11:47

The Decision-Making Process:

Analytical and Creative Problem-solving Skills
LEARNING OBJECTIVE

BUSINESS 1
Describe the decision-making process

MANAGEMENT
LECTURE 2

 Take the case of a sales manager for Pfizer. The manager is on the
road a lot and spent nearly $6,000 on auto repairs over the past few
years. Now her car has a blown engine, and cost estimates indicate
it’s not economical to repair. Furthermore, convenient public
transportation is unavailable. So, we have a problem—a discrepancy
between the manager’s need to have a car that works and the fact
that her current one doesn’t.

1

Step 1 Identification of the Problem
Some attributes for good problem definition:
1. Factual information is
differentiated from opinion or
speculation.
2. All individuals involved are
tapped as information sources. 6. The definition is not simply a
3. The problem is stated
explicitly.
4. The problem definition clearly
identifies what standard or
expectation has been violated.
11:47
Steps 2,3 & 4
5. The problem definition must
address the question “Whose
problem is this?” No problems are
completely independent of people.
disguised solution. Saying “The
problem is that we need to
motivate slow employees” is
inappropriate because the problem
is stated as a solution. The problem
should be described, not resolved.
Step 4 Development of Alternatives
Some rules of thumb for good alternative generation are:
1. The evaluation of each proposed 4. Alternatives take into consideration both
alternative is postponed. As many relevant short and long-term consequences.
alternatives as possible should be
proposed before evaluation is allowed. 5. Alternatives build on one another. Bad
ideas may become good ones if they are
2. Alternatives are proposed by all individuals combined with or modified by other ideas.
involved in the problem. Broad
participation in proposing alternatives 6. Alternatives solve the problem that has
improves solution quality and group been defined. Another problem may also
acceptance. be important, but it should be ignored if it
does not directly affect the problem being
3. The alternative solutions being proposed considered.
are consistent with the organization’s or
the group’s goals or desired outcomes.
2
 11:47

Step 5 Analysis of Alternatives

For Step 5:
Personal judgments by a decision maker are reflected in
(1) the criteria chosen in step 2,
(2) the weights given to the criteria, and
(3) the evaluation of alternatives

The Decision-Making Process:

Step 6 Selection of an Alternative Analytical and Creative Problem-solving Skills
LEARNING OBJECTIVE
2
Explain bureaucracy and how it affects decision making.

Vs.

3
 11:47

The Decision-Making Process:

Analytical and Creative Problem-solving Skills
LEARNING OBJECTIVE
3
Describe the types of decisions and decision-making conditions
managers face.

4
 11:47

The Decision-Making Process:

Analytical and Creative Problem-solving Skills
LEARNING OBJECTIVE
4
Describe managerial roles

5
 11:47

The Decision-Making Process:

Analytical and Creative Problem-solving Skills
LEARNING OBJECTIVE
5
Describe creativity and creativity types

The Decision-Making Process:

Analytical and Creative Problem-solving Skills
LEARNING OBJECTIVE
6
Describe personal conceptual blocks & conceptual blockbusting

6
11:47