Problem solving

communication skills
 A case is a written account of real or simulated
managerial problems, dilemmas, and situations
calling for solutions
Why cases?

 Experiential learning helps understand the real-life situations, make decisions,

deal with the consequences of those decisions from real mistakes

 Cases – allow us to simulate real life situations- when we do not have the luxury
of having years of experience

 Help to live in real situations, make decisions and feel the consequences

 Like scientists in a laboratory, students of management use case problems and

experiential exercises as "laboratory" opportunities to experiment with real
organizations in the classroom setting.
 reflect the various pressures and considerations managers confront in
everyday organizational life
 Learning occurs most when people teach themselves, through their own
struggles
 Helping us learn how to apply theories to real situations
 Helping us learn how to solve real problems
 They

 allow us to develop skill in thinking clearly about ambiguous, unstructured

situations using incomplete information

 help us to develop skills at recognizing what information is important and what

is missing

 help us to develop concise, reasonable, and consistent action plans

 help you to identify implicit models and assumptions, values and goals you use
every day

 provide an opportunity to develop skills in presenting (written and oral) our

ideas to people and to groups; to influence and persuade others

 improve your ability to predict behavioral outcomes-yours and others

Preparation
 Cases require more preparation and active participation than most class activities.

 How much you get out of a case discussion depends heavily on how much effort you
put into preparing it before class.

 Many students confronting cases for the first time are overwhelmed; they see so many
factors that come into play.

 Facts are confusing and ambiguous and often incomplete. This guide is intended to
help you walk through the critical steps.

 understanding of the case and its context

Step 1: Comprehend the Case Situation
 Data Collection, Identify Relevant Facts

 at least two readings

 first time familiarizing yourself with the basic situation

 some standard questions that you might keep in mind

 What are the key issues in the case;
 who is the decision maker in the case; is there a critical decision?
 What is the environment in which the key people operate;
 what are the constraints on their actions; what demands are imposed by the situation?
 If you had the chance to talk to critical people in the company, what would you want to know?
 What are the actual outcomes of the current situation-productivity, satisfaction, etc
 how stable are present conditions?
 What are the "ideal" outcomes;
 what is an ideal "future" condition?
 What information is lacking;
 what are the sources of the available information?
 understanding of the case and its context
Identify the Problem

 discover the relationships between the problem and the factors

responsible for it
 Critical analysis and insight should help the analyst distinguish between
the problem and its symptoms
 frequent strikes in a company can be viewed as a problem, as they cause
dislocation
 in so many ways. But strikes are actually symptoms of a deeper problem in the
organization:
 its work culture, system of promotions and rewards, and its goals and
objectives.
 2. Defining the Problem
 where is the problem (individual, group, situation) why is it a problem; is there a "gap"
between actual performance and desired performance; for whom is it a problem and why
 explicitly state the problem; are you sure it is a problem; is it important; what would happen if
the "problem" were left alone"; could you do something about the "problem" have unintended
consequences?
 what standard is violated; where is the deviation from standard
 what are the actual outcomes in terms of productivity and job satisfaction; what are the ideal
outcomes
 how do key people feel about the problem and current outcomes
 what type of problem is it ?(individual, relationships, group, intergroup,
leadership/motivation/power, total system)
 how urgent is the problem? How important is the problem relative to other
problems?
 assess the present conditions:
 What are the consequences; how high are the stakes; what factors must and can
change?
 for the organization (costs and profits; meeting obligations; productivity)
 for the people (personal and financial rewards; careers; satisfaction and growth)
 How stable are present conditions?
 What information is lacking?
 What are the sources of the available information?

“Low productivity owing to frequent labour strikes in the

factory”.
Identify the Causes of the Problem

 try to find the causes here

 avoiding solutions, and avoiding blaming or judging people
 don’t quit at the most obvious answer-try playing devil’s advocate; put yourself
in the other person’s shoes
 accept the multiple causality of events
 there may be a number of viable ways to fit the data together; explore as many
as you can; go past the obvious
 a great tendency to evaluate behavior as good or bad;
 care about why it occurred; judgments leads to a poor analysis focusing on
justification for the evaluation
 the concern is not whether behavior is good or bad but why it occurred
and its consequences
 be careful about hindsight; actors in the case usually don’t have access to
outcomes when they act so avoid "Monday Morning Quarterbacking"-
consider what actors in the case are reasonably likely to know or do
 as before, avoid premature solutions and premature judgments
 For example, in the aforesaid case, the facts could be that in the second
quarter of the year, production was lower by 40 per cent, meaning it came
down by 8,000 units when compared to the previous year, in which there
were no strikes. This year, there were two major strikes in the second
quarter alone. When linking facts in causal relationships, any assumptions
that have been made must be stated clearly. These assumptions form a
part of the hypothesis that will be tested for validity
Generating Alternative Solutions
 According to experts, at least three to five alternatives should be
generated, ranging from “most viable” to “least viable”

 what are the decision-maker’s sources of power in the situation?

(legitimate, reward, punishment, expert, referent)

 what are possible leverage points (changing technology such as

machines, processes, product designs; changing organizational structure;
changing reward systems, job descriptions education, changing personnel,
changing culture)

 can individual behavior be changed (education, training, reward systems,

job description, etc.)
 what are the constraints on the solution? (time, money, organizational
traditions, prior commitments, external realities, legal etc)

 what are the available resources (time, money, people, existing relationships,
power)

 should others be involved (in problem definition, data collection, generating

alternatives, implementing solutions, monitoring and assessing realities)

 In this stage it is important to avoid reaching for a solution too quickly; be

creative here and put yourself in the case. Try living with various alternatives
that you are thinking about; what would be the impact on you and on others.
Be sure to think about the costs and benefits of each alternative.
Decision
 does the alternative address the critical aspect of the problem? What are your
objective? -Be specific.
 what are the intended consequences; what are some unintended possible
consequences; how will your decision improve the situation
 what is the probability of success; what are the risks; what happens if the plan fails
 what does the plan depend on? What are the costs? What power and control is
needed?
 who would be the "change agent" Does he/she have the power, skills, knowledge to
be successful
 is the "solution" consistent with organizational realities
Taking Action and Following Up
 what are leverage points for change-technology, reward systems, work relationships,
reporting relationships, personnel changes
 what are the decision maker’s sources of power: legitimate, reward, expert, referent,
etc?
 what are the constraints on a solution: time, money, organizational policies, traditions,
prior commitments, external realities
 Does culture have to change; what historical relationships must be respected
 implementation- will people resist change;
 is change being reinforced;
 is a new stability developing
 monitoring changes-are further changes necessary;
 are costs and benefits of changes as expected
 make sure you have thought about the ramifications of implementing the plan; how
will you address them
Reporting a Case
1. The title of the case The title reflects the central problem of
the case.
2. The statement of the problem
The statement of the problem describes the objective of the case and
what is to be achieved through the proposed solution.
3. The case
The case is a brief narration of the situation or problem. It provides the
context for the various issues to be investigated.
4. The scope of the analysis
The scope defines the limits of the analytical study of the case clearly. It
also describes the assumptions that have been made for the purpose of
the analysis.
5. The alternative solutions and their evaluation: Each possible solution is an
alternative
answer to the problem and should be fully considered in relation to the
company’s objectives and goals and evaluated in terms of its merits and
demerits.
Sub-sections can be created for each solution, listing its merits and demerits.
Here is an example:
Solution 1: Fire the employees who engaged in violence during the
strike.
Merits: The company will be justifiably free of trouble-makers.
Demerits/limitations: They might be some of the most productive
workers
otherwise; this might also further escalate the situation.
6. The recommended solution:
The recommended solution is the final suggestion for action.
It is backed by the principles of management that are relevant to the case
under consideration.
At this stage, the logical framework developed to interpret the case helps
justify the decision to recommend a particular solution.
The conclusion:
The conclusion gives a plan of action to overcome the problem by
implementing the solution.
The recommended action is fully analyzed in terms of its viability, feasibility,
cost, and benefit to the company.
Any other inherent limitation or weakness in implementing the plan is also
clearly discussed and indicated as a point for caution and further
consideration.
The executive summary: The executive summary briefly includes the
following:
A brief description of the background of the problem
The problem
The possible solutions
The best solution
The recommended plan of action
The benefits of the recommended solution to the company
The executive summary is for helping decision-makers understand
the problem and its possible solutions without going through the entire case
analysis.
It is, therefore, placed at the beginning of the written analysis.