1. Problem Solving and Decision Making
CHAPTER 6
Problem Solving and Decision Making
Andrew J. DuBrin
Essentials of Management, 6/e South-Western College Publishing Copyright © 2003
Screen graphics created by:
Jana F. Kuzmicki, PhD, Christian Brothers University 1

2. 6.1
Learning Objectives
Differentiate between programmed and nonprogrammed decisions.
Explain the steps involved in making a nonprogrammed decision.
Understand the major factors influencing decision making in organizations.
Understand the nature of creativity and how it contributes to managerial work.
Describe organizational programs for improving creativity.
Implement several suggestions for becoming a more creative problem solver.
Appreciate the value and potential limitations of group decision making. 2

3. Programmed and Nonprogrammed Decisions: A Comparison
6.2
Programmed and Nonprogrammed Decisions: A Comparison
Programmed Decisions
Nonprogrammed Decisions
Repetitive, routine, frequent; decisions made according to specific procedures
Novel, complex, difficult, infrequent; decisions require original thinking
Depend on policies and rules
Require creativity, intuition, tolerance for ambiguity
Types of problems
Proce-dures
Business firm: Periodic reorders of inventory
Health care: Procedure for admitting patients
University: Necessary GPA for good academic standing
Business firm: Diversification into new products and markets
Health care: Purchase of experimental equipment
University: Construction of new classrooms
Examples 3

4. Steps in Problem Solving and Decision Making
6.3
Steps in Problem Solving and Decision Making
“What really, really is our problem?”
Identify and diagnose the problem
“Let’s dream up some great ideas.”
Develop creative alternatives
“Some of these ideas are good; others are wacko.”
Evaluate the alternative solutions
“How really good was that idea?”
Evaluate and control
“Now let’s take action.”
Implement the decision
“This alternative is a winner!”
Choose one alternative solution
Adapted from Exhibit 6.1 4

5. Factors Influencing Decision Making
6.4
Factors Influencing Decision Making
“I like risks and I’m really bright.”
“Let’s wait before deciding.”
Personality and cognitive intelligence
“I’m great at hunches.”
Intuition
Procrastination
“I’ve got integrity.”
“I can read people great and control my emotions.”
Decision Maker
Emotional intelligence
Values
“Our backs are to the wall, and we disagree.”
Quality of information
Crisis and conflict
“The IS group is feeding me great stuff.”
Political considerations
Degree of uncertainty
“What does my boss want me to decide?”
“Looks like a sure thing.”
Adapted from Exhibit 6.2 5 5

6. Creativity! Establishing a Creative Atmosphere Involves. . .
6.5
Encouraging risk taking
Allowing freedom
Providing organizational support
Allocating ample resources
Establishing a Creative Atmosphere Involves. . .
Providing challenges
Providing encouragement
Creativity! 6

7. Suggestions to Build Creativity
6.6
Suggestions to Build Creativity
1. Keep an idea notebook
2. Stay current in your field
3. Listen to other people
4. Learn to think in the five senses
5. Improve your sense of humor
6. Adopt a risk-taking attitude
7. Develop a creative mental set
8. Identify your most creative times
9. Be curious about your environment
10. Step back when faced with a creativity block 7

8. Suggestions for Improving Group Problem-Solving
6.7
Suggestions for Improving Group Problem-Solving
1. Have a specific agenda and adhere to it
2. Rely on qualified group members
3. Have the leader share decision-making authority
4. Provide summaries for each major point
5. Build consensus so the decision is more likely to be implemented 8

9. The Nominal Group Technique
6.8
The Nominal Group Technique
2. Leader presents a problem
6. Alternatives are rated and best-rated one is chosen
5. Group clarifies and evaluates all suggestions
3. Members write down ideas individually
1. Small group is assembled
4. Each participant presents one idea to group
Adapted from Exhibit 6.6 9