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

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 9-2 Copyright © 2007 Pearson Education Canada

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

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 9-4 Copyright © 2007 Pearson Education Canada

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

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 9-6 Copyright © 2007 Pearson Education Canada

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”

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

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

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 9-10 Copyright © 2007 Pearson Education Canada

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

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 9-12 Copyright © 2007 Pearson Education Canada

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 Solve the Problem Fraser Shaw Consulting, 1990

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

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?

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?

STEP 3 Finding the Problem Why is this happening?

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

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

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?

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?

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?

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.

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

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.

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.

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

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

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

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