copyright © houghton mifflin company. all rights reserved. 8-1 chapter 8 decision making and...

Copyright © Houghton Mifflin Company. All rights reserved.

8-1

Chapter 8

Decision Making and Creative Problem Solving


8-2

Chapter Outline

Challenges for Decision Makers Dealing with Complex Streams of Decisions Coping with Uncertainty Information-processing Styles Avoiding Perceptual and Behavioral Decision

Traps


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Chapter Outline (continued)

Making Decisions Making Programmed Decisions Making Nonprogrammed Decisions A General Decision-making Model


8-4

Chapter Outline(continued)

Group-aided Decision Making: A Contingency Perspective

Collaborative Computing Group Involvement in Decisions The Problem of Dispersed Accountability Advantages and Disadvantages of Group-

aided Decision Making A Contingency Approach is Necessary


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Managerial Creativity What Is Creativity? Workplace Creativity: Myth and Modern

Reality Learning to Be More Creative


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Creative Problem Solving Identifying the Problem Generating Alternative Solutions Selecting a Solution Implementing and Evaluating the Solution


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DECISION MAKING

Decision making: The process of identifying and choosing alternative courses of action in a manner appropriate to the demands of the situation.


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DECISION MAKING (continued)

Sources of Complexity for Today’s Decision Makers

1. Multiple criteria

2. Intangibles

3. Risk and uncertainty

4. Long-term implications

5. Interdisciplinary input

6. Pooled decision making

7. Value judgments


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PERCEPTUAL AND BEHAVIORAL DECISION TRAPS

Framing error: the tendency to evaluate positively presented information favorably and negatively presented information unfavorably.


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(continued)

Escalation of commitment: the tendency of individuals and organizations to get locked into losing courses of action because quitting is personally and socially difficult.

“Throwing good money after bad.” “Sunk costs justify continuing.”


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(continued)

Overconfidence

“Ironically, researchers have found a positive relationship between overconfidence and task difficulty. In other words, the more difficult the task, the greater the tendency for people to be overconfident.”


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(continued)

For Discussion:1. What is your personal experience with these

common decision traps?

2. What can you do to avoid these decision traps in the future?


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GROUP-AIDED DECISION MAKING

Five Ways Groups Can Be Involved in Decision Making:

1. Analyzing the problem

2. Identifying components of the decision situation

3. Estimating components of the decision situation (e.g., calculating probabilities)

4. Designing alternatives

5. Choosing an alternative


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GROUP-AIDED DECISION MAKING(continued)

When Should the Group Not Make a Decision?

When the decision will have significant impact

on organizational success or failure. When the decision has legal ramifications. When a competitive reward is tied to a

successful decision.


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ADVANTAGES AND DISADVANTAGES OF GROUP-AIDED DECISION MAKING

AND PROBLEM SOLVINGAdvantages

1. Greater pool of knowledge

2. Different perspectives

3. Greater comprehension

4. Increased acceptance

5. Training ground


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AND PROBLEM SOLVING(continued)

Disadvantages

1. Social pressure

2. Domination by a vocal few

3. Logrolling

4. Goal displacement

5. Groupthink


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AND PROBLEM SOLVING(continued)

For Discussion: Have you observed any of the above in your organizational dealings? How did the observed factor(s) enhance or degrade the final decision?


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CREATIVITY

Creativity: the reorganization of experience into new configurations.

General Types of Creativity Art (“Ah!” reaction) Discovery (“Aha!” reaction) Humor (“HaHa!” reaction)


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CREATIVITY(continued)

For Discussion:

1. Are you creative? How can you tell?

2. Which type of creativity do you find most appealing? Why?

3. How would you describe the most creative person you have ever known personally?


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TEN MENTAL LOCKS ON CREATIVITY

1. Looking for the “right” answer.

2. Always trying to be logical.

3. Strictly following the rules.

4. Insisting on being practical.

5. Avoiding ambiguity.


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TEN MENTAL LOCKS ON CREATIVITY(continued)

6. Fearing and avoiding failure.

7. Forgetting how to play.

8. Becoming too specialized.

9. Not wanting to look foolish.

10. Saying “I’m not creative.”


8-22

TEN MENTAL LOCKS ON CREATIVITY(continued)

For Discussion: Which of these mental locks typically stifle your own creativity? What can you do to avoid them?


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PROBLEM SOLVING

Problem solving: the conscious process of bringing the actual situation closer to the desired situation.

Problem: the difference between an actual state of affairs and a desired state of affairs.

Causes: variables that, because of their presence or absence from the situation, are primarily responsible for the difference between the actual

and desired conditions.


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PROBLEM SOLVING (continued)

Stumbling Blocks for Problem Finders

1. Defining the problem according to a possible solution.

2. Focusing on narrow, low-priority areas.

3. Diagnosing problems in terms of their symptoms.


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PROBLEM SOLVING (continued)

For Discussion: What situations can you describe where one of these problem finding mistakes led to poor problem solving?


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THE PROBLEM-SOLVING PROCESS

A Four-Step Process

1. Identifying the problem

2. Generating alternative solutions

3. Selecting a solution

4. Implementing and evaluating the solution


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THE PROBLEM-SOLVING PROCESS(continued)

Problems Can Be Handled Three Ways

1. Resolving the problem

Satisfice: settle for a solution that is good enough rather than the best possible.


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Problems Can Be Handled Three Ways (continued)

2. Solving the problem

Optimize: systematically (scientifically) identify the solution with the best combination of benefits.


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Problems Can Be Handled Three Ways (continued)

3. Dissolving the problem

Idealize: change the situation so that the problem no longer exists.

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