Management Fundamentals

Concepts, Applications, Skills Development

Creative Problem Solving & Decision Making
3A

1. Classify/define

2. Set objectives
3. Generate alternatives

6

4. Analyze alternatives
5. Plan/implement 6. Control

Steps in DecisionMaking Model

3-1

Decision-Making Styles
•Reflexive
•Reflective •Consistent
3-2

Reflexive Style
• Makes quick decisions (shooting from hip) without taking time to gather all information needed or considering all alternatives.

3-3

Reflective Style
•Takes plenty of time to make decisions, gathering and analyzing several alternatives
3-4

Consistent Style
•Makes decision without rushing or wasting time.
3-5

Potential Advantages & Disadvantages of Using Group Decision Making
Potential Advantages
1. Better quality decisions 2. More information, alternatives, creativity, and innovation 3. Better understanding of the decision 4. Greater commitment to the decision 5. Improved morale and motivation 6. Good training
3-6

Potential Disadvantages
1. Wasted time and slower decision making

2. Satisficing
3. Domination and goal displacement 4. Conformity and groupthink

Classifying the Problem or Opportunity Continuums Relationship among:
Nonprogrammed Decision (Significant, nonrecurring and nonroutine)

Decision-Making Structure
Programmed Decision (Nonsignificant, recurring, and routine)

Decision-Making Conditions
Uncertainty (Outcome of alternatives unpredictable) Risk Certainty (Outcome of alternatives predictable)

Which Decision Model to Use
Decision-Making Model (Optimizing) Bounded Rationality Model ( Satisficing)

When to Use Group or Individual Decision Making
Group Decisions Individual Decisions

3-7

Brainstorming
•The process of suggesting many possible alternatives without evaluation.
3-8

Group Decision-Making Techniques That Foster Creativity & Innovation
Brainstorming Synectics

Nominal Grouping
Consensus Mapping
The Delphi Technique

Creativity

Innovation

3-9

Delphi Technique
•Involves a series of questionnaires to refine a solution.
3-10

Creativity Killers
• Can’t be done. • Never done it. • Anyone else tried it? • Costs too much. • Isn’t in the budget. • Let’s form a committee. • Will not work in our department/ company/ industry.
3-11

Decision Trees
• A diagram of alternatives. The diagram gives a visual of the alternatives making analyzing easier.
3-12

Break-Even Analysis Capital Budgeting

Quantitative Techniques

Linear Programming
Queuing Theory Probability Theory
3-13

Alternative Analysis Techniques Continuum
Quantitative Techniques (Objective)
(Maximal use of math to make the decision)

Kepner-Tregoe Method

Cost-Benefit (Subjective)

(Minimal use of math to make the decision)

3-14

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