1. Creative Problem Solving
Chapter 8
Decision Making
And
Creative Problem Solving
Rebecca Sosa
Cydney McElvaney
Christy Barge
Lori Armstrong
Philip Smith

2. Chapter Objectives
Specify at least five sources of decision complexity for modern managers.
Explain what a condition of risk is and what managers can do to cope with it.
Define and discuss the three decision traps: framing, escalation or commitment, and overconfidence.
Discuss why programmed and no-programmed decisions require different decision-making prodedures.

3. Chapter Objectives Cont.
Explain the need for a contingency approach to group-aided decision making.
Identify and briefly describe five of the ten “mental locks” that can inhibit creativity
List and explain the four basic steps in the creative problem-solving process
Describe how causes of problems can be tracked down with fishbone diagrams

4. Most Relevant Objectives
Sources of complexity for Today’s Managerial Decision Makers (see page 230, Figure 8.1)
Multiple Criteria
Intangibles
Risk and Uncertainty
Long-Term implications
Interdisciplinary input
Pooled Decision making
Value judgments

5. Most Relevant Objectives Cont.
Identifying the problem
What is the Actual situation? What is the Desired situation? What is responsible for the difference between actual and desired?
Generating alternative solutions
Objective and analytical approach
Subjective and intuitive approach
Selecting a solution
Is the solution effective? Is the solution efficient?
Implementing and evaluating the solution
Are desired and actual now the same?

6. Opening Case: Three Women in Pursuit of an Internet Dream
Erin Gershon, Stacy Sukov, Nicole Ginsburg
Web Wishers (an online gift registry for kids)
After college they merged their idea with Della Kidz or Della.com
Della Kidz
45 million in backing, around one hundred people work there who are mostly all in their 20’s and are very stylish
Nicole Ginsburg
Forges alliances with web portals like Disney’s GO network

7. Opening Case Cont. Erin Gershon Stacy Sukov Rebecca
Account Management (Develops partnerships with retailers)
Spends most of her day doing field calls (30-40 comp)
Asks them to “change their marketing model, resource allocation, web site and then to give money”
Stacy Sukov
Product manager
Approves all design and engineering decisions for the site
Market Research “Kid Crew”
Rebecca
“Game over” and “Concrete goals”
Work is very chaotic, Job roles shift and there are unforgiving deadlines

8. The Global Manager
Programmed for ethical decision making at Citizens Bank of Canada
Recently announced new ethical policy, and make a commitment to performing an annual third-party audit of compliance.
Offers services through telephone, automated tellers, and the internet
The Ethical policy is against the bank doing business with companies that:
Violate Human rights, Produce nuclear energy or tobacco products, Harm the environment, Have poor employee relations records, etc.
Citizens Bank of Canada is a socially responsible Bank

9. Most Important Subheading: Making Decisions Programmed vs
Most Important Subheading: Making Decisions Programmed vs. Non-programmed
Programmed Decisions
Repetitive and routine - Hiring, billing, supply recorder, and pricing decisions
Decision rules – Statement telling when and how the decision will be handled
Non-programmed Decisions
Complex and unusual – Mergers, marketing of new products, unexpected situations
Six questions to ask prior to making a Decision – (see following slide)

10. Most Important Subheading Cont.
What decision need to be made?
When does if have to be made?
Who will decide?
Who will need to be consulted?
Who will ratify or veto the decision?
Who will need to be informed?
Creative Problem Solving

11. Most Confusing
This chapter talks about all sorts of problems, but it never tells you what to do if the problem is to big.