Problem Solving Session One

የኢትዮጵያ ሥራ አመራር ኢንስቲትዩት
Ethiopian Management Institute
decision making
Problem Solving and
General Objective
• The general objective of this training is to practice an

approach to problem solving that involves seeing the

problem from several points of view, identifying
important factors related to the problem, and
considering a range of options that might lead to a
satisfactory solution.
Specific Objectives
• After completing this course, participants will have

learned to:
• Apply problem-solving steps and tools
• Analyze information to clearly describe problems and
Identify appropriate solutions
• Select the best approach for making decisions
• Create plans for implementing, evaluating, and following
up
• Avoid common decision-making mistakes
• Make correct and timely decisions
• Use problem-solving model and toolkit
4
Introduction
• The ability to solve problems is a basic life

skill and is essential to our day-to-day lives,

at home, at school, and at work.
• There is no right way to solve this problem
and different people will solve it differently.
• The ability to solve problems is a skill, and
just like any other skill, the more you
practice, the better you get.
5
Introduction
• In the workplace, you’ll need to make

decisions and resolve problems frequently.

• many of your decisions are not so important,
some are potentially life changing.
• So learning how to use effective strategies and
tools will help you to make the right decisions
at the right time.
Introduction
• Problems Solving and Decision Making

Training Course provides you with skills such

as problem solving techniques and models,
organising methods, ways to conduct
research, identifying options to achieve
accurate decisionmaking and problem solving.
Problem solving vs. decision making
Which diagram represents r/n between problem
solving and decision making?
1
• Decision making is a subset of the problem solving

process
• Refers only to the process of identifying
alternative solutions and choosing from among
them.
• It is about deciding what action to take;
• it usually involves choice between options.
Goal Setting
• What do you hope to gain through completing Decision Making

and Problem Solving?

• Depending on your role in Ethiopian shipping and logistics
service enterprise, your prior experience in decision-making and
problem solving situations, and your current level of expertise in
these areas, your goals may be slightly different from those of
another department professional.
• Clarifying your goals will help you gain the most from the time you
spend completing this 3 days training . Take a few minutes to
complete the following activity.
Personal Learning Goals

SESSION ONE- PROBLEM

SOLVING
Ethiopian shipping and
logistics service enterprise
• Organizational leaders are continuously confronted with a

variety of problems in their day to day activities.

• The ability to solve personal or organizational problems and
the skills to make timely decision are critical skills to ensure
one’s success as a leader.
• Therefore, this part of the handout covers the basic concepts
that help enhance a leader’s capacity in making effective
decision making and problem solving.
What is Problem Solving and Why
is it Important?
• The ability to solve problems is a basic life skill and is essential to our
day-to-day lives, at home, at school, and at work.

• We solve problems every day without really thinking about how we
solve them.
• For example: it’s raining and you need to go to the store. What do you
do? There are lots of possible solutions. Take your umbrella and walk.
If you don't want to get wet, you can drive, or take the bus. You might
decide to call a friend for a ride, or you might decide to go to the store
another day.
• There is no right way to solve this problem and different people will
solve it differently.
Read the following information
• Problem Solvers need to be creative and also need to stay

within the law and the rules of society.

• The Problem Solver must:
• remain consistent with department values
• adhere to community norms
• take actions that are moral, legal and ethical
• use common sense and
• be creative.
• Problem Solvers cannot be creative at the expense of the
other values. Being creative also involves taking risks.
• At the end of this training session, participants will be

able to,
• Discuss the relationship among objectives,
problem solving, and decision making and their
relationship among the management functions.
• Understand “What is a Problem?”
• Identify causes of a problem
• Analyze problematic situations to discern their
nature and manage them.
• Utilize effective problem-solving strategies
• Solve problems in their daily lives.
Problem Definition
Problem is a discrepancy (difference)
between an existing and a desired state.
Example:
“The manager has resigned, and we need
another manager”
Here the phrase “manager has resigned”
reflects the current state while “need
another manager” represents a desired
state.
Definition of a problem
What is Problem
Problem
• Problem can be defined broadly as situations in

which we experience uncertainty or difficulty in
achieving what we want to achieve.
• A Problem is the situation that exists
• whenever objectives are not being met. (a

significant difference between what actually is

and what is desired.)
• an issue or obstacle which makes it difficult to
achieve a desired goal, objective or purpose.
• a situation, condition, or issue that is yet
unresolved.
• when an obstacle prevents us reaching an
objective
Problem situation
Problem solving
Problem solving
• Problem solving is the process of

identifying a problem, developing

possible solution paths, and taking the
appropriate course of action.
Types of managerial problems
Structured problems
Unstructured problems
Crisis problems
Problem environment
In certain environment
In Risk environment
In uncertain environment
Problem Solving as a Team
• A problem is a difference between reality
(what you have) and expectations (what you
want).
43
Problem Solving as a Team
• Problem solving is the process of making an
expectation a reality. The methods used to
solved problems are the same for teams and
individuals.
• Employers expect their workers to be able to
solve problems. Solving problems as a team
will involve the same basic steps as solving
them as an individual.
44
Pareto Principle
• Originally, the Pareto Principle referred to the
observation that 80% of Italy’s wealth
belonged to only 20% of the population.
• More generally, the Pareto Principle is the

observation (not law) that most things in life
are not distributed evenly.
45
• Life Isn’t Fair
– What does it mean when we say “things aren’t
distributed evenly”?
– The key point is that each unit of work (or time)
doesn’t contribute the same amount.
46
• So Why Is This Useful?
• The Pareto Principle helps you realize that the majority of
results come from a minority of inputs. Knowing this, if…
• 20% of workers contribute 80% of results: Focus on rewarding

these employees.
• 20% of customers contribute 80% of revenue: Focus on

satisfying these customers.
• The examples go on. The point is to realize that you can often
focus your effort on the 20% that makes a difference, instead
of the 80% that doesn’t add much.
47
Why is problem solving important?
• Good problem solving skills empower you not
only in your personal life but are critical in your

professional life.
• In the current fast-changing global economy,
employers often identify everyday problem solving
as crucial to the success of their Organizations.
• For employees, problem solving can be used to
develop practical and creative solutions, and to
show independence and initiative to employers.
48
Why Problem Solving
• In an organization where problems exist

but remain unsolved the following can

occur
• De-motivation of staff
• Loss of customers
• Waste of resources
• Reduction of profit
• Compromised growth/survival potential
49
Solving….
• Solving a problem usually removes an

impediment from work leading to

• Increased productivity
• Increased enjoyment
• Less stress
• Improved quality
• Improved efficiency
50
• Now connect up the dots by four straight

consecutive lines (that is, without taking your pen

or pencil off the paper).
• You should be able to complete this task within
three minutes.
Problem classification
• problems can be broadly grouped in to 3

categories
• System problems
• People problems
• Process problems
53
People problems
• May be difficult to resolve because
• People are not totally logical

• Emotions can play a part

• Psychological influence
• Implicit personality theory
• Judging others by traits we find attractive in ourselves
• The Halo effect
• Initial judgment will affect all further interaction
• Stereotypes
• Judging individuals due to the groups they belong to
54
Process problems
• Process problems occur
• Mechanical
• Electrical
• Electronic
• Chemical information
• These problems are usually logical but
complex thereby requiring a high level of
technical knowledge
55
System problems
• Systems are in place to ensure that to the
organization
• Every thing happens as it should be

• Every time
• by every body
• Usually people a key elements of systems in the
design and implementation of the system this adds
another level of complexity to system problems
56
Reflection activity one
Break in to your respected groups

Allow 30 minutes
•Analyze the nature of problems in your organization
(if any) in line with systems, people and processes
•After going through the problem identification,
suggest working remedies for each of the problems
identified by your group
57
Basic requirements for problem solving
people process
• Capable • Process that is

• Trained • Suitable
• Motivated • Flexible
• Open • Robust
• Honest • Accepted
• Imaginative • Transparent
• Disciplined can • Fast
effectively solve • Constantly evolving
problems
63
Basic requirements for problem solving
Resources Attitude
• Resources that include • An effective problem

• People solving attitude has the
• Information following components
• Finance • Optimism
• Support
• Persistent
• Apace to experience
• Basic knowledge
• Trust
• Time • The correct approach
64
How to recognize existence of problems
• Comparison against others

• Monitor for weak signals

• Comparison of current performance with
objectives or past performance
• Checklists
• Inverse brainstorming
• Listing complaints
• Role playing
66
Problem solving
The six matchsticks
• Place six matchsticks – preferably of the

wooden variety – on a flat surface.

• Now arrange the matchsticks in a pattern of
four equilateral (ie equal-sided) triangles.
You may not break the matchsticks – that is
the only rule.
• Again, you should be able to do it within
three minutes.
The problem solving Process
• To succeed, the problem solving process

must be
• Suitable for the organization
• Robust enough to survive
• Simple enough to be understood
• Implementable
• Seen to be effective and transparent
70
Model
The Six Step Problem Solving
The Six Step Problem Solving Model
• Problem solving models are used to address

the many challenges that arise in the

workplace. While many people regularly solve
problems, there are a range of different
approaches that can be used to find a solution.
• Complex challenges for teams, working
groups and boards etc., are usually solved
more quickly by using a shared, collaborative,
and systematic approach to problem solving.
72
Advantages of Six-Step
Problem Solving
• provides a focused procedure for the problem solving

group.
• It ensures consistency, as everyone understands the
approach to be used.
• By using data, it helps eliminate bias and preconceptions,
leading to greater objectivity.
• It helps to remove divisions and encourages collaborative
working.
Advantages of Six-Step
Problem Solving
• It stops groups diverging into different problems.

• It also helps reach consensus

• It eliminates the confusion caused when people use different
problem solving techniques on the same issue.
• It makes the decision making process easier.
• It provides a justifiable solution.
Model
Group exercise
• Identify single problem from your

organization to further analysis it in order

to solve it using the problem solving
model
Model
Step One: Define the Problem
• Step One is about diagnosing the problem – the context,

background and symptoms of the issue.

• Once the group has a clear grasp of what the problem is,
they investigate the wider symptoms to discover the
implications of the problem, who it affects, and how
urgent/important it is to resolve the symptoms.
• At this stage groups will use techniques such as:

Brainstorming, Interviewing and Questionnaires

• As this step continues, the PS group will constantly revise
the definition of the problem. As more symptoms are found,
it clarifies what the real problem is.
Ethiopian Management Institute GROUP REFLECTION
Step Two: Determine the Root Cause(s) of the
Problem
• Once all the symptoms are found and the problem diagnosed and
an initial definition agreed, the PS group begins to explore what

has caused the problem. In this step the problem solving team
will use tools such as:
• Fishbone diagrams
• Pareto analysis
• Affinity diagrams
• These techniques help collate the information in a structured
way, and focus in on the underlying causes of the problem. This
is called the root cause.
Developing Problem Solving
Processes
• What is the first step of solving any

problem?
• Recognize that there is a problem and
• identify the right cause of the problem.
• To really solve the problem, it's important
to find out the root cause.
85
What is Fishbone analysis?
Cause and Effect Diagram
• Also known as Visually displays multiple causes for a

problem
• Helps identify stakeholder ideas about the causes of
problems
• Allows the user to immediately categorize ideas into themes
for analysis or further data gathering
• When identifying possible causes for a problem
• having difficulty understanding contributing factors or
causes of a system failure
93
5-Why Analysis Template
Problem
• Your client is refusing to pay for the leaflets you
printed for them.

• Why? The delivery was late, so the leaflets

couldn't be used.
• Why? The job took longer than we anticipated.
• Why? We ran out of printer ink.
• Why? The ink was all used up on a big, last-
minute order.
• Why? We didn't have enough in stock, and we
couldn't order it in quickly enough.
Step Three: Develop Alternative
Solutions
• Analytical, creative problem solving is about creating a

variety of solutions, not just one. Often the most obvious

answer is not the most effective solution to the problem.
The PS group focuses on:
• Finding as many solutions to the problem, no matter how
outlandish they may seem.
• Looking at how each solution relates to the root cause
and symptoms of the problem.
• Deciding if different solutions can be merged to give a
better answer to the problem.
• At this stage it is not about finding one

solution, but eliminating the options that

will prove less effective at dealing with
both the symptoms and the root cause.
Evaluate Alternatives
Step Four: Select a Solution
• In the fourth step, groups evaluate all the selected,

potential solutions, and narrow it down to one.

• This step applies two key questions.
1.Which solution is most feasible?
2.Which solution is favored by those who will
implement and use it?
Decide on the solution

• Feasibility is ascertained by deciding if a solution:

• Can be implemented within an acceptable timeframe?

• Is cost effective, reliable and realistic?
• Will make resource usage more effective?
• Can adapt to conditions as they evolve and change?
• Its risks are manageable?
• Will benefit the organization/
• Which solution is favoured?
• Acceptance by the people who will use and implement the solution is key
to success.
• This is where the previous steps come into play. To

users and implementers, a solution may seem too

radical, complex or unrealistic. The previous two steps
help justify the choices made by the PS group, and
offer a series of different, viable solutions for users
and implementers to discuss and select from.
Step Five: Implement the Solution
• Once the solution has been chosen, initial project

planning begins and establishes:

• The project manager.
• Who else needs to be involved to implement the solution.
• When the project will start.
• The key milestones
• What actions need to be taken before implementing the solution
• What actions need to be taken during the implementing the solution
• Why are these actions necessary?
• Step Six: Evaluate the Outcome

• The project implementation now needs to be monitored by the

group to ensure their recommendations are followed. Monitoring
includes checking:
• • Milestones are met
• • Costs are contained
• • Necessary work is completed
• Many working groups skip Step Six as they believe that the
project itself will cover the issues above, but this often results in
the desired outcome not being achieved.
• Overall, the Six Step method is a simple and

reliable way to solve a problem.

• Using a creative, analytical approach to problem
solving is an intuitive and reliable process.
Key Points
• The Six Step Problem Solving Model provides a shared,

collaborative, and systematic approach to problem solving.

• Each step must be completed before moving on to the next
step. However, the steps are repeatable.
• At any point the group can return to an earlier step, and
proceed from there.
• The goal is not to solve but to evolve, adjusting the solution
continually as new challenges emerge, through repeating the
Six Step Process.

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የኢትዮጵያ ሥራ አመራር ኢንስቲትዩት

Ethiopian Management Institute

• The general objective of this training is to practice an

approach to problem solving that involves seeing the

• After completing this course, participants will have

• The ability to solve problems is a basic life

skill and is essential to our day-to-day lives,

• In the workplace, you’ll need to make

decisions and resolve problems frequently.

• Problems Solving and Decision Making

Training Course provides you with skills such

• Decision making is a subset of the problem solving

• What do you hope to gain through completing Decision Making

and Problem Solving?

Personal Learning Goals

SESSION ONE- PROBLEM

• Organizational leaders are continuously confronted with a

variety of problems in their day to day activities.

day-to-day lives, at home, at school, and at work.

• Problem Solvers need to be creative and also need to stay

within the law and the rules of society.

• At the end of this training session, participants will be

• Problem can be defined broadly as situations in

• whenever objectives are not being met. (a

significant difference between what actually is

• Problem solving is the process of

identifying a problem, developing

• More generally, the Pareto Principle is the

• 20% of workers contribute 80% of results: Focus on rewarding

• 20% of customers contribute 80% of revenue: Focus on

only in your personal life but are critical in your

• In an organization where problems exist

but remain unsolved the following can

• Solving a problem usually removes an

impediment from work leading to

• Now connect up the dots by four straight

consecutive lines (that is, without taking your pen

• problems can be broadly grouped in to 3

• People are not totally logical

• Emotions can play a part

• Every thing happens as it should be

Break in to your respected groups

• Capable • Process that is

• Resources that include • An effective problem

• Comparison against others

• Monitor for weak signals

• Place six matchsticks – preferably of the

wooden variety – on a flat surface.

• To succeed, the problem solving process

• Problem solving models are used to address

the many challenges that arise in the

• provides a focused procedure for the problem solving

• It stops groups diverging into different problems.

• It also helps reach consensus

• Identify single problem from your

organization to further analysis it in order

• Step One is about diagnosing the problem – the context,

background and symptoms of the issue.

• At this stage groups will use techniques such as: