Decision Making and Problem Solving /MGT312

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‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
College of Administrative and Financial Sciences
Assignment 2
Decision Making and Problem Solving (MGT 312)
Due Date: End of Week 09, 30-03-2024
Course Name: Decision Making and Problem Student’s Name:
Solving
Course Code: MGT312
Student’s ID Number:
Semester: Second
CRN:
Academic Year:2023-24; SECOND SEMESTER
For Instructor’s Use only
Instructor’s Name:
Students’ Grade:
/ 10
Level of Marks: High/Middle/Low
General Instructions – PLEASE READ THEM CAREFULLY
•
•
•
•
•
•
•
•
The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented; marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Learning Outcomes:
1. Describe decision making process for complex issues pertaining to business
environment both internally and externally. (C.L.O :1.1)
2. Demonstrate decision tools and employ appropriate analytical business models to
break down complex issues. (C.L.O :2.2)
3. Explain and apply critical thinking and cognitive psychology as it pertains to
analyze and synthesize information for problem solving and decision making.
(C.L.O :2.1)
Case Study:
Musab Ahmed, a hardworking family man, invested the money he inherited from his late father
in property. With the grace of Allah and the fruitful opportunities of growth in his country,
his construction company ‘Consortia’ quickly blossomed to become one of the biggest
names in property development. He used his good fortune to bankroll his increased real estate
investments in the country. Being a visionary, he established his construction company with
the goal of one day passing it down to his children and continuing the family legacy. Musab
had a total of four children. Anwar, his eldest son, was from his deceased first wife, while his
two other sons, Khurshed and Arshad, and his only daughter Shifa were mothered by his second
and current wife.
Anwar, being the eldest, joined the family business shortly after obtaining his university degree.
He quickly learned the ins and outs of the business and took his place as the father’s right hand.
Khurshed and Arshad who both acquired university degrees abroad, to the father’s surprise, did
not show as much enthusiasm in the family business as their brother Anwar. The
environmentally conscious Arshad decided to pursue a master’s degree in environment
application. While his elder brother Khurshed had no interest in the family business at all and
followed his passion for literature in a career in academia.
Meanwhile, Shifa, the only daughter of Musab, was the most eager child from his second wife
to join the family business. Despite her qualification and willingness to work, Musab decided
she was best suited to head the marketing department, without a seat on the Board, and no
power to make executive decisions regarding the family business. Her mother Aisha kept reassuring
Shifa to be patient and that her time would come. Aisha believed that her daughter should be given
the same opportunities as her sons. After eight years of Anwar running the family business
with his father, Arshad returned from abroad ready and excited to apply his newly acquired,
environmentally conscious ideas to the family business.
Anwar and his father rarely ever disagreed. He believed the way the business has been run since
its establishment produced excellent results so far and did not require changing. While
Anwar’s views were in line with his father’s, Arshad would regularly suggest more innovative
ideas and methods in running the business. His father appreciated Arshad’s initiative.
However, Anwar, who was more skeptical, believed Arshad was too inexperienced to be
pitching such drastic changes.
This frustrated Arshad and he began to feel resentful towards Anwar. Arshad believed Anwar
influenced his father’s perception of Arshad’s ideas to be inapplicable and unrealistic.
Furthermore, Arshad was convinced that their father favoured Anwar, being his eldest son from
his first wife, and that they were not giving his ideas the consideration they deserved.The
father caught his sons arguing from time to time but didn’t take it too seriously. After all, they
were family and all it took were a few words from him and they would immediately stop for his
sake.
A few years later, Musab fell ill. Due to his worsening condition, his doctors and children
urged him to step aside from the management of the family business and retire. Musab,
however, found it difficult to let go due to the differences between his sons. He was very
much aware of Anwar’s experience and market expertise, but he also appreciated Arshad’s
drive and innovative ideas. The father believed that Anwar and Arshad could build a strong
team if only they learned to work together. However, despite his best efforts, it was futile due
to their differences.
The brothers developed the habit of not openly voicing their concerns or feelings at work. As
the years went by and the father’s condition deteriorated further, Anwar and Arshad did their
best to suppress their negative feelings in order not to upset their father during this sensitive
time. Often, they went out of their way to avoid further confrontations in their father’s
presence. Consequently, they brought their grievances home with them. Anwar would often
complain to his wife of Arshad’s inexperience and immature attitude. While Arshad would tell
his sister Shifa about Anwar’s patronizing and stubborn nature. Their unresolved feelings lead
to heightened tension during family gatherings, but both chose to avoid confrontation, and
neither would acknowledge the situation.
In the meantime, Shifa’s frustration mounted.This was as a result of her father’s previous
decision to outcast her from the executive board grew larger. Not only did she feel that her dad
believed her inputs were not as valuable as that of her brothers, but she also agreed with
Arshad’s opinion of Musab favouring Anwar due to hierarchy. Aware of her position, she
would also regularly advise Arshad on key matters regarding the business that Arshad would
then voice during executive meetings for his father’s approval. Needing Arshad as a
spokesperson of her business ideas, Shifa continuously tried to defuse the situation and calm down
frustrated Arshad from leaving the business.
Tensions heightened as Arshad continued to feel his ideas of reform were being overlooked
and under-appreciated in the family business. Eventually, with his father’s blessing, he was
permitted to pursue them independently. Arshad began to invest in a side business involving
renewable energy materials in construction with the family business. The new venture was set up
with Arshad as a majority shareholder of 51% of the total shares, while his father owned the
remaining 49% of the business.
Read the above case study and answer the following questions:
Q1: Writ the problem statement which should include the followings: [Marks 5]
•
•
•
•
the clear concise description and summary of the problem,
scope of the problem,
consequences of the problem,
the methods for resolving the problem in the above case?
Q2: Develop a mind map for decision making,
[2 Marks]
Q3: Write all the alternative choices of your decision.
[Mark 1]
Q4: Make a decision and write the conclusion.
[Marks 2]
Answers
1. Answer2. Answer3. Answer4. Answer5. Answer-
ILLUSTRATED COURSE GUIDES
Problem Solving
and Decision Making
Soft Skills for a
Digital Workplace
This page intentionally left blank
ILLUSTRATED COURSE GUIDES
Problem Solving
and Decision Making
Jeff Butterfield
Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States
Soft Skills for a
Digital Workplace
Illustrated Course Guide: Problem Solving and Decision Making—
Soft Skills for a Digital Workplace
Jeff Butterfield
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1 2 3 4 5 6 7 8 9 17 16 15 14 13 12 11 10 09
About the Series
Students work hard to earn certificates and degrees to prepare for a particular career—but do they have the soft skills necessary to succeed in today’s digital workplace? Can they communicate effectively? Present themselves professionally? Work in a
team? Industry leaders agree there is a growing need for these essential soft skills; in fact, they are critical to a student’s success
in the workplace. Without them, they will struggle and even fail. However, students entering the workforce who can demonstrate strong soft skills have a huge competitive advantage.
The Illustrated Course Guides—Soft Skills for a Digital Workplace series is designed to help you teach these important skills, better
preparing your students to enter a competitive marketplace. Here are some of the key elements you will find in each book in
the series:
• Focused content allows for flexibility: Each book in the series is short, focused, and covers only the most essential
skills related to the topic. You can use the modular content in standalone courses or workshops or you can integrate it
into existing courses.
• Visual design keeps students engaged: Our unique pedagogical design presents each skill on two facing pages, with
key concepts and instructions on the left and illustrations on the right. This keeps students of all levels
on track.
• Varied activities put skills to the test: Each book includes hands-on activities, team exercises, critical thinking
questions, and scenario-based activities to allow students to put their skills to work and demonstrate their
retention of the material.
• Online activities engage students: Each book comes with a companion Web site, providing engaging online
activities that give students instant feedback and reinforce the skills in the book. These online activities can also
be graded and tracked.
Read the Preface for more details on the key pedagogical elements and features of this book. We hope the books in this series
help your students gain the critical soft skills they need to succeed in whatever career they choose.
Advisory Board
We thank our Advisory Board who gave us their opinions and guided our decisions as we developed the first titles in this series.
They are as follows:
Debi Griggs, Instructor of Business and Business Technology, Bellevue College
Jean Insinga, Professor of Information Systems, Middlesex Community College
Gary Marrer, CIS Faculty, Glendale Community College
Linda Meccouri, Professor, Springfield Technical Community College
Lynn Wermers, Chair, Computer and Information Sciences, North Shore Community College
Nancy Wilson Head, Executive Director Teaching & Learning Technologies, Purdue University
v
Preface
Welcome to Illustrated Course Guides: Problem
Solving and Decision Making—Soft Skills for a
Digital Workplace. If this is your first experience with
the Illustrated Course Guides, you’ll see that this
book has a unique design: each skill is presented
on two facing pages, with Essential Elements on
the left and illustrations and examples pictured on
the right. The layout makes it easy to learn a skill
without having to read a lot of text and flip pages
to see an illustration. The design also makes this a
great reference after the course is over! See the
illustration on the right to learn more about the
pedagogical and design elements of a typical
lesson.
Concise text that introduces the basic principles in the lesson and
integrates the brief case
Each 2-page spread fostudy (indicated by the
cuses on a single skill. Eachpaintbrush
icon).
two-page spread
focuses
on a single skill.
UNIT
A
Problem
Solving
ESSENTIAL
ELEMENTS
Focused on the Essentials
Each two-page lesson presents only the most important information about the featured lesson
skill. The left page of the lesson presents 5 or 6
key Essential Elements, which are the most
important guidelines that a student needs to
know about the skill. Absorbing and retaining a
limited number of key ideas makes it more likely
that students will retain and apply the skill in a
real-life situation.
Hands-On Activities
Every lesson contains a You Try It exercise, where
students demonstrate their understanding of the
lesson skill by completing a task that relates to it.
The steps in the You Try It exercises are often
general, requiring that students use critical thinking to complete the task.
QUICK TIP
In many cases,
symptoms are the
result of different
problems.
Simplifying Complex
Problems
The complexity of organizational problems makes them difficult to solve, especially if many people are
involved and the stakes are high. Complex problems are those that have no clear boundaries, are unique,
or have no single optimal solution. Frequently, these problems also involve multiple stakeholders with competing agendas. Most complex problems actually consist of smaller subproblems that affect each other in
ways that complicate the larger problems. When you are facing an intricate or difficult problem, deconstruct it first. You can then manage and solve the smaller elements more easily. Table A-6 summarizes the
do’s and don’ts for simplifying complex problems.
After researching the travel industry, examining
tour data, and talking to colleagues, the problem of Quest’s declining sales seems more complex than ever.
Grace Wong suggests that you simplify the problem by dividing it into smaller parts.
1. Identify the major symptoms
As you begin to work on a complex problem, identify as many obvious symptoms as you can. Ask others
for their observations and create a list of their suggestions. Work backwards from each symptom to identify
its root causes. In the case of Quest Specialty Travel, you might observe that overall bookings have decreased, that net profits have dropped, and that the number of people calling to inquire about future travel
is also smaller. Each of these is a symptom to consider as you work to solve the problem.
2. Consider each problem individually
Although they may be related, problems are often best resolved when considered independently. For each
subproblem that you identify, find its root cause and apply a solution. However, don’t disregard related subproblems. Determine how they are related and how changes to one might affect the others.
3. Rank the subproblems
QUICK TIP
Sometimes, the
symptoms of one
problem are the root
cause of another.
QUICK TIP
Breaking down a
large, complex problem into smaller, solvable problems is called
divide and conquer.
YOU TRY IT
Consider how each subproblem contributes to the overall level of dissatisfaction. Ask yourself which is
causing the most significant deviation from what you want or expect. Some subproblems might be perceived as more troublesome than others. Rank these from most to least important. Focus your efforts on
solving the problems that will have the most effect. Figure A-7 ranks the four subproblems for Quest Specialty Travel considering three criteria: tour value, whether changes can be made immediately, and customer satisfaction.
4. Look for interdependencies
Subproblems are often tightly interrelated. Consider how the various issues affect one another, and look for
interdependencies. Solving a seemingly small problem might also solve a larger one at the same time.
5. Delegate subproblems
You might not have the authority, ability, or resources to properly address each part of a complex problem,
so identify others who can solve part of the problem for you. Delegating portions of the problem to people
who can more effectively resolve them magnifies your efforts and contributes to your success.
1. Use a word processor such as Microsoft Office Word to open the file A-5.doc provided
with your Data Files, and save it as Complex.doc in the location where you store your
Data Files
2. Read the contents of Complex.doc, which describe a complicated problem
3. Separate the problem into smaller parts using the guidelines in this lesson
4. Save and close Complex.doc, then submit it to your instructor as requested
Problem Solving 12
Identifying and Defining Problems
Real World Advice and Examples
To help put lesson skills in context, many
lessons contain yellow shaded boxes that present real-world stories pulled from today’s
workplace. Some lessons also contain Do’s and
Don’ts tables, featuring key guidelines on
what to do and not do in certain workplace
situations relating to the lesson skill. The
Technology@Work lesson at the end of every
unit covers Web 2.0 tools and other
technologies relating to the unit.
vi
Short introduction reviews
key lesson points and presents
a real-world case study to
engage students.
Hints as well as
troubleshooting advice, right where
you need it – next
to the step itself.
Quickly accessible summaries of key terms,
toolbar buttons, or keyboard alternatives connected with the lesson
material. Students can
refer easily to this information when working
on their own projects at
a later time.
Lessons
and
Exercises
Every lesson features large
illustrations of examples
discussed in the lesson.
The lessons use Quest Specialty Travel, a
fictional adventure travel company, as the case
study. The assignments on the light
purple pages at the end of each unit increase
in difficulty. Data files and case studies provide
a variety of interesting and relevant business
applications. Assignments include:
FIGURE A-7: Breaking a complex problem into smaller parts
Main problem: Decreasing tour sales
Criteria
Tour Value
Price
Promotion
Quality
Frequency
Subproblems
Immediate
Customer
Improvement Satisfaction
0
0
1
2
Ratings of how well each solution
could solve the subproblem
2
0
0
1
Score
1
0
1
2
3
0
2
5
Offering tours more
frequently makes the
most difference in solving
the main problem
Total of ratings for each
subproblem
TABLE A-6: Complex problem do’s and don’ts
guideline
do
don’t
Symptoms
Identify as many symptoms as possible
Don’t discard suggested symptoms from anyone
Main problems
Break each large problem into smaller problems
Don’t disregard related problems and subproblems
Subproblems
•
•
•
•
• Don’t try to solve all the subproblems yourself
• Don’t overlook small problems—solving a small problem
might solve a larger one at the same time
Rank the contributing problems
Focus on the problems that have the most effect
Discover how one problem is related to another
Divide tasks among a team
Imagine competing for substantial prizes by solving problems. That’s
what a 2008 report by the National Research Council recommended
to the National Science Foundation (NSF), the federal agency overseeing physical science research. The report encourages the NSF to offer
prizes of $200,000 to $2 million “to encourage more complex innovations” in problem solving. Taking this approach one step further is
InnoCentive, a company that links organizations that have problems to
people all over the world, who are called solvers. For example, InnoCentive circulated a problem the Oil Spill Recovery Institute of
Cordova, Alaska, was having: how to keep oil in Alaska storage tanks
from freezing. John Davis, a chemist in Bloomington, Illinois, applied
his knowledge of concrete to oil—if you keep both vibrating, they stay
in their liquid form—and received $20,000 for his solution. According
to Dwayne Spradlin, president and chief executive, InnoCentive
began as an in-house innovation “incubator” at the pharmaceutical
company Eli Lilly. The company posted problems online that its
employees could not solve. This problem-solving approach, often
called open source science, has been successful from the start. “Most
of our companies tell us they have a one-third or better solve rate on
their problems and that is more cost-effective than anything they could
have done internally,” Spradlin said. Karim Lakhani, a professor at
Harvard Business School who has studied InnoCentive, says much of
the success is based on the idea that solutions can come from
anywhere or anyone. Dr. Lakhani said, “The further the problem was
from the solver’s expertise, the more likely they were to solve it,” often
by applying knowledge or equipment developed for another purpose.
Source: Dean, Cornelia, “If You Have a Problem, Ask Everyone,”
New York Times, July 22, 2008.
Identifying and Defining Problems
News to Use boxes provide
real-world stories related
to the lesson topic.
Problem Solving 13
Do’s & Don’ts tables present
key tips for what to do and
not do.
Problem Solving
Innovative ways to solve problems: open source science
• Soft Skills Reviews provide multiple choice
questions that test students’
understanding of the unit material.
• Critical Thinking Questions pose topics for
discussion that require analysis and evaluation. Many also challenge students to consider and react to realistic critical thinking
and application of the unit skills.
• Independent Challenges are case projects
requiring critical thinking and application
of the unit skills.
• Real Life Independent Challenges are
practical exercises where students can apply the skills they learned in an activity
that will help their own lives. For instance,
they might analyze decisions they need to
make, such as which job offer to accept,
whether to buy a house or rent an apartment, and whether to continue their formal education.
• Team Challenges are practical projects
that require working together in a team to
solve a problem.
• Be the Critic Exercises are activities that require students to evaluate a flawed example and provide ideas for improving it.
PREFACE vii
Online Companion
This text includes access to a robust online companion. The online companion makes the end of unit material come alive
through interactive assessment scenarios. Use these activities to assess and enhance student learning. Best of all, online activities are automatically graded, letting you spend more time teaching and less time grading.
• Soft Skills Review Online move questions from the end-of-unit material into an interactive, objective-based scenario.
• Critical Thinking Questions allow you to assess a student’s critical thinking skills online. Students are presented with
a question from the end-of-unit material and asked to think critically to answer a series of questions, then justify
their response.
• Soft Skills Survivor presents students with multimedia scenarios, based on the Independent Challenge
exercises in the text. Students watch and evaluate scenarios to better understand the results of putting soft skills
in action.
• Be the Critic lets students review an image or document and evaluate the application of unit skills via objective-based questions and ratings.
Instructions for accessing and making the most of the online companion are available with the Instructor Resources
materials for this text.
Visit www.cengage.com/ct/illustrated/softskills to access the online companion.
viii
Instructor Resources
The Instructor Resources CD is Course Technology’s way of putting the resources and information needed to teach and
learn effectively into your hands. With an integrated array of teaching and learning tools that offer you and your
students a broad range of technology-based instructional options, we believe this CD represents the highest quality and
most cutting edge resources available to instructors today. Many of these resources are available at www.cengage.com/
coursetechnology. The resources available with this book are:
•
Instructor’s Manual—Written by the author
•
Solutions to Exercises—Solutions to Exercises
contains every file students are asked to create or
modify in the lessons and end-of-unit material. This
section also includes a solutions to the Soft Skills
Reviews and Independent Challenges.
•
Data Files for Students—To complete most of
and available as an electronic file, the Instructor’s
Manual is a valuable teaching tool for your course.
It includes detailed lecture topics with teaching
tips for each unit.
•
Sample Syllabus—Prepare and customize your
course easily using this sample course outline.
•
the units in this book, your students will need
Data Files. You can post the Data Files on a file
server for students to copy. The Data Files are
available on the Instructor Resources CD-ROM,
the Review Pack, and can also be downloaded
from www.cengage.com/coursetechnology.
PowerPoint Presentations—Each unit has a
corresponding PowerPoint presentation that you
can use in lecture, distribute to your students, or
customize to suit your course.
•
Figure Files—The figures in the text are provided
on the Instructor Resources CD to help you illustrate key topics or concepts. You can create traditional overhead transparencies by printing the
figure files. Or you can create electronic slide
shows by using the figures in a presentation program such as PowerPoint.
•
Online Companion—The Web-based companion
provides an electronic way to enhance your students’ learning experience. Includes tests and
quizzes along with other exercises that aim to reinforce essential elements from the book.
•
Test Banks—ExamView is a powerful testing software package that allows you to create and administer printed, computer (LAN-based). ExamView
test banks are pre-loaded with questions that correspond to the topics covered in this text, enabling students to generate detailed study guides
that include page references for further review.
Test banks are also available in Blackboard and
WebCT formats.
ix
Other Illustrated Course Guides
The lllustrated Course Guides Series offers flexible courseware solutions for Basic, Intermediate, and Advanced short courses on
Microsoft Office 2007. The unique Illustrated Series design presents each skill in a two-page spread format, with steps on the
left and visuals on the right, ensuring that students of all levels stay engaged and on track.
Word Units A–E
ISBN:1423905393
Word Units F–J
ISBN:1423905407
Word Units K–P
ISBN:1423905415
Excel Units A–E
ISBN:1423905342
Excel Units F–J, N
ISBN:1423905350
Excel Units K–M, O,P
ISBN:1423905369
Acess Units A–E
ISBN:1423905318
Acess Units F–K
ISBN:1423905326
Acess Units L–P
ISBN:1423905334
PowerPoint Units A–E
ISBN:1423905377
PowerPoint Units F–H
ISBN:1423905385
x
Brief Contents
Preface
vi
PROBLEM SOLVING
Unit A: Identifying and Defining Problems
1
PROBLEM SOLVING
Unit B: Solving the Problem
25
PROBLEM SOLVING
Unit C: Thinking Critically
49
PROBLEM SOLVING
Unit D: Group Decision Making and Problem Solving
73
PROBLEM SOLVING
Unit E: Decision Support Tools
97
Glossary
121
Index
124
xi
Contents
Preface ……………………………………………………………………………………………………………………….vi
PROBLEM SOLVING
Unit A: Identifying and Defining Problems
1
Understanding Problem Solving ……………………………………………………………………………………2
Analyzing Problems ……………………………………………………………………………………………………..4
Working with Problem Owners and Stakeholders …………………………………………………………….6
Developing Effective Problem Statements ……………………………………………………………………….8
Determining Causes ……………………………………………………………………………………………………10
Simplifying Complex Problems ……………………………………………………………………………………12
Innovative ways to solve problems: open source science
Identifying and Managing Risks……………………………………………………………………………………14
Crisis management
Avoiding Problem-Solving Traps ………………………………………………………………………………….16
Technology @ Work: Crowdsourcing …………………………………………………………………………..18
Soft Skills Review ……………………………………………………………………………………………………….20
Critical Thinking Questions …………………………………………………………………………………………22
Independent Challenge 1…………………………………………………………………………………………….22
Independent Challenge 2…………………………………………………………………………………………….23
Real Life Independent Challenge ………………………………………………………………………………….23
Team Challenge …………………………………………………………………………………………………………23
Be the Critic ………………………………………………………………………………………………………………24
PROBLEM SOLVING
Unit B: Solving the Problem
25
Gathering and Analyzing Data……………………………………………………………………………………..26
Developing Alternatives ………………………………………………………………………………………………28
Evaluating Options ……………………………………………………………………………………………………30
Implementing the Solution …………………………………………………………………………………………32
Unintended consequences: when solving one problem spurs new ones
Monitoring and Managing the Solution ……………………………………………………………………….34
Verifying the Solution ………………………………………………………………………………………………..36
Using Adaptive Techniques …………………………………………………………………………………………38
S