Problem solving models

1. Problem solving models • Rational problem solving • Creative problem solving

2. RationalDecision Making Model 1. Identify problem 6. Evaluate decision 2. Choose decision style 5. Implement solution 3. Develop alternatives 4. Choose best solution

3. Problem Identification Concerns • Perceptual Biases • Perceptual defense • Political influence by others • Mental models • Poor Diagnostic Skills • Need to make sense • Lack of time • Complex situation • Defining solutions as problems Corel Corp. With permission

4. Identifying Problems Effectively • Be aware of perceptual limitations • Discuss the situation with colleagues • Create early warning signs • Use information technology Corel Corp. wWth permission

5. Problems with Choosing Solutions • Goals problems • Ambiguous, conflicting • Biased by personal goals • Info processing problems • Selective attention • Limited info processing • Sequential evaluation with implicit favourite • Maximizing problems • Tend to satisfice Corel Corp. With permission

6. Choosing Solutions Effectively • Systematically evaluate alternatives • Decision support systems • Scenario planning • Intuition (with caution) Corel Corp. With permission

7. Intuitive Decision Making • Ability to know when a problem or opportunity exists and select the best course of action without conscious reasoning • Conduit for tacit knowledge • Logical reasoning that became habit

8. Insight Incubation Creative Process Model Verification Preparation

9. Creativity at Millenium Technology Illich Cheng and his employees at Millennium Technology Inc. have the persistent motivation and insight to design a better magnetic resonance imaging system (MRI). Some people are more creative than others due to their intelligence, experience, inventive thinking style, and persistence. R. Ernst, Vancouver Province

10. Characteristics of Creative People • Intellectual abilities • Synthetic, general, practical • Relevant knowledge and experience • Motivation and persistence • Inventive thinking style R. Ernst, Vancouver Province

11. Creative Work Environment • Organizational support • Tolerates mistakes • Encourages communication • Offers job security • Intrinsically motivating work • Task significance, autonomy, feedback • Self-leadership • Flow — align competencies with job • Sufficient time and resources

12. Creative Practices Redefinethe Problem Associative Play Cross-Pollination • Jamming • Review past projects • Tell me, stranger • Chain story • Artistic activities • Metaphors • Morphological analysis • Diverse teams • In-house presentations

13. De Bono’s Six Hats The quality of our thinking will determine the quality of our future.”Dr. Edward de Bono • ·Avoid impulsive behaviour and snap judgments. • ·See alternatives not difficulties or dilemmas. • ·Improve decision making and idea generating skills. • ·Increase ability to consider the consequences before taking action. • ·Work more productively when working with others in a group.

14. The Hats • White Hat - Information – Facts; what you have, what you need and where to get it. • Red Hat - Feelings – Intuition and instincts. • Black Hat - Caution – Dangers and potential problems. • Yellow Hat - Benefits - Positive aspects and values. • Green Hat - Creativity – Alternatives, options, new concepts and perceptions. • Blue Hat - Managing the thinking – Ensuring rules are observed, sequencing hats and decision taking.

15. Team Decision Making Constraints • Time constraints • Process loss • Production blocking • Evaluation apprehension • Belief that other team members are silently evaluating you • Conformity to peer pressure • Suppressing opinions that oppose team norms © Photodisc. With permission.

16. Team Constraints: Groupthink • Tendency in highly cohesive teams to value consensus at the price of decision quality • More common when the team: • is highly cohesive • is isolated from outsiders • faces external threat • has recent failures • leader tries to influence decision © Photodisc. With permission.

17. Team Constraints: Group Polarization • Tendency for teams to make more extreme decisions than individuals alone • Riskier options usually taken because of gambler’s fallacy — believe luck is on their side © Photodisc. With permission.

18. Decision Process Team Decision Individual Opinions Team Decision Group Polarization Process High Risk Social Support Persuasion Shifting Responsibility Low Risk

19. Improving Team Decision Making 1. Ensure neither leader nor any member dominates 2. Maintain optimal team size 3. Team norms encourage critical thinking 4. Introduce effective team structures

20. Generating Constructive Controversy • Form heterogeneous decision making team • Ensure team meets often to face contentious issues • Members should take on different discussion roles • Team thinks about the decision under different scenarios

21. Features of Brainstorming 1. No criticism 2. Encourage many ideas 3. Speak freely 4. Build on others’ ideas E. Luse. San Francisco Chronicle

22. Evaluating Electronic Brainstorming Benefits • Less production blocking • Less evaluation apprehension • More creative synergy • More decision efficiency Problems • Too structured • May be costly • Lacks interpersonal dynamics • Candid feedback is threatening Photo: Courtesy of IBM Canada

23. IndividualActivity IndividualActivity TeamActivity Write down possible solutions Possible solutions described to others Vote on solutions presented Nominal Group Technique Describe problem

24. Escalation of Commitment Escalation occurred when the British government continued funding the Concorde supersonic jet long after it’s lack of commercial viability was apparent. To this day, some scholars refer to escalation of commitment as the “Concorde fallacy.” © Corel Corp. With permission

25. Escalation of Commitment Causes • Self-justification • Gambler’s fallacy • Perceptual blinders • Closing costs © Corel Corp. With permission

26. Employee Involvement Defined The degree that employees share information, knowledge, rewards, and power throughout the organization • active in decisions previous outside their control • power to influence decisions • knowledge sharing

27. Informal Formal Statutory Voluntary Direct Representative Casual information exchanges Example: Boss asks for ideas Codified practices Example: SDWTs at TRW Canada Required by law Example: European codetermination No legal requirement Example: Strategic task force Employees personally involved Example: Staff vote against smoking in the workplace Reps decide for other employees Example: Employee reps as directors Forms of Employee Involvement

28. Levels of Employee Involvement High involvement — Employees have complete decision making power (e.g., SDWTs) Full consultation — Employees offer recommendations (e.g., gain sharing) Selective consultation — Employees give information, but don’t know the problem High Medium Low

29. Identify and define problems better Usually identify more and better solutions More likely to selectthe best option How Involvement Improves Decisions Employee Involvement

30. Contingencies of Employee Involvement • Decision quality • Decision commitment • Decision conflict • Structured problem

31. Overcoming Involvement Challenges • Cultural Differences • Better in collectivist and low power distance cultures • Management Resistance • Educate/train managers to become facilitators • Employee and Union Resistance • Concerns about increased stress, giving up union rights, and union power • Solution is trust and involvement