978-0538731089 Chapter 6 Solution Manual

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Chapter 6

Effective Decision Making: Your Competitive Advantage

JUMP START

This scenario helps highlight how important and complicated effective decision making can be in

today’s complex business environment. The better students are at making decisions effectively,

the more valuable they are to their organization.

Emphasize to students that the organization is an integrated system and changing one area such as

productivity has a great effect on another area, in this case, creativity. Remind them that both

productivity and creativity are necessary in today’s organizations.

Answers to Jump Start Questions

Answers will vary. Point out to students that if 3M did not improve its productivity it

CHAPTER PREVIEW

OBJECTIVES

After studying this chapter, you should be able to:

6.1 Understand why effective decision making is important and how to make good decisions.

6.2 Connect critical thinking skills to effective decision making and be able to devise a plan to

strengthen your critical thinking.

6.3 Understand why creativity is important when making decisions.

6.4 Recognize problems and understand why resolving them can be complicated.

PRESENTATION OUTLINE

(Supplementary Exercise 6.1)

Jump Start

6.1. Importance of Effective Decision Making

A. Making Better Decisions

1. Determine what decisions Should Be Made First

(Case Study 6.1—The 80-20 Rule)

2. Determine Whether an Individual or Group Should Decide

(Supplementary Exercise 6.2)

3. Choose Decision Making Tools

B. Technology Connection

C. Ask Yourself

Chapter 6 Effective Decisionmaking: Your Competitive Advantage 1

6.2 Improving Critical Thinking

A. Distinguishing Fact from Opinion

B. Understanding Primary and Secondary Sources

C. Evaluating Information Sources

D. In the News

E. Recognizing deceptive arguments

F. Identifying Ethnocentrism and Stereotypes

G. Ethics Connection

(Supplementary Exercise 6.3)

H. Ask Yourself

6.3 Nurturing Creativity and Innovation

A. The Five Stages of the Creative Process

B. Unleashing Your Creativity

1. Information Overload

2. Unproductive Thought Processes

3. Emotional Blocks

4. Cultural Blocks

5. Environmental Blocks

(Supplementary Exercise 6.4 using T.M. 6.1A–B)

C. Turning Creativity into Innovation

D. Global Connection

E. Ask Yourself

6.4 Problems and Solutions

A. Types of Problems and Their Resolution

1. Identify the Problem

2. Generate Ideas

3. Evaluate Ideas for Practicality

4. Determine a Plan of Action

5. Implement the Plan

6. Evaluate the Effectiveness of Your Plan

B. Technology Connection

(Case Study 6.2—Help! Help!)

C. Ask Yourself

TEACHING-LEARNING SUGGESTIONS

Supplementary Exercise 6.1 (Personal Decision Making)

Introduce Chapter 6 by asking how many decisions each student has made in the last week. The

count should include mundane decisions such as what to eat and what to wear. Then ask how

many chose to get input from others on their decisions. Ask students what they find difficult in

making decisions.

6.1 Importance of Effective Decision Making

Decision making in today’s fast paced environment is complex. It is important to understand, not

only how the process of effective decision making works, but to appreciate which decisions need

to be made first and who should be included in making those decisions. Because of the vast

quantity of information available with which to make decisions, decision making tools can be of

great help. However, they should be used as aids and never replace common sense.

2 Human Relations—Instructor’s Resource CD

Supplementary Exercise 6.2 (Group Decision-Making Exercise)

Divide the class into groups of approximately six students each. Ask each group to prioritize the

following list of items to have if they were stuck in their car during a snowstorm. They should use

the numbers 1 through 8 to rank the items in order from most important to least important.

Compass

Cigarette lighter

Pocket mirror

First aid kit

Sun screen

FM radio

Blanket

Box of crackers

Give the groups approximately 30 minutes to reach consensus on the order of the list items. Tell

students that they must reach consensus; they may not vote or decide rankings based on “majority

rules.” The decisions must be unanimous.

After 30 minutes, ask each group to record its rankings on the board. Then, ask groups to relate

how they reached their decisions and what feelings or problems they encountered in reaching

consensus. Apply decision-making skills and techniques from the chapter to points that come up

in discussion.

Answer to Technology Connection

Answers to Ask Yourself

6.2 Improving Critical Thinking

Because of the volume of information available today which can be used to make decisions, the

skill of critical thinking is more important than ever. Decisions made with distorted or inaccurate

information are less effective and can sometimes have disastrous consequences. With an open

mind, critical thinkers gather information, analyze it, and come to conclusions and solutions

based on their analysis. Critical thinking can be greatly enhanced by developing the following:

Distinguishing fact from opinion,

Understanding the differences between primary and secondary sources,

Evaluating information sources,

Recognizing deceptive arguments, and

Identifying ethnocentrism and stereotypes.

Chapter 6 Effective Decisionmaking: Your Competitive Advantage 3

Answers to In The News

Answers to Ethics Connection

Answers to Ask Yourself

Supplementary Exercise 6.3 (Taking a Closer Look)

Have students bring articles from a magazine or internet which support opposing viewpoints on

any topic they wish. Topics can include ones such as global warming, assisted suicide, stem cell

research, and nuclear power. As a group, analyze the articles critically. Have students identify

facts and opinions and determine whether the sources are primary or secondary. Next, as a group,

evaluate the expertise of the individual who authored the article. Is there any evidence of

ethnocentrism or stereotypes?

6.3 Nurturing Creativity and Innovation

Creativity has moved to the forefront today as a skill that will boost your career. Without

creativity companies cannot offer new and innovative products and services which are vital to

remain competitive.

Creativity is a thinking process that solves a problem or achieves a goal in an original and useful

way. It is the ability to come up with new and unique solutions to problems. A creative person has

the ability to see practical relationships among things that are not similar and to combine

elements into new patterns of association.

Sources of creativity reside in customers, clients, and employees. New ideas are not usually

immediately embraced in a company; they must be cultivated and supported from conception to

implementation and must have a champion. Supervisors can stimulate creativity by suspending

judgment, tolerating a reasonable amount of failure, supervising carefully, offering constructive

criticism, and tolerating some different behavior.

Supplementary Exercise 6.4 (Measure Your Creative Potential)

1. Have students complete Teaching Master 6.1A–B and calculate their potential.

2. Review the characteristics of creative people and suggestions for developing creativity given

in this chapter. Emphasize that the results are suggestive and that creativity can be developed.

Answers to Global Connection

1. Answers will vary. Point out that many times you may not be aware of small things such as a

4 Human Relations—Instructor’s Resource CD

2. Answers will vary.

Answers to Ask Yourself

1. Answers will vary. Remind students that “Thinking out of the box” is easier for some people

2. Answers will vary. Frequently, doing things the way they have always been done is easier for

3. Answers will vary.

6.4 Problems and Solutions

Supplementary Exercise 6.2 (Brainstorming)

1. First, show and discuss Teaching Master 6.2, The Brainstorming Process.

2. Then lead a brainstorming session on one or more of the following topics, pointing out stages

3. Review the brainstorming process handout using the group’s process as an example.

Answers to Technology Connection

Answers to Ask Yourself

KEY TERMS DEFINITIONS

80-20 Rule Rule that says 20 percent of your problems will account for 80 percent of your

losses or gains.

Groupthink group members go along with an idea simply because the majority likes it.

Consensus a solution that all members can support, even if it’s not each member’s first

Chapter 6 Effective Decisionmaking: Your Competitive Advantage 5

DSS (decision support systems) computer applications that help sort through large amounts

Critical thinking process of evaluating what other people write or say in order to determine

Fact a thing that is known to be true, to exist, or to have occurred.

Opinion a view about a particular issue and is not necessarily true.

Context the interrelated situation in which an event occurs.

Stereotypes attitudes which assume all members of a group share the same set of

Ethnocentrism The belief that one’s own nationality, religion, or cultural traditions and

Creativity Thinking process that solves a problem or achieves a goal in an original and

Innovation The end product of a creative activity.

Preparation Acquiring skills, background information, and resources for sensing and

Concentration Focusing intensely on a problem to the exclusion of other demands.

Incubation Stage of the creative process that is mysterious and below the surface and

Illumination The “Aha!” stage of the creative process when solutions break through to

Verification or elaboration Last stage of the creative process; testing, evaluating, revising,

Problem Disturbance or unsettled matter that requires a solution if the organization or person

Brainstorming Group problem-solving technique that involves the spontaneous contribution