PROBLEM SOLVING AND DECISION MAKING Problem solving and decision making are critically important skills for any leader, Problem leader involves ing issues standing in the way of a productive team and taking corrective action to address those issues for the good of the group. The process by which actions ions depends on the tuation, your leadership style,Objectives ‘After completing this chapter, the student should be able to: «Explain the importance of problem solving and deci- sion making Define the terms problem, problem solving, and deci- sion making, and differentiate between the latter two List mistakes in problem solving and decision making List skills needed in problem solving and decision making Deseribe three decision-making styles and identify your own style Identify two approaches to problem solving and deci- sion making List and deseribe the seven steps of problem solving and decision making, and use them to solve problems Describe three types of problems and how to solve them « List advantages and disadvantages of group problem solving and decision making + Listmethods that groups can use to solve problems and make decisions * Identify leadership styles used in group problem solv- ing and decision making Terms to Know «problem © decision making « alternatives * reflexive style « reflective style © consistent style © minimizing approach + optimizing approach + exact-reasoning problems or decisions + creative problems or decisions «© judgment problems or decisions © conventional method brainstorming method devil's advocate method Delphi method consensus method nominal group method synectics left-brain people right-brain people holistic autocratic leadership style consultative leadership style participative leadership style laissez-faire leadership style 377his chapter will help you identify the skills needed to be an effective problem solver and decision maker. It will show you how to develop these skills by making you aware of your own problem-solving and decision-making style, by teaching you approaches to solving problems and making decisions, and by describing and illustrating the types of problems and decisions you may encounter. This chapter also focuses on the group problem-solving and decision-making process (Figure 13-1) and the styles leaders use in directing groups. IMPORTANCE OF PROBLEM SOLVING AND DECISION MAKING Daily and Decisions In your personal, family, and working life, you solve problems and make decisions every day. You are probably not even aware of the many decisions you make or the problems you solve. You decide when to get up, what to wear, where to go, how to get where you are going, and when to come home. These types of decisions are re, tively easy to make. Others, however, are of go} importance that they require a great dea) thought. Will you attend college? If so, Wherep Whom will you marry? What occupation will yy, choose? Will you buy a house, and how will yo, pay for it? The choices you make regarding thege big” decisions will affect you for the rest of yoy, life. No matter how important a decision ig, yo, have to live with the consequences of both the good and bad decisions you make, Problem Solving and Decision Making on the Job The ability to make good decisions and to solve problems is a characteristic of an effective per. son, and a requirement for anyone who wants to become an effective leader. Consider the following: * Leaders are often hired mainly to solve problems and make decisions. « The activity requiring the second most time for leaders is solving problems and making decisions. It requires almost 13 percent of a leader's time. FIGURE 13-1 These students are solving problems and making decisions. These abilities are sic leadership. (© iStack/South_ agency) maaan net+ Leaders can make as many as 10 decisi er hour and hundreds per day, oe » Problem solving/decision maki, /decis is ranl among the top six critical skills for aay at the supervisory level for leaders,! obviously, effective problem solving and deci- sion making are important if we wish to hold igadership positions in the workplace; these skills are also important to our personal financial, edu, cational, and emotional well-being, Fortunately, the ability to solve problems and make deck sjonsis a skill that can be learned and improved through practice. Let us begin by examining wvhat we mean when we use the terms problem, problem solving, and decision making DEFINING PROBLEM SOLVING AND DECISION MAKING Problems and Problem Solving ‘Most of us are familiar with the word problem, but may have trouble putting an exact definition into words. A. arises when there is a per- ceived gap between reality and the desired state ofaffairs for an individual, group, or organization. Chapter 13. Problem Solving and Decision Making 378 For example, if a car dealership has the goal of selling 20 cars per week but is selling only 10 cars per week, a problem exists. The dealership must do something to solve the problem. Problem solving, then, is doing whatever it takes to reach the goals of an individual, group, or organization. Decision Making As part of the process of problem solving, you must take a new or different course of action to correct a problem. The process by which you select this course of action is called decision making, At times, after careful consideration, you may find that your best decision is to do nothing, because the problem is simply too dif- ficult to be solved in the amount of time you have to solve it. In other instances, you may decide to change your goals to eliminate the problem.’ In our example, the dealership could simply change its goal from selling 20 cars to selling 10 cars per week, and instantly the problem no longer exists. However, if the financial success of the dealership depends on selling 20 cars per week, reducing the goal is only going to cause more problems. There- fore, some other decision(s) must be made to resolve the situation (Figure 132). By developing IGURE 1 ‘ecisions. sy of Aerie Mor Deprien 2 Penn State President Graham B, Spanier works with and listens to others to solve problems and make oan Mesa Gale, Pomsania State hist)300 Section 4 Managerial LeadershiP Skills our skills in problem solving and decision mak- tng, we can learn to avoid making the same type of mistake over and over again. MISTAKES IN PROBLEM SOLVING AND DECISION MAKING Both groups and individuals frequently make mistakes in confronting problems or decisions, and these mistakes tend to fall into recognizable categories or types. Phipps et al. identify the fol- lowing as common mistakes in attempting to solve problems or make decisions? + Poorly defining the problem, or denying that a problem even exists + Treating the symptoms rather than the cause; attempts are made to solve or change the situation resulting from the problem, not the problem itself + Not specifying goals and objectives, or not clearly defining them + Not gathering enough information about possible alternatives (different courses of action that one might take; solutions) + Not carefully, correctly, or adequately considering and evaluating all possible alternatives + Allowing opinions, emotions, feelings, and self-interest to interfere with—and often override—objective, rational thought + Jumping to unwarranted conclusions + Becoming paralyzed and taking no action because of fear of making mistakes or making a wrong decision SKILLS NEEDED IN PROBLEM SOLVING AND DECISION MAKING To avoid the mistakes listed in the previous sec- tion, Phipps et al. suggest that individuals and cor must develop certain problem-solving and decision-making skills.‘ Foremost amo these are the ability to a * Recognize problem situations * Clearly distinguish the problem from the situation caused by the problem ath ee . coals and objectives . ly define Sern ' A Cee creative, imaginative solutions to . Po enformation relating to possible « Be apen minded about possible solutions 3d by others ; . ore evaliate information as a basis for accepting or rejecting solutions « Work with others to solve problems * Avoid jumping to unwarranted conclusions (be flexible) | * Accept the fact that mistakes may occur + Put aside opinions, emotions, and self- interest that may interfere with objective thinking « Understand different types of problems and techniques for solving them + Know and use a systematic approach to problem solving and decision making® How can we develop these important skills? The following sections help us answer this question. DECISION-MAKING STYLES Determining Your Decision-Making Style One step toward developing the skills neces- sary to be a good problem solver and decision, maker is to understand your decision-making style. If your current style is not conducive to making good decisions, you may want to con- sider ways to change it. Each person tends to favor one of three problem-solving and deci- sion-making styles: reflexive, reflective, of consistent Reflexive Style If you have a reflexive style of problem solving and decision making, you probs- bly tend tomake quick and sometimes unthinking ‘cisions or choices of solutions, As a result, you may not take the time to consider and evaluate all possible Solutions to your situation before acting Ou tend to be decisive, and you are not likely !0 Lena taking action in a problem situation. How: ha ot tendency toward speed can result it ms ly made decisions that you may later regret: To improve your problem solvi deci sion making, take more time corde posiblewens ar tions. Try to gather informati i ee possible solution, and Sane the alternatives thoughtfully. Follow the steps in é problem-solving and decision-making pro- cess described later in this chapter. eflective Style If you have a reflective you take the time you feel you need to eur gnalyze, and evaluate as many alternatives as possible for solving a problem or making a deci, on. The advantage to this is that you carefully consider your decisions and do not make thes haphazardly. However, you may also take so long tomake a decision that you appear indecisive or failto act in a timely manner. To improve your problem solving and decision making, continue to be careful, but attempt to make your decisions more quickly, and learn to accept and work with less-than-complete infor- mation. Andrew Jackson said, “Take time to deliberate; but when the time for action arrives, stop thinking and go on.” For many decisions, Chapter 13. Problem Solving end Decision Making 381 you must take action on the basis of incomplete or even insufficient information. Consistent Style If you use a consistent style as a problem solver and decision maker, you know the appropriate amount of information to consider and evaluate before making a deci- sion, and you act within a reasonable amount of time. You do not make decisions too quickly, as do reflexives, and you do not act too slowly, as do reflectives. Your decisions are timely, reliable, and consistently sound. APPROACHES TO PROBLEM SOLVING AND DECISION MAKING Another way to develop your skills is to under- stand the approaches you can take to problem solving and decision making and learn when to use them. There are two general approaches.* SOLUS CULE es EEUU rat ITWAS THEIR SENIOR PROM AND THE LAST TIME MANY OF THEM WOULD BE TOGETHER IN ONE PLACE The prom committee, Reflexive Rachel, Reflective Ronnie, and Consistent Connie, felt they had planned one of the best proms ever. So far, everything about the night was going great, but trouble was on its way. About 30 minutes before the king and ‘queen of the prom were to be presented to the class, Reflective Ronnie noticed that the students who were to be “crowned” tad not yet arrived. What should the committee do? All the committee members, being the leaders that they were, huddled up and tried to come to a decision. Reflexive Rachel was the first to speak up, and without much forethought she exclaimed, “We should just call everything off, There's nothing we can do now.” Reflective Ronnie just stood there rubbing his chin. He did not operate well in such a pressured situation. His gut told him that such an important decision should not made in haste. Consistent Connie took a few moments to ponder the situation and consider all of the available options, but she knew an appropriate decision had to be made soon. She realized that the first thing to be done was to get someone to call the “royal” couple and make sure they were all right. As it turned out, they were fine, but had been detained by a traffic accident of which they were not a part. Connie decided that the next steps should be to go ahead and announce who the king and queen were, and then explain the situation to everyone and let them know that the king and queen were safe, She suggested that everyone continue dancing and having a good time until the king and queen arrived and the rest | ae ceremonies could be held, The other prom committee members were glad Consistent Connie was there to keep the balance | Ech style is appropriate in certain circumstances. If they had noticed the problem only two minutes before the announce. ‘ment, Reflexive Rachel's idea might have been the best, as there would not have been time to think things through or gather | | ty information. If they had noticed the problem one hour before the announcement, Reflective Ronnie might have come up | ‘with an ingenious solution. However, itis usually best to aim for the calm, but assertive, style of Consistent Connie. \Which decision-making style do you have? How has it helped you or hurt you in your leadership roles?362. Section 4 Managerial Leadership Skills tion? —_—_—— Minimizing Approach In the minimizing approach, you simply opt for the first solution available, even though this solu- tion may not necessarily be the best. If this first solution does not work (or work well enough), you then seek out a new one. This process of trial and error continues until you find an acceptable solu- tion. The minimizing approach is useful if the situ- ation is an emergency or ifthe delay incurred while making a more considered decision could be costly. For example, you may choose the minimiz- ing approach when itis raining hard and water is pouring in through a leak in your roof. Your objec- tive is to stop the leak immediately so that your property is not ruined. There is no time to develop an elaborate plan for fixing the roof permanently (even though this will be desirable in the long run); you just do what you have to do immediately. Optimizing Approach In the optimizing approach, you take the time to review many different alternatives and solutions before making a decision, in order to choose the most effective, appropriate, or helpful solution. This approach requires more time, more thought, and more detailed planning and consideration than the minimizing approach, but it tends to be more reliable. The optimizing approach is usu- ally best (most appropriate) when you have ample time to make a decision, when you cannot easily change your decision once it is made, or when an emergency situation that may have initially required the minimizing approach has passed and you have time to find a more permanent solution. Using the previous example, once the rain has stopped and water from the leak no longer threatens to flood your house, you may wish to use the optimizing approach to decide whether the whole roof should be replaced (or just a por- tion repaired), what sort of roof you want to install, and which roofing contractor will be the most cost-effective, competent, and reliable. THE SEVEN STEPS OF PROBLEM SOLVING AND DECISION MAKING Another way to develop your skills as a problem solver and decision maker is to use a systematic approach to the situations you face. The steps — only used in problem solving and deci, commonly tinave thei roots in the Work of entists such as Bacon, Newton, Galileo, and thej, successors, Who sought to develop a Systematic approach for acquiring knowledge. The work of these individuals and others led to formulation of the scientific method. The scientific method consists of (1) identify. ing a problem situation or asking a question, (2) ‘doingbackground research to: define theprob. lem, (3) creating hypotheses (solutions, answers) for the problem, (4) testing your hypothesis by doing an experiment and gathering data (infor. mation), (5) analyzing data, drawing concly. sions, and/or making necessary revisions to the hypotheses or creating new hypotheses to test, and (6) communicating results.” The process of problem solving and decision making is very much like the scientific method. If we use a logical, systematic approach to solving problems and making decisions, as scientists do, ‘we are more likely to make better choices. Remem- ber, problem solving and decision making are skils that can be learned, practiced, and improved. The steps in problem solving and decision making are presented in Figure 13-3. We exam- ine each of these steps and use the example of the car dealership to clarify the process. STEPS TO PROBLEM SOLVING AND DECISION MAKING Evaluate Your Results Carry Out Your Solution Select a Workable Solution FIGURE 13-3 The steps in sovin e. 4 in salving problems and making decisions 2 similar to those of the scientific method. By following these tes fo the bottom up, you are likely to make good choices‘Mr, Brown owns and is the sole empl nal car dealership. He has determited char | rH must sell 20 cars per week to make his dealer. ship profitable. Currently, however, he is selling only 10 cars per week. Mr. Brown is determined to make his business successful and wants to develop a plan for doing so. He decides to use the steps or problem solving and decision making to help him. (LD *ecognize and identity the probiem. problems are inevitable, in almost any area of life, and they must be solved, not ignored, if you are going to be succeed. The first step in solving a problem or making 2 decision is realizing that you have a problem tosolve or a choice to make. You must then make sure you understand the exact nature of the problem. Ask yourself he following questions: + What problem am | attempting to solve? + What goal am I trying to reach? + Do | fully understand the problem? + Do! need to take action at all? it may be helpful to write the problem down; you can make it more concrete and definite ust by putting it into words. This allows you to focus clearly on a specific issue. Remember, not all decision making concerns negatives; you may have a choice between two or more equelly good things! Regardless, understand that you must not ignore problems. In our example, Mr. Brown realizes that if he needs to sel 20 cars to make a profit and grow a successful business, he cannot continue to sell only 10 cars per week. He must find a way to sell more cars. EBD determine your aternatves. Once you have identified your specific problem, you need to determine what alternatives are available to YOU. Alternatives are the different courses of action You can take to solve your situation. There are likely ‘0 be many alternatives to any given problem, and it ‘S usually best for you to consider each one carefully fore making a decision. It may be helpful to Consult with other people who are familiar with your uation, or have experienced similar situations, to thapimine what alternatives are available, Be aware any alternative may directly affect a number of Chapter 13. Problem Solving and Decision Making 383 | to list If. It may be helpful people other than yoursel y intain a the alternatives on paper so that you can mail clear focus. : In our example, Mr. Brown lists several alternatives to his problem. We will consider three: (1) He may sell @ different type (line) of car, (2) he may lower the price of his current inventory, or (3) he may hire a salesperson to help him. LD Gather intormation. Once you have listed the alternatives, you need to gather information about each one. Look at the facts. Relying only on opinions, emotions, and intuition may lead to hasty, poorly thought-out decisions that you will later regret. While gathering information, ask yourself the following questions: * What do I need to know about each alternative? * What materials, information, assistance, or action will be needed to implement this alternative? * What will this alternative cost? * Is this alternative feasible? Is it likely to work (solve the problem)? + What are the probable (or possible) consequences of this alternative? Do not try to reinvent the wheel. There is a good chance that someone has already had the same problem as you and has identified at least some of the potential alternatives. The library should lead you to an abundance of data. In our example, Mr. Brown gathers the following information. Some of it came from trade publications on car sales and dealerships that were on the Internet. 1. If he switches to selling a different type of car, he will need to secure a loan of several thousand dollars, find a manufacturer willing to sell him a new line of cars, and sell or somehow dispose of his current inventory. 2, If he lowers the price of his current inventory, he may sell more cars because he will be selling them for less than other dealerships in the area 3. Ifhe hires a salesperson, he will need to place a “help wanted” ad, conduct interviews, pay @ salary, and provide a benefits package. He must. also be able to work well with the person he chooses.4 Once you have gathered information regarding each alternative, you will need to evaluate (and perhaps make 2 written lst of) the advantages and disadvantages of each, both in relation to solving the problem and in relationto one another. Consider alsowhatnewproblems may be created by the adoption of each alternative. Mr. Brown evaluates his alternatives as follows: Sell a New Line of Cars Mr. Brown has used his full credit line at the bank, so borrowing more money is not a viable option at this time. Furthermore, estab- lishing a relationship with @ new car manufacturer is a lengthy and costly process thet will only further reduce his ability to sell more cars at this time. Lower the Price on Current Inventory Mr. Brown knows thatiithe reduces the price on his current inven- tory, he only makes his financial problems worse. To stay profitable, he would have to sell even more cars, which would be difficult because he has other respon- sibilities in addition to selling cars (e.g,, record keep- ing, management, ordering, ec.). Although selling cars is of primary importance, he must attend to these other duties as well, despite the fact that they take up time and keep him away from the sales floor. Mr. Brown also sees that lowering his prices is probably not very feasible, because his current prices are already quite competitive with those of other area dealerships. Hire a Salesperson Hiring a salesperson will cost Mr. Brown money, but he knows that most salespeople work for a small salary plus a commission (a percent- age of the final sale price of each car). Thus, the sales- person's pay would depend on his or her ability to sell cars. Having a full-time salesperson would also mean that more time would be spent actually selling cars. This is important because Mr. Brown often has had to take care of managerial matters (bookkeeping, order- ing, etc.) while potential customers were on the car ot When he is unavailable and unable to help thase peo- ple, he loses sales, Mr. Brown also realizes that having another salesperson will allow him time to better fulfill his administrative duties. EG) Select a workable solution. ‘After you have evaluated each alternative and its possible results and consequences, choose the one that isthe most practical, reasonable, and effective in solving — your problem, After considering all his altemaiy, Mr. Brown decides that hiring a salesperson jg his best solution. He can sell more cars, attend to jg administrative duties more easily, and afford to pay a commission-based salesperson. ED erry ot your solution Once you have determined your course of action, follow through. If you fail to implement your solution, the time and effort you have expended getting to this point are wasted. A solution must be put into action it is to work. Mr. Brown advertises for a salesperson. He interviews a number of people, explaining his goals and compensation plan to each one. He hires a salesperson who he feels will be both competent and compatible with his own personality and values. Evaluate your results. The problem-solving and decision-making process does not end when the proposed solution is carried out. It ends when you determine that your problem has been solved, that the same problem persists, or that new problems have been created." Evaluation may lead you to accept your solution as a good one, make further adjustments to improve your solution, or abandon your solution (discard your decision) and start the process over again (Figure 13-4), In our example, several weeks after hiring the salesperson, Mr. Brown evaluates what his decision has done for him and his business. He finds that nat only is he selling more cars than he needs to be profitable but he also has fewer worries about his other duties. In addition, he gets along well with the new salesperson Mr. Brown is satisfied with his choice of alternative solutions; thats, he is happy with the decision he made. Overall, learning and practicing the steps of problem solving and decision making will help you become a better leader. Our example has @ happy ending. but not all of your decisions will turn out so ideall: Nevertheless, as long as you carefully followed each step, you can feel confident that you made the best decision you could at the time. Do not be afraid to stat the process over again if your first solution or decision does not work or does not have the desired effects You can learn from any mistakes you make. Thomas Edison failed numerous times while trying to develo?FIGURE 13-4 4 This eeder is consulting with alo the members of the organization to evaluate results, (Covtesy Gene ‘Mev Deparment o Pb hvomaton dG, Praia State Unies} the incandescent light. Rather than being discouraged, he focused on the wealth of knowledge he gained from his failures. He knew well what did not work, end he kept trying until he found what did work. TYPES OF PROBLEMS AND DECISIONS As you progress through the problem-solving and decision-making steps, you can increase your effectiveness by recognizing the types of problems you encounter and having some techniques in mind for solving them. Essen- ally, the types of problems or decisions you will normally encounter fall into three general categories listed here and explained below: ¢xact-reasoning problems or decisions, creative Problems or decisions, and judgment problems or decisions."! Exact-Reasoning Problems or Decisions With ¢ ibaa or decisions, there is usually one definite (usually factual) @nswer. Mathematical concepts and calculations often resolve such problems. For example, Tom and Kim, a newlywed couple, are considering the purchase of their first home, They must decide whether they will finance the house through a local bank or with a mortgage company. They find that the only difference in the terms and services offered by the two institutions is that the local bank charges 6 percent interest over the life of the loan, compared to the mortgage company, which charges 7 percent. Tom and Kim decide to finance their home through the local bank, because they save 1 percent on the interest charges by doing so. The number of potential variables in these, prob- Jems can make them a bit complex, but if you “do the math’ properly, an exact answer is possible. For example, is it more advantageous financially to attend a four-year, out-of-state college with a higher annual tuition, or to take six years to com- plete the same degree program at a local college where the annual tuition is less? For this calcula- tion, you would have to factor in estimated living expenses for each situation as well as the tuition costs, However, if finding the overall lowest cost is your objective, this remains an exact-reasoning problem for which there is a definite answer.308 Section 4 Managerial LeadershiP sy vee ck a Creative Problems or Decisions When you encounter creative problems or deci- sions, you usually need to draw up a plan or create some sort of design to help you come ‘to asolution. For example, Phil and Joe are college room- mates. They each bring several things from home toputintheir 15-foot by 20-foot dorm room. They must decide how to arrange the room so that all their belongings fit in a neat and efficient setup. ‘They must arrange two beds, two desks and desk chairs, a computer, a television and stand, a small refrigerator, and a stereo. They may want to sketch a room design that is drawn to scale so they can see the possibilities and decide on opti- mal placement for each item. Such advance plan- ning will save them from having to move heavy furniture more than once! Judgment Problems or Decisions Judgment problems or decisions present many factors and alternatives to be listed, com- pared, and evaluated before you can reach a decision. Judgment problems or decisions may fall into four categories: possibilities and factors, improving a situation, steps and key points, and advantages/disadvantages. Possibilities and Factors In some cases, you will have to consider many different possibilities and factors to reach a good solution or decision. For example, John has just started a new job and wants to buy a new car. He knows his price range, he knows he wants a red car, and he knows he wants Cree CE Exterior of house is rundown, looks outdated Yard looks plain, has bare spots FIGURE 13-6 Sometimes it takes only good planning to improve a situation. POSSIBILITIES ai Carsiyle! No Yes Yes Car style 2 Yes | Yes Yes Car style 3 Yes | No Yes Taaune 135A car ofpssiblies ad fet an he YOU which of the three cars to buy. a car equipped with an air bag. He goes to look a three different styles of cars and outlines the pos. sibilities and factors for each (Figure 13-5). Based on the information in Figure 13-5,John decides to buy car style 2, because it satisfies all the criteria he considers important. jituation This type of judgment problem involves taking a current situation and tising the problem-solving techniques to amend or improve on it. For example, Mr. Gomez is not happy with the appearance of his house and yard. He is trying to find ways to make them look better. After identifying specific problems and collecting several alternatives and ideas, he develops and decides to carry out the plan shown in Figure 13-6. Steps and Key Points This type of judgment problem requires you to progress through a series of steps while considering the key points associated with each. For example, Fred and Gin- ger want to purchase a new home. They have two children. Figure 13-7 shows some steps and key Improving @ SI Peru uray Replace aluminum siding with wooden exterior « Paint gutters and downspouts « Plant shrubs along front of house « Plant grass seed on bare spots ar KEY POINTS T eaive Near good schools, stores, and work ace Monthly payment must fit in family budget as Need a bedroom for each child; two baths FIGURE 13-7 Sometimes a decision, such as choosi sion, su nga house toby, requires yout follow ase with each. Decisions are made only after as many criteria as possible have been met. Petot eve Me cage ang He ket coat cae1, closetohome 2. Good academic program 4 offers intended major ‘4 Reasonable cost §, Scholarships available FIGURE 13-8 Factors to consider can be fostves a8 shown inthis chart present points that will guide their decision. Armed with this information, Fred and Ginger can consider only houses that meet their criteria, Advantages/Disadvantages (Yes/No) In this type of judgment problem, you identify factors or considerations relating to the problem or decision and weigh them as positive or negative in terms of their value for solving the problem or making the decision. For example, Mary is considering whether to attend State Univer- sity. She should consider the factors shown in Figure 13-8. In some cases, no single factor is more impor- tant than any others, so you can simply pick the option with the most advantages. In other instances, one positive factor can override many negative ones. The reverse is also true: one nega- tive factor can outweigh many positive ones in the decision-making balance. In this example, there are more positive factors than negative for Mary's attending State University; but Mary real- izes that because the university does not offer her intended major, she will not benefit from attend- ing school there. GROUP PROBLEM SOLVING AND DECISION MAKING Upto this point, we have discussed problem solv- ingand decision making types and processes that apply generally to both individuals and groups. In the following section, we focus on groups ‘nd the various ways they can use the problem- Solving and decision-making process. First, we consider some of the advantages and disadvan- ‘ages to involving more than one person in this Process, Chapter 13 Problem Solving and Decision Making 387 resorted as list of yos-or-o answers or as advantages and disadvantages. One negative can overide al the 0 actors in deciding whether to attond a certain university. Here are just some of the advantages of using groups in the problem-solving or decision-making process: * More information and knowledge are available to make decisions. ‘* More options are likely to be produced from which to choose. * More acceptance of a final decision by members of a group. + More effective communication of the decision is likely. + Better decisions are ultimately made when more than one person is involved in the decision. Some of the disadvantages of group problem solving or decision making include the following: * Involving groups in the process requires more time. * Itis costlier to involve a group in the decision-making process. * Conflicts may arise among group members, + Keeping people working cooperatively on a given task requires great skill. + People may feel less responsibility for the solution or decision when many people are involved in the process. * One person or a small portion of the group may dominate the process, thus causing the solution and decision to be less democratic. + Compromise, rather than the best decision, may occur because of group member indecisiveness. * Groupthink may occur. The desire to be accepted by the group may cause individual members to conform to group decisions rather than thinking critically or questioning objectionable and dubious solutions or388 Section 4 Managerial Leadership Skills: CO OL to solving problems or addres CRITICAL THINKING IS A REASONED, PURPOSIVE, AND INTROSPECTIVE apa aly sing questions wit incomplete evidence and infomation and for which an incontrovertible Critical thinking i a skil that all of y | Three agricultural education professors constructed this definition of critical eae iN ers. Lat’ analyze this defini should strive for as leaders, especially because we frequently make decisions that al mn | | and see what it really says about using critical thinking in leadership development. | Critical thinking is | should | | a reasoned—Before we make decisions that affect our school, clubs, communities, oF ee ve pou a things ‘out. This means that we should not take action or make decisions before we have looked at al first ne everyone's stories, evaluated the facts and assumptions, and examined our own biases. fee ea ight processes should predominate here, without undue influence from emotions, guesses, or unsupportec “ ' ; : all times. It may be easy to preach oy, purposive,—When we are leaders, we have to keep our purpose at the forefront a goals or “sell” our visions to others, but we also have to keep those visions and goals uppermost in our own minds when | we are solving problems and making decisions. and introspective approach to solving problems—The answer is not always easy or obvious. Sometimes, no matter how well we reason it out, while keeping the purpose firmly in mind, the answer is still not black or white. When this is the case, we have tobe introspective, which simply means we have to step back and think about the situation and our place | inthe situation. We have to reflect on how the decision may affect us, haw similar decisions have affected us in the past, | and how we really feel about each alternative. ‘or addressing questions with incomplete evidence and information—The purpose of reasoning and introspection lies in the fact that many decisions and problems simply come down to us. You may not be able to find documentation of how someone else handled a certain problem, or how he or she made a decision about the problem, or even whether anyone has faced a similar problem. Many times, all the responsibility falls on your shoulders, and you as a leader must make a sound, well-thought-out decision without much guidance or factual support. | and for which an incontrovertible solution is unlikely —Incontrovertble is a big word that means “undisputable.” Simply | Put, this means that there is not always a clear, black-or-white, “right” solution or answer. As a leader, you have to use Critical thinking to come up with the best possible alternative or decision, What kinds of problems have you faced this week that did not really have an incontrovertible solution? What kinds of | decisions have you made lately that you had to reason through because you wanted to ensure that you made the right choice? AAs leaders, we have the opportunity to think critically every day, but do we?"? decisions. When conformity to the group negatively affects the problem-solving or decision-making process, the result is groupthink" (Figure 13-9), Methods Asa group attempts to solve problems and make decisions,itmayfollowthesevenstepsforproblem solving and decision making outlined earlier in this chapter. As the group progresses through the steps, it can choose from several methods to foster varying levels of group participation or to generate altematives for consideration. Key {2 fhe effectiveness of neary all these methods is the ideal that all group members particips in the problem-solving of dect Satanking oes diritti argu ent inthe front ofthis picture m “ sal stig of ddan ee eed ial 1a be more interested in cnforing citar questioning desis. an nonthreatening to individual members, Geass Arte Ean) eeei 389 and Decision Making Chapter 13. Problem Solvit FIGURE 13-10 Voting is the conventional method of making @ group decision Stereo Conventional Method In the conventional method, there is group discussion, but the discus- sion is typically dominated by one or a very few individuals. After discussion of possible solutions, avote is taken on a single solution (Figure 13-10). Ifa majority of the group votes for the proposed solution, itis put into place. A potential threat with this method is that if the vote is very close (51 to 49 percent, for example), many ofthe group members donot favor or are actively opposed to that particu- larsolution. This may affect the cohesiveness of the group or cast doubt on the validity ofthe solution."* Brainstorming Method Brainstorming is a group activity where everyone has free rein to suggest as many possible solutions toa problem as first comes tomind. The brainstorming methodismost effec- tive for discovering numerous possible solutions to aproblem, All members of the group have an equal voice and may offer any alternative, regardless of how unrealistic or unreasonable, to solve a given problem. The group members are encouraged to build on one another's ideas. The alternatives are not judged until all suggestions have been made. Devil's Advocate Method In the devil’s advocate method, a person may propose a solution he or she does not really support, just to make others think and react. This method requires the individ- tal to explain and defend his or her position before the group, which in turn raises all the reasons the individual's idea will not work. The group must be Careful to judge the ideas presented rather than the person presenting them. Similarly, the person playing devils advocate must be mature enough to withstand criticism of his or her ideas, and remember that the ideas are what is being judged. ‘The purpose of this method is to refine possible solutions to problems so that they will be feasible and effective when put into action." Delphi Method The Delphi method polls a group through a series of anonymous question- naires. After a first round of opinion question- naires is completed, the opinions are analyzed and the best ideas are resubmitted to the group for a second round, Several rounds may be nec- essary before the group reaches a position that is acceptable to all or nearly all members.” Consensus Method In the consensus method (not to be confused with general consent), the group comes to substantial agreement on a solu- tion. The consensus method is especially effective when time is not a pressing consideration, when the decision is very important, and/or when there isan overriding concern for the unity of the group. In the consensus method, members freely submit their own ideas to the group. The group reviews all ideas and then focuses discussion on the ones it feels are the most important or viable. The discussion itself, rather than a formal vote or ranking, determines how important each idea is, Based on the discussion and the reasons prof- fered in support of each idea, a decision is made that is acceptable to a substantial portion of the ee aE aS ¢390. Section 4 Managerial Leadership Skills 4 up. It is important to realize that reaching ermsensus does not mean reaching a unanimous {everyone in favor) decision. Rather, a consen- sus decision is accepted by a large portion of the group, even if there are still a few members who would prefer a different solution."* Nominal Group Method The nominal group method is a process of generating and evaluating alternatives through a structured voting method. Initially, this is a group interaction in name only. The group does meet, but individuals formulate their own ideas (solutions) in writing without dis- cussing them with other members. All solutions are presented to each group member for review. The proposed solutions are discussed only if there is a need for clarification. The group then chooses, by vote, the top five ideas. After the top five ideas are selected, they are discussed, and the reasoning behind each is presented, Another vote is held, and the solution that receives the most votes in this round is the one accepted for implementation (Figure 13-11). Syneetics Synectics is a group problem-solving process of generating creative alternatives through role-playing and fantasizing, Synectics uses analo- gies to stimulate mental images. A common use of, synectics is to project oneself into the essence of the problem. For example, if an agricultural engi- neer is trying to develop a more efficient combine, she might imagine herself as wheat going through the internal components of the combine. By actu- ally seeing yourself as wheat, you can visualize what it would take to strip the stem from the chaff and other parts, leaving only the grain. grol Minto a ale FIGURE 19-11 These students ae using the nominal group method They re iscussng and caiyng the tp fve ideas before te final Vote. eyo Gee gaat) Prefabricated potato chips were developeq a synectic group. ‘The company wanted to pack. age and compress potato chips without breakin teem, The group eventually drew an analo leaves, which can be compressed without dam. age as long as they are wet. They tried it, ang prefabricated potato chips became a successfy) commercial product. “When Nolan Bushnell wanted to develop g new concept in family dining, he began by dis. cussing general leisure activities. Bushnell then moved toward leisure activities having to do with eating out” The idea of a restaurant-electronic game complex where families could play games and purchase pizza and hamburgers evolved and then became a viable business.” Creativity of this kind has become so important to organizations that many of them are beginning to look into let. brain and right-brain thinking. Left-Brain, Right-Brain Thinking Inrecent years, much attention has been focused on creativity and brain function. Most people are either left-brain dominant or right-brain domi- nant. This dominance also dictates the way peo- ple do things. Left-brain people tend to be very logical, ratio- nal, detailed, active, and objectives oriented. They tend to prefer routine tasks or jobs that require precision, detail, or repetition. They like to solve problems piece by piece, using a sequential, logi- cal approach. People with left-brain dominance tend to be more analytical but less creative and innovative than right-brain-dominant people. They are comparable to the introverted melan- choly personality type discussed in Chapter 2 Right-brain people are more spontaneots emotional, holistic (emphasizing the importance ofthe whole and the interdependence of its parts) physical (nonverbal), and visual in their approach. They like jobs without repetition or routines aN enjoy work that requires them to generate ideas ‘They like to solve problems by looking at the entire matter and approaching the solution throug intuition and insight?! Right-brain people # comparable to the extroverted, choleric, or $4" guine personality type discussed in Chapter 2 Figure 13-12 compares right-brain and left brain leadership styles, personality types, com™™” nication styles, and communication forcefulnes*Chapter 13. Problem Solving end Decision Making 391 COMPARIS eM AD RUT at Nun cau eased it-brain | om : et Authoritarian z Choleric | Dominant | Directors | Aggressive istics é ae | Demonte z Sanguine | influencing Socialors q Assorive poe Ses | #5) “prin twat ! eat | 5 | Melancholy | Cautious Thinkers i f characteristics Laissez-aire &| Phlegmatic | Steady | peloters | Passive | FIGURE 13-12 Just as no one is 100 percent of any personality type, there it isnot a 100 percant correlation between any combination of leadership, aya eoneuniation sy. Sometimes, an statin ede, we ust ry our poten sng ad decison making sys @5 wel as our feadership and communication styes to meet the needs and objectives of the moment. With this information, you can almost predict the decision-making style that correlates with each leadership style, As we discuss each of these styles, we focus on how people with that style make decisions and situations in which each style may be used appropriately. We also take one example and show how each style would arrive at asolution or decision. LEADERSHIP STYLES AND GROUP DECISION MAKING Group leaders, whether consciously or uncon- sciously, have leadership styles. The leader of a group may be someone who has been appointed as a chairperson of a committee; someone who has been selected by the group to serve as leader; someone who simply takes charge of the group; or a supervisor, foreman, manager, teacher, or administrator. How a leader involves the group in the problem-solving or decision-making pro- cess reveals his or her leadership style. (The vari- ous leadership styles are discussed at length in Chapter 1.) Good leaders are aware of their style and can vary it according to the situation. You too should be aware of your leadership style as you are put into situations in which you may become the leader of a group or the supervisor of employ- ees, The four leadership styles in group problem solving and decision making are autocratic, con- sultative, participative, and laissez-faire. Consider this workplace scenario. Mark, a supervisor, has been given the opportu- hity to promote one employee from his group to a foreman’s position. Let us see how Mark could use different leadership styles in deciding who should get the promotion. Aleader using the autocratic leadership style makes the decision independent of the group. After the decision is made, the leader informs the group of the choice and may offer an explana- tion of why the decision was made the way it was. ‘The autocratic style may be effective if (1) there is no time to consult the group, (2) the leader has enough information available to make the deci- sion alone, (3) the group is willing to accept the leader's independent decision and put it into action, or (4) the group is unwilling to make (or is incapable of making) the decision.” In our example, using the autocratic style, Mark would not consult anyone; instead, he would decide who gets the promotion and inform his superiors of his choice. He would then tell his employees who is getting the promotion and why. This type of leader probably has a choleric personality type. Inthe consultative leadership style, the leader goes to individual group members seeking addi- tional information that will help him or her solve the problem or make the decision. The leader then solves the problem or makes the decision. Before putting the plan into action, the leader explains the solution or decision and its supporting ration- ale to the group. Questions and discussion may be allowed, but the decision stands. The consultative style is effective if (1) a leader has to make a deci- sion quickly, (2) a leader needs more information to make a decision, (3) a group is not sure if they should go along with a leader's decision, or (4) a392 Section 4 ee ts meni os F illing to participat, ivi is highly comy tent and willing | cipate op rapsrtngmtemmbacnscties SURO si eae as Mark has only some of the probably has ae na aie pa snfarguation that will help him decide whom to pas an promote only one pa ming the consultative approach, he and eh provide him with siggy for who should be promoted, to various employees and sources seek- formation. When he felt he had suffi- cient information, Mark would choose someone and inform the rest of the employees of his deci- ion and his reasons for it. He might allow ques tions and discussion from the other employees even though his decision was final. This leader more than likely has a sanguine personality type. In the participative leadership style, the leader has a tentative solution or decision in mind but goes to the group seeking its ideas and opin- ions before making a final choice. The leader is opento change based on the group input. Another way to use this styleis for the leader to present the problem to be solved or decision to be made to the group and ask for suggestions. Their sugges- tions become the basis for the leader's ultimate decision. Again, after announcing the decision, the leader explains the reasoning behind the deci- sion to the group. The participative style is effec- tive when (1) time to make a decision is abundant, (2) a leader has limited information for making a decision, (3) a group seems unaccepting of a deci- sion because they had limited input, or (4) agroup would go ing more in FIGURE 13-13 This group is using the laisse-faire ‘who wil lead the group activity 4 itctteg2) tions and rationales When his information is complete, Mark would name the employee to be promoted and explain the reasons for his choice. In the Inisse-faire leadership style, the leader presents the problem or decision to bemadetothe group; the group, not the leader, solves the problem ee makes the decision. The leader may even act as a group member. The laissez-faire style is effective when (1) there is ample time for a decision to be made, (2) the leader has limited information to make a decision, (3) the group has to have a voice in the decision-making process, or (4) the compe- tency level of the group is outstanding, Note that of the four styles, laissez-faire is the only one that allows the group to make the final decision. In our example, using the laissez-faire style, Mark would tell the group members that they need to decide who is to be promoted. Mark would then become a group member. The group would hold a discussion and decide who gets the promotion (Figure 13-13). ecision making method, in which the group dacidesCONCLUSION problem solving and decision maki Fe sien making we ome make decisions depends on the situation, ovr leadership style, our personality type, and our communication style. However, the important attributes in this area are the abilities to make decisions and solve problems, SUMMARY A problem arises when there is a difference between what is actually happening and what the individual or group wants to happen. Prob- lem solving is the process of taking corrective action to bring about the conditions that the individual or group desires. The process by which anew course of action is selected is called deci- sion making, Problem solving and decision making are skills that can be learned, practiced, and improved. People and groups tend to have certain problem- solving and decision- making styles. Reflexive-style problem solvers and decision makers make deci- sions quickly, without a great deal ofthought. Those with a reflective style take a great deal of time to formulate alternatives, evaluate those alternatives, and choose among them. People with a consistent style make careful, reliable, well-founded decisions ina reasonable amount of time. Youcan approach problem solvingand decision making in two ways. The minimizing approach adopts the first, but not necessarily the best, fe Take It to the Net Chapter 13 Problem Solving and Decision Making 383 solution to resolve the situation. The optimizing approach reviews many different solutions to a situation before choosing the best one available. When you choose the optimizing approach, you may wish to use the seven-step process for problem solving and decision making: (1) rec- ognize the problem, (2) determine alternatives, (3) gather information, (4) evaluate alternatives, (5) select a workable solution, (6) carry out the solution, and (7) evaluate the results. You may use these steps to find solutions to problems that have one exact answer, problems that usu- ally involve creating a plan or design, and judg- ment problems that call for techniques such as weighing possibilities and factors, trying to improve the current situation, determining sequences of steps and key points, and determin- ing advantages/disadvantages. There are both advantages and disadvantages to group problem solving and decision making, A group may choose to solve a problem or make a decision through a number of different meth- ods that use varying degrees of group participa- tion. Some of these are the conventional method, brainstorming method, devil’s advocate method, Delphi method, consensus method, nominal group method, and synectics method. Leaders of groups may have distinctive styles of solving problems and making decisions. The style they use depends in part on how involved and capable the group members are, and it may vary depend- ing on the situation. These styles, beginning with the least amount of group participation and pro- gressing to the most, are autocratic, consultative, participative, and laissez-faire, Explore problem solving and decision making on the Intemet. Using the following search terms, tr to find information You feel would be worthwhile sharing with your teacher and classmates Search Terms Problem solving | problem-solving techniques i a creative problem solving decision making decision-making process394 Section 4 Managerial Leadership Skills _ —_ 4 REVIEW QUESTIONS ae, 1. Define the Terms to Know. 2. List four reasons why being an effective problem solver and decision maker is important. 3, List eight mistakes individuals or groups make when attempting to solve problems or make decisions 4 List 13 skills individuals and groups need to develop to solve problems and make decisions effectively, 5. List and briefly describe three problem-solving and decision-making styles. 6. Distinguish between the minimizing and optimizing approaches to problem solving and decision making. When might you use each? 7. List and briefly describe the seven steps for problem solving and decision making 8. List and briefly describe three types of problems or decisions. 9, List five advantages and eight disadvantages of group problem solving and decision making, 10. List and briefly describe seven methods a group can use in solving problems and making decisions, 11. List and briefly describe four leadership styles used in group problem solving and decision meking COMPLETION 1. The decision maker makes quick decisions without taking time to consider and evaluate all possible alternatives. 2. The decision maker evaluates all possible alternatives in a reasonable amount of time. 3. The decision maker considers all possible alternatives but often ‘takes an unres- sonable amount of time to make a decision. 4. Inthe style of group leadership, the leader may have a solution in mind but can be swayed by group input. 5. The style of group leadership allows the group to make decisions. 6. Inthe style of group leadership, the leader independently makes a decision and then informs the group of the choice ie ate 7. In the Style of group leadership, the leader seeks only additional information from group members without encouraging group discussion = types of decisions involve listing possibilities and factors, improving a situa tion, listing steps and key points, or listing advantages and disadvantages. 9. types of problems have an exact mathematical solution. 10 types of problems require an artistic design or a pian to solve 1 brain people tend tobe very logical, rational, detailed, active, and objectives oriented: 12, -brain people are spontaneous, emotional, holi Le , |, holistic, igual their approach to decision making. enChapter 13. Problem Solving and Decision Making 395 MATCHING A aaeeronieoy Arises when there is i cs e a difference alternatives between what is actually happen- ing and what a person or group Ce ea wants to happen. ‘optimizing approach _— 2. The different courses of action you Delphi method can take to solve a problem, __— 3. Doing whatever it takes to reach the goals of an individual, group, or organization, 4. The process by which a new or dif- ag ferent course of action is selected to correct a problem. 5. Choosing the first available, but not @ necessarily the best, solution to solve a problem or make a decision. 6. Method of suggesting as many alternative solutions as possible to a problem without judging the value of the alternatives. 7. Process of discussing possible solutions to a problem and then taking a majority vote to decide the course of action. 8. Reviewing many solutions to a problem before choosing the best one to implement. 9. Results in a substantial portion of a group agreeing on a solution 10. Uses a series of anonymous polls to solve problems or make decisions. ACTIVITIES problem solving consensus method problem minimizing approach rOn™mMmo0m>D conventional method J. decision making 1. Give an example of a problem you face now. Alternatively, you may choose to create a hypothetical problem situation like the example used in this chapter. 2. Follow the seven steps of problem solving and decision making to solve the problem you listed in activity 1, Be sure to label each step. If you wish, share your thought process with a classmate. 3. Write an example of each of the following problem or decision types. Exchange your examples with a classmate and have him or her design solutions to each. Each person should be able to show or explain how the solution was reached a. Exact reasoning b. Creative ©. Judgment 4. Write an example of a situation in which you would use the minimizing approach to problem solv- ing or decision making, and one in which you would use the optimizing approach. Read one of your examples to the class. Have the class decide which approach you are demonstratingNOTES 20. R. 396, Section 4 Managerial Leadership Skills es 5. Your class needs to raise $500 more than it already has to purchase 2 con i cess ividg * into three groups. The first group should attempt to come to a solution o ioe be ron using the conventional method. The second group should use the conssrS = eT id gro should use the nominal group method. Report the findings ‘of each group to lass. the rules for his or her class. Explain h rminins 6. Consider the following situation: a teacher is determining sultative leadership stya ‘ the teacher would do this using an autocratic leadership style, @ COM participative leadership style, and a laissez-faire leadership style. 7. Have the class divide into four groups. Take the situation given In activity 6 and have each gt0up role-play one of the group leadership styles 1. RN, Lussier, Human Relations in Organizations: Applications and Skill Building (Boston: McGraw-Hill Higher Education, 2012). 2. Ibid. 3. L.J. Phipps, E. W. Osborne, . E. Dyer, and A. L. Ball, Handbook on Agricultural Education in Public Schools, 6th ed. (Clifton Park, NY: Delmar Cengage Learning, 2008), Ch. 23. 4, Ibid., pp. 118-119. 5. Ibid. 6. R. Griffin, Fundamentals of Management, 8th ed. (Boston, MA: Cengage Learning, 2016). 7. Quoted in BrainyQuote. Retrieved August 3, 2016 from [Link] [Link]. 8 “Decision Making” Efficiency series, No. 8742-C (College Station, TX: Instructional Materials Service, Texas A&M University, 1988), pp. 1-2. 9. Science Buddies, Steps of the Scientific Method, retrieved August 2, 2016 from [Link] .org/science-fair-projects/project_scientific_method.shtml. 10. “Problem Solving” Efficiency series, No. 8742-D (College Station, TX: Instructional Materials Service, Texas A&M University, 1988), p. 2. LL. Ibic 12, R. Rudd, M. Baker, and T, Hoover, “Undergraduate Agriculture Student Learning Styles and Critical Thinking Abilities: Is There a Relationship?” Journal of Agricultural Education 41(3):2-12 (2000). 13, Ibid. 14, R. Griffin, Fundamentals of Management, 8th ed. p. 117. 15. “Decision Making,’ p. 4. 16, J. Lombardo, The Devils Advocate: Impacts on Group Decision Making, Video course retrieved August 3,2016 from [Link] 17. R. Griffin, Fundamentals of Management, 8th ed., p. 116. 18. “Decision Making” pp. 4-5. 19. Ibid., p.5. Lussier, Human Relations in Organizations: Applications and Skill Building (Boston: McGraw-Hill Hight? Education, 1999, pp. 332-333). 21. R.M, Hodgetts and K. W. Hegar, Modern Human Relations at Work, 11th ed. (Fort Worth, TX: South-Wester" Cengage Learning). 22, K. Cherry, What is Autocratic Leadership? Verywell Psychology, June 22, 2016, retrieved August 3, 2016 from [Link] 23, Lussier, Human Relations in Organizatior 24, Ibid. 25, Ibid. sneineeiiataal