Problem Solving Pages

Information and Managerial Decisions The role of a manager is to LEAD, PLAN, ORGANIZE, CONTROL. One of their main jobs is to deal with problems. They have to use information to solve these problems.

Information and Managerial Decisions What do you think is the most common problem situation? Performance deficiencies Performance opportunities Dealing with these situations means problem solving. You have to identify and take action to resolve problems.

Types of Managerial Decisions Easiest kind of decisions that managers have to make are called programmed decisions. -There are solutions already available. -They deal with structured problems. These are straightforward and clear in information needs. More difficult decisions for a manager are for unstructured problems. This means there are ambiguities and information deficiencies. -These require non-programmed decisions.

Crisis A crisis is an unexpected problem that can lead to disaster if not resolved quickly and appropriately. -Name some things that could be crises? A lot of the time, managers become closed off from the rest of their teams and try to solve crises themselves.

Crisis Companies have increasingly been creating crisis management plans. -This is preparation for the management of crises that threaten an organization’s health and well-being.

Crisis Management 1. Figure out what is going on: Take the time to understand the situation, what’s happening, and the conditions under which the crisis must be resolved. 2. Remember that speed matters: Attack the crisis as quickly as possible, trying to catch it when it is as small as possible. 3. Remember that slow counts, too: Know when to back off and wait for a better opportunity to make progress with the crisis.

Crisis Management 4. Respect the danger of the unfamiliar: Understand that the most dangerous crisis is the all-new territory where you and others have never been before. 5. Value the skeptic: Don’t look for and get too comfortable with agreement; appreciate skeptics and let them help you to see things differently. 6. Be ready to “fight fire with fire”: When things are going wrong but others don’t seem to care, you may have to start a crisis of your own to get their attention.

Decisions Environments There are three main environments that managers have to consider when making plans. The first is the certain environment. -Any ideas?

Certain Environment Both the options and their outcomes are known to the manager. If an employee steals, the manager can A) Fire the employee, B) Make him pay it back, or C) do Nothing. A) = Someone else must be hired. B) = He’ll be upset, still a threat to steal C) = We will think he’s gotten away with it. Will steal again.

Risk Environment Courses of actions and their outcomes are viewed as probabilities. Risk is a driver of success in business. If risks are not taken, it is rare to make a lot of money. This environment has some information. Managers are forced to make decisions on incomplete information.

Risk Environment Redbox...

Uncertain Environment This occurs when there is so much information missing it is almost impossible to create probabilities. Managers must be creative. Sometimes, the solution is something that has never been tried before. Like…

Uncertain Environment…how about Space? Apollo 13

Problem-Solving Styles

Types of Thinking Systematic Thinking – Approaches problems in a rational, step-by-step, and analytical way. -Breaks a complicated problem into little pieces and solves each one one-by- one. Intuitive Thinking – Is more flexible and spontaneous, usually creative. -We can respond imaginatively. -Look at the whole problem and deal with many parts at once. -Managers can use their experience or new ideas. Hunches are played.

Types of Thinking Top Level Managers need to be able to deal with a lot of problems all at once. They have to know how each affects the other, and know their impact in the short- and long-term. This is called multidimensional thinking. Strategic Opportunism is the ability to remain focused on long-term objectives while being flexible enough to resolve short-term problems and opportunities in a timely manner.