Problem solving models
• Rational problem solving
• Creative problem solving
Rational Decision Making Model
1. Identify
problem
6. Evaluate
decision
2. Choose
decision
style
5. Implement
solution
3. Develop
alternatives
4. Choose
best solution
Problem Identification Concerns
• Perceptual Biases
– Perceptual defense
– Political influence by others
– Mental models
• Poor Diagnostic Skills
–
–
–
–
Need to make sense
Lack of time
Complex situation
Defining solutions as
problems
Corel Corp. With permission
Identifying Problems Effectively
• Be aware of perceptual
limitations
• Discuss the situation with
colleagues
• Create early warning signs
• Use information technology
Corel Corp. wWth permission
Problems with Choosing
Solutions
• Goals problems
– Ambiguous, conflicting
– Biased by personal goals
• Info processing problems
– Selective attention
– Limited info processing
– Sequential evaluation with
implicit favourite
• Maximizing problems
– Tend to satisfice
Corel Corp. With permission
Choosing Solutions Effectively
• Systematically evaluate
alternatives
• Decision support systems
• Scenario planning
• Intuition (with caution)
Corel Corp. With permission
Intuitive Decision Making
• Ability to know when a problem or
opportunity exists and select the best course
of action without conscious reasoning
• Conduit for tacit knowledge
• Logical reasoning that became habit
Creative Process Model
Verification
Insight
Incubation
Preparation
Creativity at Millenium Technology
Illich Cheng and his
employees at Millennium
Technology Inc. have the
persistent motivation and
insight to design a better
magnetic resonance imaging
system (MRI). Some people
are more creative than others
due to their intelligence,
experience, inventive thinking
style, and persistence.
R. Ernst, Vancouver Province
Characteristics of Creative
People
• Intellectual abilities
– Synthetic, general, practical
• Relevant knowledge and
experience
• Motivation and persistence
R. Ernst, Vancouver Province
• Inventive thinking style
Creative Work Environment
• Organizational support
– Tolerates mistakes
– Encourages communication
– Offers job security
• Intrinsically motivating work
– Task significance, autonomy, feedback
– Self-leadership
– Flow — align competencies with job
• Sufficient time and resources
Creative Practices
Redefine
the Problem
Associative
Play
CrossPollination
• Jamming
• Chain story
• Diverse teams
• Review past
projects
• Artistic
activities
• In-house
presentations
• Tell me,
stranger
• Metaphors
• Morphological
analysis
De Bono’s Six Hats
The quality of our thinking will determine the quality
of our future.” Dr. Edward de Bono
 
Avoid impulsive behaviour and snap
judgments.
 
See alternatives not difficulties or
dilemmas.
 
Improve decision making and idea
generating skills.
 
Increase ability to consider the
consequences before
taking action.
 
Work more productively when working with
others in a group.
•
•
•
•
•
•
The
Hats
White Hat - Information – Facts; what you have,
what you need and where to get it.
Red Hat - Feelings – Intuition and instincts.
Black Hat - Caution – Dangers and potential
problems.
Yellow Hat - Benefits - Positive aspects and values.
Green Hat - Creativity – Alternatives, options, new
concepts and perceptions.
Blue Hat - Managing the thinking – Ensuring rules
are observed, sequencing hats and decision taking.
Team Decision Making Constraints
• Time constraints
– Process loss
– Production blocking
• Evaluation apprehension
– Belief that other team
members are silently
evaluating you
• Conformity to peer pressure
© Photodisc. With permission.
– Suppressing opinions that
oppose team norms
Team Constraints: Groupthink
• Tendency in highly cohesive
teams to value consensus at
the price of decision quality
• More common when the team:
–
–
–
–
–
© Photodisc. With permission.
is highly cohesive
is isolated from outsiders
faces external threat
has recent failures
leader tries to influence decision
Team Constraints: Group Polarization
© Photodisc. With permission.
• Tendency for teams to
make more extreme
decisions than
individuals alone
• Riskier options usually
taken because of
gambler’s fallacy —
believe luck is on their
side
Group Polarization
Process
High Risk
Decision Process
Team Decision
Individual
Opinions
Social Support
Persuasion
Shifting Responsibility
Team Decision
Low Risk
Improving Team Decision
Making
1.Ensure neither leader nor any member
dominates
2.Maintain optimal team size
3.Team norms encourage critical thinking
4.Introduce effective team structures
Generating Constructive Controversy
• Form heterogeneous decision making
team
• Ensure team meets often to face
contentious issues
• Members should take on different
discussion roles
• Team thinks about the decision under
different scenarios
Features of Brainstorming
1. No criticism
2. Encourage many ideas
3. Speak freely
4. Build on others’ ideas
E. Luse. San Francisco Chronicle
Evaluating Electronic
Brainstorming
Benefits
+
+
+
+
Less production blocking
Less evaluation apprehension
More creative synergy
More decision efficiency
Problems
–
–
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Too structured
May be costly
Lacks interpersonal dynamics
Candid feedback is threatening
Photo: Courtesy of IBM Canada
Nominal Group Technique
Describe
problem
Individual
Activity
Team
Activity
Individual
Activity
Write down
possible
solutions
Possible
solutions
described
to others
Vote on
solutions
presented
Escalation of Commitment
Escalation occurred when the
British government continued
funding the Concorde supersonic
jet long after it’s lack of
commercial viability was
apparent. To this day, some
scholars refer to escalation of
commitment as the “Concorde
fallacy.”
© Corel Corp. With permission
Escalation of Commitment Causes
• Self-justification
• Gambler’s fallacy
• Perceptual blinders
• Closing costs
© Corel Corp. With permission
Employee Involvement Defined
The degree that employees share information,
knowledge, rewards, and power throughout
the organization
– active in decisions previous outside their
control
– power to influence decisions
– knowledge sharing
Forms of Employee Involvement
Formal
Statutory
Codified practices
Required by law
Example: SDWTs at
TRW Canada
Example: European
codetermination
Informal
Voluntary
Direct
Employees
personally
involved
Example: Staff vote
against smoking in
the workplace
Representative
Casual information
exchanges
No legal
requirement
Reps decide for
other employees
Example: Boss asks
for ideas
Example: Strategic
task force
Example: Employee
reps as directors
Levels of Employee Involvement
High
High involvement — Employees
have complete decision making
power (e.g., SDWTs)
Medium
Full consultation — Employees
offer recommendations (e.g.,
gain sharing)
Low
Selective consultation —
Employees give information, but
don’t know the problem
How Involvement Improves
Decisions
Identify and define
problems better
Employee
Involvement
Usually identify more
and better solutions
More likely to select
the best option
Contingencies of Employee
Involvement
• Decision quality
• Decision commitment
• Decision conflict
• Structured problem
Overcoming Involvement Challenges
• Cultural Differences
– Better in collectivist and low power distance
cultures
• Management Resistance
– Educate/train managers to become facilitators
• Employee and Union Resistance
– Concerns about increased stress, giving up union
rights, and union power
– Solution is trust and involvement