1. 1 Chapter 5 Problem Solving and Decision Making

2. 2 Steps in Problem Solving and Decision Making Identify and Diagnose Problem Choose One Alternative Solution Develop Alternative Solutions Implement the Decision Evaluate Alternative Solutions Evaluate and Control

3. 3 Bounded Rationality People usually do not make entirely rational decisions (they are bounded). People do the best with what they have in making decisions. Decision makers often look for satisficing decisions (just suffice). People often use heuristics, or simplified strategies (rules of thumb).

4. 4 Influences on Decision Making Intuition (experience helps) Personality (such as perfectionism) and cognitive intelligence Emotional intelligence (includes self- awareness and self-management) Quality and accessibility of information Political considerations

5. 5 Influences on Decision Making, continued Degree of certainty (certainty, risk, uncertainty) Values of the decision maker (such as desire for status quo, interest in human welfare) Procrastination (can lead to indecisiveness and inaction)

6. 6 Decision-Making Styles 1. Decisive (one option, less information) 2. Flexible (many options, less information) 3. Hierarchic (one option, more information) 4. Integrative (many options, more information)

7. 7 Nominal Group Technique 1. Gather the group. 2. Leader presents a specific question. 3. Members write down ideas alone. 4. Each participant presents one idea to the group on computer or flip-chart. 5. Group clarifies, evaluates alternatives. 6. Alternatives are rated independently and votes tallied to choose best one.

8. 8 The Creative Personality Emotionally open and flexible Breaks the rules, and can be a maverick Emphasizes lateral rather than vertical thinking Willing to support unusual idea world is not ready to accept

9. 9 Conditions Necessary for Creativity Expertise (knowledge to put facts together) Creative-thinking skills and internal motivation Environmental need plus conflict and tension Encouragement from others

10. 10 The Creative and Innovative Organization 1. Challenge (right type and amount) 2. Freedom (to choose how to reach goal) 3. Resources (time and money) 4. Organizational support (rewards) 5. Greater diversity in groups

11. 11 Organizational Programs for Improving Creativity Creativity training Brainstorming Systematically gathering ideas Appropriate physical surroundings (encouragement of interaction, and even natural light)

12. 12 Creativity-Building Suggestions 1. Keep track of your ideas. 2. Stay current in your field. 3. Improve your sense of humor. 4. Adopt a risk-taking attitude. 5. Identify your best times for creativity. 6. Step back when facing idea block.