Problem Solving
Rational and Creative Problem
Solving
If there were no problems there
would be no need for managers

Managerial
Success Depends
on Making the
Right Decisions at
the Right Times.
Approaches

Rationale problem solving
 Creative problem solving
Rationale Problem Solving

What are the steps?
 When is this the most effective method?
A
B
C
What Are the Steps for
Rational Problem Solving?

Problem Solving
 Decision Making
 Follow-through
STEPS
1.
2.
3.
Problem Awareness
Define the problem
Decision Making
 Generate alternative solutions
 Evaluate and select an alternative
4.
5.
Implement
Follow-through

follow up on the solution
Problem Awareness

Establish Trust
 Clarify Objectives
 Assess the Current Situation
 Identify Problems
– Routine Problems
– Nonroutine Problems
– Flowcharts
Defining the problem







Fact not opinion or speculation
Broad participation
Agree on what the problem is!
State the problem explicitly
Identify what “standards” or
“expectations” were violated or need
to be addressed
Whose problem is this?
Problem not solution
Problem Definition
Problems not solutions
– Cause-and-effect Diagram
Exhibit 9.3: Cause-and-effect Diagram
Decision Making

Establish Decision Making Criteria
– Specific, Measurable, and Attainable
– Complementary
– Ethical
– Acceptable

Develop Action Alternatives
Generate alternatives

List all alternatives before
evaluating them
 Broad participation
 Solutions must be consistent with
organizational goals
 Synergy can turn bad ideas into
good ones
 Keep focused on problem
Constraints

Alternatives are often evaluated as they
arise
 Few of the many possible solutions are
known
 The first acceptable solution usually is
accepted
 Alternatives are based on what was
successful in the past
Decision Making (continued)

Evaluate Benefits and Risks of
Alternatives
– Certainty
– Known Risk
– Uncertainty
– Turbulence

Decide on a Plan
Decision Making (continued)
• Decide on a Plan
– Perfect Rationality
– Bounded Rationality
Constraints

Satisfactory not optimal solutions are
usually accepted
 Usually limited information about
alternatives is available
 Solutions are often implemented before
problem is defined
 Preferences usually aren’t known
Implementation

How can we maximize the probability that
our solution will be accepted and fully
implemented?
 Importance of feedback
 Engenders “buy-in”
 Evaluation: did it solve the problem?
Constraints

It may take a long time
 Acceptance by others not always
forthcoming
 Resistance to change
 What should be followed-up and evaluated
 Politics!
Action Plan Implementation

Assign Tasks and
Responsibilities
 Establish an
Implementation Schedule
– Gantt Chart
Exhibit 9.5: Gantt Chart
Follow-Through

Establish Criteria for Measuring
Success.
 Monitor the Results.
 Take Corrective Action.
When Is Participation Appropriate
for Decision Making?

Degrees of Decision Participation
– Autocratic
– Consultative
– Group
Criteria for Participation

Quality Requirements
Criteria for Participation

Quality Requirements

Acceptance Requirements
Criteria for Participation

Quality Requirements

Acceptance Requirements

Time Requirements
Choosing the Appropriate
Degree of Participation
Exhibit 9.7: Decision Tree for Decision Making Participation
Advantages and Disadvantages
of Group Decision Making
Advantages and Disadvantages of
Group Decision Making (continued)

Advantages Making Decisions in Groups
 Disadvantages of Making Decisions in
Groups
– More Time Investment
– Individual Agendas
– Shared Responsibility
– Pressure to Conform

Groupthink
Advantages and Disadvantages of
Group Decision Making (continued)
• The Manager’s Role Is Making Group
Decision Effective.
When rationale problem
solving won’t work…

Outcomes unpredictable
 Sufficient information isn’t available
 Means-ends connections aren’t clear
try…
Creative problem solving
Getting past our personal (conceptual)
roadblocks and finding creative solutions
Encouraging Creativity

Characteristics of Managers Who
Generate Creativity
–
–
–
–
–
–
–
Absorb Risks
Can Live with Half-developed Ideas
Stretch Normal Policies
Good Listeners
Don’t Dwell on Mistakes
Trust Their Intuition
Are Enthusiastic
and Invigorating
Encouraging Creativity

Promoting Creative
Thinking in Organizations
– Brainstorming
– Nominal Group Technique
– Delphi Technique
– Group Decision Support
Systems
(Continued)
Conceptual blocks
 Constancy:
one way of looking at things
– One thinking language
Conceptual blocks
 Commitment:
sticking with it
– Perceptual Stereotyping based on past
experience
– Ignoring commonalities
Conceptual blocks
 Compression:
narrow focus
– Artificial constraints
– Separating figure from ground
Nine dot problem
Conceptual blocks
 Complacency:
fear, laziness, ignorance
– Non-inquisitiveness
– Bias against thinking
Removing the roadblocks

Focus is on
improving one’s
mental abilities and
habits and cultivating
dormant skills
Stages in creative thought
1.
Preparation
 Gathering data
 Defining the problem
 Generating/examining alternatives
2.
3.
4.
Incubation
Illumination
verification
Gathering data

“dance around the problem”
Improving problem definition

Make the strange familiar and familiar
strange
– Synetics
– Analogies: personal, direct, symbolic, fantasy
Elaborate on the definition
– Is there anything else?
– Is the reverse true?
– Is there a more general problem?
– Can it be stated differently?
– Who sees it differently?
– What past experience is this like?
Reverse the definition
– Janusian thinking: Thinking
contradictory thoughts at the same
time
Generating more alternatives

Fluency and flexibility
 Defer judgment: Brainstorming
 Expand current alternatives: subdivision
 Combine unrelated attributes
– Morphological forced connections
– Relational algorithm
Foster innovation

Pull people apart; put people together
 Monitor and prod
 Reward multiple roles
Tips

Break out of your routine: give yourself a
break
 Make thinking a priority
 Talk to other people about ideas and about
your problems
 Read outside of your area of expertise
 Avoid black holes