Problem Solving Techniques for Effective Decision Making

This document discusses problem solving techniques that aid in effective decision making and resolving work-based problems. It covers flow charts, mind maps, thought showers, decision making analysis, lateral thinking, and creative solutions. The document also provides examples and case studies to illustrate the application of these techniques. It is a valuable resource for individuals and organizations looking to improve their problem solving and decision making skills.

Problem Solving

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Flow charts, mind maps and thought showers.............................................................................3
Decision making analysis, lateral thinking and creative solutions..............................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Problem solving may be defined as a process that is in undertaken to resolve specific
problem or issue. For this purpose, concerned authority must have ability in relation to
presenting solution of the problem in an innovative manner which in turn evolves satisfaction
among the parties associated with the same. The main objectives behind carrying out such study
are to highlight the range of problem solving tools that aid in effectual decision making. Besides
this, it will depict the manner through which individuals can solve work based problems.
MAIN BODY
In the business organization, problems related to marketing, production, human resources
and financial aspects occur to a great extent. In this, it is an accountability of manager to find out
and introduce suitable solution of issue through conducting in-depth investigation. Work based
problems that occur within the business organization include high employee turnover, conflicts,
decrease in employee productivity and profitability etc. Hence, all the issues or problems that are
associated with the business organization have greater influence on the profitability aspect of
firm (Marston and et.al., 2016). Thus, decision making aspect becomes vital for the firm which
in turn makes contribution in the attainment of gaols. There are several problem solving
techniques that can be undertaken to resolve issue includes root cause analysis, CATWOE, 5
Whys, drill down technique, cause and effect analysis, interrelationship diagrams etc (Problem
Solving, 2017). All such problem solving tools are highly significant which in turn helps in
presenting the optimal solution of issue which is going to be evaluated.
For instance: Sainsbury which is one of the leading retail business unit of UK is planning
to explore business in developing countries due to the saturation of home market. In this, it is not
easy for the firm to easily select developing country for the purpose of expansion. Moreover,
there are several factors that have high level of influence on decision making aspect such as
political stability, economic, social, technological and legal factors (Cotton, 2016). In this, by
conducting PEST analysis business can unit can get information about environmental aspects. In
addition to this, by conducting SWOT analysis management team of Sainsbury would become
able to assess its own strength, weaknesses, opportunities and threats. In this, by evaluating such

aspect company can take decision that whether it is capable enough for coping up with the
external environmental factors or not. Moreover, tax rate, purchasing power and attitude of the
customers as well as technological aspects highly affect the growth of business. In this regard,
through evaluating both internal and external factors Sainsbury can take suitable decision in
relation to the expansion of business.
In addition to this, by conducting cause and effect analysis management team of the firm
can find out optimal solution of the problem. For instance: Tesco is facing issue in relation to
reducing the level of employee productivity and profitability. In this, manager of the corporation
can present the solution of issue by doing cause and effect analysis. On the basis of such
technique manager is required to mainly assess the problem such as low employee productivity
and profitability (Johnson and et.al., 2017). Thereafter manager is required to assess the main
causes of problem that may be lower level of motivation, satisfaction, ineffective working
environment and lack of skills. Once main causes of problems have been assessed thereafter
concerned authority makes effort in relation to assessing the sub-causes associated with the main
reasons (Battisti and Amori, 2016). Moreover, in the business unit, motivation level of personnel
is influenced from several aspects such as pay, promotional and growth opportunities, working
condition etc. In this way, by assessing and evaluating sub-causes manager of the business unit
can take suitable action for improvement.
If the main cause behind decreasing motivational aspect is to lower level of pay then by
introducing incentive system Tesco can provide personnel with an opportunity to earn high.
Further, lack of skills also may cause of decreasing the level of employees productivity.
Moreover, now changes take place in the technological aspects more frequently which in turn
imposes issue in front of employees in performing activities. In addition to this, when personnel
face difficulty in performing activities then it places direct impact on employee motivation. In
this, by conducting training and development session firm can provide opportunity to the
personnel regarding the enhancement of skills as well as proficiency level (Martin, Donohoe and
Holdford, 2016). In this, by building highly talented workforce and raising the proficiency level
of personnel Tesco can maximize employee productivity and thereby overall performance of the
firm.

(Source: Cause and effect analysis to solve business problems, 2017)
Flow charts, mind maps and thought showers
Through flow charts problem of expansion problem can be evaluated that firm is facing
in retail sector. Under this firm managers can prepare sequence in which different developments
happened in respect to obstacles that firm faced in its retail business. This entire evaluation will
help firm in identifying way in which specific problem comes in existence. All these things will
help firm in identifying solution of the work based problems in business. It can be said that flow
chart is the one of the important method that can be used to solve problem by the managers.
Mind map is another technique that is used to solve the problems. Under this there is no structure
in which problem can be defined. Simply one need to prepare diagram and all things must be
linked to centre and in this way flow mind map can be prepared. Mind map reveal the way in
which things are done practically (Newman and et.al., 2017). It can be said that both tools are
effective for the firms in terms of decision making and it can be said that same must be used for
problem solving by the business firms.

Decision making analysis, lateral thinking and creative solutions
Lateral thinking refers to following approach under which indirectly problem is solved in
creative manner. Means that one does not have direct solution of the problem and due to this
reason it make an attempt to identify indirect solution of the problem. In the present context
decline in market share is taken in to account. In order to solve this problem lateral thinking
approach can be used and under this indirect solution of the problem will be identified. In this
regard first of all in detail market analysis will be done. Through use of relevant model business
problems can be solved to great extent and firm can identify new way to counter problem. It can
be said that it is the one of the most important approach that can be used by the business firms to
solve the problem (Seidman, 2016). In past time period many changes happened in these
techniques as it can be observed that due to this reason these techniques are used at mass level by
the business firms. Identification of creative solutions is the key to solution of problems and it is
very important to ensure that to each problem in systematic way solution is identified. By doing
so it will be ensured that problem that organization face will not appear again. Time to time
managers must evaluate the situation and accordingly they must make decisions to handle the
situation. In order to evaluate situation managers can make business decisions.
From assessment, it has been identified that 5 why’s technique is highly significant
which in turn helps in presenting the fair solution of problem. At workplace, conflicts are usual
when people work in a team. In this, it is highly required for the manager to undertake the
technique of 5 why’s. Hence, by assessing the causes behind the occurrence of team conflicts
manager of the firm would become able to undertake suitable action for improvement (Serrat,
2017). In this, by evaluating the situation and its related causes firm can resolve the conflicting
situation more effectually.
CONCLUSION
It is concluded that there is significant importance of the techniques that are discussed in
the report. There are number of merits and demerits of these techniques and one must cautiously
use these approaches in the business because results of these decisions entirely depend on the
methods that one use to make decisions. It can be said that there is significant importance of

these methods for the business firms. Managers can use multiple methods in order to evaluate
situation in better manner and to make decisions. It can be said that relevant approaches assist
heavily management in making decisions.

REFERENCES
Books and Journals
Battisti, C. and Amori, G., 2016. Problem solving and decision-making in project management
of problematic wildlife: a review of some approaches and conceptual tools. In Problematic
Wildlife (pp. 109-122). Springer International Publishing.
Cotton, D., 2016. The Smart Solution Book: 68 Tools for Brainstorming, Problem Solving and
Decision Making. Pearson UK.
Johnson, C. C. and et.al., 2017. Using a Problem-Solving/Decision-Making Model to Evaluate
School Lunch Salad Bars. Journal of Child Nutrition & Management, 41(1), p.n1.
Marston, D. and et.al., 2016. Data-Based Decision-Making, the Problem-Solving Model, and
Response to Intervention in the Minneapolis Public Schools. In Handbook of Response to
Intervention(pp. 677-692). Springer US.
Martin, L. C., Donohoe, K. L. and Holdford, D. A., 2016. Decision-making and problem-solving
approaches in pharmacy education. American journal of pharmaceutical education, 80(3),
p.52.
Newman, K. and et.al., 2017. Information Seeking When Problem Solving: Perspectives of
Public Health Professionals.Worldviews on Evidence
‐Based Nursing, 14(2), pp.145-153.
Seidman, A., 2016. State and law in the development process: problem-solving and institutional
change in the Third World. Springer.
Serrat, O., 2017. The five whys technique. In Knowledge Solutions (pp. 307-310). Springer
Singapore.
Online

Cause and effect analysis to solve business problems. 2017. [Online]. Available through:
<http://www.entrepreneurshipinabox.com/3899/cause-and-effect-analysis-to-solve-business-
problems/>. [Accessed on 28th July 2017].
Problem Solving. 2017. [Online]. Available through:
<https://www.mindtools.com/pages/main/newMN_TMC.htm>. [Accessed on 28th July 2017].