PLANNING: Decision-Making and Budgeting

1. PLANNING:Decision-Making and Budgeting Jimenez, AlianaChristel Macapagal, Pauline Anne Soquila, MicaeleRyko Tangonan, Emmanuel Veloso, Roginette Louise

2. PLANNING: “Choices are the spice of life.” - Anonymous Decision – Making

3. Objectives By the end of the report, the listeners will be able to: • Differentiate decision-making from problem solving • Enumerate the five steps in the decision-making process • Compare and contrast the five models of decision-making • Define group decision-making • Describe creative decision-making techniques • Identify blocks to creativity • Cite examples of the application of ethical theories/principles • Explain at least one decision-making tool

4. Decision-Making vs. Problem Solving Problem solving involves selecting the one correct solution to a problem, while decision making may or may not involve a problem and requires selection of one alternative from several, each of which could be appropriate in certain circumstances. (Sullivan & Decker, 1992)

5. Decision-Making vs. Problem Solving Decision making differs from problem solving in that it is influenced by emotions and intuition, it is purposeful and goal-directed, it involves a choice among options, and it does not always start with an immediate problem. (Huber, 2000)

6. Decision-Making vs. Problem Solving Often, decision making is a subset of problem solving, since not all decisions deal with problems, but the solving of any problem requires that one or more decisions must be made. Thus problem solving involves diagnosing a problem and solving it, whereas decision making involves selecting one of two or more alternatives to guide one’s actions. (Lancaster, 1999)

7. The Process of Decision-Making • Identify problem • Explore alternatives • Choose most desirable alternative • Implement decision • Evaluate results

8. Models for Decision-Making • Rational Model • Political Model • Collegial Model • Bureaucratic Model • Garbage Can Model

9. Rational Model • Relies on the premise of common goals, technical competence, and sequential process to achieve goals when individual values are consistent with organizational values • A deliberate action to select the best solution to achieve a desired outcome.

10. Rational Model • Advantage: • unifies associates with goals of the agency • Disadvantages: • unrealistic expectations of how people function • large amount of time for processing • narrow thought processes that become counterproductive

11. Political Model • Built on the premise of a win-win situation, diversity of interest, even dispersion of power, and available forums for people with multiple conflicting values that protect their own self-interest. • Lobby majority makes the decision

12. Political Model • Changes are based on negotiations rather than causal links and are unpredictable. • Facilitates creative solutions with majority support that are implemented even if there are different POV

13. Collegial Model • Full participation of a community of peers is required for decision making • Based on the premise of group consensus, mutual respect, and adequate time • Takes considerable time because of numerous group meetings of individuals with diverse and specialized information • Smooth implementation happens when there is consensus

14. Bureaucratic Model • Common in healthcare • Change is implemented through routines as determined by policies and procedures that lead to predictable outcomes with little adaptation to operations. • Based on premises of historical norms and operating routines.

15. Bureaucratic Model • Hierarchy dictates the key players • Information comes from history, tradition, and norms • Time for implementation depends on the efficiency of operations • Does not recognize informal channels

16. Bureaucratic Model • Alternative solutions generated may be limited and depend on the historical success of the agency and corporate memory. • A past inefficient operation may be perpetuated. A history of efficiency , changes consistent with history and norms may be made with little resistance.

17. Garbage Can Model • Based on pure accident • Decisions are based on multiple diffused values • Implementation has no planning • Outcomes may repeat errors and depends on creativity • Coincidental, incidental, and occurs by chance • Key players see opportunitiesand contribute to anarchy and adhocracy

18. Group Decision-Making Definition Advantages and Disadvantages Group Decision Making Techniques

19. Definition • application of decision making skills in solving problems utilizing the group instead of the individual decision maker • The effectiveness of the group is determined by: • the size of the group • the personalities of the group members

20. Advantages • Wider range of knowledge • Allows the nurse to express her views and attempt to persuade others • People are more apt to be committed to implementation • Less time consuming if group members have diverse backgrounds

21. Disadvantages • Group decisions may result from social pressures. • A minority may rule if an individual or a few people dominate the group. • Members may become more interested in winning an argument than in determining the best alternative. • Choosing the most acceptable solution may produce consensus, which is not necessarily the optimal alternative.

22. Techniques

23. Nominal Group Technique • The members write their ideas or responses regarding the issue or question posed by the group leader • The ideas will be presented to the group including the advantages and disadvantages of each • The ideas presented are clarified and evaluated • The members of the group will vote on the ideas and the ideas which have the greatest number of votes will be the solutions implemented

24. Delphi Group Technique • group members are not meeting face to face (may be dispersed over a geographical area) • Questionnaires are used instead

25. Delphi Group Technique • A problem is identified. • Members are asked to suggest potential solutions through the use of a questionnaire. • Members anonymously return the first questionnaire, and the results are centrally compiled. • Each member is sent a copy of the results. • After viewing them, members are asked for their suggestions again.

26. Delphi Group Technique • Review of the results of the first questionnaire typically triggers new solutions or stimulates changes in original positions. • This technique shields group members from one another’s influence. • Does not require physical presence. • It can involve more participants and thus it generates more ideas.

27. Consensus Building • Bringing people onto the team • Listening to their ideas • Realistically considering their ideas • Using their ideas • Involving them in critical thinking • Time consuming

29. Group Think • Seeks fast solutions with little critical thinking or input from group members • People conform rather than challenge ideas • Poor decisions can result

30. Group Think • Strategies to avoid groupthink: • Group leaders should encourage all group members to think independently and verbalize their individual ideas • The leader should allow the group time to gather further data already collected

31. Creative Decision Making Emphasizes the uniqueness of a solution

32. Divergent Thinking • Spontaneous, free-flowing, generation of random, unorganized thinking • Goal is to generate many different ideas quickly • Breaks topic down to gain insights and the view of the problem is expanded because the problem is considered in different ways

33. Divergent Thinking Techniques

34. Meditation • Optimal performance in relaxed concentration • Playing loose • Involves contemplation • Helps integrate body, mind and spirit

35. Brainstorming • Lists ideas in an unstructured way • Works best for simple and specific problems • Early notification of participants regarding the task at hand speeds up the process

36. Reverse brainstorming • Turns negativism into creative problems solving by identifying a problem and asking what causes it. • Example: What causes burn out instead of what can be done to prevent burn out

37. Brain Writing • Encourages free association of ideas without verbal interaction. • A problem is identified. • Participants are given a blank piece of paper and are told to write at least four ideas, suggestions, solutions, and so forth. The paper is passed on to someone else. • Reading others’ ideas is intended to stimulate more ideas.

38. Collective Notebook Technique • People keep ideas on a specified topic on a notebook for a certain period. • Participants give the notebook to another person after writing to search for patterns and synthesis. • Meetings are done afterwards to analyze and make recommendations

39. Stepladder Technique • Structures entry of group members into the group to ensure that each one contributes. • The task is known to the participants before the meeting so that they can think about it before presenting • Final decision is delayed until all have presented.

40. Ladder of Abstraction • Encourages making abstract options more concrete, focused, and specific and making specific narrow options broader and more abstract. • Discussing concepts, defining them, and giving concrete examples moves from abstract to concrete • Why questions broaden while how questions make things more specific

41. Forced Association or Fitting • Situations that require improvements are identified. • A list of associated words is generated and recorded. • Relationships are indentified. • Forcing a relationship can be done for random item and task at hand.

42. Visual trek • Good for stretching the mind to generate original and unusual options. • Done by making a mental journey away from a task and then connecting back to the original task.

43. Think Tanks • Five to eight people are gathered in an exotic or different place to stimulate innovation

44. Convergent Thinking • After generating ideas from divergent thinking, there is a need for structure using convergent thinking. • Groups together ideas to find a more manageable perspective

45. Convergent Thinking Techniques

46. Lists • Used to assemble criteria on a checklist, sort it, and prioritize it

47. Morphological Matrix • Combines elements from different attributes by creating frameworks for new options • Patient’s diet example

48. Highlighting • Focusing tool that condenses a variety of options into themes making it more manageable in terms of number.

49. Short Medium Long (SML) • Focusing tool used to determine the order in which options are deliberated, compared timing to alternatives, and sequenced

50. Synectics • Joining together of apparently irrelevant elements. • Problems are reduced to analogies.