BUS 51 - Mosley7e ch03

Part 2

Planning and Organizing

Chapter 3

Decision Making,
Problem Solving,
and Ethics
Mosley • Pietri
PowerPoint Presentation by Charlie Cook
The University of West Alabama

© 2008 Thomson/South-Western
All rights reserved.

Learning Objectives
Learning Objectives
After reading and studying this chapter, you should
be able to:
1. Explain the role of decision making in the supervisor’s
job.
2. Define decision making and identify at least four
elements involved.
3. Discuss why supervisors need to make so many
decisions.
4. Discuss how decisions are made.
5. Name some factors to keep in mind when making
decisions.
© 2008 Thomson/SouthWestern. All rights reserved.
3–2

Learning Objectives (cont’d)
Learning Objectives (cont’d)
After reading and studying this chapter, you should
be able to:
6. Decide whether to use the individual approach or the
group approach when making decisions.
7. Discuss some ways of improving decision making.
8. Explain the role of ethics in the supervisor’s decision
making.


3–3

Role of Decision Making in
Supervisory Management
• Decisions and the Management Functions:
 Planning—deciding which objectives to seek, which policies to

establish, and what rules to institute.
 Organizing—deciding who gets what authority and how duties

and responsibilities are grouped.
 Staffing—deciding employee selection, placement, training and

development, performance appraisal, compensation, and health
and safety.
 Leading—deciding how best to communicate with and motivate

employees.
 Controlling—deciding how to match planned performance with

actual performance.


3–4

EXHIBIT 3.1

Decision Making is the Heart of Supervisory Management


3–5

Why Supervisors Need to Make So Many
Decisions
• Decisions and Supervisors
 To direct employees’ behavior toward goals of the

organization and the employees’ own goals.
 The organizational environment of supervisors
requires more (and more frequent) decisions about a
larger variety of activities of many other people.


Operative employees require more direction, guidance, and
protection that higher-level employees.

• Span of Management
 The number of immediate employees a manager can

supervise effectively.

3–6

What Is Decision Making?
• Decision Making Defined
 The conscious consideration and selection of a

course of action from among two or more available
alternatives in order to produce a desired result.

• Elements Involved in Decision Making
 A decision may not be needed.
 Decisions involve the future
 Decision making is a conscious process
 Decision making involves more than one alternative


3–7

EXHIBIT 3.2

Decision-Making Process


3–8

Types of Decisions to Be Made
• Programmed Decisions
 Routine and repetitive decisions that are handled in a

systematic way.


Example: Setting a production schedule.

• Unprogrammed Decisions
 Decisions that occur infrequently and require a

different response each time.


Example: deciding on which employee to promote.


3–9

How Decision Making and Problem Solving
Relate
• Which Is It?
 Opportunity—a chance for development or

advancement.
 Problem—an existing unsatisfactory situation causing
anxiety or distress.

• What Effective Supervisors Do
 Identify problems and their cause(s).
 Analyze complex and involved situations.
 Solve problems by removing their cause(s).
 Recognize that opportunities represent progress.


3–10

EXHIBIT 3.3

Steps in Decision Making


3–11

How to Make Decisions
• Step 1: Define the Idea or Problem
 Correctly defining the real problem (i.e., root causes)

is key to correctly solving the problem.

• Step 2: Develop Alternatives
 Identifying possible courses of action that can satisfy

a need or solve a problem.

• Step 3: Collect, Interpret, and Evaluate
Information about Each Alternative
 Knowledge of the alternatives is necessary to

objectively evaluate the applicability and feasibility of
each alternative.
3–12

EXHIBIT 3.4

Evaluating Alternatives


3–13

How to Make Decisions (cont’d)
• Step 4: Select the Preferred Alternative
 Cost/benefit analysis—estimating and comparing the

costs and benefits of alternatives.
 Risk—the possibility of defeat, disadvantage, injury,
or loss.

• Step 5: Implement the Decision
 Putting the decision into operation.

• Step 6: Follow Up, Evaluate, and Make
Changes—If Needed
 Exercising control through the provision of feedback

and corrective action to attain the desired results.
3–14

Approaches to Decision Making and
Problem Solving
• The Myers-Briggs Type Indicator (MBTI)
 Measures eight dimensions of personality types to

identifies an individual’s personal style.
 Four internal dimensions are directly related to

decision making and problem solving:


Sensing—patient, practical, and realistic



Intuition—impatient, idea and theory oriented, and creative



Thinking—rational, logical, objective, and analytical



Feeling—relationship-oriented, empathetic, and socially
aware


3–15

EXHIBIT 3.5

Characteristics of Different Personality Types
SENSING AND INTUITIVE CHARACTERISTICS
Sensing Types

Intuitive Types

Dislike new problems unless there are standard
ways to solve them.

Like solving new problems.

Like an established way of doing things.

Dislike doing the same thing repeatedly.

Enjoy using skills already learned more than
learning new ones.

Enjoy learning a new skills more than using it.

Work more steadily, with realistic idea of how
long it will take.

Work in bursts of energy powered by
enthusiasm, with slack periods in between.

Usually reach a conclusion step-by-step.

Reach a conclusion quickly.

Are patient with routine details.

Are impatient with routine details.

Are impatient when the details get complicated.

Are patient with complicated situations.

Are not often inspired, and rarely trust the
inspiration when they are.

Follow their inspirations, good or bad.

Seldom make errors of fact.

Frequently make errors of fact.

Tend to be good at precise work.

Dislike taking time for precision.


Source: Reproduced by special permission of the publishers, Consulting Psychologists Press, Inc., Palo Alto, CA 94303, from Introduction to Type by
Isabel Briggs Myers. Copyright 1980 by Consulting Psychologists Press, Inc. All rights reserved. Further reproduction is prohibited without the publisher’s
consent.

3–16

EXHIBIT 3.5

Characteristics of Different Personality Types (cont’d)
THINKING AND FEELING CHARACTERISTICS
Thinking Types

Feeling Types

Do not show emotion readily and are often
uncomfortable dealing with people’s feelings.

Tend to be very aware of other people and their
feelings.

May hurt people’s feelings without knowing it.

Enjoy pleasing people, even in unimportant things.

Like analysis and putting things into logical
order. Can get along without harmony.

Like harmony. Efficiency may be badly disturbed
by office feuds.

Tend to decide impersonally, sometimes
paying insufficient attention to people’s wishes.

Often let decisions be influenced by their own or
other people’s personal likes and wishes.

Need to be treated fairly.

Need occasional praise.

Are able to reprimand people or fire them when
necessary.

Dislike telling people unpleasant things.

Are more analytically oriented—respond more
easily to people’s thoughts.

Are more people oriented—respond more easily to
people’s values.

Tend to be firm minded.

Tend to be sympathetic.


Source: Reproduced by special permission of the publishers, Consulting Psychologists Press, Inc., Palo Alto, CA 94303, from Introduction to Type by
Isabel Briggs Myers. Copyright 1980 by Consulting Psychologists Press, Inc. All rights reserved. Further reproduction is prohibited without the publisher’s
consent.

3–17

Problem Solving (cont’d)
• The Vroom-Yetton Model
 Provides guidelines for supervisors on the extent to

which subordinates are involved in decision making or
problem solving.

• Factors Affecting Involvement in Decisions
 Situational conditions of the problem
 Quality of information available about the problem
 Importance of subordinates’ acceptance of the

decision
 Timeframe for the decision

3–18

EXHIBIT 3.6

Managers’ Participation Styles for Making Decisions

Participation
Style

Description

A

You solve the problem or make the decision yourself, using the information
available to you at the present time.

B

You obtain any necessary information from subordinates, then decide on a
solution to the problem yourself.

C

You share the problem with the relevant subordinates individually, getting their
ideas and suggestions without bringing them together as a group. Then you
make the decision.

D

You share the problem with your subordinates in a group meeting, in which
you obtain their ideas and suggestions. Then you make the decision.

E

You share the problem with your subordinates as a group. Together you
generate and evaluate alternatives and attempt to reach agreement
(consensus) on a solution. You can provide the group with information or
ideas, but you do not try to press them to adopt “your” solution, and you are
willing to accept and implement any solution that has the support of the entire
group.


Source: Adapted and reprinted from Leadership and Decision-Making, by Victor H. Vroom and Philip
W. Yetton, by permission of the University of Pittsburgh Press. © 1973 University of Pittsburgh Press.

3–19

EXHIBIT 3.7

Decision Tree, Governing Group Problems


3–20

EXHIBIT 3.8

The Vroom-Yetton Model: Which Decision Style to Use

Decision Problem
As president of the Student Management Club at State University, you must make a decision concerning a date
for the annual student banquet.
Q1 Is there a quality requirement such that one solution is likely to be more rational than another?
Ans Yes. One solution is likely to be more rational since there are various dates that will be unsatisfactory because of
competing activities.
Q2 Do you have sufficient information to make a high-quality decision?
Ans No. You may have certain information on competing dates for some officially scheduled university activities, but
there may be some other kinds of activities going on that you are unaware of.
Q3 Is the problem structured?
Ans Yes. Selection of a date for a banquet to be held within the next month is a well-structured decision problem.
Q4 Is acceptance of the decision by your subordinates critical to implementation?
Ans Yes. If the subordinates (and others) don’t show up, the banquet is a failure.
Q5 Is it reasonably certain that the decision would be accepted by you subordinates if you were to make it by
yourself?
Ans No. You might accidentally select a date that would not be suitable to your subordinates. For example, the day
you select could be one on which subordinates have a major exam or term papers due the following day.
Q6 Do members share the view that the banquet date is important?
Ans Yes. Members have shown good attendance at meetings and consider the banquet the highlight of the year.
Awards are presented, next year’s officers announced, and so on.
Optimum Decision Style
As president, you should share the problem with members as a group, with the group generating and evaluating
alternatives, and should attempt to arrive at a consensus decision.


3–21

Bases of Decision Making
• Authority of position—authority vested
in the decision maker’s position.
• Experience—practical knowledge of
what has been done in the past.
• Facts—pertinent information, carefully
classified, diagnosed, and interpreted.
• Intuition—unconscious influence of a
person’s cultural backgrounds,
education, and training.
• Follow-the-leader—the herd instinct,
based on doing what others are doing.

3–22

Advantages of Group Decision Making
• Provides the supervisor with a broader range of
information on the problem, alternatives, and
recommended solution.
• Lends more creative approach to solving problems,
since ideas may be “piggybacked.”
• Improves communication in the department because the
group becomes aware of issues facing the supervisor.
• Creates higher morale in the group.
• Stresses a stronger commitment to the decision once it
is made, since the group helped to make it.

3–23

Disadvantages of Group Decision Making
• Holds the supervisor accountable for the group’s
decisions.
• Takes the group away from other aspects of their jobs.
• May force the supervisor to choose sides and thus cause
morale problems.
• Allows strong personalities to dominate the group, in
which case the decision may not reflect the entire
group’s opinion.
• Requires more supervisory skill in communicating and
clarifying the group’s role in a given decision.
• Is difficult to use if the decision must be made quickly.
3–24

Problem Solving (cont’d)
• Creative Problem Solving
 Synergy—the whole is greater than the sum of the

parts.
 Synergistic solutions can be defined as
1 + 1 + 1 + 1 + 1 = more than 5.

• Developing Creativity
 Deferred judgment—using right-hemisphere functions

as thought generators and following them with leftbrained functions that result in powerfully effective
“whole-brained” creativity.

3–25

Creative Problem Solving
• Brainstorming
 Occurs when a group of individuals generates ideas

in response to a question without evaluating the ideas
as they are produced.

• Guidelines for Using Brainstorming
 The group favors quantity over quality.
 Members refrain from judging contributions; they can

ask questions later, in the evaluation part.
 Team members avoid censoring.
 Pride of authority is minimized; members should feel

free to offer variants and build on one another’s ideas.
3–26

Creative Problem Solving (cont’d)
• The Crawford Slip Technique
 Achieves creativity through:


Fluency—the ability to let ideas flow out of your head like
water over a waterfall



Flexibility—the ability to use free association to generate or
classify ideas in categories.

• Nominal Grouping Technique
 Is a structured group technique for generating ideas

through round-robin individual responses, group
sharing without criticism, and written balloting.

3–27

EXHIBIT 3.9

Steps in Nominal Grouping

Divide into groups of six or nine persons.
Without interaction, list the strengths you feel are associated with Question I, then list the
problems for Question 2.
(Time: 6 minutes.)
Select a recorder.
a. The recorder asks each member, one at a time, to read from his or her card one strength
associated with Question I. Example: What are the strengths of this plant?
b. The recorder writes each strength exactly as it is read.
c. Those having the same strength should raise hands. The recorder checkmarks each
strength once for each person raising a hand.
d. When all Question I strengths are recorded, the procedure is repeated for Question 2
problems. Example: What are the problems preventing this plant from reaching its
potential effectiveness?
Discuss the two lists. Clarify, defend, elaborate, or add other items as needed. (Time: 5 minutes.)
Without interaction, each member lists on an index card the five items he or she considers
most important with reference to Question I; do the same for Question 2.
The recorder collects and records the votes.


3–28

Factors to Keep in Mind When Making Decisions
• The right person should make the decision.
• Decisions should contribute to objectives.
• There’s seldom only one acceptable choice.
• Both feeling and thinking should be used.
• Effective decision making takes considerable time and
effort.
• Decision making improves with practice.
• A decision may not please everyone.
• A decision starts a chain reaction.
• Ethical considerations must play a part.
3–29

The Role of Ethics in the Decision Making
• Ethics
 The standards used to judge the “rightness” or

“wrongness” of one person’s behavior toward others.

• Levels of Behavior
 Personal ethics is the highest and most rigid level of

behavior.
 Professional and organizational codes of ethics as

statements of what is and isn’t acceptable behavior.
 The lowest level of ethical behavior is the legal level,

where all are expected to adhere to the “law of the
land.”
3–30

Responses to Ethical Issues
• Businesses have responded to increased
pressures for ethical conduct by:
 Adopting of codes of conduct.
 Setting social goals that boost business.
 Better monitoring of business practices through

internal audits.


3–31

Ethics: How Do I Know It’s Right?
Is it legal?

Will my decision violate either company
policy or civil law?

Is it balanced?

Is it fair to all concerned in the short term as
well as in the long term?
Does it promote win-win relationships?

How will it make me Would I feel good if my decision were
feel about myself?
published in the newspaper?
Would I feel good if my family knew about
my decision?


3–32

Important Terms
Important Terms
•
•
•
•
•
•
•
•
•
•
•
•
•

managerial decision making
programmed decisions
nonprogrammed decisions
decision tree
creativity
Myers-Briggs Type Indicator (MBTI)
Vroom-Yetton Model
synergy
brainstorming
Crawford Slip Technique
fluency
flexibility
nominal grouping technique (NGT)


3–33

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