Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
Chapter 4 Lecture Outline
Creative Problem Solving and Decision Making
Problem Solving and Decision Making Interrelationships
Slide 3
Problem: the situation that exists whenever objectives are not being set.
Decision–Making Styles
Slide 4
Making quick decisions can lead to waste and duplication.
Decision–Making Styles
Slide 5
Reflective style: decision maker likes to take plenty of time to make decisions, gathering
Decision–Making Styles
Slide 6
Consistent style: decision makers tend to make decisions without either rushing or wasting time.
Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
Decision–Making Model
Slide 7
Decision-making model: A six-step process for arriving at a decision and involves
(1) classifying and defining the problem or opportunity
Exhibit 4–1: The Decision–Making Model
Slide 8
See figure on page 101.
Decision–Making Structure
Slide 9
Programmed decisions – decisions that arise in recurring or routine situations, for which the
Exhibit 4–2: Decision Structure Continuum
Slide 10
See figure on page 102
Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
Exhibit 4–3: Continuum of Decision–Making Conditions
Slide 11
Exhibit 4–4: Potential Advantages and Disadvantages of Using Group Decision
Making
Slides 12–15
See figure on page 104.
Advantages
Better-quality decisions. Groups usually do a better job of solving complex problems than the best
individual in the group.
Disadvantages
Wasted time and slower decision making. It takes longer for a group to make a decision, and
employees are not on the job producing.
Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
Decision–Making Types
Slide 16
Maximizers tend to make rational decisions, taking time and weighing a wide range of options
before choosing.
Exhibit 4–5: Continua for Classifying a Problem
Slides 17–20
See figure on page 106.
From Creativity to Innovation
Slide 21
Creativity: a way of thinking that generates new ideas.
Creative Process
Slide 22
Creative process: the approach to generating new ideas that involves 3 stages.
Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
3 Stages:
Exhibit 4–6: Stages in the Creative Process
Slide 23
See figure on page 109.
Exhibit 4–7: Group Decision-Making Techniques that Foster Creativity and
Innovation
Slide 24
Using Groups to Generate Creative Alternatives
Slide 25
Brainstorming – the process of suggesting many possible alternatives without evaluation.
Using Groups to Generate Creative Alternatives
Slide 26
Nominal grouping – the process of generating and evaluating alternatives using a structured voting
Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
Vote
Using Groups to Generate Creative Alternatives
Slide 27
Decision Trees
Slide 28
A diagram of alternatives
Exhibit 4–8: Decision Tree
Slide 29
See figure on page 113.
Quantitative Techniques
Slide 30
Break-even analysis
What Is Big Data?
Slide 31
Big data – the analysis of large amounts of quantified facts to aid in maximizing decision making.
Lussier, Management Fundamentals, 7e
© SAGE Publications, 2017.
Additional Techniques
Slide 32
Cost-benefit analysis
Exhibit 4–9: Continuum of Analysis Techniques
Slide 33