KIN 464 Exam 2 Study Guide Lectures 4 6 Lecture 4 5 Creative Problem Solving and Decision Making Problem Solving is the process of taking corrective action to meet objectives goals Decision Making is the process of selecting a course of action that will solve a problem Programmed Decisions repetitive routine a decision influenced by some traditional habit or practice a defined rule or set procedure or policy guidelines Non Programmed Decisions apply to unusual problems or situations that are unique or have never occurred previously and often incorporate risk Satisficing when one selects the first alternative that meets some minimum standard of satisfaction Optimizing when one searches for the optimum alternative Brainstorming A method to generate many ideas in a short period of time Usually a small group of people are presented with a problem and asked to recommend solutions The purpose is to generate a large quantity of ideas from which one or two may be acceptable Synectics Similar to brainstorming with a leader to encourage the group to be more creative Nominal Group Process Each group member works alone to prepare a list of ideas or possible solutions to the problem Each member then presents his her solutions to the group The group vote privately on each other s ideas and rank order the solutions I Decision Making Responsibility a Both Managers and employees make many decisions b Autonomy to make decisions depends on i Individual s level of authority ii Nature and tradition of the organization iii Personalities of bosses peers and employees iv Expectations or pressures placed on the manager c Every decision should be based on what is good for the organization d Most difficult decisions involve conflicts between manager s own desires and what is best for the organization II Seven Steps in Rational Decision making Approach Structure a Step 1 Clearly identify the problem not the symptom i a problem defined is a problem half solved ii Your definition of the problem guides your solution b Step 2 List all the facts pertinent to the problem i Be careful about limiting ideas based on limiting assumptions ii Always be aware of paradigms sacred cows that we unconsciously cling to because our assumptions keep us in the box assumption reversal c Step 3 List alternative courses of action to solve the problem d Step 4 List advantages and disadvantages of each alternative e Step 5 Review all of the above f Step 6 Draw conclusions make recommendations and or decisions g Step 7 Take action to solve problem Follow up after the decision has been implemented to ascertain if the desired results have been achieved Lecture 6 Strategic Management Strategic Management The process of managerial decision making and implementation of plans that directly affect the quality of performance and survival of an organization in the long term 1 Strategic planning comprises the process of setting common purposes goals and objectives for the enterprise breaking them up into specific plans and policies for the operating level and securing the necessary resources to put them into action 2 Strategic planning is the management of change It is a decision making process based on empirical evidence and analytical studies that provides the basic direction and focus of the enterprise 3 The process of determining an organization s long term goals and objectives in compliance with it s mission and formulating the proper plan of action strategy policies to insure sound decisions for using internal resources and environmental factors that affects all effort to achieve the desired end results in the long run Program is a statement of activities that need to be implemented to accomplish a plan Procedures are a series of steps or tasks in a logical order which detail how specific results are to be obtained parts of a program Policies are general guidelines to influence the behavior of all personnel leaving room for flexibility and interpretation by management Control function of measuring actual performance against the expected results or the desired standard I The Strategic Planning Process a Define the goals and mission of the organization b Identify the long term objectives c Review the existing strategy to achieve these goals d Evaluate current environmental factors e Inventory the organization s resources f Identify strategic strengths and weaknesses of the organization through SWOT analysis i Internal strengths ii Internal weaknesses iii External opportunities iv External threats g Compare current strategy with current information h Formulate new strategy if needed i Develop policies procedures and programs to accompany new strategy j Implement and control the strategy Define Goals Mission of the Organization o Goals provide sense of direction what do we want to achieve o Goals should be based on mission and uniqueness edge of the organization o Examining what you are in your mission Identify Long Term Objectives o Purpose of strategic planning is to identify and formulate long term objectives o Major influence is organization s mission o More specific than goals and more easily quantified Review Existing Strategy o Answer the questions What are the current objectives What plans have been implemented to achieve these objectives Is the current strategy compatible with existing resources environmental factors and current objectives Do the end results meet the original objectives Evaluate Current Environmental Factors o Evaluate external factors that can affect management s plans Environmental Analysis o Managers must be aware of changes in political social technological and economic areas to form sound strategy o Smell the Cheese Who Moved my Cheese You must be willing to adapt to change quickly o What are the Opportunities o What are the Threats Inventory Organization s Resources o People skills abilities o Space land locked or room for growth o Facilities plant equipment o Finance o Technology technical knowhow o You need to asses resources in order to adapt to change Identify Strategic Strengths Weaknesses of the Organization o Evaluate internal Strengths Weaknesses external Opportunities Threats o SWOT Analysis o What are our strengths competitive advantages o From Good to Great Hedgehog Concept Three interlocking circles What could we be the best in the world at What economic denominators best drive our economic engine Where to we get revenues come from What are we deeply passionate about o What are our weaknesses