Supervision Concepts and Skill Building 8th Edition Certo Solutions Manual

Supervision Concepts and
Skill-Building 8th Edition Certo

Solutions Manual
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Chapter 09 - Problem Solving, Decision Making, and Creativity
Chapter 09
Problem Solving, Decision Making, and Creativity
I. CHAPTER OVERVIEW
Clark Wigley, a management consultant, says that, “success does not equal no problems (as in ‘If I
were a good manager, I would have no problems’). Success is having and solving the right problems.”
Problem solving requires making good decisions. Using a rational model of decision-making improves
the likelihood of reaching good decisions. The rational model presented includes: identify the
problem, identify the alternative solutions, gather and organize facts, evaluate the alternatives, choose
and implement the best alternative, get feedback and take corrective action.
People may try to take a simpler approach to decision-making by considering only the alternatives that
readily come to mind. They may just want to meet minimum standards or use subjective methods to
select an alternative. Human compromises to the rational decision-making process include simplicity,
bounded rationality, subjective rationality, rationalization, personal perspective, recency syndrome,
and stereotyping.
When making decisions, supervisors should consider the consequences of the decision. When the
consequences of a decision are great, the supervisor should take more time in readying the decision.
On the other hand, in a crisis, the supervisor must make a decision quickly.
There are tools available to help the supervisor select among alternative solutions. The probability
theory, the decision-making tree and related software aid supervisors in selecting the best solution.
Resources available to supervisors in making good decisions are their employees and peers. Using the
assistance of a group will increase the information and number of ideas for solutions. Also, people
who are involved in developing a solution are more likely to support the implementation of the
solution. A disadvantage of group problem solving is that it usually takes longer than individual
decision-making. Other disadvantages include the cost to the organization, inferior decision making
owing to a small group dominating the decision-making process, and groupthink.
Solving a problem may require a new, creative solution. Creative thinking develops a broad store of
information related to the problem. Supervisors can increase their own creativity by setting aside time
in which they can let their mind wander. Taking a break can be helpful when ideas don’t seem to be
flowing.
Widespread creativity among employees can be a valuable asset in coming up with new ideas to solve
problems. Supervisors should show they value creativity. They should listen to and encourage
suggestions. Some of the barriers to creativity are fear of failure, excessive busyness, and isolation. To
overcome these barriers, supervisors need to remember that failing inevitably accompanies trying. The
supervisor should not place blame but acknowledge the effort of employees and continue to search for
better solutions.
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II. TEACHING THE CONCEPTS BY LEARNING OBJECTIVES
Learning Objective 9.1: Identify the steps in the rational model of decision-making.
1. Key term.
Decision: A choice from among available alternatives.
2. Teaching notes.
Problem solving involves making a series of decisions: deciding that something is wrong, deciding
what the problem is, and deciding how to solve it. Successful problem solving depends on good
decisions.
Much of the supervisor’s job is making decisions. In many cases, decisions are made without
giving any thought to the process of deciding. Supervisors will automatically decide something
because it feels right or because a decision has been made on a similar issue in the past. Decision-
making can be improved by understanding how the decision-making process works in theory and
in practice.
The rational model of decision-making includes the following steps:

a. Identify the problem.
b. Identify the alternative solutions.
c. Gather and organize the facts.
d. Evaluate the alternatives.
e. Choose and implement the best alternative.
f. Get feedback and take corrective action.
Problem solving and decision-making are described in a variety of models. Your students may
have been introduced to other models with more steps or fewer steps. Most of the models have
similar elements. The importance of understanding and using a model is that the decision will be
the result of facts and analysis rather than of opinions and feelings.
3. Teaching examples to identify the steps in the rational model of decision-making.
The text provides a rough outline of a decision-making process made by Dave Frantz, the
supervisor of a group of workers for a janitorial service. Dave works long hours to accomplish his
job. Big problems like Dave’s are often the cumulative effect of many small problems. The
following will give additional detail for the example.
a. Identify the problem. The symptom of Dave’s problem is the long hours he must put in to
satisfy the needs of his job and his boss’s demands. As indicated in the text, he had already
determined that he worked hard and did not waste time. To understand better how he used his
time, Dave kept a log to indicate how much time was spent on each of his tasks. After several
days it was obvious that a large portion of his time was spent on paperwork. Also, as a result
of his log, he was able to determine that he was not giving importance to some parts of his job.
For example, he was unable to spend as much time on training as he would have liked.
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The paperwork is the result of forms and check sheets that are submitted by the workers for
quality assurance records, billing information, payroll, and safety records. Each job has a job
order and check sheet to assure the customer receives what is ordered. Billing information is
taken from the job order check sheet and a summary is prepared for accounting. Each worker
must keep a daily time record and expense record sheet. The payroll is prepared from the
summary Dave provides along with the original records that are also sent to the accounting
department. In addition, records are kept on the chemicals used in the cleaning process and all
the reported accidents.
Just finding that a lot of time was spent on paperwork was not enough to solve the problem.
Dave went on to analyze the paperwork to determine more specifically the use of his time.
(See Figure 9.1 “Analysis of Time Used for Paperwork”).
Dave now has information that will help him focus on potential solutions.
b. Identify the alternative solutions. It appears to Dave that the hours spent calculating and
preparing the reports is the place to concentrate his efforts. If he could cut this time in half he
could reduce his workload by nine hours! Alternatives considered by Dave were to delegate
the work to someone else and automate all or part of the task. Before Dave could reach a
decision, he carefully investigated all the alternatives.
c. Gather and organize the facts. Dave first thought he could get someone else to do the work.
Hiring a clerical person was out of the question. The top management said this was not
possible. There was no money to hire another person. Would a temporary employee solve his
problem? Could several other employees do the work? This was not possible because of the
confidentiality involved in the billing process and the fact that the summary still had to be
done by one person.
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FIGURE 9.1
Analysis of Time Used for Paperwork
Tasks Hours Used Percent of

Hours
Job summary reports 15 50.0
Billing reports 5 16.7
Time/payroll reports 2.5 8.3
Expense reports (mileage and meal allowance) 5 16.7
Safety reports 2.5 8.3
Total 30 100.0
Analysis of Paperwork Tasks
Tasks Hours Used Percent of

Hours
Calculations and writing summary reports 18 66.7
Correcting mistakes and omissions of raw data 12 33.3
Total 30 100.0
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Dave then investigated the possibility of automating a part of the job. Could he somehow use
the bar-coding method used in the warehouse? This was not feasible at this time.
If he had to continue to do the task using the same basic method, what was available to help
him? Dave talked to the accounting department and the order department. Those departments
used computers to speed up their work. They were also valuable for summarizing data and
creating easily accessible records. Dave found the cost of the computer that would fulfill his
needs. He estimated it would reduce the time spent by 30 percent immediately, and eventually
would reduce the time by 50 to 60 percent of the original time.
d. Evaluate the alternatives. A temporary employee would help him catch up and give him some
extra hours in the short run. A permanent employee was not possible in the foreseeable future.
A computer seemed to be the best solution. It could create the summary report from the data
entered. There would also be a permanent and easily accessible record of the job orders and
other data that could be used for other purposes in the future. The up-front cost of the
computer was high, but it would be a one-time cost.
e. Select and implement the best alternative. Dave made a request for the computer. He provided
his boss with all of the information leading up to his decision. His boss was impressed with
the thoroughness of his investigation. The estimation of reduction in time was realistic. The
recommendation was approved.
f. Get feedback and take corrective action. Dave continued to monitor and keep records of the
time he spent on this part of his job. The computer was a big help. It also pointed out the need
to standardize record keeping by the employees. As a result, Dave had a meeting with the
employees and emphasized the need for complete and accurate record keeping on their part.
The employees also made recommendations on how the job orders could be improved to help
them keep good records for the company.
The latest result of the problem-solving effort was the documentation of an overall reduction of 60
percent of the paperwork time.
4. Exercise to identify the steps in the rational model of decision-making.
See the “Exercise” below for Learning Objective 9.2, discuss ways people make compromises in
following the decision-making model. The exercise includes an application of the rational model
of decision-making and the ways people make compromises in following the model.
Learning Objective 9.2: Discuss ways people make compromises in following the decision-
making model.
1. Key terms.
Bounded rationality: Choosing an alternative that meets minimum standards of acceptability.
Recency Syndrome: The tendency to more easily remember events that have occurred recently.
Stereotypes: Rigid opinions about categories of people.
2. Teaching notes.
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Supervisors often have neither the time nor the desire to follow all these steps to make a decision.
They may have trouble thinking of all the alternatives or gathering all the facts they need. Given
the human and organizational limitations, supervisors tend to make compromises most of the time.
If the supervisor is aware of the kinds of compromises people make, he or she is more likely to be
aware while using them. Some kinds of compromises are useful in some situations; others are to
be avoided as much as possible.
Reasons for compromises:
a. Simplicity. Usually we simply mull over our experiences and consider ways we have handled
similar problems in the past. The downside of this approach is that it tends to bypass new and
innovative solutions that may deliver better results.
b. Bounded rationality. When it seems impossible or unreasonable to find the best alternative in
the universe, decision makers settle for an alternative they consider good enough. The process
is also known as bounded rationality, that is, the decision maker places limits, or bounds, on
the rational model of decision-making. The decision maker considers alternatives only until he
or she finds one that meets his or her minimum criteria for acceptability.
c. Subjective rationality. This considers alternatives that are the result of intuition and gut
instincts, rather than impartial data. Even when the process for arriving at the decision is
otherwise rational, the numbers used in the process may be subjective and thus not completely
accurate.
d. Rationalization. People tend to favor solutions that they believe they can justify to others.
e. Personal perspective. People may assume that everyone sees things the way they do. They
think if something is clear to them it is also clear to everyone else. Decision makers must find
out what other people are thinking and take those views into account.
f. Recency Syndrome. An event should not carry more weight simple because it is more recent.
This is one reason decision makers need to consider the alternatives as fully as is reasonable.
g. Stereotyping. Stereotyping interferes with rational decision making because it limits a decision
maker’s understanding of the people involved. Rigid opinions about categories of people
distort the truth that people offer a rich variety of individual strengths and viewpoints.
3. Teaching examples to discuss ways people make compromises in following the decision-making
model.
The example of Dave Frantz used in the text and Learning Objective 9.1 can be used to
demonstrate the concepts discussed in this learning objective. Using the problem-solving model
discussed above will take some time to determine the best solution. Dave may want to
compromise or speed up the decision-making process. Dave may also have personal beliefs that
direct his decision-making process. The following are examples of some of the compromises Dave
may be tempted to make:
a. Simplicity. Usually what we do is think over our experiences and consider some of the ways
similar problems have been handled in the past.
Dave could have simply decided that he didn’t have enough time to do all of his work and
tried to sell his boss on a solution that from his point of view is a simple solution, such as to
hire a clerical person to take care of the paperwork. After all, in the past when work piled up,
they hired someone to help out.
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b. Bounded rationality. When it seems impossible or unreasonable to find the best alternative in
the universe, decision makers settle for an alternative they consider good enough.
Dave has decided that the workload is impossible or unreasonable and has set some minimum
standards. For example, he may do only the work that needs to be done on a timely basis, such
as payroll and billing, and let other paperwork remain unfinished until he is pressed for it.
c. Subjective rationality. Alternatives that are the result of intuition and gut instincts, rather than
impartial data.
Dave may act on intuition, such as thinking that the records are unnecessarily complicated and
simplification would allow the use of employee check sheets for accounting purposes. As a
result of this thinking, Dave may end up changing the record keeping system to eliminate
some of his part of the paperwork.
d. Rationalization. People tend to favor solutions that they believe they can justify to others.
Dave could decide to try to sell his boss on sending the paperwork directly from the
employees to the payroll, billing, and personnel departments without his review and summary
of the information. His rationale would be that his time is too valuable to waste on paperwork.
He is an experienced technician and his talents are best used in the field, not behind a desk. He
is sure his boss will agree with his argument.
e. Personal perspective. People assume that everyone sees things the way they do.
Personal perspective for Dave may further support the value of his talents and the waste of
time and talent on paperwork.
f. Recency Syndrome. An event should not carry more weight simple because it is more recent.
Last month, one of his peers was allowed to transfer part of her paperwork to a clerical
employee. Dave might remember this incident and ask for similar help for himself even
though his manager has consistently turned down such requests in the past.
g. Stereotyping. Rigid opinions about categories of people distort the truth that people offer a
rich variety of individual strengths and viewpoints.
Dave may think that paperwork is secretarial work and secretaries are women. Therefore, a
secretary or a woman clerical employee should be doing the paperwork.
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4. Exercise to discuss application of the rational model of decision-making (Learning Objective 9.1)
and ways people make compromises in following the decision-making model.
Students can apply the rational decision-making model to their personal life as well as their
workplace. Set up the situation, then apply the rational decision model, and give examples of
specific compromises that can be made based on the six reasons listed above. The exercise is best
used as a homework assignment
Steps to using this exercise:
a. Make each student a copy of Figures 9.2 “Applying the Rational Model for Decision-making”
and 9.3 “Compromises to the Rational Model for Decision-making”. The student is to use the
worksheets as a guide for the exercise. You can also ask students to hand them in as proof of
completion of the assignment.
b. Read the situation to the class and ask if they have any questions regarding the assignment
Figure 9.2. You have been assigned a term project for class. It slipped your mind and the
discussion about the project today made you realize you don’t have time to do a good job on
the project. It is very important that you get a high grade on this assignment or your final
grade could be in jeopardy. You have a job and personal obligations in your life. Use the
rational model of decision-making to come up with three alternative solutions. Then select the
best alternative. Also indicate feedback and corrective action. Use additional paper if
necessary to show examples and explanations.
Figure 9.3. You have been assigned a term project for class. It slipped your mind and the
discussion about the project today made you realize you don’t have time to do a good job on
the project. It is very important you get a high grade on this assignment or your final grade
could be in jeopardy. You have a job and personal obligations in your life. Instead of using the
rational model of decision-making, give solutions based on the seven reasons for compromise.
c. The assignment requires students to explain specifically what they would do at each step of
the rational decision-making model. The responses should be similar to the teaching example
of Dave in Learning Objective 9.1.
d. After students have finished the rational decision-making model, they will do the compromise
sheet that will indicate how the decisions for the specific problem would be made using each
of the compromises.
e. If desired, hold a class discussion after the assignments have been completed.
(1) Ask students which of the worksheets was easiest to think about and complete.
(2) Ask students which method best represents the way they make decisions and what
advantages and problems may result from their problem-solving methods.
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FIGURE 9.2
Applying the Rational Model for Decision-making
You have been assigned a term project for class. It slipped your mind and the discussion about the
project today made you realize you don’t have time to do a good job on the project. It is very
important you get a high grade on this assignment or your final grade could be in jeopardy. You have a
job and personal obligations in your life. Use the rational model for decision-making to come up with
three alternative solutions. Then select the best alternative. Also indicate feedback and corrective
action. Use additional paper if necessary to show examples and explanations.
The rational model of decision-making includes:
a. Identify the problem
b. Identify the alternative solutions
c. Gather and organize the facts
d. Evaluate the alternatives
e. Select and implement the best alternative
f. Get feedback and take corrective action
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FIGURE 9.3
Compromises to the Rational Model for Decision-making
You have been assigned a term project for class. It slipped your mind and the discussion about the
project today made you realize you don’t have time to do a good job on the project. It is very
important you get a high grade on this assignment or your final grade could be in jeopardy. You have a
job and personal obligations in your life. Instead of using the rational model of decision-making, give
solutions based on the seven reasons for compromise.
1. Simplicity
2. Bounded rationality
3. Subjective rationality
4. Rationalization
5. Personal perspective
6. Recency syndrome
7. Stereotyping
9-10
Learning Objective 9.3: Describe guidelines for making decisions.
1. Teaching notes.
Should the supervisor always avoid the human compromises in making decisions? Not
necessarily. In some situations, seeking to match the rational model would just be too costly and
time consuming.
Guidelines for making decisions in the workplace:
a. Consider the consequences. When the consequences of a decision are great, the supervisor
should spend more time on the decision. He or she should try to follow the rational model of
decision-making, collecting information, and including as many alternatives as possible. When
the consequences are slight, the supervisor should limit the time and money spent in
identifying and evaluating alternatives.
b. Respond quickly in a crisis. In a crisis, the supervisor should quickly select the course of
action that seems best. This is an application of bounded rationality. Rather than waiting to
evaluate other alternatives, the supervisor should begin implementing the solution and
interpreting feedback to see whether the solution is working.
c. Inform the manager. The supervisor’s boss doesn’t want to hear about every minor decision,
but the boss does need to know what is happening in the department. The supervisor should
inform the boss about major decisions. These would include decisions affecting the
department, meeting objectives, responses to crises, and any decision that might be
controversial.
When the boss needs to know about a decision, it’s usually smart to discuss the problem
before reaching and announcing the decision. The boss may have some input to the decision-
making process that may modify the supervisor’s decision. In a crisis, the supervisor may not
have time to consult with his or her boss and has to settle for discussing the decision as soon
as possible afterward.
d. Be decisive yet flexible. Sometimes it is difficult to say which alternative solution is the best.
Perhaps none of the choices looks good enough. In this case, it may be difficult to move
beyond studying the alternatives to selection and implementation. However, avoiding a
decision is just another way to decide to do nothing. Being decisive means reaching a decision
within a reasonable amount of time. The supervisor should pick the best alternative, or at least
an acceptable one, and then focus on implementing it.
A decisive supervisor clears his or her desk of routine matters when a problem arises. The
supervisor refers the question or problem to the proper people, delegates appropriately, and
keeps work moving. When faced with a problem, he or she takes complete responsibility for
getting the facts needed for a solution. A decisive supervisor keeps his or her employees
informed of what they are expected to do and how they are progressing relative to their
objectives.
Being decisive should not mean that a supervisor is blind to signs of a mistake. If the feedback
indicates the solution is not working, the supervisor must be flexible to try another approach.
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e. Avoid decision-making traps. Avoid making a major issue out of each decision. Good
planning can avert many crises, and life-and-death issues are not the usual stuff of the
supervisor’s job. Put each issue into perspective so that alternatives can be evaluated and an
appropriate amount of time can be devoted to finding the solution.
Avoid inappropriate responses to failure. Acknowledge mistakes, but do not dwell and
agonize over them. It is more important to learn whatever lesson the mistake can teach and
then move on.
Remember to draw on easily available information. Have some of the alternatives been tried
before? If so, what was the outcome? Also, consult with other members of the organization or
with outside experts.
Beware of promising too much. Don’t make promises you can’t keep to your employees or
your boss.
Be flexible. Do not assume there is one “right” decision.
2. Teaching examples to describe guidelines for making decisions.
The example of Dave Frantz used in the text and Learning Objective 9.1 can be used to
demonstrate the concepts discussed in this learning example. The guidelines discussed in this
learning objective are also important for Dave to consider in finding a solution to his problem.
a. Consider the consequences. When the consequences of a decision are great, the supervisor
should spend more time on the decision.
The consequences of Dave’s decision are saving his valuable time and the cost of the solution.
These two consequences are important and should result in spending enough time to do a
thorough investigation.
b. Respond quickly in a crisis. In a crisis, the supervisor should quickly select the course of
action that seems best.
Dave’s problem is not a crisis at this time, but it is serious. If he doesn’t plan for the
elimination of this problem, it may soon reach a more critical stage. At that time he may have
to get additional help from other employees. He may have to hire a temporary person or take
someone away from his or her work.
c. Inform the manager. The supervisor’s boss doesn’t want to hear about every minor decision,
but the boss does need to know what is happening in the department. The supervisor should
inform the boss about major decisions.
Perhaps Dave could have acquired a computer for his office on loan before he informed his
boss. He may be very sure that his boss will agree with his decision. But since the computer is
going to be an additional expenditure for the company, Dave should inform his boss of his
decision and the rationale behind the decision before he takes the next step.
d. Be decisive but not inflexible. Sometimes it is difficult to say which alternative solution is
best, or perhaps none of the choices looks good enough.
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If Dave finds through his continued monitoring of the new system that he is still spending too
much time on paperwork, he should review his other alternatives and perhaps investigate
additional alternatives. An additional alternative may be an improved software package for the
computer. Remember Dave’s original problem was the time it took to do the paperwork. If the
first solution is not really a solution, he should continue to search for a better solution.
e. Avoid decision-making traps. Avoid making a major issue out of each decision. Good
planning can avert many crises, and life-and-death issues are not the usual stuff of the
supervisor’s job. Put each issue into perspective so that alternatives can be evaluated and an
appropriate amount of time can be devoted to finding the solution.
Obviously, Dave’s problem is not going to go away by itself. The longer he puts it off, the
more he is neglecting other important parts of his job.
3. Exercise to describe guidelines for making decisions.
See the “Exercise” below for Learning Objective 9.4, “Explain how probability theory, decision
trees, and computer software can help in making decisions.” The exercise includes an application
of the guidelines for decision-making concepts.
Learning Objective 9.4: Explain how probability theory, decision trees, and computer software
can help in making decisions.
1. Key terms.
Probability Theory: A body of techniques for comparing the consequences of possible decisions
in a risk situation.
Decision Tree: A graph that helps decision makers use probability theory by showing the
expected values of decisions in varying circumstances.
Decision-making software: A computer program that leads the user through the steps of the
formal decision-making process.
2. Teaching notes.
To make decisions about risk situations, a supervisor can compare the consequences of several
decisions by using probability theory. To use this theory, a supervisor needs to know or be able to
estimate the value of each possible outcome and the likelihood (probability) that this outcome will
occur.
The decision tree is a graph or picture of all alternatives under consideration. Decision-making
benefits from a logical process that will present alternatives in a format that displays the
alternatives and consequences of selecting each of the possible alternatives. It is useful to the
supervisor because it can show relationships and potential outcomes of each step of the decision-
making process, and allows mathematical calculations by including probability factors or risks
involved in each decision.
If this is the first exposure of students to decision trees, the probability or risk part of the decision
tree may be difficult for students to use. In this case, explain that the use of decision trees in a
simpler form is still very useful.
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The decision-making tree uses the guidelines for making decisions listed in Learning Objective
9.3. In constructing the decision tree, the consequences for each alternative are considered. The
decision tree can also be used to inform and communicate with the supervisor’s boss. A decision
can be selected with a fair amount of certainty. However, with the decision tree, if the selected
alternative is not working as anticipated, another alternative has already been considered with its
consequences. This means that much of the groundwork has been done to select a more workable
alternative.
Although the supervisor would not likely use a formal decision tree for making a decision in a
crisis, the logical process can be transferred to the decision-making process. The decision tree can
also be made prior to a crisis and published to help others making a decision under specific
conditions. An example of this is often used in troubleshooting of mechanical problems. This type
of decision tree is often shown with successive yes-and-no alternatives.
Some computer programs have been developed to help people make decisions. A decision-making
software leads the user through the steps of the formal decision-making process. A database
management program, on the other hand, systematically stores large amounts of data and makes it
easy for the user to request and retrieve specific categories of data.
3. Teaching examples to explain how probability theory, decision trees, and computer software can
help in making decisions.
Text Figure 9.5 “A Simple Decision Tree” illustrates a simple decision tree showing the available
alternatives which stem from the decision points. In this figure, a sales supervisor is trying to
decide whether to hire a new salesperson at a salary of $40,000. Assuming there is a 60 percent
chance of sales increasing if the supervisor hires a salesperson (and a 40 percent chance of sales
remaining steady), the expected value of hiring is 0.60($210,000) + 0.40($160,000), or $190,000.
The expected value of not hiring is $225,000. According to the greater expected value for not
hiring, the supervisor should decide that it makes more economic sense not to hire a salesperson at
this time.
4. Exercise to explain how probability theory, decision trees, and computer software can help in
making decisions.
It is likely that most students have not used a decision tree in the past. Therefore, it is valuable to
have students determine when a decision tree is a useful tool.
a. Have students generate a decision tree for some aspect of their lives, for example, the career
path that they are going to follow. Give this assignment as homework. Determine which
decision will be selected for the circumstances described.
b. Determine whether the consequences of each decision are great or not. (See Learning
Objective 9.3.) Also determine the degree to which the decision will have to be flexible. That
is, if things don’t work out, what is the next decision? This can be shown at the right-hand side
of the decision tree.
c. Also, have students “inform their boss” using the decision tree to discuss their decision tree
with the class.
Learning Objective 9.5: Discuss advantages and disadvantages of making decisions in groups.
1. Key term.
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Groupthink: The failure to think independently and realistically as a group because of the desire
to enjoy consensus and closeness.
2. Teaching notes.
Some organizations allow or expect supervisors to work with others in arriving at a decision.
Supervisors might encourage employees to come up with a solution themselves. Total quality
management (TQM) discussed in Chapter 2 includes team problem solving as a method of getting
more productivity and better quality. There are both advantages and disadvantages of group
problem solving.
a. Advantages of group decision-making. Group members can contribute more ideas for
alternatives than an individual working alone. The group will also have a broader perspective
since the experience of the group is broader than the individual’s experience. People involved
in the decision will better understand an alternative selected and also be more likely to support
the decision.
b. Disadvantages of group decision-making. Group decision-making is slower than individual

decision-making. There is also a cost to the organization when employees spend their time in
meetings rather than producing or selling. If one person dominates the decision-making
process, the value of multiple inputs is lost.
Groupthink can become another problem. This is when individuals fail to think independently
and realistically, preferring to enjoy consensus and closeness. Symptoms of groupthink
include:
• An illusion of being invulnerable
• Defending the group’s position against any objections
• A view that the group is clearly moral, “the good guys”
• Stereotyped views of opponents
• Pressure against group members who disagree
• Self-censorship, that is, not allowing oneself to disagree
• An illusion that everyone agrees (because no one states an opposing view)
• Self-appointed “mindguards,” people who urge other group members to go along with the
group
When the supervisor notices that his or her group is showing the symptoms of groupthink, it may be
time to question whether the group is really looking for solutions. The group leader should be sure to
encourage a variety of viewpoints by inviting suggestions and encouraging group members to listen
with an open mind. Another way to overcome groupthink is to appoint one group member to act as
devil’s advocate, challenging the position of the majority.
3. Teaching examples to discuss advantages and disadvantages of making decisions in groups.
In the article, “Team Up for Quality Improvement,” John Persico Jr. presents some of the myths of
traditional team models and major premises that provide the theoretical basis for the process
improvement team concept. Without the recognition of the misconceptions and the remedies for
the conditions, management is simply looking for a simple and inexpensive way to get others to
solve organizational problems. The following three myths are the most problematic in team
problem solving.
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a. Workers are fully capable of identifying and directing improvement efforts and can decrease
problems and costs without the help of or interference from management.
b. A happy and motivated team is an effective work team. Team-building and communication
skills training ensure effective teamwork.
c. Experienced employees have needed skills, knowledge, and technical expertise to identify and
solve major organizational problems.
The four major premises that provide the theoretical basis for the process improvement team
concept:
a. Ongoing management involvement is essential for effective performing work teams.
Management must provide the resources for success, including the selection and training of
teams, and help identify improvement opportunities.
b. Teams are sociotechnical systems and require a sound infrastructure to function effectively.
This includes an explicit set of guidelines and rules that provide direction and focus for the
completion of all tasks related to the teams’ mission and purpose. Communication and human
relations training must be based on actual work objectives. If this is not done, training will be
viewed as irrelevant and probably will be ineffective.
c. The team needs effective leadership that is able to blend the diverse skills and personalities of
all team members. Only by drawing on the diverse talents, abilities, and ideas of all team
members will they create an effective team. Leaders cannot be autocrats.
d. Team members need skills training in process analysis, data collection and analysis, and
unstructured problem solving. Teams should not be expected to produce results without the
training to do so.
In order for all this to work, management and supervisors must actively participate by helping
employees identify conditions for improvement that will have the greatest effect on customer
satisfaction. They should not supplant the ideas of employees, but rather complement them. This
will help establish credibility of team efforts by assuring that the necessary resources will be
available to teams.
An example of a company using employees to make better decisions and improve the company is
Alagasco (Alabama Gas Company), the largest distributor of natural gas in Alabama. In 1984,
Alagasco could have qualified for a list of the 100 worst places to work. Everybody feared for
their job and had no input whatsoever. Management was motivated by fear, and employees
described the culture as, at best, one where “good deeds go unpunished.”
Mike Warren, president, came on board determined to change the culture. He instituted “Hey
Mike” cards that were available to jot down a comment, a suggestion, a question, or anything else
without signing the card. He responded to every one of them.
To make sure employees made good decisions, the company opened a training school called
Alabama Gas Company University. A two-thirds cost reimbursement supports education. To
encourage employees to take risks to make improvements, Gary Youngblood, vice-president of the
Birmingham service center, issued cards saying, “Beginning today every employee . . . has the
authority to give customer satisfaction.” He said these were “get out of jail free” cards. If
employees tried something and it failed, they turned in the card and were forgiven.
Teams need a cultural environment that supports and facilitates team decision-making, training,
and freedom to fail without excessive risk. The supervisor who wants employee involvement,
whether it is with formal teams or individual input, must be ready to play the role of facilitator of
employee ideas.
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4. Exercise to discuss advantages and disadvantages of making decisions in groups.
See the “Exercise” below for Learning Objective 9.6: describe guidelines for group decision-making.
The exercise can be used to discuss advantages and disadvantages of making decisions in groups.
Also, see the “Exercise” for Learning Objective 9.7: describe guidelines for thinking creatively. This
exercise can be used to discuss individual and group idea generation.
Learning Objective 9.6: Describe guidelines for group decision-making.
1. Key term.
Brainstorming: An idea-generating process in which group members state their ideas, a member
of the group records them, and no one may comment on the ideas until the process is complete.
2. Teaching notes.
The supervisor is wise to involve employees in some but not all decisions. When a decision must
be made quickly, like in an emergency, the supervisor should probably make it alone. When the
supervisor needs to build support for a solution, such as in cutting costs or improving productivity,
the group process is useful. When the consequences of a poor decision are great, the benefits of
the group’s collective wisdom are worth the time and expense of gathering the input.
The supervisor may use the employees for input or they may be asked to make the decision.
Whenever supervisors ask for employee input, they should be sure they intend to use the
information.
Since a primary benefit of group decision-making is the variety of opinions and expertise, a
supervisor leading a decision-making meeting should be sure that everyone is participating. The
supervisor should concentrate on listening and encouraging the input of others. If someone is not
participating, the supervisor may have to ask for his or her opinion or thoughts on the matter at
hand.
Brainstorming is another way to generate ideas in a group. Group members state their ideas no
matter how far-fetched they may seem. No one may criticize or even comment on an idea until the
end of the process. All ideas are recorded on a flip chart or black (white) board. Evaluation or
follow-up on ideas takes place after all ideas are suggested.
Pitfalls of brainstorming include dominance of conversation by naturally talkative people. This
problem can be circumvented by asking participants to come prepared to the brainstorming session
with some ideas. Another approach would be to ask participants to first jot down their ideas and
then discuss them.
3. Teaching examples to describe guidelines for group decision-making.
Generating ideas is only part of the group decision-making process. Individual members of the
group may have differing opinions about the best decision. When differences of opinion occur,
one of the first thoughts is to settle the differences democratically, or vote on it. Another decision-
making method is by consensus of the group.
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a. Voting: advantages and disadvantages. Voting is quick and easy. If everyone agrees, the team
can quickly move on to the next item. If they do not agree, it is not so simple. Remember, one
of the advantages of team decision-making is that if a team determines the solution, they are
more likely to support the decision and help sell the idea to others. This is especially important
when the decision is not widely accepted in the larger group. Voting means that the majority
of the team rules. It may be a simple majority of one vote. This means that nearly half of the
team does not like the solution. What do you think this dissatisfied portion of the team will
do? Do you think they will support and sell the idea?
Voting is useful when you are trying to get an idea where the group is in their thinking. A
“straw vote,” or nonbinding vote, may be useful to see if further discussion is necessary.
There are variations on the majority rule that allow for participants to have more than one
vote, and a process of elimination by a series of votes.
b. Consensus: advantages and disadvantages. Consensus means reaching a decision everyone

can support” It does not mean that everyone is 100 percent satisfied, but that the agreement is
something all members can live with. Members may use a number like 80 percent satisfied to
have a goal that is realistic. This means genuine give and take. It does not mean holding out
the longest to get your ideas accepted. Individuals who are dissatisfied with a suggestion
should be prepared to offer a compromise.
Consensus may take a long time, especially if there are strong opposing opinions. This is
probably when it is the most useful. If you can get buy-in of team members, there is a greater
chance of buy-in by the larger group. If the team members can live with the outcome, they are
more likely to sell the idea and assist the implementation of the solution. The greatest ally to
the implementation may be the person who was the most difficult to convince. He or she will
be able to explain to others what convinced him or her of the specific alternative.
An employee at Honda of America Manufacturing expresses some of the benefits of teamwork

“In other places I had a fear of some of my bosses. But that’s not the way it is here. At Honda,
it’s all teamwork. Management will dig right in there with you and help solve problems.
They’re not going to stand back and tell you what to do.” Honda has a Voluntary Involvement
Program, or VIP, which has four components–NH-Circles (quality circles), a suggestion
program, quality awards, and safety awards. The NH-Circles suggest improvements or solve
problems. They have instituted programs such as recycling, which earns the plant more than
$2 million a year. In the suggestion program, employees implement their own suggestions.
The example shows the need for a win-win attitude of management and employees. Group
decision-making works best in an atmosphere where employee input is valued. While Honda
has a formal program with rewards for employees, at any level of group decision-making
employees need to know their contributions are appreciated and gain recognition for the ideas
that are implemented. Supervisors should resist asking employees or groups to make
suggestions and then ignore the decisions, take credit for the work of a group, or fail to give
feedback when the decision is not used.
4. Exercise to describe guidelines for group decision-making.
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Developing productive teams requires more time than is likely to be available within a class.
However, some basic dynamics can be illustrated by having groups of students attempt to solve a
problem. The following exercise is an in-class exercise used to contrast individual problem
solving and group problem solving. Allow 45 minutes to one hour for the exercise. If possible,
supply students with sheets of newsprint paper to facilitate classroom presentations.
Steps to use the exercise:

a. Divide the class into problem-solving groups and individuals who are all given the same
assignment. The number of groups will depend on the size of the class. Designate three to six
individual students to work independently on the assignment and divide the remainder of the
class into groups of five to eight students. Include some groups that have an even number of
students. (It is usually suggested to have an odd number in a problem-solving group to
eliminate a tie vote. Since consensus should be considered as a decision-making tool, a tie
vote should not be a prime consideration when developing groups.)
Have students count off around the room to avoid having groups that are friendship groups or
cliques. Natural groups may have had a great deal of experience in making decisions. This will
influence the dynamics of the group and reduce the opportunity of learning the concepts
presented in this class.
b. Have the class contribute to the rules that will guide the teams. If the students don’t suggest
these rules, be sure to include such things as respecting each other’s ideas, staying on the
topic, sticking to the goal of the meeting, and meeting the time deadline.
c. Assign all groups and individuals the same task. Have students determine a social activity for
the end of the semester or term. This activity must be something that most people in the class
will enjoy and all will attend.
The goal is to determine an event, the objective of the event, the time for the event, location,
entertainment, refreshments, and rules for additional guests. Give the students a budget of
$1.50 per student. If the cost of the event is more, students need to consider how the additional
money will be raised. Allow the students 25 minutes to come up with a proposal to present to
the class. If possible, give students newsprint paper to write out the details of their proposal.
This will facilitate presenting the information to the class.
d. Students, both groups and individuals, will present their proposal to the class.
e. Discuss which of the proposals meets the objectives of the assignment with the class. Ask
students which of the events they would be willing to attend.
f. Discuss the decision-making process of the groups and individuals. Ask groups about the
advantages they perceived by working with others on the assignment Ask about the
disadvantages also. Then ask the individuals about the advantages and disadvantages they
experienced while working on the assignment.
One of the advantages of the groups and a disadvantage of the individuals is the availability of
others to comment on the likelihood that others would attend the event.
Learning Objective 9.7: Describe guidelines for thinking creatively.
1. Key term.
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Creativity: The ability to bring about something imaginative or new.
2. Teaching notes.
There is a common notion that some people are creative and the rest of us are stuck with routine
and ordinary courses of action. A fundamental way to become more creative is to be open to your
own ideas. Use a method that is similar to brainstorming. When trying to solve a problem, think of
as many alternatives as you can, jot them down, and don’t evaluate them until you finish the list.
Practice will help ideas flow more easily.
A five-step technique for generating creative ideas is given below.
a. Gather the raw materials by learning about the problem and by developing your general
knowledge.
b. Work over those materials in your mind. As you think of partial ideas, jot them down so you
can refer to them later. If you’re stuck on a problem, try leaving it for a while.
c. Incubate; let your unconscious mind do the work. Instead of thinking about the problem, do
whatever stimulates your imagination and emotions, such as listening to music.
d. Identify an idea. It will probably pop into your head unexpectedly. Sometimes creative ideas
come from dreaming or daydreaming, or they just seem to pop into your head while you are
doing something else.
e. Shape and develop the idea to make it practical. Seek out constructive criticism.
3. Teaching examples to describe guidelines for thinking creatively.
a. Gather the raw materials by learning about the problem and by developing your general
knowledge.
One of the ways to gather raw materials is by involving a group of knowledgeable people and
facilitating a brainstorming session. Brainstorming can be used in several ways in creative
problem solving or creative improvements. For example, brainstorming can be used to
determine what the group knows about the current situation. Brainstorming can be used again
to suggest possible solutions. Since a creative, new idea is often the recombination of already
known information, the brainstorming session is a fertile place to germinate new or creative
ways of looking at the situation.
Before starting a brainstorming session to come up with new ideas, try to break down negative
attitudes and other mind blocks. Prompt the group to suggest a far out or the silliest alternative
to solve a problem. Set rules such as no evaluation of suggestions, or every idea will get a
“great idea” response. Another suggestion to make before the brainstorming session is to tell
the group that money is no object, or they can have a high dollar budget for the suggested
solutions. Ask for a high number of suggestions, for example, 100 ideas. To get to this
number, the group will have to come up with some unconventional ideas.
b. Work over those materials in your mind. As you think of partial ideas, jot them down so you
can refer to them later. If you’re stuck on a problem, try leaving it for a while.
Make a list of the suggestions from brainstorming for everyone. It may be a good idea to
distribute the list to others in the organization and greater input. Agree to get back together in
a few days to make additions to the list.
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c. Incubate; let your unconscious mind do the work. Instead of thinking about the problem, do
whatever stimulates your imagination and emotions, such as listening to music.
Try to allow participants enough time to include some leisure time. Do not hold the
brainstorming session late in the afternoon of a busy week and then agree to meet the next
morning. During the second session it may be useful to begin to group similar ideas together.
Have the problem-solving group do this task. There will likely be some disagreement about
what truly belongs together. Have opposing ideas presented to the group. This will help the
team realize there is more than one way to look at an idea.
d. Identify an idea. It will probably pop into your head unexpectedly. Sometimes creative ideas
come from dreaming or daydreaming, or they just seem to pop into your head while you are
doing something else.
Ask team members to carry a small note pad and a pencil in their pocket to jot down ideas as
they occur to them. The ideas may be an addition to the original list or a creative way to look
at the problems.
e. Shape and develop the idea to make it practical. Seek out constructive criticism.
In a later meeting begin to shape the ideas into something that can direct the investigation of
the solution. Keep the same open environment that is useful in the brainstorming session.
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4. Exercise to describe guidelines for thinking creatively.
Give the students an opportunity to experience creativity using the following in-class exercise. The
exercise will take between 5 and 30 minutes, depending on where you decide to cut off the
exercise.
a. Ask students to write down as many uses as they can think of for some common object like a
paper clip. Allow one minute for this part of the exercise.
b. Ask students how many ideas they have on their list. They will likely have between five and
ten ideas. Ask if they were able to keep writing the entire minute or if they ran out of ideas.
Discuss with the students some of the mental blocks they experienced, such as knowing the
“real” use of the paper clip. Also ask the group to share any ideas they thought were unique.
The exercise can be stopped at this point.
c. Ask the group to share their ideas and write all ideas on a flip chart or black (white) board.
After two or three students contribute their ideas, throw the session open to brainstorming to
show how many ideas a group can contribute as compared to a single individual.
d. Discuss the value of the group input and any idea-blocking behavior such as inappropriate
laughter, groans, remarks that indicate the idea is inappropriate because of cost or experience,
personal attacks, and so on. Also explain that the brainstorming session is only the beginning
of the decision-making process or the attempt to come up with new ideas. Before the solution
is to be implemented, there are many more steps, including investigating the ideas.
Learning Objective 9.8: Discuss how supervisors can establish and maintain a creative work
climate.
1. Teaching notes.
The most important step a supervisor can take to establish a work climate that encourages creative
thinking is to show that he or she values creativity. When employees offer suggestions, the
supervisor should listen attentively and look for the positive aspects of the suggestions. Then the
supervisor should attempt to implement the suggestions and give the employee credit for the idea.
Failure should be acknowledged as a sign that people are trying. Help employees see what can be
learned from failures as well as from successes.
2. Teaching examples to discuss how supervisors can establish and maintain a creative work climate.
Why say something if nobody listens? This may be the simplest explanation of the lack of
creativity. In her book The Change Masters, Rosabeth Moss Kanter gives an example of a new
plant manager, interested in improving employee communications, who asks an employee why he
hadn’t made a successful suggestion earlier in his 32-year career. The reply was, “My supervisor
wasn’t interested, and I had no one else to tell it to.”
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It is often easier to illustrate why creativity doesn’t take place than to establish an environment for
creativity. The definition above for creativity is the ability to bring about something imaginative or
new. Creativity means being able to generate alternatives that are innovative or different from
what has been used in the past. This means change from what has traditionally happened. Change
is difficult. Managing an environment for creativity is managing an environment for change. It is
much more comfortable to continue doing what has always been done. This is true for supervisors
and employees.
Kanter says this about companies that embrace change: “Cultures and structures that are
integrative, encouraging the treatment of problems as ‘wholes,’ create mechanisms for exchange
of information and new ideas across organizational boundaries, ensure that multiple perspectives
will be taken into account in decisions, and provide coherence and direction to the whole
organization. In these team-oriented cooperative environments, innovation flourishes broaden the
search for solutions further beyond what the organization already ‘knows’ (or. . . beyond what its
leaders think they know).
Kanter contrasts this type of environment with companies where a segmentalist approach
dominates. This type of company is not conducive to innovation. When a problem is identified, it
is isolated. Each department and each person owns only a part of it. Each part works
independently. Individual segments may develop innovative ideas, but there is no mechanism for
transferring the knowledge.
For the supervisor who wants to encourage creativity or innovation, the environment must support
an exchange of information. Problems must be seen as part of a larger system. This means that
supervisors must maintain good relationships and open communications with their employees and
with other parts of the organization. This will be more difficult in an organization where there are
tighter boundaries around specific jobs and departments.
3. Exercise to discuss how supervisors can establish and maintain a creative work climate.
See the “Exercise” for Learning Objective 9.9, identify ways to overcome barriers to creativity.
The exercise includes an application of establishing and maintaining a creative climate.
Learning Objective 9.9: Identify ways to overcome barriers to creativity.
1. Teaching notes.
Often supervisors and employees have difficulty being creative because they are afraid their ideas
will fail. The best the supervisor can do is to keep in mind that a lack of creativity will probably
prevent big successes as well as big failures. In case of a failure, acknowledge the problem and
don’t try to fix blame. Focus on learning from mistakes. Prepare contingency plans and focus on
reaching a solution.
Another barrier is being overly busy. Creativity requires time to think. If there is no time for
thinking at work, then supervisors should allow time for thinking elsewhere–at home, while
walking in the woods, while driving.
Isolation also interferes with creativity. Talk to others in the organization. Get involved with
people in other organizations. Join professional organizations and attend meetings.
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2. Teaching examples to identify ways to overcome barriers to creativity.
Supervisors who want creativity to flourish can use some simple methods. Be sure your employees
perceive you to be open and supportive of new ideas. Give employees opportunities for input.
Some of the ways supervisors can invite ideas include:
• Ask if employees have questions.

• Ask for ideas, what has been missed.
• Review all options with employees before a final decision is made. Ask where else you can go
for additional information.
• Ask for employees’ help with a problem or an idea you have.
• Ask “How can we improve this?” (This is a good response when employees complain about a
condition.)
• Ask who else has information about a condition.
• Tell employees when you don’t know something and ask for their help.
• Above all, thank employees for their help, and give credit whenever the opportunity arises.
3. Exercise to identify ways to overcome barriers to creativity.
Figure 9.5 is a list of situations that may be associated with building an environment for creativity.
Students benefit from the experience of dealing with a situation that will simulate a condition they
may experience in the future. Have students help build that environment using this exercise to
stimulate a discussion about what it will take to achieve the goal.
a. Make a copy of Figure 9.5 for each student. Give the students five to ten minutes to come up
with ideas for each of the statements.
b. Select one or more of the statements and have students share their ideas. This part of the
exercise may take the form of brainstorming.
c. Have the students select one or more of the ideas to implement for each statement discussed.
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FIGURE 9.5
Creating an Environment for Creativity
Read the statements below and determine methods for achieving each of the conditions.
1. Get to know employees to better understand their creative ideas or interests.
2. Encourage personal creativity and growth for all employees.
3. Recognize and reward creative suggestions.
4. Ensure that employees recognize that you want creative and innovative ideas from everyone.
5. Tolerate the failures that are a part of creativity and take a chance with a new idea.
6. Invite creativity from a group of people who will be affected by a decision to change a process.
9-25
III. ANSWERS TO REVIEW AND DISCUSSION QUESTIONS
1. Andrea is in charge of scheduling the work for the service department of a car dealership. Lately,
people in the sales department have been taking telephone calls from customers and promising that
service work could be completed on a certain day or by a certain time. Consequently, everyone is
unhappy–mechanics, salespeople, customers, and Andrea–because the work schedule is disrupted
and the service department can’t keep up with the promises made to customers. Using the rational
model of decision-making, what steps might Andrea take to correct the situation?
Answers will vary, but students should try to cover all the steps in the model; identifying the
problem, identifying alternative solutions, gathering/organizing facts, evaluating alternatives,
choosing/implementing alternatives, and getting feedback.
2. Define bounded rationality. Describe a situation in which you resorted to bounded rationality as a
method of decision-making. What were the results of your decision? Do you think this was the
best way to make a decision under the circumstances? Why or why not?
Bounded rationality is choosing an alternative that meets minimum standards of acceptability.

Answers from students’ personal experiences will vary.
3. Franklin Jones, a supervisor in the buying department for a department store says, ‘I think these
men’s jackets are going to be hot this fall. Let’s place a big order.” What kind of compromises to
rational decision-making is he using in making his decision? According to the decision-making
model, what would be a more rational approach?
Answers will vary. Students should go over the seven types of compromises that people tend to
make to the rational decision-making model and evaluate which of those were made by Franklin.
It is not obvious from this example that any thought went into the decision. At the least, Franklin
has made compromises to the rational decision-making model based on subjective rationality and
personal perspective. There is not enough data to indicate whether Franklin made other type of
compromises (simplicity, recency syndrome, or stereotyping) as well or not.
Students should further elaborate on the rational decision-making model and suggest how Franklin
can best use this model to arrive at a decision. For example, depending on the time and budget
available, he might collect sales data on various types of men’s jackets in his store as well in stores
in the vicinity, analyze that data, and then decide whether or not to stock a particular type of
jacket.
4. In each of the following situations, what is interfering with the supervisor’s ability to make the
best decision? Suggest how the supervisors can improve their decision-making in these situations.
a. “I think this new answering machine model should be blue,” said the design supervisor. “I like
blue.”
Personal perspective. People assume that everyone sees things the way they do. They think if
something is clear to them it is also clear to everyone else. Decision makers must find out
what other people are thinking and take those views into account.
The supervisor is suggesting what he or she would like to see. What is the basis for selecting
blue? What data is available to support the selection of blue or any other color? What other
alternatives are available or practical?
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The supervisor should look at what marketing problem the new answering machine is trying to
answer. What are the alternative potential solutions? He should gather information and
determine the best alternative. The supervisor may also want to involve other employees to
come up with a variety of alternatives.
b. “Let’s conduct training at three o’clock on Fridays,” said the customer service supervisor.
“After all, it’s been slow the last couple of Friday afternoons.”
Bounded Rationality. When it seems impossible or unreasonable to find the best alternative in
the universe, decision makers settle for an alternative they consider good enough. The process
is also known as bounded rationality, that is, the decision maker places limits, or bounds, on
the rational model of decision-making. The decision maker considers alternatives only until he
or she finds one that meets his or her minimum criteria for acceptability.
The supervisor should determine alternatives to Friday afternoons and gather information of
the advantages and disadvantages of all time periods. For example, Friday afternoon may be a
bad time because it is a slow time and some employees are allowed to leave early because of
the lack of business. The end of the week may not be a good time for training because people
are tired and preoccupied with weekend plans.
c. “I’ll bet we could boost sales by attracting more women,” said the sales manager at an auto
dealership. “To generate some traffic, we could hold a little fashion show or a makeup
demonstration or something like that every week or so.”
Stereotyping. Rigid opinions about categories of people distort the truth that people offer a
rich variety of individual strengths and viewpoints. The cure for stereotyping is not to assume
that everyone is alike. Rather, the supervisor should make a conscious, ongoing effort to learn
about the various groups of people represented in the workplace. The supervisor should be
aware of what his or her stereotypes about people and situations are. In making a decision, the
supervisor should consider whether those stereotypes truly describe the situation at hand.
Again, the supervisor should seek out alternative methods of boosting sales. If the best
alternative is to attract more women buyers, then alternative methods of attracting women
should be investigated and the best alternative selected.
5. This chapter presents several guidelines for decision making: Consider the consequences, respond
quickly in a crisis, inform the boss, be decisive but not inflexible, and avoid decision-making
traps. How would those guidelines influence the way a nursing supervisor handles the following
two situations?
a. The supervisor is scheduling nurses for the next month.
When scheduling the nurses for the next month, the supervisor must take into consideration
both the needs of the organization and the nurses. When the consequences of a decision are
great, the supervisor should spend more time on the decision. In some units of the hospital the
consequences of a poor decision may be more serious than in other units. He or she should try
to follow the rational model of decision-making, collecting information and seeking to include
as many alternatives as possible. When the consequences are slight, the supervisor should
limit the time and money spent in identifying and evaluating alternatives.
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b. One of the nurses calls on Friday afternoon to say her father just died, so she will be out next
week.
This is an emergency. The decision must be made quickly. The problem for the supervisor will
not be to allow the nurse to be absent, but how to cover the work for her. Be decisive but not
inflexible. Sometimes it is difficult to say which alternative solution is best, or perhaps none
of the choices looks good enough. In this case it may be difficult to move beyond studying the
alternatives to selection and implementation. Being decisive means reaching a decision within
a reasonable amount of time. The supervisor should pick the best, or at least acceptable, one
and then focus on implementing it.
6. Philip is a supervisor who likes to work independently. Whenever he faces a new situation, he
prefers to analyze it and make his decision without consulting other sources. How might this
method of decision-making impact the results of his decision? What might be a better way for
Philip to proceed?
Philip probably does not make the best informed decisions because he does not gather enough
information. Also, he probably wastes time going over the same ground again and again, instead
of looking for precedents set by others. If he has collected information to use in future decisions,
he would make more effective and efficient decisions.
7. Rita McCormick is the supervisor of the state office that processes sales tax payments. She has
noticed that workers are falling behind and wants to get authorization either to hire two more
employees or to schedule overtime until the work gets caught up. Rita estimates that there is an 80
percent chance the work load will continue to be this high and a 20 percent chance that work will
fall back to previous levels, which the current employees can handle during regular working hours.
(She assumes there is no chance of less work in the future.) Because she will have to pay time and
a half for overtime, she assumes that the cost of paying overtime for a year will be $150,000,
whereas a work force with two more employees will cost only $140,000.
a. Construct a decision tree for this problem.
Students should construct a decision tree based on text Figure 9.5. On the basis of cost involved
for a year, if Rita hires two more employees and work load continues to be high (80 percent
chance), then she would not end up wasting any amount that she spent in hiring of the new
employees. Instead, if work load falls back to previous levels (20 percent chance), then the dollar
value wasted would be 0.2($140,000) = $28,000. If, on the other hand, she does not hire two new
employees, the dollar value wasted would be 0.8($150,000) = $120,000 (work load remains high)
or $0 (work load falls back to previous levels). Therefore, the expected value for hiring is $28,000
while it is $120,000 for not hiring.
b. Which alternative should the supervisor choose?
Based on the decision tree analysis, the supervisor should choose to hire two new employees for
the next one year.
8. What are some advantages of making decisions as a group? What are some of the disadvantages?
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Advantages of group decision-making include the ability of group members to contribute more
ideas for alternatives than an individual working alone. The group will also have a broader
perspective since the experience of the group is broader than the individual. People involved in the
decision will better understand an alternative selected and also be more likely to support the
decision.
Involvement by employees in decision-making also provides an opportunity for improving morale.

Self-esteem can be enhanced when employees’ ideas are heard in a public forum and can then see
the results of their efforts. Recognition of the contributions of groups is a powerful motivator.
Another advantage of group problem solving is the learning that takes place for the members of
the group. They have the opportunity to learn how others fit into the overall work process. It also
provides an opportunity to learn the value of diversity.
One disadvantage of group decision-making is that it is slower than individual decision-making.

There is also a cost to the organization when employees spend their time in meetings rather than
producing or selling. If one person dominates the decision-making process, the value of multiple
inputs is lost.
Groupthink can become another problem. This is when individuals fail to think independently and
realistically, preferring to enjoy consensus and closeness.
9. What are the symptoms of groupthink? What can a supervisor do to overcome groupthink in a
team meeting?
Symptoms of groupthink include: an illusion of being invulnerable; defending the group’s position
against any objections; a view that the group is clearly moral; stereotyped views of opponents;
pressure against group members who disagree; self-censorship; an illusion that everyone agrees. A
supervisor can encourage a variety of viewpoints, emphasizing that group members should be
open thinkers. Or the supervisor might appoint one group member to act as a “devil’s advocate,”
challenging the position of the majority.
10. Roberto Gonzalez wants to make his solutions more creative. When he has a problem to solve, he
sits down at his desk and tries to generate as many alternative solutions as he can. Unfortunately,
he usually gets frustrated before he comes up with an alternative that satisfies him, so he just picks
an acceptable solution and tries to implement it. How can Roberto modify his decision-making
process to come up with more creative ideas?
Creative thinking takes time and the right environment. Roberto should find a time and place that
allow him to think. He should think of as many ideas as he can, writing each one of them down.
He should not evaluate them at the time he is coming up with the ideas. He should then let his
unconscious mind do the work. An idea for a solution will probably pop into his head
unexpectedly. He should shape and develop the idea to make it practical and seek out constructive
criticism.
Roberto can also improve his ability to be creative by reading and using other methods of
gathering knowledge about the subjects he must deal with. Talking with others both inside and
outside his organization will add to his store of knowledge and ideas.
11. How can supervisors foster creativity in their department or work group?
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The most important step a supervisor can take to establish a work climate that encourages creative
thinking is to show that he or she values creativity. When employees offer suggestions, the
supervisor should listen attentively and look for the positive aspects of the suggestions. Then the
supervisor should attempt to implement the suggestions and give the employee credit for the idea.
Failure should be acknowledged as a sign that people are trying. Help employees see what can be
learned from the failures as well as from the successes.
Creating an environment that fosters creativity is not simply listening to alternative solutions when
problems occur. The environment, creative or not, is developed daily and by all levels of the
organization. The supervisor can nurture a creative environment by the way he or she treats people
and their ideas on an ongoing basis. Respect for all employees and appreciation of daily
contributions will create an environment where employees feel valued and are willing to think
about the problems of the workplace and contribute innovative solutions when they are needed.
IV. SKILL-BUILDING
You Solve The Problem
1. Reflecting back on page 231 (A Supervisor’s Problem: Retaining Emergency Dispatchers),

discuss the staffing problem faced by supervisors at emergency-call centers. Is the number of
vacant positions a problem or a symptom of the problem?
The staffing problems at the emergency dispatch centers are critical. There are various reasons for
this: stress, pay rates, hours, etc. The number of vacant position is the symptom of the problem. If
some of these issues related to pay and coverage alternatives are offered, more people may be
available to take the job.
2. If you were a call center supervisor, where would you turn for ideas to solve this problem? Would
getting ideas from actual dispatchers improve the quality of the ideas?
Personal student opinion
Problem-Solving Case: Improvement Ideas from a Costco Cashier
1. How did Steve Heller define the problem described in this case? How did Pam LaBlanc define the
problem? How did the problem definition affect the way these two people initially solved the
problem?
Heller defined the problem as store’s cashiers were not productive enough. Pam defined it as
needing to work with the assistants as a team. Heller took it up with other managers to find a
solution, whereas, Pam worked with the assistants to resolve the issue.
2. What advantages and disadvantages of group decision making does this case illustrate?
Having multiple ideas coming from different perspectives helps managers come up with different
solutions to problems. However, one can get as many if not more ideas by just talking to even one
employee directly, than from other managers. The employees, working hand-on, sometimes see
more than what the store managers do and by using their information, store managers can gain
effective solutions to the problems.
9-30
3. Working alone or in groups of three or four students, list ways that Heller can apply what he
learned from this experience to continue improving cashier performance. In other words, how can
Heller continue enabling employees to improve productivity and quality of service? How might he
continue to include them in problem solving?
Answers will vary. Communicating directly with the employees working on the job and involving
them into innovating solutions can be the key.
Assessing Yourself: How Creative Are You?
Students can get an idea of their own creative thinking by completing the questionnaire provided in the
text (page 255). The list of statements also gives insight to what may lead to more creativity, such as
encouraging open discussion, reading, entertaining new ideas with enthusiasm, and asking questions.
The answers to “Pause and Reflect” will depend on the answers to the quiz.
Class Skills Exercise: Making Decisions
This is a good exercise to allow students to try their hands at creativity by finding as many solutions as
possible for the given problem: reduce energy bills of the school. It will also help students appreciate
the differences in the two approaches to problem solving: working individually versus working as a
group.
Building Supervision Skills: Learning from Mistakes
This exercise allows the students to share their mistakes in a team and analyze what the team can learn
from each mistake.
Supervisor’s Hot Seat Video Case Answers:
“Project Management: Steering the Committee”
1. A supervisor can play many roles while he or she oversees employees. In order to ensure that work
goes according to plan, a supervisor must assert control over situations that arise. Consider the
three in terms of Patrick’s situation. Which control do you believe would have made his project
more successful? Why?
Feedback control—While Patrick uses the feedback of his supervisors, this kind of control deals
with feedback that has been collected after a project is over and a new one is starting. Patrick
needs to assert control during the project.
Concurrent control—This control would be the most likely to be successful, and, in a sense, it is
the one used by Patrick. Because Patrick’s managers talked to him about possible problems half-
way through the project, he was able to address the problem issues before they ruined the success
of the project.
Precontrol—Since Patrick did not foresee having problems with the project, this is probably not
the control that would have helped him manage better.
2. Chapter 6 details several things a supervisor may do to help him or her monitor performance.
What are four tools Patrick could have implemented to avoid the problems his project was heading
toward?
(Some may include)
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Better budgeting
Performance report—having employees provide performance reports and analyzing those reports
Personal observation—keeping closer tabs on where he is in the project
Contingency plan—knowing what to do if he gets off-track
Action plan—make timeliness a main priority in achieving his objective
3. In the second meeting, even though Patrick assures the executives that the project will be under
budget and done in time, they still “strongly suggest” Patrick accepts help to keep him on track.
Why do you think the executives do this?
“Privacy: Burned by the Firewall?”
1. Lynn and Janet are in different departments, and neither person reports to the other or is
technically higher-up on the organization’s scale. Even though this is true, the meeting the women
have seems led by one person—Janet. Look at the section “Characteristics of the Leader” in
Chapter 8. On what values did Janet base her decision to put Willy on administrative leave? In not
informing Lynn of her decision? What were her values in her meeting with Lynn? Likewise, what
were Lynn’s values coming into the meeting with Janet?
Janet bases her decision of putting Willy on leave based on the company’s policies. She wants to
avoid conflict with Lynn, so she takes the action while Lynn is on vacation. In the meeting, Janet
tries to make it clear that she treats all employees (including Lynn) equally in respect to whose
activities they monitor; she does not show very much confidence in the employees. Lynn, on the
other hand, is very confident that Willy was doing good work for her. She comes into the meeting
with Janet trying to prove that she (and her team) needs Willy—his going on leave will affect
productivity.
2. Chapter 8 speaks of leadership styles that are task oriented or people oriented, but points out that
many times a leader is expected to be both. How are Lynn and Janet both task oriented and people
oriented leaders?
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Janet
Task oriented—Janet’s leadership style is clearly more task oriented than people oriented in this
case since Janet’s main reason for putting Willy on leave is that he is breaking company policy.
People oriented—Janet does show a people oriented side with Lynn in that she says she
understands Lynn’s concern for her department being down an employee and says she will help
her find someone else.
Lynn
Task oriented—While Lynn shows concern for her employee, she also wants her department to
run smoothly—being down a person makes this hard to accomplish.
People oriented—Most of Lynn’s concern in her meeting with Janet is that she gets her employee
back: she lets Janet know that he was a valuable employee and part of their team; she wants to do
anything she can to get him back.
3. The meeting between the supervisors was not a success. Choosing to be in either Lynn or Janet’s
shoes, explain how you would have changed your approach during the meeting to enable a
favorable outcome.
9-33

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Supervision Concepts and

Skill-Building 8th Edition Certo

II. TEACHING THE CONCEPTS BY LEARNING OBJECTIVES

Decision: A choice from among available alternatives.

The rational model of decision-making includes the following steps:

3. Teaching examples to identify the steps in the rational model of decision-making.

Tasks Hours Used Percent of

Billing reports 5 16.7

Time/payroll reports 2.5 8.3

Expense reports (mileage and meal allowance) 5 16.7

Safety reports 2.5 8.3

Analysis of Paperwork Tasks

Tasks Hours Used Percent of

Correcting mistakes and omissions of raw data 12 33.3

4. Exercise to identify the steps in the rational model of decision-making.

Bounded rationality: Choosing an alternative that meets minimum standards of acceptability.

Stereotypes: Rigid opinions about categories of people.

Reasons for compromises:

Steps to using this exercise:

The rational model of decision-making includes:

a. Identify the problem

b. Identify the alternative solutions

c. Gather and organize the facts

d. Evaluate the alternatives

e. Select and implement the best alternative

f. Get feedback and take corrective action

Learning Objective 9.3: Describe guidelines for making decisions.

Guidelines for making decisions in the workplace:

Be flexible. Do not assume there is one “right” decision.

2. Teaching examples to describe guidelines for making decisions.

3. Exercise to describe guidelines for making decisions.

b. Disadvantages of group decision-making. Group decision-making is slower than individual

3. Teaching examples to discuss advantages and disadvantages of making decisions in groups.

4. Exercise to discuss advantages and disadvantages of making decisions in groups.

Learning Objective 9.6: Describe guidelines for group decision-making.

3. Teaching examples to describe guidelines for group decision-making.

b. Consensus: advantages and disadvantages. Consensus means reaching a decision everyone

An employee at Honda of America Manufacturing expresses some of the benefits of teamwork

4. Exercise to describe guidelines for group decision-making.

Steps to use the exercise:

Learning Objective 9.7: Describe guidelines for thinking creatively.

Creativity: The ability to bring about something imaginative or new.

A five-step technique for generating creative ideas is given below.

3. Teaching examples to describe guidelines for thinking creatively.

4. Exercise to describe guidelines for thinking creatively.

Learning Objective 9.9: Identify ways to overcome barriers to creativity.

2. Teaching examples to identify ways to overcome barriers to creativity.

• Ask if employees have questions.

3. Exercise to identify ways to overcome barriers to creativity.

1. Get to know employees to better understand their creative ideas or interests.

2. Encourage personal creativity and growth for all employees.

3. Recognize and reward creative suggestions.

III. ANSWERS TO REVIEW AND DISCUSSION QUESTIONS

Bounded rationality is choosing an alternative that meets minimum standards of acceptability.

a. The supervisor is scheduling nurses for the next month.

a. Construct a decision tree for this problem.

b. Which alternative should the supervisor choose?

Involvement by employees in decision-making also provides an opportunity for improving morale.

One disadvantage of group decision-making is that it is slower than individual decision-making.

You Solve The Problem

1. Reflecting back on page 231 (A Supervisor’s Problem: Retaining Emergency Dispatchers),

Personal student opinion

Problem-Solving Case: Improvement Ideas from a Costco Cashier

Assessing Yourself: How Creative Are You?