Management Exam #1

Front 1

Barriers to effective problem solving (7)

Back 1

1. Little or no training in problem solving techniques
2. Failure to deine the problem
3. Prejudice, favoritism and bias
4. Looking for solutions instead of problems
5. Jumping to conclusions
6. Lack of proper information failure to verify facts
7. Trying to evade problems instead of confronting them.

Front 2

Superior Problem Solver

Back 2

Clearly defines the problem, looks for the problem before looking for solutions, is aware that the real problem is often not obvious instead they look for the hidden (covert) problem, they have a positive attitude toward problems, they see problems as opportunities for improvements, they have successfully solved problems and continues to develop their ability, they know several approaches to problem solving and selets the proper method for the problem at hand, they can distinguish between facts and opinions, they have their favoritism, bias, prejudices, and temper under control, they can separate solvable from unsolvable problems, they develop many alternatives or solutions

Front 3

Classical Model

Back 3

prescriptive, assumes access to all information, and has an optimum decision

Front 4

Administrative Model

Back 4

(March and Simon) The decision making is inherently risk associated and not prescriptive, the information may be incomplete

Front 5

Bounded rationality

Back 5

Alternatives, issues and data may be limitless and amount of information is too great to evaluate

Front 6

Incomplete information

Back 6

Information may be incomplete due to the range of decision making alternatives and subsequent consequences

Front 7

Risk and Uncertainty

Back 7

Risk is the probability of the outcomes and uncertainty is unpredictable

Front 8

Ambiguous information

Back 8

Multiple interpretations and conflict

Front 9

Time Constraints and Information Costs

Back 9

Lack of money and time to explore decisions

Front 10

Satisficing

Back 10

Is a decision making strategy that explores a limited sample of all the potential alternatives. It is a way of choosing acceptable, satisfactory ways to respond to problems rather than trying to make the optimum or best decision.

Front 11

Assessing alternatives

Back 11

Requires that you check legality, ethicalness, economic feasibility, and its practicality.

Front 12

Heuristics

Back 12

Rule of thumb to simplify decision making

Front 13

Systematic errors

Back 13

Repetitive errors, that are systematic to bias

Front 14

Prior hypothesis bias

Back 14

Decision making based on prior beliefs and influences

Front 15

Representativeness bias

Back 15

Tendency to generalize, inappropriately from a small sample, event or episode

Front 16

Illusion of control

Back 16

Tendency to overestimate one’s own ability to control activities or events

Front 17

Escalating commitment

Back 17

Tendency to commit additional resources even if project is failing. The solution is to provide more resources as to overwhelm the problem it is also associated with the “self fulfilling prophecy”

Front 18

Groupthink

Back 18

Individuals choose not to disagree or raise objections for fear of negating team spirit. It also involves stereotyping, illusion of invulnerability , and self-censorship

Front 19

Devils Advocacy

Back 19

1. Critical analysis of preferred alternative
2. Ascertain strengths and weaknesses
3. Devil’s advocate challenges way group evaluates alternatives and choices
4. Identify all reason that might make preferred alternative unacceptable

Front 20

Dialectical Inquiry

Back 20

Is when two groups are assigned to a problem; senior managers listen to group presentations, the senior managers then challenge both groups’ positions. The overall goal is to find an even better alternative

Front 21

Brainstorming

Back 21

Is when ideas are generated and presented visually to a group, there is no criticism of ideas, there is face to face interaction, and development of long list of alternatives for evaluation.

Front 22

Nominal group technique

Back 22

Is when a manager/facilitator outlines a problem to groups(creative and innovative). Suggestions are read to the group and recorded, there is no criticism. Alternatives are then discussed in sequence and presented. Each group ranks alternatives and a decision is made based on highest ranking.

Front 23

Delphi technique

Back 23

Is designed to balance the influence of strong personalities in the group. The group leader, “charging authority”, forms the group and directs their activities through written correspondence. The effectiveness rests largely with the leaders understanding of the issues and ability to communicate those issues to others. Its evenly distributed power among group members helps to cut down on the importance of oral communication skills and is useful for problem solving when group members are in diverse geographic locations.

Front 24

Spiral Model

Back 24

• One member introduces and idea; other members respond with agreement or disagreement, extension or revisions.
• When an idea is developed to a point that it is object of agreement by all group members, the group anchors its position on the idea and introduces new ideas progressing from that anchor point of agreement.
• Spiral process involves reach testing forward from an anchored position of agreement.
• If new reach tested idea is affirmed by group a new anchored position is established.
• If new idea is rejected, group returns to its’ anchored position and reach tests another idea.

Front 25

Situational Decision Making (4)

Back 25

S1- You solve the problem or make the decision yourself, using information available to you at that time. You may obtain the necessary information from your subordinates, and then decide on the solution to the problem yourself.

S2- You share the problem with relevant subordinates individually, getting their ideas and suggestions without bringing them together as a group. Then you make the decision that may or may not reflect your subordinates influence

S3- You share the problem with your subordinates as a group, collectively obtaining their ideas and suggestions, Then you make the decision that may or may not reflect your subordinates influence.

S4- You share the problem with your subordinates as a group. Together you generate and evaluate alternatives and attempt to reach a solution. Your role is much like that of chairman. You do not try to influence the group to adopt “Your” solution, and you are willing to accept and implement any solution that has the support of the entire group.