Chapter 4 Why Not Answers Will Vary Applying

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Answers to Questions in the Text

Chapter 4: Creative Problem Solving

and Decision Making

WORK APPLICATION SAMPLE ANSWERS

Most of the answers are actual student answers or based on student answers. You may give

these answers as part of your lecture before, after, or in place of getting student answers.

4–1. Describe a situation in which a job objective was not met. Identify the problem

created and the decision made in regard to this problem.

I was working on an order to be shipped to a customer that day by mail. However, the order

4–2. Give an example of a poor decision made by a manager performing a management

function. Explain the management function and the problem created by the poor

decision.

Bill came to work around 5 minutes late one day. The manager decided not to say anything to him,

4–3. Give an example of a programmed and a nonprogrammed decision faced by an

organization you work for or have worked for, and describe the decision condition in

each case.

A nonprogrammed decision at Costco Wholesale where I work was when it put in new checkout

4–4. Give an example of a group decision made in an organization you work for or have

worked for. Identify the advantages and disadvantages encountered by the group.

We had a meeting to determine where the company picnic would be, what we would eat, and the

activities that would take place. The group did not satisfice, the women tended to dominate, and

4–5. Define a problem in an organization you work for or have worked for. Be sure to

clearly distinguish the symptoms from the causes of the problem.

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At our supermarket, sales are down. This is a symptom. The cause of the problem is the new

4–6. Identify some of the qualification criteria (college degree, years of experience, etc.)

for jobs at an organization you work for or have worked for. Distinguish any “must”

and “want” criteria.

I work at Figures and Fitness exercise salon. To be an exercise instructor, you must be a club

4–7. Give an example of how you or someone else solved a problem using the stages in

the creative process. Be sure to list the steps and note whether illumination came during

incubation or while working on the problem.

I’m a member of the parish council at Holy Cross Church.

Step 1. Preparation—We were working on developing an organization chart so committee

4–8. Give examples of organizational problems for which brainstorming, nominal

grouping, or consensus mapping would be appropriate techniques.

The Gap management is always concerned about getting more sales. Displays are considered a

4–9. Give examples from an organization you work for or have worked for of decisions

that might appropriately be analyzed using the quantitative techniques of break-even

analysis, capital budgeting, linear programming, queuing theory, and probability

theory.

McDonald’s probably uses queuing theory to determine the number of checkout stations for the

4–10. Give examples from an organization where you work or have worked of decisions

that might appropriately be analyzed using the Kepner-Tregoe method and cost-benefit

analysis.

Lussier, Management Fundamentals, 7e

The office continually upgrades the computers every few years. When managers make the next

4-11 Give an example of a specific decision that you or your boss have had to make.

Was the decision time driven or development driven?

Using Exhibit 4–11, select the appropriate decision style for the situation. Be sure to state the

REVIEW QUESTION ANSWERS

4–1. What is the relationship among the management functions, problem solving, and

decision making?

All managers perform the same four functions: planning, organizing, leading, and controlling. While

4–2. Why is it necessary to determine the decision structure and decision-making

conditions?

These are the determinants of how much time and effort you should expend on making a decision

4–3. What is the current trend concerning the use of groups to solve problems and make

decisions?

The current trend in management favors increased employee participation.

4–4. Is a decrease in sales and/or profits a symptom or a cause of a problem?

4–5. Would a maximum price of $1,000 to spend on a stereo be an objective or a

criterion?

This is a “must” criterion. The objective would be to buy a stereo.

4–6. Is there really a difference between creativity and innovation?

4–7. What is the major difference between nominal grouping and consensus mapping?

Consensus mapping differs from nominal grouping because there can be no competitive struggle

4–8. Why are generating and analyzing alternatives separate steps in the decision-

making model?

Lussier, Management Fundamentals, 7e

4–9. What quantitative techniques are commonly used to compare alternatives?

4–10. When is the cost-benefit analysis commonly used?

The cost-benefit analysis is commonly used when it is unclear whether the benefit to be gained from

4–11. When is the intuition commonly used?

COMMUNICATION SKILLS ANSWERS

4–1. Are problem solving and decision making really all that important? How do you

rate your decision-making ability?

Answers will vary, but students should realize that the success (or failure) of a business is based on

4–2. Which potential disadvantage of group problem solving and decision making do

you think arises most frequently?

4–3. Are creativity and innovation really important to all types of businesses? Is it

important to evaluate a creative idea before it becomes an innovation?

Yes. If businesses want to attract and retain customers, they need continuous creativity and

4–4. What is the role of intuition in decision making? Should managers use more

objective or subjective intuition techniques when making decisions?

Intuition, the ability to synthesize information quickly and effectively, can help guide a wide range of

4–5. Have you ever used any of the techniques for analyzing and selecting an

alternative? If so, which one(s)?

4–6. Should managers be ethical in their decision making? If so, how should ethics be

used in decision making?

Lussier, Management Fundamentals, 7e

Yes. When performing the management functions, managers need to maintain high ethical

4–7. Have you or someone you know experienced escalation of commitment? If so,

explain.

4–8. Do men and women make decisions differently?

4–9. Have you ever made a decision with information that was not timely, of good

quality, complete, and/or relevant? If so, was the decision a good one? Why or why not?

APPLYING THE CONCEPT ANSWERS

Applying the Concept 4–1: Steps in Decision Making

Identify the step in the decision-making model represented by each statement.

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

1. “That is a good idea, Raj, but how are you going to put it into action?”

Step 5. Plan the decision. Putting the idea into action requires a plan.

2. “Good ideas, Kara and Carl. Let’s consider the odds of the success of each of your ideas.”

Step 4. Odds of success is Probability theory; a technique used to analyze alternatives.

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Applying the Concept 4–2: Classify the Problem

Classify the problem in each statement according to the structure and condition under which the

decision must be made.

A. programmed, certainty

B. programmed, uncertainty

C. programmed, risk

D. nonprogrammed, certainty

E. nonprogrammed, uncertainty

F. nonprogrammed, risk

7. Erica, a small business owner, has had a turnaround in business; it’s now profitable. She wants

to keep the excess cash liquid so that she can get it quickly if she needs it. How should she invest

it?

8. Sam, a purchasing agent, must select new cars for the business. This is the fifth time in five

years he has made this decision.

9. Tinna has to decide if she should invest in a new company in a brand-new industry.

10. Aden, a manager in a department with high turnover, must hire a new employee.

C. Programmed, risk. This is a recurring situation—high turnover. When hiring new employees, there

is a chance that the new hires will not work out.

11. When Ron graduates from college, he will buy an existing business rather than work for

someone else.

12. Sean is making a routine decision, but being new, he has no idea what the outcome will be.

Applying the Concept 4–3: Using Groups to Generate Alternatives

Identify the most appropriate group technique for generating alternatives in each situation.

A. brainstorming

B. synectics

C. nominal grouping

D. consensus mapping

E. Delphi technique

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13. Management wants to project future trends in the social media industry as part of its long-

range planning.

E. Delphi technique. Projecting future trends calls for a forecasting technique.

14. Management at a video game maker wants to develop a new game. It calls in a consultant,

who is leading groups of employees and children to come up with ideas together.

15. A department is suffering from morale problems, and the manager doesn’t know why or how

to improve morale.

16. A department is getting new computers, and everyone has to get the same type: either

desktop, laptop, or tablet. The manager doesn’t know which type to select for her 25 employees.

C. Nominal grouping. A voting technique would work fine for selecting computers with a large group.

17. A manager wants to expand the business by offering a new product but doesn’t know what to

offer, or if it should be a related product or something different.

Applying the Concept 4–4: Selecting Quantitative Methods

Select the appropriate quantitative method to use in each situation.

A. break-even analysis

B. capital budgeting

C. linear programming

D. queuing theory

E. probability theory

18. Lawn care services sole owner/operator Shawn must decide whether to repair his old truck or

to replace it with a new one.

19. Kandeeda wants to invest money in commodities futures to make a profit.

20. Henry the Burger King manager wants to even the workload in his fast-food restaurant. At

times, employees hang around with no customers to wait on; at other times, they have long

waiting lines.

D. Queuing theory. In a fast-food restaurant, when employees are overworked, there are lines of

people waiting. When there are no lines, they are idle. Queuing theory would help the restaurant

balance these two.

21. Rentals-R-Us manager Maggie wants to know how many times a bounce house will have to be

rented out to recoup the expense of adding it to the rental list.

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22. The machine shop manager Chris is scheduling which products to make on which machines

next week.

C. Linear programming. The manager is trying to maximize the use of limited resources.

Applying the Concept 4–5: The Participative Decision-Making Model

Refer to the time-driven model in Exhibit 4–11 and select the appropriate decision style for each

situation.

A. decide

B. consult individuals

C. consult group

D. facilitate

E. delegate

21. Things are going okay in your department, but you know that performance could be better.

The workers are knowledgeable, have positive work norms, and work well together. You are

thinking about having a one-time brainstorming session. You’ve never led one.

22. You are a new manager, and you find that someone in your department has been making lots

of personal photocopies. The extra expense is affecting your budget. You want the copying to

stop. You are pretty sure you know who is doing it.

23. You oversee a self-directed team, which requires very little supervision. One of the seven team

members has retired and needs to be replaced.

J. Delegate. Let the group select the new person.

24. You supervise five part-time employees who are high school students. You know that your

store has been losing customers, but you don’t know why. You want to find out and improve the

situation.

25. You work in purchasing and have to buy five new cars for the sales staff within a set budget.

F. Decide. Shop around for the best deal.

Lussier, Management Fundamentals, 7e

JOIN THE DISCUSSION ANSWERS

Join the Discussion 4–1: Avoiding Taxes

Many large corporations have an objective to pay less in taxes and are using corporate tax loopholes

to avoid paying taxes. Walmart and Apple are such companies. Apple CEO Tim Cook was quoted in

the press as defending Apple’s tax-avoiding practices, which saved $44 billion in offshore income

from 2009 to 2012. Apple also has three Irish subsidiaries that claim to have no residence anywhere

for tax purposes.

It is not known just how many corporations are engaging in these kinds of activities. What is known,

though, is that as these corporations continue taking advantage of corporate tax loopholes, the

more taxes ordinary families and small businesses pay.

1. Although it is legal, is it ethical for Apple, Walmart, and other corporations to take advantage of

tax loopholes to avoid paying taxes?

2. If you became CEO of one of these corporations, would you continue to take advantage of the

tax loopholes? Why or why not?

Answers vary

3. As an individual, do or will you take advantage of tax loopholes, or pay more taxes than legally

required by law?

4. What is the government’s role and responsibility regarding tax loopholes?