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5 - Problem - Solving and Rational Decision Making

The document discusses problem solving and rational decision making. It defines problem solving as active efforts to discover solutions to goals that are not readily attainable. There are different types of problems including problems of inducing structure, arrangement, and transformation. Problem solving involves deciding what is wrong, what the problem is, and how to solve it. Common approaches to problem solving include trial and error, heuristics like forming subgoals and working backwards, and analogies. Decision making can involve choosing between alternatives or taking chances with uncertainty. The rational model of decision making involves identifying the problem, alternatives, facts, evaluating alternatives, selecting and implementing the best alternative, and getting feedback. There are simple acute problems and complex chronic problems. Bounded rationality

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53 views

5 - Problem - Solving and Rational Decision Making

The document discusses problem solving and rational decision making. It defines problem solving as active efforts to discover solutions to goals that are not readily attainable. There are different types of problems including problems of inducing structure, arrangement, and transformation. Problem solving involves deciding what is wrong, what the problem is, and how to solve it. Common approaches to problem solving include trial and error, heuristics like forming subgoals and working backwards, and analogies. Decision making can involve choosing between alternatives or taking chances with uncertainty. The rational model of decision making involves identifying the problem, alternatives, facts, evaluating alternatives, selecting and implementing the best alternative, and getting feedback. There are simple acute problems and complex chronic problems. Bounded rationality

Uploaded by

ravi anand
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Problem Solving and

Rational Decision Making

Dr. Ahmad Azhar, Assistant Professor, VBU, Hazaribag


Definition

 Problem solving refers to active efforts to


discover what must be done to achieve a
goal that is not readily attainable.
Types of Problems (Greeno)

 Problems of Inducing Structure (cognitive skills are


required to solve )

 Problems of Arrangement (A problem that requires


rearranging its parts to satisfy a specified criterion)

 Problems of Transformation
 Problem solving involves making a series of
decisions:
 deciding that something is wrong,
 deciding what the problem is, and
 deciding how to solve it.
Approaches to Problem Solving

 Trial & Error a fundamental method of problem solving. It is characterised by repeated,


varied attempts which are continued until success

 Heuristics "Common sense" is a heuristic that is applied to a problem based on an individual's


observation of a situation.

 Forming Subgoals

 Working Backwards

 Analogies

 Reenvisioning the Problem


Decision Making

 Two types of decisions


 Making choices (selecting among alternatives)
 Taking chances (deciding amidst uncertainty)
Selecting Among Alternatives

 Strategies
 Additive
 Subtractive (Elimination of Aspects)
 Successful problem solving depends on good
decisions.
 Decision: A choice from among available
alternatives.
 Much of the supervisor’s job is making decisions.
 In many cases, decisions are made without giving any
thought to the process of deciding.
 Supervisors will automatically decide something
 because it feels right or
 because a decision has been made on a similar issue in the past.
 Decision making can be improved by understanding how the
decision-making process works in theory and in practice.
Rational Model

 The rational model of decision making


includes:
 a. identify the problem
 b. identify the alternative solutions
 c. gather and organize the facts
 d. evaluate the alternatives
 e. select and implement the best alternative
 f. get feedback and take corrective action.
 There are two basic types of problems:
 simple, or acute and
 long-standing, or chronic, problems.
 Simple problems occur suddenly, and the cause of
the problem may be obvious.
 An example is when the electricity goes off because a fuse
is blown.
 The chronic, or recurring, problem is usually more
complex, and it is difficult to determine the causes
and solutions.
 This type of problem can benefit from the conscious use of
a problem-solving or decision-making model.
Bounded rationality
 Bounded rationality is the idea that in decision-
making, rationality of individuals is limited by
the information they have, the cognitive limitations of their
minds, and the finite amount of time they have to make
a decision.
 The term “bounded rationality” was coined in the 1950s
by Herbert A. Simon.
 The principle of bounded rationality [is] the capacity of the
human mind for formulating and solving complex problems is
very small compared with the size of the problems whose
solution is required for objectively rational behavior in the real
world — or even for a reasonable approximation to such
objective rationality.
Bounded rationality

Choosing an alternative that meets minimum


standards of acceptability.
 Solutions that meet minimum standards will likely
result in a return of the problem, since there is no
margin of safety that will allow for slight changes
and desirable outcomes.
Recency Syndrome

 The tendency to most easily remember


events that have occurred recently.
 To test this concept, try to remember what
happened yesterday.
 Now try to remember eight or ten days ago with
the same kind of detail.
THANK YOU

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