Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
1
Instructor Manual
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
4-3. Give an example of a programmed and a non-programmed decision faced by an
organization you work for or have worked for, and describe the decision condition in
each case.
A non-programmed decision at Costco Wholesale where I work was when it put in new
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.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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We had a meeting to determine where the company picnic would be, what we would eat, 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.
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.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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
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
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.
The office continually upgrades the computers every few years. When managers make the
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?
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
All managers perform the same four functions: planning, organizing, leading, and controlling.
4-2. Why is it necessary to determine the decision structure and decision-making
conditions?
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?
4-8. Why are generating and analyzing alternatives separate steps in the decision-
making model?
Generating and evaluating alternatives at the same time tend to lead to satisficing and wasting
4-9. What quantitative techniques are commonly used to compare alternatives?
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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4-10. When is the cost-benefit analysis commonly used?
4-11. When is the intuition commonly used?
Intuition is commonly used with programmed decisions under the condition of certainty to
low risk.
Communication Skills Answers
4-1. Are problem solving and decision making really all that important? How do you
rate your decision-making ability?
4-2. Which potential disadvantage of group problem solving and decision making do
you think arises most frequently?
Answers will vary.
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
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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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?
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?
Answers will vary.
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.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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Step 6: ____________________
1. “Tyson, what symptoms have you observed to indicate that a problem even exists?”
2. “That is a good idea, Mary, but how are you going to put it into action?”
Step 5. Plan the decision. Putting the idea into action requires a plan.
5. “Eddie, is the machine still jamming, or has it stopped?”
Step 6. The manager is monitoring/controlling by checking to see if the problem is solved.
6. “I don’t understand what we are trying to accomplish here, Raj.”
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
7. Aden has to decide if he should invest in a new company in a brand-new industry.
E. Non-programmed, uncertainty. This is a first-time decision. With a new business, it is very
8. Tinna, a manager in a department with high turnover, must hire a new employee.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
9. When Sean graduates from college, he will buy an existing business rather than work
for someone else.
F. Non-programmed, risk. This is a significant, non-routine decision. With an established
10. Ron is making a routine decision, but being new, he has no idea what the outcome
will be.
B. Programmed, uncertainty. This is not common, but is an example because it does
11. Sam, 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?
D. Non-programmed, certainty. This is a first-time decision. To keep the money liquid, she
12. Erica, a purchasing agent, must select new cars for the business. This is the fifth
time in five years she has made this decision.
A. Programmed, certainty. This is a recurring decision. With a new car you get a warranty,
Applying the Concept 4-3: Using Groups to Generate Alternatives
Identify the most appropriate group technique for generating alternatives in each situation.
A. Brainstorming
13. Management wants to expand the business by offering a new product but doesn’t
know what to offer.
Instructor Resource
Lussier, Management Fundamentals 8e
14. Management wants to project future trends in the social media industry as part of
its long-range planning.
15. 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.
16. A department is suffering from morale problems, and the manager doesn’t know
why or how to improve morale.
D. Consensus mapping. Using consensus mapping to get group agreement on a solution to
17. 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.
Applying the Concept 4-4: Selecting Quantitative Methods
Select the appropriate quantitative method to use in each situation.
A. Break-even analysis
180. The Burger King manager Tania wants to even the workload in her fast-food
restaurant. At times, employees hang around with no customers to wait on; at other
times, they have long waiting lines.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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D. Queuing theory. In a fast-food restaurant, when employees are overworked, there are lines
19. Taylor Rentals Matthew 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.
A. Break-even analysis. If the owner pays $1,000 and rents them for $200, it takes five
20. The machine shop manager Henry 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.
21. Kandeeda, a lawn care services sole owner/operator, must decide whether to repair
her old truck or to replace it with a new one.
22. Shawn wants to invest money in commodities futures to make a profit.
E. Probability theory. Investments are usually made under the condition of high risk,
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
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
percent in early 2017, and most states and some local governments also
impose taxes on corporate profits. President Trump said he wants tax cuts,
which would give less incentive to move jobs overseas and keep money in
America. However, others claim that large profitable corporations should pay
high taxes to help fund social programs, and the tax rate should not be cut.
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?
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? What
should the government do?
Answers vary, but the government sets the tax code and enforces it. Therefore, when there are
5. Should the corporate tax rate be cut? If so, by how much?