COURSE TITLE: Health Services Administration CODE/NO: HSA 171

1. Kingdom of Saudi ArabiaMinistry of Higher educationKing Abdul-Aziz University Faculty of Economics & Administration COURSE TITLE: Health Services Administration CODE/NO: HSA 171

2. Decision Making

3. What Is Decision?

4. Decision Making

5. Decision Making

6. Decision Making

7. Decision Making

8. Definition • Decision Making a choice from two or more alternative • Decision Making As defined by Baker et al in their 2001 study, “efficient decision-making involves a series of steps that require the input of information at different stages of the process, as well as a process for feedback”.

9. The Decision–Making Process • Identifying a problem and decision criteria and allocating weights to the criteria • Developing, analyzing, and selecting an alternative that can resolve the problem • Implementing the selected alternatives • Evaluating the decision’s effectiveness

10. The Decision–Making Process

11. Step 1: Identifying The Problem • Problem • A difference between an existing and desired condition of affairs. • Characteristics of Problems • A problem become a problem when a manger became aware of it • There is a pressure to solve the problem • The manger must have the authority, information or resources needed to solve the problem

12. Step2: Identifying Decision Criteria • Decision criteria are factors that are Important (relevant) To Resolving the problem. • Costs that will be incurred(investment required) • Risk likely to be encountered( chance of failure) • Outcomes that are desired (growth of the firm)

13. Step 3: Allocating Weights to the Criteria • Decision criteria are not of equal importance: • Assigning a weight to each item places the items in the correct priority order of their importance in the decision making

14. Step 4: developing Alternatives • Identifying viable alternatives • Alternatives are listed (without evaluation) that can resolve the problem

15. Step 5: Analyzing Alternatives • Appraising each alternative strength’s and weaknesses • An alternative’s appraisal is based on its ability to resolve the issues identified in steps 2 and 3

16. Step 6: selecting Alternatives • Choosing the best alternative • The alternative with the highest total weight is chosen

17. Step 7: Implementing the Decision • Putting the chosen alternative into action • Conveying the decision to and gaining commitment from those who will carry out the decision

18. Step 8: Evaluating the Decision’s Effectiveness • The soundness of the decision is judged by its outcomes • How effectively was the problem resolved by outcomes resulting from the chosen alternatives? • If the problem was not resolved, what went wrong?

20. TYPES OF DECISIONS DEFINITION • Programmed Decisions • Specific procedures developed for repetitive and routine problems • Repetitive decisions that can be handled by a routine approach • Non-Programmed Decisions • Decisions required for unique and complex management problems • Unique decisions that require a custom-made solution.

21. TYPES OF DECISIONS PROBLEM • Programmed Decisions “Well-Structured” • Frequent • Repetitive • Routine • Automatic process • Non-Programmed Decisions “Ill-Structured” • New • Unique • Unusual situation • Novel

22. TYPES OF DECISIONS CHARACTERISTICS • Programmed Decisions • Depends on policies, rules, standards and operating procedures • Managers simply do what they and others have done in the same situation • Non-Programmed Decisions • No rules to follow • Depends on general problem solving process • Need creativity • (creative problem solving) • Based on information and judgment

23. TYPES OF DECISIONS MANAGEMENT LEVEL • Programmed Decisions • Lower Management • Middle Management • Non-Programmed Decisions • Top/higher Management • (Middle Management Participate)

24. TYPES OF DECISIONS EXAMPLE • Programmed Decisions • Procedure of admitting patients • Periodic records of inventory • Reorder office supplies • Non-Programmed Decisions • Certain marketing strategy for a new product/service • Purchase of experimental equipment • Invest in a new technology

25. Top Ill-Structured Non-Programmed Decisions Type of Problem Level in Organization Programmed Decisions Lower Well-Structured TYPES OF DECISIONS

26. LEVEL OF DECISION MAKING IN THE ORGANIZATIONS ORGANIZATIONAL LEVEL

27. DECISION MAKING PROCESS “Rational Decision” • Step 1: Identifying problem. • Step 2: Identifying criteria. • Step 3: Allocating weights to criteria. • Step 4: Developing alternatives. • Step 5: Analyzing alternatives. • Step 6: Selecting an alternatives. • Step 7: Implementing the alternatives. • Step 8: Evaluating decision effectiveness.

28. DECISION MAKING UNDER DIFFERENT CONDITIONS Certainty • All decision variables and the results or solutions are known in advance. • Decisions made under conditions of certainty are programmed decisions. • This is possible only in the most simplesituations.

29. DECISION MAKING UNDER DIFFERENT CONDITIONS Risk • The condition in which the results of any decision or solution are indefinite/unclear known. • The condition when there are PAST data/experiences about certain problem as: when an accountant leave the organization without announcement in the period of budget preparation.

30. DECISION MAKING UNDER DIFFERENT CONDITIONS Uncertainty • The condition in which the outcome of any decision can’t be predicted Or if the outcome can be predicted but the probability of that outcome actually happening cannot be predicted. • The condition when: • Too many variables in the situation • Few variable in the situation but not enough data about them • The condition when there are NO past data/experiences about certain issue as: promotion of a NEW product/service.

31. INDIVIDUAL VS GROUP DECISION MAKING Operational decisions Programmed decisions Individual Lower management level

32. INDIVIDUAL VS GROUP DECISION MAKING Non - Programmed decisions Group Top management level Strategic decisions **In a form of committees, review panels, teams….. etc.

33. ADVANTAGE & DISADVANTAGE OF GROUP DM ADVANTAGE • Provides more complete information • Generates more alternatives • Increases acceptance of a solution • Increases legality

34. ADVANTAGE & DISADVANTAGE OF GROUP DM DISADVANTAGE • Time consuming • Some members might influence with other members • unclear/confusing responsibility for the final outcome

35. TECHNIQUES FOR IMPROVING GROUP DM  Brainstorming (BS) • An idea-generating process that encourages alternatives • From 6-12 persons sit around a table. • The group leader states the problem clearly. • The alternatives start to be generated in a given time. • No criticism is allowed and all alternatives are recorded for later analysis.

36. TECHNIQUES FOR IMPROVING GROUP DM Nominal Group Techniques (NGT) • The group members are physically present but operate independently. • Members write down his idea before meeting starts. • The Meeting starts and each one presents his idea (one by one). No discussion takes place until all ideas have been recorded. (better to use flip chart) • The group starts to discuss & evaluate the ideas • Each member independently assigns a rank to the ideas. The decision is to choose which has the highest ranking. • The main advantage is that it doesn’t restrict independent thinking.

37. TECHNIQUES FOR IMPROVING GROUP DM Delphi Techniques (DT) • The members never meet face to face. • The same steps of “nominal Group Technique” but the members register their ideas of solution through “questionnaire.” • The advantages: • Less time consuming in group meeting & discussion • Prevent members from influencing of others.

38. FACTORS INFLUENCING GROUP DM • Size of the group • Communication • Human elements

39. TECHNIQUES FOR IMPROVING GROUP DM Electronic Meetings (EM) • Most recent approach. • The members interact through computers.

40. CONSTRAIN ON DECISION MAKING INTERNAL CONSTRAINTS • Availability of finance (budget) • Existing company policy • People’s behaviour EXTERNAL CONSTRAINTS • Governmental legislation • Competitors behaviour • Lack of technology • Economic environment (demands)

41. DECISION MAKING HINTS • Do not make decisions that are not yours to make • Remember that you are not making a choice between right and wrong, you are simple choosing from among alternatives. • Avoid snap (sudden or impulsive) decisions. Move fast on the reversible ones and slowly on the non-reversible. • Choosing the wrong alternative at the right time is much better than choosing the right alternative at the wrong time, so make the decision while you still have time. • Do your decision making on paper (not in mind only). • Write your notes and keep your ideas visible so you can consider all the relevant information in making this decision.

42. PROBLEM SOLVING HINTS • Take time to examine the problem before setting of a solution. • Breaking the problem into smaller parts solve each part separately. • You can always do something. • A problem is not punishment look at the positive pant of the problem. • The questions you ask determine the answers you receive. • Be careful not to look for a solution until you understand the problem. • Be careful not to select a solution until you have a whole range of choices.

43. PROBLEM SOLVING HINTS • A choice of one is not a choice. • Solve the problem that really exists not just the symptoms of a problem. • Solve the problem that really exists not the problem you already have a solution for. • Solve the problem that really exists not the problem you wish existed. • Solve the problem that really exists not the problem someone else thinks exists. • A maker follows a plan. • A creator produces a plan. • You should focus on situation not people. • You should ask your self are there any underlining caresses is the best way to solve the problem .