Page 297 - Business Principles and Management

Unit 4
Success tip
Experts in creative problem
solving recommend the use
of “incubation,” which is a
“time-out” stage to let the
mind wander, without forc-
ing it to think about any
particular aspect of the prob- Most problems can be analyzed by completing a series of steps. You may have
lem or solution. This stage
could be as simple as a lunch class. The procedure works as well in business as it does in scientific problem
break or a good night’s
sleep. Some of the world’s
most creative thinkers
depend on moments of
solitude for their best ideas.
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Decision Making
In the process of planning, organizing, implementing, and controlling, managers
encounter problems that require them to make decisions. Top-level managers
make some of the decisions, such as new products to be developed or new mar-
kets that the business will enter. Mid-managers make other decisions that may
result in new ways of organizing work, the use of new technology, or improved
procedures for completing work. First-level managers, such as department heads
and supervisors, make decisions about the daily operations of their units. It is
important to the overall success of any business that the decisions be made as
carefully as possible at every level of management.
PROBLEMS AND DECISION MAKING
Generally, a problem is a difficult situation requiring a solution. Problems usu-
ally do not have single solutions. Instead, they have a series of possible solu-
tions. There may be several good solutions, but there may also be several poor
solutions. For example, the problem may be to find the most effective and effi-
cient method to ship products from a manufacturing plant in Texas to cus-
tomers in Montreal, Canada. Possible solutions are to ship by airplane, ship,
train, or truck. Depending on the circumstances, any one of the shipping meth-
ods could be the best or the worst solution. To find the best solution, managers
should follow a systematic approach to solving problems. That procedure is
outlined in Figure 11-3.
STEPS IN PROBLEM SOLVING
learned this problem-solving process already in other classes, such as a science
FIGURE 11-3 Developing an effective solution to a problem requires
a step-by-step process.
IDENTIFY THE PROBLEM
Symptom? Problem?
DETERMINE POSSIBLE SOLUTIONS
Solution A Solution B Solution C Solution D
ANALYZE THE SOLUTIONS
Advantages Disadvantages
SELECT THE BEST SOLUTION