Management FundamentalsManagement FundamentalsConcepts, Applications, Skills Development Concepts, Applications, Skills Development

Creative Problem Solving Creative Problem Solving

& Decision Making& Decision Making

3A

1. Classify/define1. Classify/define

2. Set objectives2. Set objectives

3. Generate alternatives3. Generate alternatives

4. Analyze alternatives4. Analyze alternatives

5. Plan/implement5. Plan/implement

6. Control6. Control

6Steps in Decision-MakingModel

6Steps in Decision-MakingModel

3-1

Decision-Making Decision-Making StylesStyles

•Reflexive

•Reflective

•Consisten

t3-2

Reflexive StyleReflexive Style•Makes quick

decisions (shooting from hip) without taking time to gather all information needed or considering all alternatives.

3-3

Reflective StyleReflective Style

•Takes plenty of time to make decisions, gathering and analyzing several alternatives

3-4

Consistent StyleConsistent Style

•Makes decision without rushing or wasting time.

3-5

Potential Advantages & Potential Advantages & Disadvantages Disadvantages

of Using Group Decision Makingof Using Group Decision MakingPotential Advantages

1. Better quality decisions

2. More information, alternatives, creativity, and innovation

3. Better understanding of the decision

4. Greater commitment to the decision

5. Improved morale and motivation

6. Good training

Potential Disadvantages

1. Wasted time and slower decision making

2. Satisficing

3. Domination and goal displacement

4. Conformity and groupthink

3-6

Classifying the Problem or Classifying the Problem or Opportunity ContinuumsOpportunity Continuums

Relationship among:Decision-Making Structure

Nonprogrammed Decision(Significant, nonrecurring and nonroutine) Programmed Decision

(Nonsignificant, recurring, and routine)

Decision-Making ConditionsUncertainty Risk Certainty

Decision-Making Model Bounded Rationality ModelWhich Decision Model to Use

(Outcome of alternatives unpredictable) (Outcome of alternatives predictable)

(Optimizing) ( Satisficing)

When to Use Group or Individual Decision MakingGroup Decisions Individual Decisions

3-7

BrainstormingBrainstorming

•The process of suggesting many possible alternatives without evaluation.

3-8

Group Decision-Making Group Decision-Making Techniques Techniques

That Foster Creativity & That Foster Creativity & InnovationInnovation

Brainstorming

The Delphi Technique

Synectics

Nominal Grouping

Consensus Mapping

Creativity Innovation

3-9

Delphi TechniqueDelphi Technique

•Involves a series of questionnaires to refine a solution.

3-10

Creativity KillersCreativity Killers

•Can’t be done.•Never done it.•Anyone else

tried it?•Costs too

much.• Isn’t in the

budget.

•Let’s form a committee.

•Will not work in our department/ company/ industry.

3-11

Decision TreesDecision Trees

•A diagram of alternatives. The diagram gives a visual of the alternatives making analyzing easier.

3-12

Break-Even AnalysisBreak-Even Analysis

Capital BudgetingCapital Budgeting

Linear ProgrammingLinear Programming

Queuing TheoryQueuing Theory

QuantitativeQuantitativeTechniquesTechniques

QuantitativeQuantitativeTechniquesTechniques

Probability TheoryProbability Theory

3-13

Alternative Analysis Alternative Analysis Techniques ContinuumTechniques Continuum

Quantitative Techniques Kepner-Tregoe MethodCost-Benefit

(Objective)          

 (Subjective)

(Maximal use of math to make the decision) (Minimal use of math to make the decision)

3-14