© 2010 Cengage/South-Western.All rights reserved.

Chapter 5:Chapter 5:SOLVING PROBLEMS: SOLVING PROBLEMS: DECISION MAKING DECISION MAKING AND THE SUPERVISORAND THE SUPERVISORLeonard: Supervision 11eLeonard: Supervision 11e

Chapter 5:Chapter 5:SOLVING PROBLEMS: SOLVING PROBLEMS: DECISION MAKING DECISION MAKING AND THE SUPERVISORAND THE SUPERVISORLeonard: Supervision 11eLeonard: Supervision 11e

© 2010 Cengage/South-Western. All rights reserved.5–2

AFTER STUDYING THIS AFTER STUDYING THIS CHAPTER, YOU WILL BE ABLE CHAPTER, YOU WILL BE ABLE TO:TO:

AFTER STUDYING THIS AFTER STUDYING THIS CHAPTER, YOU WILL BE ABLE CHAPTER, YOU WILL BE ABLE TO:TO:1.1. Explain the importance of problem-solving and Explain the importance of problem-solving and

decision-making skills.decision-making skills.

2.2. Describe the types of decisions made in organizations.Describe the types of decisions made in organizations.

3.3. Describe and apply the basic steps of the decision-Describe and apply the basic steps of the decision-making process.making process.

4.4. Identify and describe various decision-making styles.Identify and describe various decision-making styles.

5.5. Explain why a supervisor should not make hasty Explain why a supervisor should not make hasty decisions.decisions.

© 2010 Cengage/South-Western. All rights reserved.5–3

The Importance of Decision-Making The Importance of Decision-Making SkillsSkills

• Decision MakingDecision Making Is defining problems and choosing a course of action Is defining problems and choosing a course of action

from among alternatives.from among alternatives. Helps supervisors find solutions for problems that Helps supervisors find solutions for problems that

result from changing situations and unusual result from changing situations and unusual circumstances.circumstances.

Can significantly affect departmental results.Can significantly affect departmental results.

• Appreciative Inquiry (AI)Appreciative Inquiry (AI) The cooperative search for the best in people, The cooperative search for the best in people,

organizations, and the world around them.organizations, and the world around them. At the heart of AI is asking questions.At the heart of AI is asking questions.

© 2010 Cengage/South-Western. All rights reserved.5–4

Types of DecisionsTypes of Decisions

• Programmed DecisionsProgrammed Decisions Are solutions to repetitive and routine problems Are solutions to repetitive and routine problems

provided by policies, procedures, or rules.provided by policies, procedures, or rules. Example: Starting your car.Example: Starting your car.

• Nonprogrammed DecisionsNonprogrammed Decisions Are solutions to unique problems that require Are solutions to unique problems that require

judgment, intuition, and creativity.judgment, intuition, and creativity. Example: Deciding which color to paint your car.Example: Deciding which color to paint your car.

© 2010 Cengage/South-Western. All rights reserved.5–5

FIGURE FIGURE 5.5.22 Effective supervisors follow the decision-making process.Effective supervisors follow the decision-making process.

© 2010 Cengage/South-Western. All rights reserved.5–6

FIGURE FIGURE 5.5.55 Sample fishbone (cause-and-effect) diagram.Sample fishbone (cause-and-effect) diagram.

Fishbone technique (cause-and-effect diagram):Cause-and-effect approach to consider the potential interrelatedness of problem causes in decision making.

© 2010 Cengage/South-Western. All rights reserved.5–7

FIGURE FIGURE 5.5.66 Sample decision criteria.Sample decision criteria.

THE SOLUTION TO A PROBLEM• Should result in the work assignments being completed on time.

• Should incur no financial cost.

• Must not impede quality of service to the customer.

• Should put no employee’s job in jeopardy.

• Should allow differentiation of product or service in the marketplace.

• Should have no negative impact on employees.

• Must alleviate the problem within one week.

Decision criteria:Standards or measures to use in evaluating alternatives.

© 2010 Cengage/South-Western. All rights reserved.5–8

The Decision-Making Process: The Decision-Making Process: Developing AlternativesDeveloping Alternatives

• BrainstormingBrainstorming Is the free flow of ideas in a group, while Is the free flow of ideas in a group, while

suspending judgment, aimed at developing many suspending judgment, aimed at developing many alternative solutions to a problem.alternative solutions to a problem.

• Guidelines for Brainstorming:Guidelines for Brainstorming: Defer all judgment of ideas.Defer all judgment of ideas. Seek many ideas.Seek many ideas. Encourage “free wheeling.”Encourage “free wheeling.” ““Hitchhike” on existing ideas.Hitchhike” on existing ideas.

© 2010 Cengage/South-Western. All rights reserved.5–9

The Decision-Making Process: The Decision-Making Process: Developing Alternatives (cont’d)Developing Alternatives (cont’d)

• Nominal Group Technique (NGT)Nominal Group Technique (NGT) A group brainstorming and decision-making A group brainstorming and decision-making

process by which individual members first identify process by which individual members first identify alternative solutions privately and then share, alternative solutions privately and then share, evaluate, and decide on an approach as a group.evaluate, and decide on an approach as a group.

© 2010 Cengage/South-Western. All rights reserved.5–10

The Decision-Making Process: The Decision-Making Process: Developing Alternatives (cont’d)Developing Alternatives (cont’d)

• Ethical ConsiderationsEthical Considerations Ethical “tests”: considerations or guidelines to be Ethical “tests”: considerations or guidelines to be

addressed in developing and evaluating ethical addressed in developing and evaluating ethical aspects of decision alternatives.aspects of decision alternatives. Legal/Compliance testLegal/Compliance test

Public-knowledge testPublic-knowledge test

Long-term-consequences testLong-term-consequences test

Examine-your-motives testExamine-your-motives test

Inner-voice testInner-voice test

Fairness testFairness test

© 2010 Cengage/South-Western. All rights reserved.5–11

Ethical ConsiderationsEthical Considerations

It cannot be stressed enough that when It cannot be stressed enough that when supervisors believe an alternative is questionable supervisors believe an alternative is questionable or might be unacceptable within the firm’s ethical or might be unacceptable within the firm’s ethical policies, they should consult their managers, the policies, they should consult their managers, the human resources department, or other staff human resources department, or other staff specialists who can provide guidance in how to specialists who can provide guidance in how to proceed. proceed.

© 2010 Cengage/South-Western. All rights reserved.5–12

The Decision-Making Process:The Decision-Making Process:Selecting the Best Alternative Selecting the Best Alternative

(cont’d)(cont’d)• OptimizingOptimizing

Selecting the best alternative.Selecting the best alternative. Example: finding the filling station selling the cheapest gasExample: finding the filling station selling the cheapest gas

• SatisficingSatisficing Selecting the alternative that meets the minimal Selecting the alternative that meets the minimal

decision criteria.decision criteria. Example: Buying gas at the first filling station you come to Example: Buying gas at the first filling station you come to

after running out of gas on the highway.after running out of gas on the highway.

© 2010 Cengage/South-Western. All rights reserved.5–13

Bases for Bases for Choosing the Best Choosing the Best

AlternativeAlternativeExperienceExperienceExperienceExperience

IntuitionIntuitionIntuitionIntuition

Advice from OthersAdvice from OthersAdvice from OthersAdvice from Others

ExperimentationExperimentationExperimentationExperimentation

QuantitativeQuantitativeQuantitativeQuantitative

© 2010 Cengage/South-Western. All rights reserved.5–14

The Decision-Making Process:The Decision-Making Process:Selecting the Best Alternative Selecting the Best Alternative

(cont’d)(cont’d)• Guidelines to decide whether groups should be included Guidelines to decide whether groups should be included in the decision-making process:in the decision-making process: If additional information would increase the quality of the If additional information would increase the quality of the

decision, involve those who can provide that information.decision, involve those who can provide that information.

If acceptance of the decision is critical, involve those whose If acceptance of the decision is critical, involve those whose acceptance is important.acceptance is important.

If people’s skills can be developed through participation, involve If people’s skills can be developed through participation, involve those who need the development opportunity.those who need the development opportunity.

If the situation is not life-threatening and does not require If the situation is not life-threatening and does not require immediate action, involve others in the process.immediate action, involve others in the process.

© 2010 Cengage/South-Western. All rights reserved.5–15

Decision-Making StylesDecision-Making Styles

• To understanding your decision-making style, analyze a To understanding your decision-making style, analyze a recent decision from the following perspective:recent decision from the following perspective: What worked?What worked? What actually happened as a result of the decision?What actually happened as a result of the decision? What feedback did you receive about the success of a decision?What feedback did you receive about the success of a decision? What style did you use to make the successful decision?What style did you use to make the successful decision? What didn’t work?What didn’t work? Why didn’t it work?Why didn’t it work? What caused the differences between the intended outcome and What caused the differences between the intended outcome and

what actually occurred?what actually occurred? What kind of feedback did you receive about a “failed” decision?What kind of feedback did you receive about a “failed” decision? What decision-making style did you use to make the “failed” What decision-making style did you use to make the “failed”

decision?decision?

© 2010 Cengage/South-Western. All rights reserved.5–16

FIGURE FIGURE 5.5.77

What is your What is your decision-decision-making making style?style?

Source: Source: Reprinted from Training Clips: 150 Reproducible Handouts, Discussion Starters, and Job Aids, by Mike Lynch and Harvey Lifton, copyright © 1998. Reprinted by permission of the publisher: HRD Press, Amherst, MA (800-822-2801), http://www.hrdpress.com.

© 2010 Cengage/South-Western. All rights reserved.5–17

Time Impacts the Decision-Making Time Impacts the Decision-Making ProcessProcess

• Most problems do not require immediate Most problems do not require immediate answers.answers. Applying participative supervision to a problem Applying participative supervision to a problem

request:request: How extensive is the problem?How extensive is the problem? Does the situation need an immediate response?Does the situation need an immediate response? Who else (the stakeholders) is affected by the problem?Who else (the stakeholders) is affected by the problem? Should they (the stakeholders) be involved in this Should they (the stakeholders) be involved in this

discussion?discussion? Ask if the employee has thought through the problem, and Ask if the employee has thought through the problem, and

does the employee have an idea of what the end result does the employee have an idea of what the end result should be?should be?

What does the employee recommend? Why?What does the employee recommend? Why?

© 2010 Cengage/South-Western. All rights reserved.5–18

KEY TERMSKEY TERMS

• Appreciative Inquiry (AI)Appreciative Inquiry (AI)

• BrainstormingBrainstorming

• Decision criteriaDecision criteria

• Decision makingDecision making

• Decision-making processDecision-making process

• Ethical “tests”Ethical “tests”

• Fishbone technique (cause-and-effect diagram)Fishbone technique (cause-and-effect diagram)

• Nominal group technique (NGT)Nominal group technique (NGT)

• Nonprogrammed decisionsNonprogrammed decisions

• OptimizingOptimizing

• Programmed decisionsProgrammed decisions

• SatisficingSatisficing