Problem solving models

• Rational problem solving

• Creative problem solving

3. Develop3. Developalternativesalternatives

1. Identify1. Identifyproblemproblem

2. Choose2. Choosedecisiondecision

stylestyle

Rational Decision Making Model

4. Choose4. Choosebest solutionbest solution

5. Implement5. Implementsolutionsolution

6. Evaluate6. Evaluatedecisiondecision

Corel Corp. With permission

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

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

PreparationPreparation

Creative Process Model

IncubationIncubation

Insight

VerificationVerification

R. Ernst, Vancouver Province

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.

Characteristics of Creative People

• Intellectual abilities– Synthetic, general, practical

• Relevant knowledge and experience

• Motivation and persistence

• Inventive thinking styleR. Ernst, Vancouver Province

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

•• JammingJamming

•• Review past Review past projectsprojects

•• Tell me, Tell me, strangerstranger

RedefineRedefinethe Problemthe Problem

•• Chain storyChain story

•• Artistic Artistic activitiesactivities

•• MetaphorsMetaphors

•• Morphological Morphological analysisanalysis

AssociativeAssociativePlayPlay

•• Diverse teamsDiverse teams

•• In-house In-house presentationspresentations

Cross-Cross-PollinationPollination

De Bono’s Six HatsThe 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.

© Photodisc. With permission.

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– Suppressing opinions that

oppose team norms

© Photodisc. With permission.

Team Constraints: Groupthink

• Tendency in highly cohesive teams to value consensus at the price of decision quality

• More common when the team:– is highly cohesive

– is isolated from outsiders

– faces external threat

– has recent failures

– leader tries to influence decision

© Photodisc. With permission.

Team Constraints: Group Polarization

• 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

Decision Process

High Risk

IndividualOpinions

Low Risk

Group Polarization Process

Team Decision

Team Decision

Social SupportPersuasion

Shifting Responsibility

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

E. Luse. San Francisco Chronicle

Features of Brainstorming

1. No criticism

2. Encourage many ideas

3. Speak freely

4. Build on others’ ideas

Photo: Courtesy of IBM Canada

Evaluating Electronic Brainstorming

Benefits+ Less production blocking

+ Less evaluation apprehension

+ More creative synergy

+ More decision efficiency

Problems– Too structured

– May be costly

– Lacks interpersonal dynamics

– Candid feedback is threatening

DescribeDescribeproblemproblem

IndividualActivity

TeamActivity

IndividualActivity

Nominal Group Technique

Write downWrite downpossiblepossiblesolutionssolutions

PossiblePossiblesolutionssolutionsdescribeddescribedto othersto others

Vote onVote onsolutionssolutionspresentedpresented

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

© Corel Corp. With permission

Escalation of Commitment Causes

• Self-justification

• Gambler’s fallacy

• Perceptual blinders

• Closing costs

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

Informal

Casual information exchanges

Example: Boss asks for ideas

Formal

Codified practices

Example: SDWTs at TRW Canada

Statutory

Required by law

Example: European codetermination

Voluntary

No legal requirement

Example: Strategic task force

DirectEmployees personally involved

Example: Staff vote against smoking in the workplace

Representative

Reps decide for other employees

Example: Employee reps as directors

High

Medium

Low

Levels of Employee InvolvementHigh involvement — Employees have complete decision making power (e.g., SDWTs)

Full consultation — Employees offer recommendations (e.g., gain sharing)

Selective consultation — Employees give information, but don’t know the problem

How Involvement Improves Decisions

EmployeeInvolvement

Identify and define problems better

More likely to selectthe best option

Usually identify more and better solutions

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