decision making and problem solving. chapter 9, nancy langton and stephen p. robbins, fundamentals...

Decision Making Decision Making and and

Problem SolvingProblem Solving

Chapter 9, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 9-2Copyright © 2007 Pearson Education Canada

Decision Making, Creativity, and Decision Making, Creativity, and EthicsEthics

1. Is there a right way to make decisions?

2. How do people actually make decisions?

3. What factors affect group decision making?

4. Should the leader make the decision, or encourage the group to participate?

Steps in the Rational Decision-Making Model

Define the Problem Identify the Decision Criteria Allocate Weights to the Criteria Develop the Alternatives Evaluate the Alternatives Select the Best Alternative

Chapter 9, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 9-4Copyright © 2007 Pearson Education Canada

Steps in the Rational Decision-Steps in the Rational Decision-Making ModelMaking Model

Making a Decision

Define the problem

Identify thecriteria

Develop alternatives

Allocate weights to the criteria

Evaluate thealternatives

Select the best alternative

1.

2.

3.

4.

5.

6.

Problem Clarity The problem is clear

Known Options The decision-maker can identify all relevant criteria

Clear Preferences Rationality assumes that the criteria

Constant Preferences Specific decision criteria are constant

No Time or Cost Constraints Full information is available because there are no time or

cost constraints Maximum Payoff

The choice alternative will yield the highest perceived value

Assumptions of the Rational Assumptions of the Rational Decision-Making and Creative Decision-Making and Creative Problem Solving ModelProblem Solving Model

Chapter 9, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 9-6Copyright © 2007 Pearson Education Canada

Problem IdentificationProblem Identification

• Problems that are visible tend to have a higher probability of being selected than ones that are important.

• It is easier to recognize visible problems.• Decision makers want to appear competent and “on top of

problems.”• Decision makers’ self-interest affects problem selection

because it is usually in the decision maker’s best interest to address problems of high visibility and high payoff. This demonstrates an ability to perceive and attack problems.

1. Bounded Rationality individuals make decisions by constructing

simplified models that extract the essential features from problems without capturing all their complexity

2. “Satisficing” identifying a solution that is “good enough”

Causes of Poor Decision Making and Problem Solving

3. Groupthink Phenomenon in which the norm for

consensus overrides the realistic appraisal of alternative courses of action

4. Groupshift Phenomenon in which the initial positions of

individual members of a group are exaggerated toward a more extreme position

Chapter 9, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.

Symptoms of Symptoms of GroupthinkGroupthink

• Illusion of Invulnerability

• Assumption of Morality

• Rationalized Resistance

• Peer Pressure

• Minimized Doubts

• Illusion of Unanimity

Chapter 9, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 9-10Copyright © 2007 Pearson Education Canada

Minimizing GroupthinkMinimizing Groupthink

• Encourage group leaders to play an impartial role.

• Appoint one group member to play the role of devil’s advocate.

• Stimulate active discussion of diverse alternatives.

Chapter 9, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.

What Causes What Causes Groupshift?Groupshift?

• Discussion creates familiarization among group members

• Group discussion motivates individuals to take risks

• Group diffuses responsibility

Chapter 9, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 9-12Copyright © 2007 Pearson Education Canada

Intuitive Decision MakingIntuitive Decision Making• A subconscious process created out of distilled

experience.• When used:• High level of uncertainty• Little precedent• Variables are less scientifically predictable.• “Facts” are limited.• Facts don’t clearly point the way.• Analytical data are of little use.• Several plausible alternative solutions • Time is limited.

Steps in a Creative Problem Solving Model

Name the Mess

Draw the Map

Define the Problem

Gather Information

Create Alternatives

Decide on a Solution (weigh Alternatives)

Develop Approval Strategy

Evaluate

Problem Solving – An Approach

Fraser Shaw Consulting, 1990

Solve the Problem

STEP 1

The effectiveness of the Board of Directors The delivery of the coaching development

program The management of the fund-raising program The role of the staff in the organization

Naming the Mess

“What are the obvious Symptoms we see/hear/feel?”

STEP 2

Who sees this situation as a problem? Who is affected by the problem? Who can provide information that will help in

considering the problem? What information do they have?

What factors are present that affect the problem? (e.g. values, attitudes, history people, priorities)

What people, groups or organizations make decisions that affect the problem situation? What decisions have they made that affect the problem?

Drawing the Map

ProblemLabel

4. What information do they have?

1. Who sees this as a problem?

2. Who is affected by the problem? 3. Who can provide

information?

7. What decisions have they made?

6. Who makes the decisions that affect the problem? 5. What factors affect

the problem?

STEP 3

Finding the Problem

Why is this happening?

Why is this happening?

Why is this happening?

STEP 4

Generating The Ideas.

• Brainstorming

• Stacking

• Analogies

• “What if…?”

STEP 5

WHAT IS THE WEIGHTING OR SELECTION CRITERIA?

WHAT FORCES AFFECT THIS ALTERNATIVE?

IS THIS ALTERNATIVE WITHIN OUR CONTROL?

Choosing the Solution

STEP 5

What steps must we take to reduce or eliminate the resisting forces that we have identified?

What steps do we take to transform a resisting force into a supporting force?

What uncontrollable elements can we influence or change?

What controllable elements can we exploit?

Choosing the Solution – (Cont)

STEP 6

Who will support the solution and implementation plan?

Who will see the proposed solution as an opportunity for the organization?

How can the group take advantage of this support?

SEEKING THE APPROVALDeveloping an approval strategy

STEP 6

Who will resist the solution and the implementation plan?

Who will see the proposed solution as a threat to themselves or the organization?

How can the group win over those who will resist the proposed solution?

SEEKING THE APPROVALDeveloping an approval strategy (cont).

STEP 7

Make sure that the problem-solving group thoroughly worked through the approval step.

Assign the task of solving the problem to the appropriate part of the organization’s structure.

Ensure that the implementation group regularly monitors the implementation plan.

SOLVING THE PROBLEM!

Step 8Evaluating Success

•Make a choice to alter the plan (formative) or “scrap” the plan (summative)

•What has happened?

•“Utilization” based

Chapter 9, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.

CreativityCreativity

• The process of creating products, ideas, or procedures that are novel or original, and are potentially relevant or useful to an organization

Chapter 9, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.

Creativity BlocksCreativity Blocks

• Expected evaluation

• Surveillance

• External motivators

• Competition

• Constrained choice

Chapter 9, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.

De Bono’s Six Thinking De Bono’s Six Thinking HatsHats

• White hat

• Red hat

• Black hat

Chapter 9, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.

De Bono’s Six Thinking De Bono’s Six Thinking HatsHats

• Yellow hat

• Green hat

• Blue hat

Chapter 9, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.

Lateral ThinkingLateral Thinking

• ‘Vertical Thinking’

• ‘Lateral Thinking’

Chapter 9, Stephen P. Robbins and Nancy Langton, Fundamentals of Organizational Behaviour, Second Canadian Edition.Copyright © 2004 Pearson Education Canada Inc.

Organizational Organizational Factors Affecting Factors Affecting

CreativityCreativity• Challenge

• Freedom

• Resources

• Work-Group Features

• Supervisory Encouragement

• Organizational Support