Recall that problem solving and decision making are an important part of group structure.75 In this section, we discuss the relationship between problem solving and decision making, decision-making styles, and the decision-making model.
The Relationship between Problem Solving and Decision Making In short, decisions are made to solve problems and take advantage of opportunities, and these skills are important to career success.76 When we discuss problems, we also include opportunities, and when we discuss decision making, we are also including problem solving because they go hand-in-hand.
A problem exists whenever there is a difference between what is actually happening and what the individual or group wants to be happening. If your objective is to produce 500 units per day, but only 475 units are produced, you have a problem. We typically try to reduce the discrepancy between the actual performance and the objective.77 Thus, problem solving is the process of taking corrective action in order to meet objec- tives. Decision making is the process of selecting an alternative course of action that will solve a problem. Decisions must be made when you are faced with a problem or op- portunity. When making decisions, remember the goal of human relations is to create a win–win situation for stakeholders.78
/// In the opening case, Bonnie Sue has a problem because her team is not per- forming to her expectations. She needs to make some decisions about how to get the team to pull together, using the group structure and dynamics, and lead as a situa- tional supervisor to develop the team, as discussed throughout this chapter. ///
Decision-Making Styles
There are various decision-making styles and your personality affects how you make decisions.79 Decisions can be classified by information used and decision speed,80 in- cluding reflexive, consistent, and reflective decision making styles. To determine your decision-making style, answer the questions in Self-Assessment Exercise 11-3.
Decision-Making Styles
Select the answer (1 to 3) that best describes how you make decisions.
A. Overall I’m to act.
1. quick 2. moderate 3. slow
B. I spend amount of time making important decisions as/than I do making less important decisions.
1. about the same 2. a greater 3. a much greater C. When making decisions, I go with my first thought.
1. usually 2. occasionally 3. rarely
D. When making decisions, I’m concerned about making errors.
1. rarely 2. occasionally 3. often
E. When making decisions, I recheck my work.
1. rarely 2. occasionally 3. usually
F. When making decisions, I gather information.
1. little 2. some 3. lots of / / / Self-Assessment Exercise 11-3 / / /
WORK APPLICATION 11-11
Give an example of a problem you face now.
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G. When making decisions, I consider alternative actions.
1. few 2. some 3. lots of
H. When making a decision, I usually make it before the deadline.
1. long 2. somewhat 3. just
I. After making a decision, I look for other alternatives, wishing I had waited.
1. rarely 2. occasionally 3. usually J. I regret having made a decision.
1. rarely 2. occasionally 3. often
To determine your style, add the numbers that represent your answers to the 10 questions.
The total will be between 10 and 30. Place an X on the continuum at the point that represents your score.
Reflexive Consistent Reflective
10 – – – – – – – – – – – – – – – – – – – – – – 16 – – – – – – – – – – – – – – – – – – – – – – 23 – – – – – – – – – – – – – – – – – – – – – – 30 A score of 10 to 16 indicates a reflexive style; 17 to 23 indicates a consistent style; and 24 to 30 indicates a reflective style.
You have determined your preferred personal decision-making style. Groups also have a preferred decision-making style, based on how their members make decisions. Changing the I to we, you could answer the 10 questions to refer to a group rather than to yourself.
/ / / Self-Assessment Exercise 11-3 / / / (continued )
Reflexive Style A reflexive decision maker likes to make quick decisions (“to shoot from the hip”), without taking the time to get all the information that may be needed and without considering all alternatives. On the positive side, reflexive decision makers are decisive; they do not procrastinate. On the negative side, making quick decisions can lead to waste and duplication when a decision is not the best possible alternative.
If you use a reflexive style, you may want to slow down and spend more time gathering information and analyzing alternatives.81 Following the steps in the decision-making model, our next topic, can help you develop your skills.
Reflective Style A reflective decision maker likes to take plenty of time to make deci- sions, taking into account considerable information and an analysis of several alterna- tives, or because they are procrastinators avoiding making decisions.82 On the positive side, the reflective type does not make decisions that are rushed. On the negative side, they may procrastinate and waste valuable time and other resources and lose out on opportunities. The reflective decision maker may be viewed as wishy-washy and inde- cisive. If you use a reflective style, you may want to speed up your decision making. As Andrew Jackson once said, “Take time to deliberate; but when the time for action ar- rives, stop thinking and go on.”
Consistent Style A consistent decision maker makes decisions without rushing or wasting time. Consistent decision makers know when they have enough information and alternatives to make a sound decision.83 They have the most consistent record of good decisions. Steve Jobs was known for being a great problem solver, and especially for taking advantage of opportunities to introduce new iProducts. Consistent decision makers tend to follow the decision-making steps below.
The Decision-Making Model
We all like to think that we are rational and have great intuitive judgment when mak- ing decisions.84 However, research reveals that people are far from rational and often act against their best interests, and that intuitive judgment is often flawed and doesn’t Learning Outcome 11-6
List the five steps in the decision-making model.
help us make good decisions.85 Decision making can be more rational when following a process,86 which we call the decision-making model. Of course we have to use some intuitive judgment,87 but using the model helps us be more rational and focus our in- tuitive judgment, which is called bounded rationality.88 The five steps are shown in Model 11.2 and discussed here.
When to Use the Decision-Making Model It is not necessary to follow all five steps in the model when making unimportant recurring decisions when the outcome of the deci- sion is known, called certainty. Risk taking is fundamental to decision making. Use the model when making important nonrecurring decisions when the outcome is risky or uncertain.89 Following the steps in the model will not guarantee success; however, following the model increases the probability of successful decision making. You most likely followed the steps in the model when selecting a college without consciously knowing it. Consciously use the model in your daily life, and you will improve your ability to make decisions. Let’s examine each step here, as it is shown in Model 11.2.
Step 1: Define the Problem If you misdiagnose the problem, you will not solve it. So slow down. In analyzing a problem, first distinguish the symptoms from the cause of the problem. To do so, list the observable and describable occurrences (symptoms) that indicate a problem exists. For example, Wayne, an employee with five years’ ten- ure, has been an excellent producer on the job. However, in the past month, Wayne has been out sick and tardy more times than in the past two years. What is the problem? If you say absenteeism or tardiness, you are confusing symptoms and causes. They are symptoms of the problem. If the supervisor simply disciplines Wayne, he or she may decrease the tardiness and absenteeism, but the problem will not be solved. It would be wiser for the supervisor to talk to the employee and find out the reason (cause) for the problem. The real problem may be a personal problem at home or on the job.
Communication Skills Refer to CS Question 10.
Communication Skills
CS
MODEL 11.2 | Decision-Making Model
Step 5: Plan, implement the decision, and control Step 4: Analyze alternatives and select one
Step 3: Generate alternatives Step 2: Set objectives and criteria
Step 1: Define the problem
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Step 2: Set Objectives and Criteria After the problem has been defined, you set an objec- tive (end result of the decision) to solve the problem. Refer to Chapter 8 for the setting objectives model.
Next, you identify the criteria the decision must meet to achieve the objective. It is helpful to specify must and want criteria. Must criteria have to be met, while want criteria are desirable but not necessary. For example: Objective: “To hire a store man- ager by June 30, 2012.” The must criteria are a college degree and a minimum of five years’ experience as a store manager. The want criterion is that the hiree should be a minority group member. The organization wants to hire a minority but will not hire one who does not meet the must criteria.
Continuing the example with Wayne: The objective is to improve Wayne’s attend- ance record. The criterion is his prior good record of attendance.
Step 3: Generate Alternatives You need to generate possible methods, or alternatives, for solving the problem through decision making.90 When making nonroutine deci- sions, new, creative solutions are often needed.91 In the next section, we discuss crea- tivity, which is commonly used as part of this step in the decision-making model.
When gathering the information needed to generate alternatives, you can neither expect nor afford complete information. However, you must get enough information to enable you to make good decisions—the consistent decision style. It is often helpful to ask others for advice on possible solutions to your problem. When generating alternatives, it is important not to evaluate them at the same time (evaluation is in step 4)—just list anything reasonable that can possibly solve the problem.
Continuing the example with Wayne: Some alternatives are giving Wayne a warn- ing, punishing him in some way, or talking to him to determine the reason for the change in his behavior.
Step 4: Analyze Alternatives and Select One Here you must evaluate each alternative in terms of the objectives and criteria. Think forward and try to predict the outcome of each alternative. One method you can use to analyze alternatives is cost–benefit analy- sis. Each alternative has its positive and its negative aspects, or its costs and benefits.
Costs are more than monetary. They may include a sacrifice of time, money, and so forth. Cost–benefit analysis has become popular where the benefits are often difficult to determine in quantified dollars. The benefits of a college degree are more than just a paycheck.
Another approach to improving the quality of decisions is the devil’s advocate approach. The devil’s advocate technique requires the individual to explain and de- fend his or her position before the group. The group critically asks the presenter questions. They try to shoot holes in the alternative solution to determine any pos- sible problems in its implementation. After a period of time, the group reaches a re- fined solution.
Continuing the example with Wayne: The alternative selected is to have a talk with him to try to determine why his attendance has changed.
Step 5: Plan, Implement the Decision, and Control Step 5 has three separate parts, as the title states. After making the decision, you should develop a plan of action with a schedule for its implementation. Lack of planning is a common reason why decisions, including New Years resolutions, are not implemented. Decision making is a waste of time if you don’t actually implement the alternative. As with all plans, controls should be developed while planning. Checkpoints with feedback should be established to de- termine whether the decision is solving the problem. 92 If not, corrective action may be needed.93 You should not be locked into an irrational escalation of commitment to a decision that is not solving the problem.94 When you make a poor decision, you should admit the mistake and change the decision by going back to previous steps in the de- cision-making model.
Communication Skills Refer to CS Questions 11 and 12.
Communication Skills
CS
Skill-Building Exercise 11-2 develops this skill.
Skill-Building Exercise 11-2
SB
Concluding the example with Wayne: The supervisor plans what he or she will say to him during the meeting, conducts the meeting, and follows up to be sure that the problem is solved.
Model 11.2 lists the five steps in the decision-making model. Notice that the steps do not go simply from start to end. At any step, you may have to return to a previous step to make changes. For example, if you are in the fifth step and control and implementation are not solving the problem as planned, you may have to backtrack to take corrective action by generating and selecting a new alternative or by changing the objective. If the problem was not defined accurately, you may have to go back to the beginning.