Supervision Concepts and Skill Building 10th Edition Certo Solutions Manual

Supervision Concepts and
Skill-Building 10th Edition Certo

Solutions Manual
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Chapter 08 – Problem Solving, Decision Making, and Creativity
Chapter 08
Problem Solving, Decision Making, and
Creativity
I. Chapter Overview
Learning Objectives
8.1 Identify the steps in the rational model of decision making.

8.2 Discuss ways people make compromises in following the decision-making model.
8.3 Describe guidelines for making decisions.
8.4 Explain how probability theory, decision trees, and computer software can help in
making decisions.
8.5 Discuss advantages and disadvantages of making decisions in groups.
8.6 Describe guidelines for group decision making.
8.7 Describe guidelines for thinking creatively.
8.8 Discuss how supervisors can establish and maintain a creative work climate.
8.9 Identify ways to overcome barriers to creativity.
Clark Wigley, a management consultant, says that, “success does not equal no problems (as in ‘If I
were a good manager, I would have no problems’). Success is having and solving the right problems.”
Problem solving requires making good decisions. Using a rational model of decision-making improves
the likelihood of reaching good decisions. The rational model presented includes: identify the
problem, identify the alternative solutions, gather and organize facts, evaluate the alternatives, choose
and implement the best alternative, get feedback and take corrective action.
People may try to take a simpler approach to decision-making by considering only the alternatives that
readily come to mind. They may just want to meet minimum standards or use subjective methods to
select an alternative. Human compromises to the rational decision-making process include simplicity,
bounded rationality, subjective rationality, rationalization, personal perspective, recency syndrome,
and stereotyping.
When making decisions, supervisors should consider the consequences of the decision. When the
consequences of a decision are great, the supervisor should take more time in readying the decision.
On the other hand, in a crisis, the supervisor must make a decision quickly.
There are tools available to help the supervisor select among alternative solutions. The probability
theory, the decision-making tree and related software aid supervisors in selecting the best solution.
Resources available to supervisors in making good decisions are their employees and peers. Using the
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Education.
Part 3 – Functions of the Supervisor
assistance of a group will increase the information and number of ideas for solutions. Also, people
who are involved in developing a solution are more likely to support the implementation of the
solution. A disadvantage of group problem solving is that it usually takes longer than individual
decision-making. Other disadvantages include the cost to the organization, inferior decision making
owing to a small group dominating the decision-making process, and groupthink.
Solving a problem may require a new, creative solution. Creative thinking develops a broad store of
information related to the problem. Supervisors can increase their own creativity by setting aside time
in which they can let their mind wander. Taking a break can be helpful when ideas don’t seem to be
flowing.
Widespread creativity among employees can be a valuable asset in coming up with new ideas to solve
problems. Supervisors should show they value creativity. They should listen to and encourage
suggestions. Some of the barriers to creativity are fear of failure, excessive busyness, and isolation. To
overcome these barriers, supervisors need to remember that failing inevitably accompanies trying. The
supervisor should not place blame but acknowledge the effort of employees and continue to search for
better solutions.
A Supervision Challenge: Creative Problem-Solving at Dirty Lemon
Teaching notes:
The opening case discusses Dirty Lemon, a Brooklyn based beverage company that sells directly to
customers through text messaging. The case presents the following two questions.
1. What problem solving and decision making strategies will the founders of Dirty Lemon
continue to need and rely upon?
Student’s answers will vary. A decision tree may be used to initially analyze any capacity
upgrades needed with the addition of new customers.
2. How can you apply their ability to think creatively to your own work as a supervisor?
Student’s answer will vary widely here. A discussion would bring out many suggestions and
viewpoints students would not ordinarily hear.
The case is again referred to in the Skills Module – Part Two: Skill-Building exercise at the end of the
chapter.
II. Teaching the Concepts by Learning Objectives
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Learning Objective 8.1: Identify the steps in the rational model of decision-making.
1. Key Term:
Decision: A choice from among available alternatives
2. Teaching Notes:
A decision is a choice from among available alternatives. Solving problems involves making a
series of decisions: deciding that something is wrong, deciding what the problem is, and deciding
how to solve it. Successful problem solving depends on good decisions.
Much of a supervisor’s job consists of making decisions that cover all the functions of
management. In many cases, supervisors make decisions without giving any thought to the
process of deciding. A supervisor automatically does something because it feels right or because
he or she always has handled that problem that way. Even though making many decisions seems
automatic, supervisors can improve the way they make them by understanding how the decision-
making process works in theory and in practice.
The rational model of decision-making includes the following steps:

• Identify the problem
• Identify alternative solutions
• Gather and organize facts
• Evaluate alternatives
• Choose and implement the best alternative
• Get feedback and take corrective action
3. Teaching examples to identify the steps in the rational model of decision-making:
The text provides a rough outline of a decision-making process made by Dave Frantz, the
supervisor of a group of workers for a janitorial service. Dave works long hours to accomplish his
job. Big problems like Dave’s are often the cumulative effect of many small problems. The
following will give additional detail for the example.
Identify the problem: The symptom of Dave’s problem is the long hours he must put in to satisfy
the needs of his job and his boss’s demands. As indicated in the text, he had already determined
that he worked hard and did not waste time. To understand better how he used his time, Dave
kept a log to indicate how much time was spent on each of his tasks. After several days it was
obvious that a large portion of his time was spent on paperwork. Also, as a result of his log, he
was able to determine that he was not giving importance to some parts of his job. For example, he
was unable to spend as much time on training as he would have liked.
The paperwork is the result of forms and check sheets that are submitted by the workers for
quality assurance records, billing information, payroll, and safety records. Each job has a job
order and check sheet to assure the customer receives what is ordered. Billing information is
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taken from the job order check sheet and a summary is prepared for accounting. Each worker
must keep a daily time record and expense record sheet. The payroll is prepared from the
summary Dave provides along with the original records that are also sent to the accounting
department. In addition, records are kept on the chemicals used in the cleaning process and all the
reported accidents.
Just finding that a lot of time was spent on paperwork was not enough to solve the problem. Dave
went on to analyze the paperwork to determine more specifically the use of his time. (Refer to
graph below “Analysis of Time Used for Paperwork”).
Dave now has information that will help him focus on potential solutions.
Identify alternative solutions: It appears to Dave that the hours spent calculating and preparing the
reports is the place to concentrate his efforts. If he could cut this time in half he could reduce his
workload by nine hours. Alternatives considered by Dave were to delegate the work to someone
else and automate all or part of the task. Before Dave could reach a decision, he carefully
investigated all the alternatives.
Gather and organize facts: Dave first thought he could get someone else to do the work. Hiring a
clerical person was out of the question. The top management said this was not possible. There
was no money to hire another person. Would a temporary employee solve his problem? Could
several other employees do the work? This was not possible because of the confidentiality
involved in the billing process and the fact that the summary still had to be done by one person.
Analysis of Time Used for Paperwork
Tasks Hours Used Percent of

Hours
Job summary reports 15 50.0
Billing reports 5 16.7
Time/payroll reports 2.5 8.3
Expense reports (mileage and meal allowance) 5 16.7
Safety reports 2.5 8.3
Total 30 100.0
Analysis of Paperwork Tasks
Tasks Hours Used Percent of

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Hours
Calculations and writing summary reports 18 66.7
Correcting mistakes and omissions of raw data 12 33.3
Total 30 100.0
Dave then investigated the possibility of automating a part of the job. Could he somehow use the
bar-coding method used in the warehouse? This was not feasible at this time.
If he had to continue to do the task using the same basic method, what was available to help him?
Dave talked to the accounting department and the order department. Those departments used
computers to speed up their work. They were also valuable for summarizing data and creating
easily accessible records. Dave found the cost of the computer that would fulfill his needs. He
estimated it would reduce the time spent by 30 percent immediately, and eventually would reduce
the time by 50 to 60 percent of the original time.
Evaluate alternatives: A temporary employee would help him catch up and give him some extra
hours in the short run. A permanent employee was not possible in the foreseeable future.
A computer seemed to be the best solution. It could create the summary report from the data
entered. There would also be a permanent and easily accessible record of the job orders and other
data that could be used for other purposes in the future. The up-front cost of the computer was
high, but it would be a one-time cost.
Choose and implement the best alternative: Dave made a request for the computer. He provided
his boss with all of the information leading up to his decision. His boss was impressed with the
thoroughness of his investigation. The estimation of reduction in time was realistic. The
recommendation was approved.
Get feedback: Dave continued to monitor and keep records of the time he spent on this part of his
job. The computer was a big help. It also pointed out the need to standardize record keeping by
the employees. As a result, Dave had a meeting with the employees and emphasized the need for
complete and accurate record keeping on their part. The employees also made recommendations
on how the job orders could be improved to help them keep good records for the company.
The latest result of the problem-solving effort was the documentation of an overall reduction of
60 percent of the paperwork time.
4. Exercise to identify the steps in the rational model of decision-making:
Refer to the “Exercise” below for Learning Objective 8.2, starting on page 8-8, and discuss ways
people make compromises in following the decision-making model. The exercise includes an
application of the rational model of decision-making and the ways people make compromises in
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following the model.
Learning Objective 8.2: Discuss ways people make compromises in following the decision-
making model.
1. Key Terms:
Bounded Rationality: Choosing an alternative that meets minimum standards of acceptability
Recency Syndrome: The tendency to remember more easily those events that have occurred
recently
Stereotypes: Generalized, fixed images of others
2. Teaching Notes:
Often supervisors have neither the time nor the desire to follow all these steps to a decision. Even
when supervisors try to follow these steps, they often have trouble thinking of all the alternatives
or gathering all the facts they need.
Given these human and organizational limitations, supervisors—like all decision makers—make
compromises most of the time. A supervisor who is aware of the kinds of compromises people
make is more apt to be aware of when he or she is using them. In addition, a supervisor may find
that though some kinds of compromises are useful in some situations, others are to be avoided as
much as possible.
Reasons for compromises:

• Simplicity: Usually people simply mull over their experiences and consider ways they have
handled similar problems in the past. The downside of this approach is that it tends to
bypass new and innovative solutions, even though they sometimes deliver the best results.
• Bounded rationality: When time, cost, or other limitations, such as the tendency to
simplify, make finding the best alternative impossible or unreasonable, decision makers
settle for an alternative they consider good enough. Choosing an alternative that meets
minimum standards of acceptability is a form of bounded rationality; that is, a decision
maker places limits, or bounds, on the rational model of decision-making. The decision
maker considers alternatives only until one is found that meets his or her minimum criteria
for acceptability. Figure 8.3 in the text shows the process of bounded rationality.
• Subjective rationality: When people analyze alternatives, they tend to rely on their intuition
and gut instincts instead of collecting impartial data. Even when the process for arriving at
the decision is otherwise rational, the numbers used in the process may be subjective and
thus not completely accurate.
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• Rationalization: People tend to favor solutions that they believe they can justify to others.
• Personal perspective: People may assume that everyone sees things the way they do. They
think if something is clear to them it is also clear to everyone else. To avoid this problem,
decision makers must find out what other people are thinking and then consider those
views.
• Recency Syndrome: An event should not carry more weight simply because it is more
recent. This is one reason decision makers need to consider the alternatives as fully as is
reasonable.
• Stereotyping: Rigid opinions about categories of people are called stereotypes and they
interfere with rational decision making, limiting a decision maker’s understanding of the
people involved. Stereotypes distort the truth that people offer a rich variety of individual
strengths and viewpoints.
3. Teaching examples to discuss ways people make compromises in following the decision-making
model:
The example of Dave Frantz used in the text and Learning Objective 8.1 can be used to
demonstrate the concepts discussed in this learning objective. Using the problem-solving model
discussed above will take some time to determine the best solution. Dave may want to
compromise or speed up the decision-making process. Dave may also have personal beliefs that
direct his decision-making process. The following are examples of some of the compromises
Dave may be tempted to make:
Simplicity—usually what people do is think over their experiences and consider some of the ways
similar problems have been handled in the past.
Dave could have simply decided that he didn’t have enough time to do all of his work and tried to
sell his boss on a solution that from his point of view is a simple solution, such as to hire a
clerical person to take care of the paperwork. After all, in the past when work piled up, they hired
someone to help out.
Bounded rationality—when it seems impossible or unreasonable to find the best alternative in the
universe, decision makers settle for an alternative they consider good enough.
Dave has decided that the workload is impossible or unreasonable and has set some minimum
standards. For example, he may do only the work that needs to be done on a timely basis, such as
payroll and billing, and let other paperwork remain unfinished until he is pressed for it.
Subjective rationality—alternatives that are the result of intuition and gut instincts, rather than
impartial data.
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Dave may act on intuition, such as thinking that the records are unnecessarily complicated and
simplification would allow the use of employee check sheets for accounting purposes. As a result
of this thinking, Dave may end up changing the record keeping system to eliminate some of his
part of the paperwork.
Rationalization—people tend to favor solutions that they believe they can justify to others.
Dave could decide to try to sell his boss on sending the paperwork directly from the employees to
the payroll, billing, and personnel departments without his review and summary of the
information. His rationale would be that his time is too valuable to waste on paperwork. He is an
experienced technician and his talents are best used in the field, not behind a desk. He is sure his
boss will agree with his argument.
Personal perspective—people assume that everyone sees things the way they do.
Personal perspective for Dave may further support the value of his talents and the waste of time
and talent on paperwork.
Recency Syndrome—an event should not carry more weight simply because it is more recent.
Last month, one of his peers was allowed to transfer part of her paperwork to a clerical employee.
Dave might remember this incident and ask for similar help for himself even though his manager
has consistently turned down such requests in the past.
Stereotyping—rigid opinions about categories of people distort the truth that people offer a rich
variety of individual strengths and viewpoints.
Dave may think that paperwork is secretarial work and secretaries are women. Therefore, a
secretary or a woman clerical employee should be doing the paperwork.
4. Exercise to discuss application of the rational model of decision-making (Learning Objective 8.1)
and ways people make compromises in following the decision-making model:
Students can apply the rational decision-making model to their personal life as well as their
workplace. Set up the situation, then apply the rational decision model, and give examples of
specific compromises that can be made based on the six reasons listed above. The exercise is best
used as a homework assignment
Steps to using this exercise:
• Make each student a copy of Forms 8.2, on page 8-10, “Applying the Rational Model for
Decision-making” and 8.3, on page 8-11, “Compromises to the Rational Model for
Decision-making.” The student is to use the worksheets as a guide for the exercise.
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Instructors can also ask students to hand them in as proof of completion of the assignment.
• Read the situation to the class and ask if they have any questions regarding the assignment
Form 8.2. A term project has been assigned to the class. It slipped the student’s mind and
the discussion about the project today made him or her to realize that he or she don’t have
time to do a good job on the project. It is very important that he or she gets a high grade on
this assignment or his or her final grade could be in jeopardy. The student has a job and
personal obligations. Use the rational model of decision-making to come up with three
alternative solutions. Then select the best alternative. Also indicate feedback and corrective
action. Use additional paper if necessary to show examples and explanations.
Form 8.3. A term project has been assigned to the class. It slipped the student’s mind and
the discussion about the project today made him or her to realize that he or she don’t have
time to do a good job on the project. It is very important that he or she gets a high grade on
this assignment or his or her final grade could be in jeopardy. The student has a job and
personal obligations. Instead of using the rational model of decision-making, give solutions
based on the seven reasons for compromise.
• The assignment requires students to explain specifically what they would do at each step of
the rational decision-making model. The responses should be similar to the teaching
example of Dave in Learning Objective 8.1.
• After students have finished the rational decision-making model, they will do the
compromise sheet that will indicate how the decisions for the specific problem would be
made using each of the compromises.
• If desired, hold a class discussion after the assignments have been completed.
o Ask students which of the worksheets was easiest to think about and complete.
o Ask students which method best represents the way they make decisions and what
advantages and problems may result from their problem-solving methods.
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Form 8.2
Applying the Rational Model for Decision-making
A term project has been assigned to the class. It slipped the student’s mind and the discussion about
the project today made him or her to realize that he or she doesn’t have time to do a good job on the
project. It is very important that he or she gets a high grade on this assignment or his or her final grade
could be in jeopardy. The student has a job and personal obligations. Use the rational model for
decision-making to come up with three alternative solutions. Then select the best alternative. Also
indicate feedback and corrective action. Use additional paper if necessary to show examples and
explanations.
The rational model of decision-making includes:
a. Identify the problem
b. Identify alternative solutions
c. Gather and organize facts
d. Evaluate alternatives
e. Choose and implement the best alternative
f. Get feedback
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Form 8.3
Compromises to the Rational Model for Decision-making
A term project has been assigned to the class. It slipped the student’s mind and the discussion about
the project today made him or her to realize that he or she doesn’t have time to do a good job on the
project. It is very important that he or she gets a high grade on this assignment or his or her final grade
could be in jeopardy. The student has a job and personal obligations. Instead of using the rational
model of decision-making, give solutions based on the seven reasons for compromise.
1. Simplicity
2. Bounded rationality
3. Subjective rationality
4. Rationalization
5. Personal perspective
6. Recency syndrome
7. Stereotyping
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Learning Objective 8.3: Describe guidelines for making decisions.
1. Teaching Notes:
Should a supervisor always avoid human compromises in making decisions? Not necessarily. In
some situations, seeking to match the rational model would just be too costly and time
consuming.
Guidelines for making decisions in the workplace:
Consider the consequences: When the consequences of a decision are great, a supervisor should
spend more time on the decision, following the rational model of decision-making and seeking to
include as many alternatives as possible. When the consequences of the decision are slight, a
supervisor should limit the time and money spent in identifying and evaluating alternatives.
Respond quickly in a crisis: In a crisis, a supervisor should quickly select the course of action that
seems best. This is an appropriate application of bounded rationality. Instead of waiting to
evaluate other alternatives, the supervisor should begin implementing the solution and
interpreting feedback to see whether the solution is working.
Inform the manager: A supervisor’s manager does not want to hear about every minor decision
the supervisor makes each day. However, the manager does need to know what is happening in
the department, so the supervisor should inform the manager about major decisions including
those that affect meeting departmental objectives, responses to crisis, and any controversial
decision.
When the manager needs to know about a decision, it is usually smart for a supervisor to discuss
the problem before reaching and announcing the decision. The manager may see an aspect of the
problem that has escaped the supervisor’s attention or have different priorities that lead to a veto
or modification of the supervisor’s solution. In a crisis, the supervisor may not have time to
consult with the manager and will have to settle for discussing the decision as soon as possible
afterward.
Be decisive yet flexible: Sometimes it is difficult to say which alternative solution is most likely to
succeed or will bring the best results. Two alternatives may look equally good, or perhaps none of
the choices looks good enough. In such cases, a supervisor may find it hard to move beyond
studying the alternatives to selection and implementation one of them. However, avoiding a
decision is merely another way to decide to do nothing, and doing nothing is usually not the best
choice.
Being decisive means reaching a decision within a reasonable amount of time. The supervisor
should pick the alternative that looks best (or at least acceptable) within the appropriate
timeframe for the decision, and then focus on implementing it.
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A decisive supervisor quickly clears his or her desk of routine matters, promptly referring them to
the proper people, and keeps work moving. A decisive supervisor assumes complete
responsibility for getting the facts needed when he or she must solve a problem. Finally, a
decisive supervisor keeps his or her employees informed of what they are expected to do and how
they are progressing relative to their objectives.
Being decisive does not mean a supervisor is blind to signs that he or she has made a mistake.
When implementing a solution, a supervisor needs to seek feedback that indicates whether the
solution is working. If the first attempt at solving a problem fails, a supervisor must be flexible
and try another approach.
Avoid decision-making traps: Some supervisors seem to delight in emergency deadlines and
crises, and they act as though each decision is a life-or-death issue. But good planning can avert
many crises; life-or-death issues are not the usual stuff of a supervisor’s job. A supervisor must be
able to put each issue into perspective so that he or she can calmly evaluate the alternatives and
devote an appropriate amount of time to finding a solution.
Another trap for decision makers is responding inappropriately to failure. When a supervisor
makes a wrong decision, the supervisor will look best if he or she acknowledges the mistake. At
the same time, supervisors need not agonize over their mistakes. The constructive approach is to
learn whatever lesson the mistake can teach and then move on.
By trying to save time or work independently, some supervisors fail to draw on easily available
information. One important source of information is precedent. Have some of the alternatives
been tried before? If so, what was the outcome? By consulting with other members of the
organization or outside experts, a supervisor often can find readily available data that will
improve his or her decision.
Sometimes supervisors are tempted to promise too much. This mistake traps many supervisors
because the promises keep people happy. Another trap is to assume there is one “right” decision.
2. Teaching examples to describe guidelines for making decisions:
The example of Dave Frantz used in the text and Learning Objective 8.1 can be used to
demonstrate the concepts discussed in this learning example. The guidelines discussed in this
learning objective are also important for Dave to consider in finding a solution to his problem.
• Consider the consequences: When the consequences of a decision are great, the supervisor
should spend more time on the decision.
The consequences of Dave’s decision are saving his valuable time and the cost of the
solution. These two consequences are important and should result in spending enough time
to do a thorough investigation.
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• Respond quickly in a crisis: In a crisis, the supervisor should quickly select the course of
action that seems best.
Dave’s problem is not a crisis at this time, but it is serious. If he doesn’t plan for the
elimination of this problem, it may soon reach a more critical stage. At that time he may
have to get additional help from other employees. He may have to hire a temporary person
or take someone away from his or her work.
• Inform the manager: The supervisor’s manager doesn’t want to hear about every minor
decision, but the manager does need to know what is happening in the department. The
supervisor should inform the manager about major decisions.
Perhaps Dave could have acquired a computer for his office on loan before he informed his
manager. He may be very sure that his manager will agree with his decision. But since the
computer is going to be an additional expenditure for the company, Dave should inform his
manager of his decision and the rationale behind the decision before he takes the next step.
• Be decisive but not inflexible: Sometimes it is difficult to say which alternative solution is
best, or perhaps none of the choices looks good enough.
If Dave finds through his continued monitoring of the new system that he is still spending
too much time on paperwork, he should review his other alternatives and perhaps
investigate additional alternatives. An additional alternative may be an improved software
package for the computer. Remember Dave’s original problem was the time it took to do
the paperwork. If the first solution is not really a solution, he should continue to search for
a better solution.
• Avoid decision-making traps: Avoid making a major issue out of each decision. Good
planning can avert many crises, and life-and-death issues are not the usual stuff of the
supervisor’s job. Put each issue into perspective so that alternatives can be evaluated and
an appropriate amount of time can be devoted to finding the solution.
Obviously, Dave’s problem is not going to go away by itself. The longer he puts it off, the
more he is neglecting other important parts of his job.
3. Exercise to describe guidelines for making decisions:
Refer to “Exercise” below for Learning Objective 8.4 on page 8-16, “Explain how probability
theory, decision trees, and computer software can help in making decisions.” The exercise
includes an application of the guidelines for decision-making concepts.
Learning Objective 9.4: Explain how probability theory, decision trees, and computer software
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can help in making decisions.
1. Key Terms:
Probability Theory: A body of techniques for comparing the consequences of possible decisions
in a risk situation
Decision Tree: A graph that helps decision makers use probability theory by showing the
expected values of decisions in varying circumstances
Decision-Making Software: A computer program that leads the user through the steps of the
formal decision-making process
2. Teaching Notes:
To make decisions about risk situations, a supervisor can compare the consequences of several
decisions by using probability theory. To use this theory, a supervisor needs to know or be able
to estimate the value of each possible outcome and the likelihood (probability) that this outcome
will occur.
In the real world, most decisions involving probability are complex. Sorting out the relative value
of the choices can be easier with the use of a graph. A supervisor may find it helpful to use a
decision tree for making decisions in risk situations. A decision tree is a graph that helps decision
making by showing the expected values of decisions in varying circumstances.
Some computer programs have been developed to help people make decisions. A decision-
making software leads the user through the steps of the formal decision-making process. A
database management program, such as Access, IBM DB2, or Oracle Database, systematically
stores large amounts of data and makes it easy for the user to request and retrieve specific
categories of data.
3. Teaching examples to explain how probability theory, decision trees, and computer software can
help in making decisions:
Text Figure 8.5 “A Simple Decision Tree” illustrates a simple decision tree showing the available
alternatives which stem from the decision points. In this figure, a sales supervisor is trying to
decide whether to hire a new salesperson at a salary of $40,000. Assuming there is a 60 percent
chance of sales increasing if the supervisor hires a salesperson (and a 40 percent chance of sales
remaining steady), the expected value of hiring is 0.60($210,000) + 0.40($160,000), or $190,000.
The expected value of not hiring is $225,000. According to the greater expected value for not
hiring, the supervisor should decide that it makes more economic sense not to hire a salesperson
at this time.
4. Exercise to explain how probability theory, decision trees, and computer software can help in
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making decisions:
It is likely that most students have not used a decision tree in the past. Therefore, it is valuable to
have students determine when a decision tree is a useful tool.
• Have students generate a decision tree for some aspect of their lives, for example, the
career path that they are going to follow. Give this assignment as homework. Determine
which decision will be selected for the circumstances described.
• Determine whether the consequences of each decision are great or not. (Refer to Learning
Objective 8.3.) Also determine the degree to which the decision will have to be flexible.
That is, if things don’t work out, what is the next decision? This can be shown at the right-
hand side of the decision tree.
• Also, have students “inform their boss” using the decision tree to discuss their decision tree
with the class.
Learning Objective 8.5: Discuss advantages and disadvantages of making decisions in groups.
1. Key Term:
Groupthink: The failure to think independently and realistically as a group because of the desire
to enjoy consensus and closeness
2. Teaching Notes:
Some organizations allow or expect supervisors to work with a team or other group to arrive at a
decision. For example, a supervisor might seek input from a team of employees to decide how to
meet production targets or encourage them to come up with a solution among themselves.
Advantages of group decision-making: Group members can contribute more ideas for alternatives
than an individual could think of alone. Because people tend to draw on their own experiences
when generating and evaluating alternatives, a group will look at a problem from a broader
perspective.
Also, people who are involved in coming up with a solution are more likely to support the
implementation of that solution. They will better understand why the solution was selected and
how it is supposed to work, and they will tend to think of it as their solution.
Disadvantages of group decision-making: An individual usually can settle on a decision faster

than a group can. There is also a cost to the organization when employees spend their time in
meetings instead of producing or selling. The group can reach an inferior decision by letting one
person or a small subgroup dominate the process.
Groups sometimes fall victim to groupthink, or the failure to think independently and
realistically that results when group members prefer to enjoy consensus and closeness. Here are
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some symptoms of groupthink:

• An illusion of being invulnerable
• Defending the group’s position against any objections
• A view that the group is clearly moral, “the good guys”
• Stereotyped views of opponents
• Pressure against group members who disagree
• Self-censorship, that is, not allowing oneself to disagree
• An illusion that everyone agrees (because no one states an opposing view)
• Self-appointed “mindguards,” or people who urge other group members to go along with
the group
When a supervisor notices that his or her group is showing the symptoms of groupthink, it is time
to question whether the group is really looking for solutions. A supervisor who also is the group
leader should draw forth a variety of viewpoints by inviting suggestions and encouraging group
members to listen with an open mind. Another way to overcome groupthink is to appoint one
group member to act as devil’s advocate, challenging the position of the majority.
3. Teaching examples to discuss advantages and disadvantages of making decisions in groups:
In the article, “Team Up for Quality Improvement,” John Persico Jr. presents some of the myths
of traditional team models and major premises that provide the theoretical basis for the process
improvement team concept. Without the recognition of the misconceptions and the remedies for
the conditions, management is simply looking for a simple and inexpensive way to get others to
solve organizational problems. The following three myths are the most problematic in team
problem solving.
• Workers are fully capable of identifying and directing improvement efforts and can
decrease problems and costs without the help of or interference from management.
• A happy and motivated team is an effective work team. Team-building and communication
skills training ensure effective teamwork.
• Experienced employees have needed skills, knowledge, and technical expertise to identify
and solve major organizational problems.
The four major premises that provide the theoretical basis for the process improvement team
concept:
• Ongoing management involvement is essential for effective performing work teams.
Management must provide the resources for success, including the selection and training of
teams, and help identify improvement opportunities.
• Teams are sociotechnical systems and require a sound infrastructure to function effectively.
This includes an explicit set of guidelines and rules that provide direction and focus for the
completion of all tasks related to the teams’ mission and purpose. Communication and
human relations training must be based on actual work objectives. If this is not done,
training will be viewed as irrelevant and probably will be ineffective.
• The team needs effective leadership that is able to blend the diverse skills and personalities
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of all team members. Only by drawing on the diverse talents, abilities, and ideas of all team
members will they create an effective team. Leaders cannot be autocrats.
• Team members need skills training in process analysis, data collection and analysis, and
unstructured problem solving. Teams should not be expected to produce results without the
training to do so.
In order for all this to work, management and supervisors must actively participate by helping
employees identify conditions for improvement that will have the greatest effect on customer
satisfaction. They should not supplant the ideas of employees, but rather complement them. This
will help establish credibility of team efforts by assuring that the necessary resources will be
available to teams.
An example of a company using employees to make better decisions and improve the company is
Alagasco (Alabama Gas Company), the largest distributor of natural gas in Alabama. In 1984,
Alagasco could have qualified for a list of the 100 worst places to work. Everybody feared for
their job and had no input whatsoever. Management was motivated by fear, and employees
described the culture as, at best, one where “good deeds go unpunished.”
Mike Warren, president, came on board determined to change the culture. He instituted “Hey
Mike” cards that were available to jot down a comment, a suggestion, a question, or anything else
without signing the card. He responded to every one of them.
To make sure employees made good decisions, the company opened a training school called
Alabama Gas Company University. A two-thirds cost reimbursement supports education. To
encourage employees to take risks to make improvements, Gary Youngblood, vice-president of
the Birmingham service center, issued cards saying, “Beginning today every employee... has the
authority to give customer satisfaction.” He said these were “get out of jail free” cards. If
employees tried something and it failed, they turned in the card and were forgiven.
Teams need a cultural environment that supports and facilitates team decision-making, training,
and freedom to fail without excessive risk. The supervisor who wants employee involvement,
whether it is with formal teams or individual input, must be ready to play the role of facilitator of
employee ideas.
4. Exercise to discuss advantages and disadvantages of making decisions in groups:
Refer to the “Exercise” below for Learning Objective 8.6, page 8-21: describe guidelines for
group decision-making. The exercise can be used to discuss advantages and disadvantages of
making decisions in groups. Also, refer to the “Exercise” for Learning Objective 8.7 on page 8-
24: describe guidelines for thinking creatively. This exercise can be used to discuss individual and
group idea generation.
Learning Objective 8.6: Describe guidelines for group decision-making.
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1. Key Term:
Brainstorming: An idea-generating process in which group members state their ideas, a member
of the group records them, and no one may comment on the ideas until the process is complete
2. Teaching Notes:
Given the advantages and disadvantages of group decision making, a supervisor would be wise to
involve employees in some but not all decisions. When a decision must be made quickly, as in an
emergency, a supervisor should make it alone. When the supervisor needs to build support for a
solution, such as measures to cut costs or improving productivity, the group process is useful.
Group decision making also can be beneficial when the consequences of a poor decision are
great, the benefits of a group’s collective wisdom are worth the time and expense of gathering the
input.
A supervisor can have a group actually make the decision, or a group may simply provide input,
leaving more decision-making responsibility to the supervisor. Whenever supervisors ask for
input, they should be sure they intend to use the information. Because a main benefit of making
decisions as a group is the variety of opinions and expertise available, a supervisor leading a
decision-making meeting should be sure that everyone is participates.
One basic way of encouraging participation is for a supervisor to avoid monopolizing the
discussion. The supervisor should focus on hearing participants’ opinions. The supervisor should
notice which participants are quiet and ask their opinions about specific topics being discussed.
Another way to generate ideas in a group is to use brainstorming. Brainstorming is an idea-
generating process in which group members state their ideas, no matter how far-fetched they may
seem.
Another way to obtain a list of ideas that ensures the participation of everyone without criticism is
to do brain-writing. When brain-writing, everyone writes down their ideas for solving a problem.
No names are listed on the paper. The papers are then exchanged with others who build upon and
expand the idea. Exchanging continues until everyone has had the opportunity to read and
comment on all the other ideas. All the ideas, which have now become the work of the group as a
whole, are then shared and discussed.
Brainstorming does have some pitfalls. People who are naturally talkative may dominate the
conversation or be more willing to put forth ideas, while others remain silent. One way to
forestall these problems is to ask everyone ahead of time to think about the situation and bring at
least one or two ideas. Another option is to take the emphasis off talking by asking everyone to
draw, diagram, or build models of their ideas.
3. Teaching examples to describe guidelines for group decision-making:
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Generating ideas is only part of the group decision-making process. Individual members of the
group may have differing opinions about the best decision. When differences of opinion occur,
one of the first thoughts is to settle the differences democratically, or vote on it. Another decision-
making method is by consensus of the group.
• Voting: advantages and disadvantages. Voting is quick and easy. If everyone agrees, the
team can quickly move on to the next item. If they do not agree, it is not so simple.
Remember, one of the advantages of team decision-making is that if a team determines the
solution, they are more likely to support the decision and help sell the idea to others. This is
especially important when the decision is not widely accepted in the larger group. Voting
means that the majority of the team rules. It may be a simple majority of one vote. This
means that nearly half of the team does not like the solution. What do you think this
dissatisfied portion of the team will do? Do you think they will support and sell the idea?
Voting is useful when you are trying to get an idea where the group is in their thinking. A
“straw vote,” or nonbinding vote, may be useful to see if further discussion is necessary.
There are variations on the majority rule that allow for participants to have more than one
vote, and a process of elimination by a series of votes.
• Consensus: advantages and disadvantages. Consensus means reaching a decision everyone

can support” It does not mean that everyone is 100 percent satisfied, but that the agreement
is something all members can live with. Members may use a number like 80 percent
satisfied to have a goal that is realistic. This means genuine give and take. It does not mean
holding out the longest to get your ideas accepted. Individuals who are dissatisfied with a
suggestion should be prepared to offer a compromise.
Consensus may take a long time, especially if there are strong opposing opinions. This is
probably when it is the most useful. If you can get buy-in of team members, there is a
greater chance of buy-in by the larger group. If the team members can live with the
outcome, they are more likely to sell the idea and assist the implementation of the solution.
The greatest ally to the implementation may be the person who was the most difficult to
convince. He or she will be able to explain to others what convinced him or her of the
specific alternative.
An employee at Honda of America Manufacturing expresses some of the benefits of

teamwork “In other places I had a fear of some of my bosses. But that’s not the way it is
here. At Honda, it’s all teamwork. Management will dig right in there with you and help
solve problems. They’re not going to stand back and tell you what to do.” Honda has a
Voluntary Involvement Program, or VIP, which has four components–NH-Circles (quality
circles), a suggestion program, quality awards, and safety awards. The NH-Circles suggest
improvements or solve problems. They have instituted programs such as recycling, which
earns the plant more than $2 million a year. In the suggestion program, employees
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implement their own suggestions.
The example shows the need for a win-win attitude of management and employees. Group
decision-making works best in an atmosphere where employee input is valued. While
Honda has a formal program with rewards for employees, at any level of group decision-
making employees need to know their contributions are appreciated and gain recognition
for the ideas that are implemented. Supervisors should resist asking employees or groups to
make suggestions and then ignore the decisions, take credit for the work of a group, or fail
to give feedback when the decision is not used.
4. Exercise to describe guidelines for group decision-making:
Developing productive teams requires more time than is likely to be available within a class.
However, some basic dynamics can be illustrated by having groups of students attempt to solve a
problem. The following exercise is an in-class exercise used to contrast individual problem
solving and group problem solving. Allow 45 minutes to one hour for the exercise. If possible,
supply students with sheets of newsprint paper to facilitate classroom presentations.
Steps to use the exercise:

• Divide the class into problem-solving groups and individuals who are all given the same
assignment. The number of groups will depend on the size of the class. Designate three to
six individual students to work independently on the assignment and divide the remainder
of the class into groups of five to eight students. Include some groups that have an even
number of students. (It is usually suggested to have an odd number in a problem-solving
group to eliminate a tie vote. Since consensus should be considered as a decision-making
tool, a tie vote should not be a prime consideration when developing groups.)
• Have students count off around the room to avoid having groups that are friendship groups
or cliques. Natural groups may have had a great deal of experience in making decisions.
This will influence the dynamics of the group and reduce the opportunity of learning the
concepts presented in this class.
• Have the class contribute to the rules that will guide the teams. If the students don’t suggest
these rules, be sure to include such things as respecting each other’s ideas, staying on the
topic, sticking to the goal of the meeting, and meeting the time deadline.
• Assign all groups and individuals the same task. Have students determine a social activity
for the end of the semester or term. This activity must be something that most people in the
class will enjoy and all will attend.
• The goal is to determine an event, the objective of the event, the time for the event,
location, entertainment, refreshments, and rules for additional guests. Give the students a
budget of $1.50 per student. If the cost of the event is more, students need to consider how
the additional money will be raised. Allow the students 25 minutes to come up with a
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proposal to present to the class. If possible, give students newsprint paper to write out the
details of their proposal. This will facilitate presenting the information to the class.
• Students, both groups and individuals, will present their proposal to the class.
• Discuss which of the proposals meets the objectives of the assignment with the class. Ask
students which of the events they would be willing to attend.
• Discuss the decision-making process of the groups and individuals. Ask groups about the
advantages they perceived by working with others on the assignment Ask about the
disadvantages also. Then ask the individuals about the advantages and disadvantages they
experienced while working on the assignment.
One of the advantages of the groups and a disadvantage of the individuals is the availability
of others to comment on the likelihood that others would attend the event.
Learning Objective 8.7: Describe guidelines for thinking creatively.
1. Key Term:
Creativity: The ability to bring about something imaginative or new
2. Teaching Notes:
A common notion that some people are creative, whereas the rest of us are stuck with following
routine and ordinary courses of action. A fundamental way to become more creative is to be open
to your own ideas. When trying to solve a problem, think of as many alternatives as one can. Jot
them all down without rejecting any; evaluate them only when you are done. This is like the
group process of brainstorming. Whether one is alone or in a group, practice should help one’s
ideas flow more easily.
Experts in creative thinking share several steps one can take when one needs creative ideas:
• Before one can even try to come up with an idea, clear away any major sources of stress.
• Research what other people and organizations have done in similar situations. Borrow any
ideas you can adapt to your own situation.
• While going about one’s day, introduce as many new situations and changes as one can.
Learning something new can help one make an unexpected connection or get one energized
to think in a fresh new way.
• If one is generating ideas on one’s own, set up some meetings to talk out the issue with
others. If one’s part of a group project, allow time for individual reflection.
• Bring in new faces, especially if your usual group is stuck in a rut.
3. Teaching examples to describe guidelines for thinking creatively:

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• Before you even try to come up with an idea, clear away any major sources of stress.
When you’re under stress, your brain chemistry is preparing you to run away from
problems, not think of new ways to tackle them. One of the ways to gather raw materials is
by involving a group of knowledgeable people and facilitating a brainstorming session.
Brainstorming can be used in several ways in creative problem solving or creative
improvements. For example, brainstorming can be used to determine what the group knows
about the current situation. Brainstorming can be used again to suggest possible solutions.
Since a creative, new idea is often the recombination of already known information, the
brainstorming session is a fertile place to germinate new or creative ways of looking at the
situation.
If you are trying to solve the problem as a group and the discussion is not going anywhere,
adjourn or at least take a break, and then continue the discussion later.
• Research what other people and organizations have done in similar situations. Borrow any
ideas you can adapt to your own situation.
Make a list of the suggestions from brainstorming for everyone. When someone makes a
suggestion, think about it carefully before you respond. Sometimes an idea that sounds
faulty contains the seeds of an improvement.
• While going about your day, introduce as many new situations and changes as you can.
Instead of thinking about the problem, do whatever stimulates your imagination and
emotions, such as listening to music.
Try to allow participants enough time to include some leisure time. Do not hold the
brainstorming session late in the afternoon of a busy week and then agree to meet the next
morning. During the second session it may be useful to begin to group similar ideas
together. Have the problem-solving group do this task. There will likely be some
disagreement about what truly belongs together. Have opposing ideas presented to the
group. This will help the team realize there is more than one way to look at an idea.
Learning something new can help you make an unexpected connection or get you
energized to think in a fresh new way.
• If you’re generating ideas on your own, set up some meetings to talk out the issue with
others. Identify an idea. It will probably pop into your head unexpectedly. Sometimes
creative ideas come from dreaming or daydreaming, or they just seem to pop into your
head while you are doing something else.
Ask team members to carry a small note pad and a pencil in their pocket to jot down ideas
as they occur to them. The ideas may be an addition to the original list or a creative way to
look at the problems. If you’re part of a group project, allow time for individual reflection.
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• Bring in new faces, especially if your usual group is stuck in a rut. Seek out constructive
criticism.
In a later meeting begin to shape the ideas into something that can direct the investigation
of the solution. Keep the same open environment that is useful in the brainstorming
session. Cultivate a wide circle of friends, and strike up conversations with the people you
meet. You never know whose stories and experiences will shed light on the issues you care
about.
4. Exercise to describe guidelines for thinking creatively:
Give the students an opportunity to experience creativity using the following in-class exercise.
The exercise will take between 5 and 30 minutes, depending on where you decide to cut off the
exercise.
• Ask students to write down as many uses as they can think of for some common object like
a paper clip. Allow one minute for this part of the exercise.
• Ask students how many ideas they have on their list. They will likely have between five
and ten ideas. Ask if they were able to keep writing the entire minute or if they ran out of
ideas.
Discuss with the students some of the mental blocks they experienced, such as knowing the
“real” use of the paper clip. Also ask the group to share any ideas they thought were
unique. The exercise can be stopped at this point.
• Ask the group to share their ideas and write all ideas on a flip chart or black (white) board.
After two or three students contribute their ideas, throw the session open to brainstorming
to show how many ideas a group can contribute as compared to a single individual.
• Discuss the value of the group input and any idea-blocking behavior such as inappropriate
laughter, groans, remarks that indicate the idea is inappropriate because of cost or
experience, personal attacks, and so on. Also explain that the brainstorming session is only
the beginning of the decision-making process or the attempt to come up with new ideas.
Before the solution is to be implemented, there are many more steps, including
investigating the ideas.
Learning Objective 8.8: Discuss how supervisors can establish and maintain a creative work
climate.
1. Teaching Notes:
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To benefit from the entire group’s creativity, the supervisor should establish a work climate that
encourages creative thinking. The most important step a supervisor can take in this regard is to
show that he or she values creativity. When employees offer suggestions, a supervisor should
listen attentively and look for the positive aspects of the suggestions. A supervisor also should
attempt to implement employees’ ideas and should give them credit. When ideas fail, a supervisor
should acknowledge that failure is a sign that people are trying. A supervisor should help
employees see what can be learned from the failure.
2. Teaching examples to discuss how supervisors can establish and maintain a creative work
climate:
Why say something if nobody listens? This may be the simplest explanation of the lack of
creativity. In her book The Change Masters, Rosabeth Moss Kanter gives an example of a new
plant manager, interested in improving employee communications, who asks an employee why he
hadn’t made a successful suggestion earlier in his 32-year career. The reply was, “My supervisor
wasn’t interested, and I had no one else to tell it to.”
It is often easier to illustrate why creativity doesn’t take place than to establish an environment
for creativity. The definition above for creativity is the ability to bring about something
imaginative or new. Creativity means being able to generate alternatives that are innovative or
different from what has been used in the past. This means change from what has traditionally
happened. Change is difficult. Managing an environment for creativity is managing an
environment for change. It is much more comfortable to continue doing what has always been
done. This is true for supervisors and employees.
Kanter says this about companies that embrace change: “Cultures and structures that are
integrative, encouraging the treatment of problems as ‘wholes,’ create mechanisms for exchange
of information and new ideas across organizational boundaries, ensure that multiple perspectives
will be taken into account in decisions, and provide coherence and direction to the whole
organization. In these team-oriented cooperative environments, innovation flourishes broaden the
search for solutions further beyond what the organization already ‘knows’ (or... beyond what its
leaders think they know).
Kanter contrasts this type of environment with companies where a segmentalist approach
dominates. This type of company is not conducive to innovation. When a problem is identified, it
is isolated. Each department and each person owns only a part of it. Each part works
independently. Individual segments may develop innovative ideas, but there is no mechanism for
transferring the knowledge.
For the supervisor who wants to encourage creativity or innovation, the environment must
support an exchange of information. Problems must be seen as part of a larger system. This
means that supervisors must maintain good relationships and open communications with their
employees and with other parts of the organization. This will be more difficult in an organization
where there are tighter boundaries around specific jobs and departments.
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3. Exercise to discuss how supervisors can establish and maintain a creative work climate.
Refer to the “Exercise” for Learning Objective 8.9, starting on page 8-27, identify ways to
overcome barriers to creativity. The exercise includes an application of establishing and
maintaining a creative climate.
Learning Objective 8.9: Identify ways to overcome barriers to creativity.
1. Teaching Notes:
Often supervisors and employees have difficulty being creative because they are afraid their ideas
will fail. The best the supervisor can do is to keep in mind that a lack of creativity will probably
prevent big successes as well as big failures.
In an idea does fail, the supervisor should acknowledge the problem and not try to pass the blame
on to someone else. Most managers admire supervisors who try ideas after careful thought and
who focus on learning from mistakes rather than passing blame. A supervisor who prepares
contingency plans and is prepared to focus on solutions is likely to impress his or her superiors,
even when the specific idea does not work out as hoped.
Another barrier is being overly busy. Creative thinking requires time for quiet and rest. If a
supervisor cannot get these breaks at the workplace, he or she needs to allow time for thinking
elsewhere–at home, while walking in the woods, while driving.
Isolation also interferes with creativity. Supervisors need to talk to co-workers in other
departments of the organization. They need to talk and listen to their employees. Colleagues in
other organizations can be a good source of ideas, as can friends and family members.
2. Teaching examples to identify ways to overcome barriers to creativity:
Supervisors who want creativity to flourish can use some simple methods. Be sure your
employees perceive you to be open and supportive of new ideas. Give employees opportunities
for input. Some of the ways supervisors can invite ideas include:
• Ask if employees have questions
• Ask for ideas, what has been missed
• Review all options with employees before a final decision is made. Ask where else you can
go for additional information.
• Ask for employees’ help with a problem or an idea you have
• Ask “How can we improve this?” (This is a good response when employees complain
about a condition.)
• Ask who else has information about a condition
• Tell employees when you don’t know something and ask for their help
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• Above all, thank employees for their help, and give credit whenever the opportunity arises
3. Exercise to identify ways to overcome barriers to creativity:
Form 8.5, on page 8-28 is a list of situations that may be associated with building an environment
for creativity. Students benefit from the experience of dealing with a situation that will simulate a
condition they may experience in the future. Have students help build that environment using this
exercise to stimulate a discussion about what it will take to achieve the goal.
• Make a copy of Form 8.5 for each student. Give the students five to ten minutes to come up
with ideas for each of the statements.
• Select one or more of the statements and have students share their ideas. This part of the
exercise may take the form of brainstorming.
• Have the students select one or more of the ideas to implement for each statement
discussed.
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Form 8.5
Creating an Environment for Creativity
Read the statements below and determine methods for achieving each of the conditions.
1. Get to know employees to better understand their creative ideas or interests.
2. Encourage personal creativity and growth for all employees.
3. Recognize and reward creative suggestions.
4. Ensure that employees recognize that you want creative and innovative ideas from everyone.
5. Tolerate the failures that are a part of creativity and take a chance with a new idea.
6. Invite creativity from a group of people who will be affected by a decision to change a process.
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III. Answers to Review and Discussion Questions
1. Andrea is in charge of scheduling the work for the service department of a car dealership. Lately,
people in the sales department have been taking telephone calls from customers and promising
that service work can be completed on a certain day or by a certain time. Consequently, everyone
is unhappy–mechanics, salespeople, customers, and Andrea–because the work schedule is
disrupted and the service department can’t keep up with the promises made to customers. Using
the rational model of decision-making, what steps might Andrea take to correct the situation?
Students’ answers will vary, but students should try to cover all the steps in the model; which
include identifying the problem, identifying alternative solutions, gathering/organizing facts,
evaluating alternatives, choosing/implementing alternatives, and getting feedback.
2. Define bounded rationality. Describe a situation in which you resorted to bounded rationality as a
method of decision-making. What were the results of your decision? Do you think this was the
best way to make a decision under the circumstances? Why or why not?
Bounded rationality is choosing an alternative that meets minimum standards of acceptability.

Students’ answers will be based on personal experiences and will vary.
3. Franklin Jones, a supervisor in the buying department for a department store, says, ‘I think these
men’s jackets are going to be hot this fall. Let’s place a big order.” What kind of compromises to
rational decision-making is he using in making his decision? Using the decision-making model,
what would be a more rational approach?
Students’ answers will vary. Students should go over the seven types of compromises that people
tend to make to the rational decision-making model and evaluate which of those were made by
Franklin. It is not obvious from this example that any thought went into the decision. At the least,
Franklin has made compromises to the rational decision-making model based on subjective
rationality and personal perspective. There is not enough data to indicate whether Franklin made
other type of compromises (simplicity, recency syndrome, or stereotyping) as well or not.
Students should further elaborate on the rational decision-making model and suggest how
Franklin can best use this model to arrive at a decision. For example, depending on the time and
budget available, he might collect sales data on various types of men’s jackets in his store as well
in stores in the vicinity, analyze that data, and then decide whether or not to stock a particular
type of jacket.
4. In each of the following situations, what is interfering with the supervisor’s ability to make the
best decision? Suggest how the supervisors can improve their decision-making.
“I think this new smart phone model should be blue,” said the design supervisor. “I like blue.”
Personal perspective. People assume that everyone sees things the way they do. They think if
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something is clear to them it is also clear to everyone else. Decision makers must find out what
other people are thinking and take those views into account.
The supervisor is suggesting what he or she would like to see. What is the basis for selecting
blue? What data is available to support the selection of blue or any other color? What other
alternatives are available or practical?
The supervisor should look at what marketing problem the new answering machine is trying to
answer. What are the alternative potential solutions? He should gather information and determine
the best alternative. The supervisor may also want to involve other employees to come up with a
variety of alternatives.
“Let’s conduct training at three o’clock on Fridays,” said the customer service supervisor. “After
all, it’s been slow the last couple of Friday afternoons.”
Bounded Rationality. When it seems impossible or unreasonable to find the best alternative in the
universe, decision makers settle for an alternative they consider good enough. The process is also
known as bounded rationality, that is, the decision maker places limits, or bounds, on the rational
model of decision-making. The decision maker considers alternatives only until he or she finds
one that meets his or her minimum criteria for acceptability.
The supervisor should determine alternatives to Friday afternoons and gather information of the
advantages and disadvantages of all time periods. For example, Friday afternoon may be a bad
time because it is a slow time and some employees are allowed to leave early because of the lack
of business. The end of the week may not be a good time for training because people are tired and
preoccupied with weekend plans.
“I’ll bet we could boost sales by attracting more women,” said the sales manager at an auto
dealership. “To generate some traffic, we could hold a little fashion show or a makeup
demonstration or something like that every week or so.”
Stereotyping. Rigid opinions about categories of people distort the truth that people offer a rich
variety of individual strengths and viewpoints. The cure for stereotyping is not to assume that
everyone is alike. Rather, the supervisor should make a conscious, ongoing effort to learn about
the various groups of people represented in the workplace. The supervisor should be aware of
what his or her stereotypes about people and situations are. In making a decision, the supervisor
should consider whether those stereotypes truly describe the situation at hand.
Again, the supervisor should seek out alternative methods of boosting sales. If the best alternative
is to attract more women buyers, then alternative methods of attracting women should be
investigated and the best alternative selected.
5. This chapter presents several guidelines for decision making: Consider the consequences, respond
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quickly in a crisis, inform the manager, be decisive but not inflexible, and avoid decision-making
traps. How would such guidelines influence the way a nursing supervisor handles the following
two situations?
The supervisor is scheduling nurses for the next month.
When scheduling the nurses for the next month, the supervisor must take into consideration both
the needs of the organization and the nurses. When the consequences of a decision are great, the
supervisor should spend more time on the decision. In some units of the hospital the
consequences of a poor decision may be more serious than in other units. He or she should try to
follow the rational model of decision-making, collecting information and seeking to include as
many alternatives as possible. When the consequences are slight, the supervisor should limit the
time and money spent in identifying and evaluating alternatives.
One of the nurses calls on Friday afternoon to say her father just died, so she will be out next
week.
This is an emergency. The decision must be made quickly. The problem for the supervisor will
not be to allow the nurse to be absent, but how to cover the work for her. Be decisive but not
inflexible. Sometimes it is difficult to say which alternative solution is best, or perhaps none of
the choices looks good enough. In this case it may be difficult to move beyond studying the
alternatives to selection and implementation. Being decisive means reaching a decision within a
reasonable amount of time. The supervisor should pick the best, or at least acceptable, one and
then focus on implementing it.
6. Philip is a supervisor who likes to work independently. Whenever he faces a new situation, he
prefers to analyze it and make his decision without consulting other sources. How might this
method of decision-making impact the results of his decision? What might be a better way for
Philip to proceed?
Philip probably does not make the best informed decisions because he does not gather enough
information. Also, he probably wastes time going over the same ground again and again, instead
of looking for precedents set by others. If he has collected information to use in future decisions,
he would make more effective and efficient decisions.
7. Rita McCormick is the supervisor of the state office that processes sales tax payments. She has
noticed that workers are falling behind and wants to get authorization either to hire two more
employees or to schedule overtime until the work gets caught up. McCormick estimates that there
is an 80 percent chance the workload will continue to be this high and a 20 percent chance that
work will fall back to previous levels, which the current employees can handle during regular
working hours. (She assumes there is no chance of less work in the future.) Because she will have
to pay time and a half for overtime, she assumes that the annual cost of overtime will be
$150,000, whereas a work force with two more employees will cost only $140,000.
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Education.
Construct a decision tree for this problem.
Students should construct a decision tree based on text Figure 9.5. On the basis of cost involved
for a year, if Rita hires two more employees and work load continues to be high (80 percent
chance), then she would not end up wasting any amount that she spent in hiring of the new
employees. Instead, if work load falls back to previous levels (20 percent chance), then the dollar
value wasted would be 0.2($140,000) = $28,000. If, on the other hand, she does not hire two new
employees, the dollar value wasted would be 0.8($150,000) = $120,000 (work load remains high)
or $0 (work load falls back to previous levels). Therefore, the expected value for hiring is $28,000
while it is $120,000 for not hiring.
Which alternative should the supervisor choose?
Based on the decision tree analysis, the supervisor should choose to hire two new employees for
the next one year.
8. What are some advantages of making decisions as a group? What are some of the disadvantages?
Advantages of group decision-making include the ability of group members to contribute more
ideas for alternatives than an individual working alone. The group will also have a broader
perspective since the experience of the group is broader than the individual. People involved in
the decision will better understand an alternative selected and also be more likely to support the
decision.
Involvement by employees in decision-making also provides an opportunity for improving

morale. Self-esteem can be enhanced when employees’ ideas are heard in a public forum and can
then see the results of their efforts. Recognition of the contributions of groups is a powerful
motivator.
Another advantage of group problem solving is the learning that takes place for the members of
the group. They have the opportunity to learn how others fit into the overall work process. It also
provides an opportunity to learn the value of diversity.
One disadvantage of group decision-making is that it is slower than individual decision-making.

There is also a cost to the organization when employees spend their time in meetings rather than
producing or selling. If one person dominates the decision-making process, the value of multiple
inputs is lost.
Groupthink can become another problem. This is when individuals fail to think independently and
realistically, preferring to enjoy consensus and closeness.
9. What are the symptoms of groupthink? What can a supervisor do to overcome groupthink in a
team meeting?
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Education.
Symptoms of groupthink include: an illusion of being invulnerable; defending the group’s

position against any objections; a view that the group is clearly moral; stereotyped views of
opponents; pressure against group members who disagree; self-censorship; an illusion that
everyone agrees. A supervisor can encourage a variety of viewpoints, emphasizing that group
members should be open thinkers. Or the supervisor might appoint one group member to act as a
“devil’s advocate,” challenging the position of the majority.
10. Roberto Gonzalez wants to make his solutions more creative. When he has a problem to solve, he
sits down at his desk and tries to generate as many alternative solutions as he can. Unfortunately,
he usually gets frustrated before he comes up with an alternative that satisfies him, so he just
picks an acceptable solution and tries to implement it. How can Gonzalez modify his decision-
making process to come up with more creative ideas?
Creative thinking takes time and the right environment. Roberto should find a time and place that
allow him to think. He should think of as many ideas as he can, writing each one of them down.
He should not evaluate them at the time he is coming up with the ideas. He should then let his
unconscious mind do the work. An idea for a solution will probably pop into his head
unexpectedly. He should shape and develop the idea to make it practical and seek out constructive
criticism.
Roberto can also improve his ability to be creative by reading and using other methods of
gathering knowledge about the subjects he must deal with. Talking with others both inside and
outside his organization will add to his store of knowledge and ideas.
11. How can supervisors foster creativity in their department or work group?
The most important step a supervisor can take to establish a work climate that encourages creative
thinking is to show that he or she values creativity. When employees offer suggestions, the
supervisor should listen attentively and look for the positive aspects of the suggestions. Then the
supervisor should attempt to implement the suggestions and give the employee credit for the idea.
Failure should be acknowledged as a sign that people are trying. Help employees see what can be
learned from the failures as well as from the successes.
Creating an environment that fosters creativity is not simply listening to alternative solutions
when problems occur. The environment, creative or not, is developed daily and by all levels of
the organization. The supervisor can nurture a creative environment by the way he or she treats
people and their ideas on an ongoing basis. Respect for all employees and appreciation of daily
contributions will create an environment where employees feel valued and are willing to think
about the problems of the workplace and contribute innovative solutions when they are needed.
IV. Skill-Building
Meeting the Challenge
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Education.
1. Reflect back to the chapter’s opening case. As a group, assume you have been asked to suggest a
new beverage product for Dirty Lemon. (The existing offerings are called [detox], [energy],
[skin+hair], and [sleep] and include ingredients like water, lemon juice, lime juice, green tea, red
clover, honey, rose water, and chamomile.) First brainstorm some ideas for the new product.
When everyone has had a chance to suggest a beverage, rate each one as (2) likely to succeed in
the market, 1 (might succeed), or 0 (unlikely to succeed). Find the average rating for each
product idea.
Students’ answers will vary.
Problem-Solving Case: What Makes a Work Environment Creative?
1. It’s often said that the ability to see the big picture, or the way in which a solution might affect the
rest of the company, is another ingredient of creative problem-solving. Do you think
Christensen’s subordinate was able to see the big picture in the challenge she gave him? Why or
why not? How would this ability contribute to creative problem-solving?
The subordinate did see the big picture as he correctly assumed that colleagues would also benefit
from information he uncovered. He also realized that reading the information he gathered in a
report would not be as engaging. Also, his colleagues would think of questions he did not and
therefore would benefit from the answers. His solution is creative. The ability to take a step back
from the situation and see the bigger picture does indeed contribute to creative thinking and
problem solving.
2. If you were the employee in this case, are there any other resources you would have liked to have
to assist you in coming up with a solution? If so, what are they? How would you obtain them,
and how would they help you?
Student’s answers will vary. One possible suggestion could be access to the calendars of each
department member which could assist is scheduling possible meeting time. Access may have to
be approved by the supervisor.
3. Working with one or two other students, apply what you learned from the case and the chapters to
brainstorm a problem similar to the one Christensen’s subordinate faced, but image the
department you must become familiar with operates as a virtual tem, none of whose members
work in the same location as you. List as many potential solutions as you can. Which one is the
most feasible?
Students’ answers will vary. Video conference calls may be suggested.
Assessing Yourself: How Creative Are You?
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Education.
Students can get an idea of their own creative thinking by completing the questionnaire provided in the
text. The list of statements also gives insight to what may lead to more creativity, such as encouraging
open discussion, reading, entertaining new ideas with enthusiasm, and asking questions. The answers
to “Pause and Reflect” will depend on the answers to the quiz.
Class Skills Exercise: Solving Problems Individually and in Teams
This is a good exercise to allow students to try their hands at creativity by finding as many solutions as
possible for the given problem: reduce energy bills of the school. It will also help students appreciate
the differences in the two approaches to problem solving: working individually versus working as a
group.
Building Supervision Skills: Learning from Mistakes
This exercise allows the students to share their mistakes in a team and analyze what the team can learn
from each mistake.
Supervisor’s Hot Seat Video Case Answers
“Project Management: Steering the Committee”
1. A supervisor can play many roles while he or she oversees employees. In order to ensure that
work goes according to plan, a supervisor must assert control over situations that arise. Consider
the three in terms of Patrick’s situation. Which control do you believe would have made his
project more successful? Why?
Feedback control—while Patrick uses the feedback of his supervisors, this kind of control deals
with feedback that has been collected after a project is over and a new one is starting. Patrick
needs to assert control during the project.
Concurrent control—this control would be the most likely to be successful, and, in a sense, it is
the one used by Patrick. Because Patrick’s managers talked to him about possible problems half-
way through the project, he was able to address the problem issues before they ruined the success
of the project.
Precontrol—since Patrick did not foresee having problems with the project, this is probably not
the control that would have helped him manage better.
2. Chapter 6 details several things a supervisor may do to help him or her monitor performance.
What are four tools Patrick could have implemented to avoid the problems his project was
heading toward?
(Some of these may include)

Better budgeting
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Education.
Performance report—having employees provide performance reports and analyzing those reports
Personal observation—keeping closer tabs on where he is in the project
Contingency plan—knowing what to do if he gets off-track
Action plan—make timeliness a main priority in achieving his objective
3. In the second meeting, even though Patrick assures the executives that the project will be under
budget and done in time, they still “strongly suggest” Patrick accepts help to keep him on track.
Why do you think the executives do this?
“Privacy: Burned by the Firewall?”
1. Lynn and Janet are in different departments, and neither person reports to the other or is
technically higher-up on the organization’s scale. Even though this is true, the meeting the
women have seems led by one person—Janet. Look at the section “Characteristics of the Leader”
in Chapter 2. On what values did Janet base her decision to put Willy on administrative leave? In
not informing Lynn of her decision? What were her values in her meeting with Lynn? Likewise,
what were Lynn’s values coming into the meeting with Janet?
Janet bases her decision of putting Willy on leave based on the company’s policies. She wants to
avoid conflict with Lynn, so she takes the action while Lynn is on vacation. In the meeting, Janet
tries to make it clear that she treats all employees (including Lynn) equally in respect to whose
activities they monitor; she does not show very much confidence in the employees. Lynn, on the
other hand, is very confident that Willy was doing good work for her. She comes into the meeting
with Janet trying to prove that she (and her team) needs Willy—his going on leave will affect
productivity.
2. Chapter 2 speaks of leadership styles that are task oriented or people oriented, but points out that
many times a leader is expected to be both. How are Lynn and Janet both task oriented and people
oriented leaders?
Janet
Task oriented—Janet’s leadership style is clearly more task oriented than people oriented in this
case since Janet’s main reason for putting Willy on leave is that he is breaking company policy.
People oriented—Janet does show a people oriented side with Lynn in that she says she
understands Lynn’s concern for her department being down an employee and says she will help
her find someone else.
Lynn
Task oriented—while Lynn shows concern for her employee, she also wants her department to
run smoothly—being down a person makes this hard to accomplish.
People oriented—most of Lynn’s concern in her meeting with Janet is that she gets her employee
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Education.
back: she lets Janet know that he was a valuable employee and part of their team; she wants to do
anything she can to get him back.
3. The meeting between the supervisors was not a success. Choosing to be in either Lynn or Janet’s
shoes, explain how you would have changed your approach during the meeting to enable a
favorable outcome.
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Education.

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Supervision Concepts and

Skill-Building 10th Edition Certo

8.1 Identify the steps in the rational model of decision making.

A Supervision Challenge: Creative Problem-Solving at Dirty Lemon

II. Teaching the Concepts by Learning Objectives

Decision: A choice from among available alternatives

The rational model of decision-making includes the following steps:

3. Teaching examples to identify the steps in the rational model of decision-making:

Analysis of Time Used for Paperwork

Tasks Hours Used Percent of

Billing reports 5 16.7

Time/payroll reports 2.5 8.3

Expense reports (mileage and meal allowance) 5 16.7

Safety reports 2.5 8.3

Analysis of Paperwork Tasks

Tasks Hours Used Percent of

Correcting mistakes and omissions of raw data 12 33.3

4. Exercise to identify the steps in the rational model of decision-making:

following the model.

Bounded Rationality: Choosing an alternative that meets minimum standards of acceptability

Stereotypes: Generalized, fixed images of others

Reasons for compromises:

Steps to using this exercise:

The rational model of decision-making includes:

a. Identify the problem

b. Identify alternative solutions

c. Gather and organize facts

e. Choose and implement the best alternative

Learning Objective 8.3: Describe guidelines for making decisions.

Guidelines for making decisions in the workplace:

2. Teaching examples to describe guidelines for making decisions:

3. Exercise to describe guidelines for making decisions:

can help in making decisions.

Disadvantages of group decision-making: An individual usually can settle on a decision faster

some symptoms of groupthink:

3. Teaching examples to discuss advantages and disadvantages of making decisions in groups:

4. Exercise to discuss advantages and disadvantages of making decisions in groups:

Learning Objective 8.6: Describe guidelines for group decision-making.

3. Teaching examples to describe guidelines for group decision-making:

• Consensus: advantages and disadvantages. Consensus means reaching a decision everyone

An employee at Honda of America Manufacturing expresses some of the benefits of

implement their own suggestions.

4. Exercise to describe guidelines for group decision-making:

Steps to use the exercise:

Learning Objective 8.7: Describe guidelines for thinking creatively.

Creativity: The ability to bring about something imaginative or new

3. Teaching examples to describe guidelines for thinking creatively:

4. Exercise to describe guidelines for thinking creatively:

Learning Objective 8.9: Identify ways to overcome barriers to creativity.

2. Teaching examples to identify ways to overcome barriers to creativity:

3. Exercise to identify ways to overcome barriers to creativity:

1. Get to know employees to better understand their creative ideas or interests.

2. Encourage personal creativity and growth for all employees.

3. Recognize and reward creative suggestions.

III. Answers to Review and Discussion Questions

Bounded rationality is choosing an alternative that meets minimum standards of acceptability.

The supervisor is scheduling nurses for the next month.

Construct a decision tree for this problem.

Which alternative should the supervisor choose?

Involvement by employees in decision-making also provides an opportunity for improving

One disadvantage of group decision-making is that it is slower than individual decision-making.

Symptoms of groupthink include: an illusion of being invulnerable; defending the group’s

Meeting the Challenge

Students’ answers will vary.