we ensure
that the future will be as good as we can make it.
Potential problem analysis
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PPA may sound very similar to the adverseconsequence thinking that is done at the end of
DA, but the two are quite different both in
purpose and process.
Cont.
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The potential adverse consequences of
alternatives compared in a DA are identified to
help us reach a balanced choice: an alternative
that fulfills most of our important objectives
at minimal risk.
In PPA, by contrast, we are constructing a plan
of action; we are going to do something, perhapsmany things to eliminate or reduce potential
problems.
Safeguard - program
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Safeguard - program comprises 4 phases:
1 - Specifying the parts of a plan and determining
the critical portions of it.2 - Possible deviations (potential problem)
3 - Conceivable (possible) causes
4 - Preventive measures
Specifying the parts of a plan,
determining the critical
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portions of it
A plan details all activities which are necessary for the
carrying out of a decision.
Deadlines are fixed for the activities and activities are
assigned to the persons responsible.
The more a plan is broken down into components , the
more details it contains, the easier it is to find the
weak points and critical areas.
Steps for breaking down a plan
Three program steps for breaking down a plan:
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p g p g p
1 - Note plan stepsMake a list of theapproximate steps in the
plan. Start and completion of these steps are
specified and persons are given responsibility.
2 - Sub - program for plan steps
If one plan is too complex or if responsibility
resets with several persons, sub - plan must beperformed . Specify start , completion and
responsibility for each critical sub - plan.
Steps for breaking down a plan
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3 - ActionThe time available , and the complexity or
importance of the task on hand are the guidelines for
deciding to adopt or to omit a particular plan-step.
The point of finding out the critical steps in a plan is to
locate any discrepancies in the most important
elements of a plan, and thus to avoid getting lost intrifles.
How can we determine thesecritical plan - steps?
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You ask , e.g.:- Is something new, unfamiliar or difficult being tried?
- Are there tight deadlines?
- Must a sequence of events be accurately maintained?
- Is work being done which is difficult to assign clearly?- Will there be disadvantages if something goes wrong?
- Is responsibility shared by more than one person?
- etc.
Cont.
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If the answer to one of these questions is yes, then
its a critical area (CA)
The critical plan- areas determined in this mannerare then investigated for possible deviations.
Possible Deviation(Potential Problem)
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Since we cannot expect that right thing will alwayshappen, we should anticipate what could go wrong?
What could go wrong?
What, specifically, is each problem?How risky is each problem?
Possible Deviation
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Write down every expected deviation:
How serious will it be if it happen?
How probable is it that it might happen?
To be able to do something against this deviation,
we must first find the conceivable (possible)
causes, which could bring about these possible
deviation.
Conceivable Causes
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Imagination, experience, logical thinking etc.,
will help you to recognize the conceivable
causes of a specific possible deviation.
Its useful to remember the 6 Ms:
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MAN - makes a mistake in the wrong jobMACHINE - special model, one-off job
Material - not available or wrong
Method - not ordered , unsystematic
Minute - delivery time , too late or too earlyMoney - too expensive, too cheap
All conceivable causes cannot occur all at once; to
ensure sensible and economical application ofsafeguards, we have to examine how probable it will
be for the cause to happen.
Preventive Measures
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Prevention is better than cure
Preventive action prevent undesirable events from
happening or, at least, reduces their probability of
materializing.Try to find feasible and practical preventive action for
each conceivable cause.
This not being possible in every case, you have to
accept certain risks.
Preventive Measures
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CONTINGENCY - ACTION must be made
available in case preventive action cannot be taken or
is insufficient and a risk threatening the success of
the project still exists.
Whilst preventive action is aimed at preventing
conceivable causes from arising, CONTINGENCY -ACTION is employed when something went wrong
in spite of all the prevention.
Reporting back
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It is a fact of the matter that Contingency - action
does not materialize on its own. It needs a trigger.
Specify a trigger, (a person or an arrangement) foreach Contingency action. Tell the trigger, when, in
what circumstances it must report back, and with
what message.
(You have to specify the reporting channels)
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GOODKARMA
METHOD Of POTENTIAL
PROBLEM ANALYSIS
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First Specify exactly:
Purpose of program:
what must be done ?
where must it be done ?
when must it be done ?
how much shall individually be spent ?
Specify activities ( plan - step, sub - plan - step, action )
Cont.
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1 - Recognize and determine critical areas in the planWhat are the critical areas or single activities of a
plan which are particularly threatened by potential
problems ?
2 - Investigate critical areas for potential problemsWhat could go wrong?
Where, mostly go wrong ?
Evaluate potential problem
Probability H - M - L
Importance H - M - L
Cont.
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3 - Conceivable causes
4 - Specify preventive action against causes
Take Contingency - action against effects
5 - Establish alarm and reporting system
How long should the preventive action remain in
force?
Summary
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A safeguard program will enable you to carry
out projects without big surprises .
Unpleasant surprises fail to appear , since you
have investigated in detail those points ofyour program which could cause difficulties .
Such difficulties must not be permitted to
arise.
Summary
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The CRITICAL PLAN _ STEPS are determined first .Thereafter all critical parts of the plan are investigated
for
POSSIBLE DEVIATIONS, for which Possible(conceivable) causes are then established.
To safeguard the carrying out of the plan
PREVENTIVE ACTIO, is taken and
CONTINGENCY-ACTION, made available.
Summary
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Since Contingency - action must be triggered
off, TRIGGERS must be provided.
TEST- PERIODS are introduced to stoppreventive action after a specified period.
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