1. Decision Making and Problem Solving
Friday, April 21, 2017
Decision Making and Problem Solving

2. Decision Making, Creativity, and Ethics
Friday, April 21, 2017
Decision Making, Creativity, and Ethics
Is there a right way to make decisions?
How do people actually make decisions?
What factors affect group decision making?
Should the leader make the decision, or encourage the group to participate?
Chapter 9, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

3. Identify the Decision Criteria Allocate Weights to the Criteria
Friday, April 21, 2017
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

4. Steps in the Rational Decision-Making Model
Friday, April 21, 2017
Steps in the Rational Decision-Making Model
Making a Decision
Define the
problem
Identify the
criteria
Develop
alternatives
Allocate weights
to the criteria
Evaluate the
Select the
best alternative 1. 2. 3. 4. 5. 6.
Chapter 9, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

5. Friday, April 21, 2017
Assumptions of the Rational Decision-Making and Creative Problem Solving Model
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

6. Problem Identification
Friday, April 21, 2017
Problem 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.
Chapter 9, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

7. Causes of Poor Decision Making and Problem Solving
Friday, April 21, 2017
Causes of Poor Decision Making and Problem Solving
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”

8. 3. Groupthink 4. Groupshift
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

9. Symptoms of Groupthink
Friday, April 21, 2017
Symptoms of Groupthink
Illusion of Invulnerability
Assumption of Morality
Rationalized Resistance
Peer Pressure
Minimized Doubts
Illusion of Unanimity

10. Minimizing Groupthink
Friday, April 21, 2017
Minimizing 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, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

11. What Causes Groupshift?
Friday, April 21, 2017
What Causes Groupshift?
Discussion creates familiarization among group members
Group discussion motivates individuals to take risks
Group diffuses responsibility

12. Intuitive Decision Making
Friday, April 21, 2017
Intuitive 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.
Chapter 9, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition
Copyright © 2007 Pearson Education Canada

13. 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

14. Problem Solving – An Approach
Solve the Problem
Fraser Shaw Consulting, 1990

15. STEP 1 Naming the Mess The effectiveness of the Board of Directors
“What are the obvious Symptoms we see/hear/feel?”
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

16. STEP 2 Drawing the Map 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?

17. Problem Label 2. Who is affected by the problem?
1. Who sees this as a problem?
3. Who can provide information?
7. What decisions have they made?
Problem
Label
4. What information do they have?
6. Who makes the decisions that affect the problem?
5. What factors affect the problem?

18. STEP 3
Finding the Problem
Why is this happening?

19. STEP 4 Generating The Ideas. Brainstorming FOCUS Stacking Analogies
Friday, April 21, 2017
STEP 4
Generating The Ideas.
Brainstorming
Stacking
Analogies
“What if…?”
FOCUS
relax
FOCUS

20. STEP 5 Choosing the Solution
WHAT IS THE WEIGHTING OR SELECTION CRITERIA?
WHAT FORCES AFFECT THIS ALTERNATIVE?
IS THIS ALTERNATIVE WITHIN OUR CONTROL?

21. Choosing the Solution – (Cont)
STEP 5
Choosing the Solution – (Cont)
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?

22. Developing an approval strategy
STEP 6
SEEKING THE APPROVAL
Developing an approval strategy
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?

23. Developing an approval strategy (cont).
STEP 6
SEEKING THE APPROVAL
Developing an approval strategy (cont).
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?

24. STEP 7 SOLVING THE PROBLEM!
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.

25. Step 8 Evaluating Success
Make a choice to alter the plan (formative) or “scrap” the plan (summative)
What has happened?
“Utilization” based

26. Friday, April 21, 2017
Creativity
The process of creating products, ideas, or procedures that are novel or original, and are potentially relevant or useful to an organization
Material pertinent to this discussion is found on page 302.

27. Creativity Blocks Expected evaluation Surveillance External motivators
Friday, April 21, 2017
Creativity Blocks
Expected evaluation
Surveillance
External motivators
Competition
Constrained choice
Material pertinent to this illustration is found on page 304.
Expected evaluation. Focusing on how your work will be evaluated rather than focusing on the purpose of your work.
Surveillance. Being watched while you are working.
External motivators. Emphasizing external, tangible rewards rather than intrinsic rewards.
Competition. Facing a win-lose situation with other people rather than being able to simply do your best.
Constrained choice. Being given limits on how you can do your work rather than being encouraged to do your very best work.

28. De Bono’s Six Thinking Hats
Friday, April 21, 2017
De Bono’s Six Thinking Hats
White hat
Red hat
Black hat

29. De Bono’s Six Thinking Hats
Friday, April 21, 2017
De Bono’s Six Thinking Hats
Yellow hat
Green hat
Blue hat

30. Lateral Thinking ‘Vertical Thinking’ ‘Lateral Thinking’
Friday, April 21, 2017
Lateral Thinking
‘Vertical Thinking’
‘Lateral Thinking’ 30

31. Organizational Factors Affecting Creativity
Friday, April 21, 2017
Organizational Factors Affecting Creativity
Challenge
Freedom
Resources
Work-Group Features
Supervisory Encouragement
Organizational Support