1. 9-1 Copyright © 2005 Prentice-Hall Chapter 9 Creative Problem Solving Management: A Skills Approach, 2/e by Phillip L. Hunsaker Copyright © 2005 Prentice-Hall

2. 9-2 Copyright © 2005 Prentice-Hall Learning Objectives Stimulate Creativity and Innovation Apply the Five Steps of the Rational Problem Solving Process Appreciate the Value of Ethics in Decision Making Utilize the Strengths and Avoid the Weaknesses of Groups in Solving Problems Apply Quality Management Tools for Problem Solving

3. 9-3 Copyright © 2005 Prentice-Hall The Importance of Effective Problem Solving Managerial success depends on making the right decisions at the right times. The Problem Solving Process Generates Creative Solutions to Problems.

4. 9-4 Copyright © 2005 Prentice-Hall What is Problem Solving? The process of eliminating the discrepancy between actual and desired outcomes

5. 9-5 Copyright © 2005 Prentice-Hall Decision Making Selecting the best solution from among feasible alternatives

6. 9-6 Copyright © 2005 Prentice-Hall The Rational Problem Solving Process Problem Awareness Problem Definition Decision Making Action Plan Implementation Follow-through

7. 9-7 Copyright © 2005 Prentice-Hall Managers are alerted to problems by: Deviation from past experiences Deviation from set plan Communications from others Better performance by competitors

8. 9-8 Copyright © 2005 Prentice-Hall Steps for Problem Awareness Establish Trust Clarify Objectives Assess the Current Situation Identify Problems Routine Problems Nonroutine Problems Flowcharts

9. 9-9 Copyright © 2005 Prentice-Hall Programmed decisionsProgrammed decisions – standard responses based on procedures that have been effective in the past Non-programmed decisionsNon-programmed decisions – innovative solutions tailored to fit specific dilemmas

10. 9-10 Copyright © 2005 Prentice-Hall Receiving Parts Boxes damaged? OK? OK Vendor Quality Approved? To Final Assembly Return parts Take sample Heat test Continuity Test Notify Carrier Yes No Yes Flowchart

11. 9-11 Copyright © 2005 Prentice-Hall Problem Definition Process Analyze Problems Cause-and-Effect Diagram Fishbone Agree on Problems to Be Solved

12. 9-12 Copyright © 2005 Prentice-Hall Cause-and-Effect Diagram Cause-and-Effect Diagram

13. 9-13 Copyright © 2005 Prentice-Hall Major Causes Of Problems Manpower MaterialMachines Methods

14. 9-14 Copyright © 2005 Prentice-Hall Decision-Making Process Establish Decision-Making Criteria Specific, Measurable, and Attainable Complementary Ethical Acceptable Develop Action Alternatives

15. 9-15 Copyright © 2005 Prentice-Hall Decision-Making Process [cont.] Evaluate Benefits and Risks of Alternatives Certainty Known Risk Uncertainty Turbulence

16. 9-16 Copyright © 2005 Prentice-Hall Decision-Making Process [cont.] Perfect Rationality Bounded Rationality Satisficing Decide on a Plan

17. 9-17 Copyright © 2005 Prentice-Hall Action Plan Implementation Assign Tasks and Responsibilities Establish an Implementation Schedule Time line Gantt Chart

18. 9-18 Copyright © 2005 Prentice-Hall Gantt chart Graphic planning and control method that breaks down a project into separate tasks and estimates the time needed for their completion Makes certain that all implementation tasks are considered in relation to each other and appropriate people are assigned

19. 9-19 Copyright © 2005 Prentice-Hall Gantt Chart

20. 9-20 Copyright © 2005 Prentice-Hall Follow-Through Establish Criteria for Measuring Success Monitor the Results Take Corrective Action

21. 9-21 Copyright © 2005 Prentice-Hall Degrees of Decision Participation Autocratic Consultative Group

22. 9-22 Copyright © 2005 Prentice-Hall Criteria for Participation Quality Requirements Acceptance Requirements Time Requirements

23. 9-23 Copyright © 2005 Prentice-Hall Decision Tree for Decision Making Participation

24. 9-24 Copyright © 2005 Prentice-Hall Advantages in Making Group DecisionsAdvantages in Making Group Decisions Greater amounts of knowledge More diverse viewpoints Increased probability of acceptance Better implementation

25. 9-25 Copyright © 2005 Prentice-Hall Disadvantages of Making Group DecisionsDisadvantages of Making Group Decisions More Time Investment Individual Agendas Diffusion of Responsibility Pressure to Conform Groupthink

26. 9-26 Copyright © 2005 Prentice-Hall Characteristics of Managers Who Generate Creativity Absorb Risks Can Live with Half-Developed Ideas Stretch Normal Policies Good Listeners Don’t Dwell on Mistakes Trust Their Intuition Are Enthusiastic and Invigorating

27. 9-27 Copyright © 2005 Prentice-Hall Promoting Creative Thinking in Organizations Brainstorming Nominal Group Technique Delphi Technique Group Decision Support Systems Encouraging Creativity

28. 9-28 Copyright © 2005 Prentice-Hall