DPM2102 Supervisory Management Techniques Lecture 5 2024 PDF

DPM2102 SUPERVISORY MANAGEMENT TECHNIQUES LECTURE 5 DONNA MC KINNON "All genuine learning is active, not passive. It is a process of discovery in which the student is the main...

DPM2102 SUPERVISORY MANAGEMENT TECHNIQUES LECTURE 5 DONNA MC KINNON "All genuine learning is active, not passive. It is a process of discovery in which the student is the main agent not the teacher" ( Adler, 1982) Problem Solving/Decision Making "All genuine learning is active, not passive. It is a process of discovery in which the student is the main agent not the teacher" ( Adler, 1982)  What is Decision Making? A decision is a choice made between two or more available alternatives. (Certo &Certo) “Decision making is the conscious consideration and selection of a course of action from among two or more available alternatives in order to produce a desired result”. (Mosley et al,) Decision making is the process of defining the problems and choosing a course of action from among alternatives (Leonard & Hilgert,)  Process of analyzing critical data to determine the best decision. We do not always select the best choice when faced with alternatives. Need a rational, systematic, and effective approach for deciding on a course of action. Organization has limited resources (i.e., number of employees, time, money, etc.) and those limits require managers and supervisors to make choice. "All genuine learning is active, not passive. It is a process of discovery in which the student is the main agent not the teacher" ( Adler, 1982) Decision Making 1. When there is a problem 2. Decision has to be made "All genuine learning is active, not passive. It is a process of discovery in which the student is the main agent not the teacher" ( Adler, 1982)  Decision Making Vs. Problem Solving both processes are systematic problem solving involves defining a problem and creating solutions for it. decision making is selecting a course of action from among available alternatives. problem solving always requires decision making not all decision making involves solving a problem e.g. a supervisor may have to make decisions about employees, resources, workload, etc. without having a problem to solve. "All genuine learning is active, not passive. It is a process of discovery in which the student is the main agent not the teacher" ( Adler, 1982)  Decision Making Decision Makers - the first element of the decision situation, are the individuals or groups who actually make the choice among alternatives. Receptive- Decision makers who have a receptive orientation believe that the source of all good is outside themselves, and therefore they rely heavily on suggestions from other organization members. (they let others make the decisions for them) Exploitative- Decision makers with an exploitative orientation also believe that the source of all good is outside themselves, and they are willing to steal ideas as necessary to make good decisions. They build their organizations on others’ ideas and typically hog all the credit, extending little or none to the originators of the ideas. "All genuine learning is active, not passive. It is a process of discovery in which the student is the main agent not the teacher" ( Adler, 1982)  Hoarder- The hoarding orientation is characterized by the desire to preserve the status quo as much as possible. Decision makers with this orientation accept little outside help, isolate themselves from others, and are extremely self-reliant. They are obsessed with maintaining their present position and status. Marketing-oriented - decision makers look on themselves as commodities that are only as valuable as the decisions they make. Thus they try to make decisions that will enhance their value, and they are highly conscious of what others think of their decisions. "All genuine learning is active, not passive. It is a process of discovery in which the student is the main agent not the teacher" ( Adler, 1982)  Defining a Problem A problem exists when there is a gap between what you expect to happen and what actually happens. Problems must be resolved for organizations to function properly. Supervisors must be aware of current situations to recognize whether a problem exists. "All genuine learning is active, not passive. It is a process of discovery in which the student is the main agent not the teacher" ( Adler, 1982)  Elements of Decision Making decision(s) may not be needed decisions involve the future decision making process is a conscious one more than one alternative solution 10  Elements of Decision Making decision may not be needed Question: Is the decision needed???? In some instances for e.g. no decision is needed especially if the higher level manager will take another course of action 11  Elements of Decision Making Decisions involve the future The supervisor’s decision making should be oriented towards the future Planning ahead is important… 12  Elements of Decision Making decision making process is a conscious one... The supervisor becomes aware of a want that needs to be satisfied Seeks relevant behavioural alternatives Evaluates them as a basis of choice 13  Elements of Decision Making more than one alternative solutions there should be several options available to choose from the decision to do nothing is sometimes the worse decision when there are no desirable outcomes, you need to decide between two undesirable ones 14  Types of Decision Programmed decisions: Non-programmed Decisions: Are routine and occur infrequently and repetitive (established require a difference system/processes for response each time dealing with them) (general problem solving processes) e.g. scheduling e.g. how to handle a employees vacation, serious accident, training, use of explosion, fire at the electronic data worksite… use processing judgement, intuition and creativity Decision Making Process  The rational decision making process comprises the steps the decision maker takes to arrive at this choice. The process a manager uses to make decisions has a significant impact on the quality of those decisions. Defining the problem Developing alternative solutions Evaluating Alternatives Selecting the preferred alternative Implementing the decision Feedback, make changes if necessary "All genuine learning is active, not passive. It is a process of discovery in which the student is the main agent not the teacher" ( Adler, 1982)  (1) Defining the Problem According to Drucker a decision is only as good as the correct definition of the problem. Defining the problem involves diagnosing a situation so that the focus is on the real problem, not just its symptoms. For example, dealing with an employee who is consistently makes mistakes. What might be some possible causes? 19  Unable to focus/ may be loosing his/her vision might be the problem, or it might be only a symptom of another underlying problem such as bad health, low morale, lack of training, or inadequate rewards. Defining the problem requires a wide search for information. (causes and the factors that are creating it) Relevant information results in accurate problem definition 20 (2) Develop Alternative Solutions Several possible solutions are generated/proposed – ways of solving the problem or taking advantage of the opportunities Considering multiple alternatives help to enhance the quality of solutions generated (brainstorming) The first good idea is not necessarily the best one. A better solution may be the one you failed to consider 21  Generate as many alternatives as possible before they are evaluated. Reduce the alternatives to a few feasible ones Alternatives build on one another. Bad ideas may become good ones if they are combined with or modified by other ideas. Alternatives solve the problem that has been defined. Another problem may also be important but it should be ignored if it does not directly affect the problem being considered. 22  Factors to Consider when Assessing Alternatives Authority factors (e.g., a manager’s superior may have told the manager that a certain alternative is not feasible) Biological or human factors (e.g., human factors within the organization may be inappropriate for implementing certain alternatives) Physical factors (e.g., the physical facilities of the organization may be inappropriate for certain alternatives) Technological factors (e.g., the level of organizational technology may be inadequate for certain alternatives) Economic factors (e.g., certain alternatives may be too costly for the organization) (3) Evaluating Alternatives Collect, interpret and evaluate information about each alternative careful weigh the advantages and disadvantages of each alternative. (cost vs. benefits) Sources: standing orders, policies, rules, regulations...may have the solutions to the problem... 24  skilled problem solvers make sure that alternatives are judged in terms of: the extent to which they will solve the problem without causing other unanticipated problems the extent to which all individuals involved will accept the alternative the extent to which implementation of the alternative is likely the extent to which the alternative fits within organizational constraints (e.g., is consistent with policies, norms, legal and budget limitations). 25 (4) Select the Preferred Alternative Based on the conclusions of step 3, choose the one alternative which logically could best solve the problem (is most desirable, ethical and practical) Requires cost/benefit analysis- check to see what each alternative will cost in terms of human, physical and financial resources. Estimate the expected benefit...compare estimates then choose...the one with the greatest payoff. 26 (5) Implementing the Decision Put the decision into operation... Implementing any problem solution requires sensitivity to possible resistance. Select a strategy that maximizes the probability that the solution will be accepted and fully implemented. 27  Participation by others in the implementation of a solution will increase acceptance and decrease resistance Effective implementation is usually most effective when it is accomplished in small steps or increments (small wins: decreases resistance, creates support & reduces costs) 28 (6) Follow Up, Evaluate and Make Changes Exercise management control- determine whether the implementation of the decision is achieving desired results. If not, you might need to change the decision (if possible) or modify aspects of it. Feedback is always vital as necessary information could be provided that will enable corrective action(s) 29  Bounded Rationality Bounded rationality - refers to the fact that managers are bounded in terms of time, computational power, and knowledge when making decisions. Satisfice - occurs when an individual makes a decision that is not optimal but is “good enough.” "All genuine learning is active, not passive. It is a process of discovery in which the student is the main agent not the teacher" ( Adler, 1982)  Decision Making Options: The four decision-making options are: 1: Problem-solver decides alone. “I’ll decide.” The problem-solver makes the decision alone and announces it after the fact. An explanation of the reason for the decision may be given. "All genuine learning is active, not passive. It is a process of discovery in which the student is the main agent not the teacher" ( Adler, 1982)  Problem solver consults the group and then decides alone “Let’s talk, then I’ll decide.” The problem-solver consults the group for information and then makes the decision. Consulting the group could be done all at once at a meeting, or one-on-one if necessary. Before implementing the decision, the supervisor explains the rationale behind it, and attempts to convince the work group of the benefits. (questions may be invited, or a discussion)  Participative decision by group members and problem-solver “Let’s talk, then we’ll decide.” The problem-solver may present a tentative decision to the group and ask for input. If the decision needs changing, it is changed based on group participation and input. This option does not require voting, yet voting is one way to use the participative option. Another way could be that the group convinces the problem-solver of something, and he/she makes changes based on that strong belief by the (capable) group. "All genuine learning is active, not passive. It is a process of discovery in which the student is the main agent not the teacher" ( Adler, 1982)  Problem-solver lets someone else decide “You decide.” The problem-solver presents the situation to the group and describes the criteria, resources, or outcomes limiting it. The group does the problem solving and decision making. The problem-solver may join the group in the process. "All genuine learning is active, not passive. It is a process of discovery in which the student is the main agent not the teacher" ( Adler, 1982)  Kindly do some reading on decision making Biases, risks and uncertainties. "All genuine learning is active, not passive. It is a process of discovery in which the student is the main agent not the teacher" ( Adler, 1982)  Role of Ethics in Decision Making "All genuine learning is active, not passive. It is a process of discovery in which the student is the main agent not the teacher" ( Adler, 1982)  What is Ethics? Ethics is the code of moral principles and values that govern the behaviours of a person or group with respect to what is right or wrong, good or bad, acceptable or unacceptable. Standards used to judge “rightness” or “wrongness” of a person’s behaviour (highest most rigid level of behaviour) towards another. Certo & Certo defines ethics as the capacity to reflect on values in the corporate decision making process, to determine how these values and decisions affect various stakeholder groups, and to establish how managers can use these observations in day-to-day company management. 37  What is Ethics? An ethical decision is defined as “a decision that is both legal and morally acceptable to the larger community” whereas an unethical decision may be regarded as “either illegal or morally unacceptable to the larger community” (Jones, 1991) 38  Why is Ethics Important? An ethical issue is present in a situation when the actions of a person or organisation may harm or benefit others. Ethics sets standards as to what is good or bad in conduct and decision making. An understanding of ethics can help a public a supervisor/manager to arrive at a decision more quickly. If one has to make a decision involving conflicting values, an individual who has thought through and clarified his or her own values does not loose time wondering what to do but can act swiftly and assuredly.  The employment of ethical business practices can enhance overall corporate health in three important areas: productivity, stakeholder relations, and government regulation. Productivity- The employees of a corporation constitute one major stakeholder group that is affected by management practices. When management is resolved to act ethically toward stakeholders, then employees will be positively affected. Stakeholder Relation – by positively affecting “outside” stakeholders such as suppliers and customers. Government Regulation- The third area in which ethical management practices can enhance corporate health is in minimizing government regulation. Where companies are believed to be acting unethically, the public is more likely to put pressure on legislators and other government officials to regulate those businesses or to enforce existing regulations. (disposal of medical waste) "All genuine learning is active, not passive. It is a process of discovery in which the student is the main agent not the teacher" ( Adler, 1982)  Code of Ethics A code of ethics is a formal statement that acts as a guide for the ethics of how people within a particular organization should act and make decisions. "All genuine learning is active, not passive. It is a process of discovery in which the student is the main agent not the teacher" ( Adler, 1982) Ethical values are those that apply in everyday life: Honesty Fairness Objectivity Openness Trustworthiness Respect for others "All genuine learning is active, not passive. It is a process of discovery in which the student is the main agent not the teacher" ( Adler, 1982)  Why is Ethics Important? Ethics leads to: greater consistency in decision making fairness and reduced perception of inequality in decision making The absence of these result in ethical dilemmas  To satisfy the criteria of being ethical, decisions must maintain the principles and standards generally accepted by the international and local context… Decision makers have an obligation to act in ways that serve the public You need not fabricate or omit information in the report to make it look good… "All genuine learning is active, not passive. It is a process of discovery in which the student is the main agent not the teacher" ( Adler, 1982)  Managers can feel confident that a potential action will be considered ethical by the general public if it is consistent with one or more of the following standards: 1. The golden rule—Act in a way you would expect others to act toward you. The utilitarian principle—Act in a way that results in the greatest good for the greatest number. Kant’s categorical imperative—Act in such a way that the action taken under the circumstances could be a universal law, or rule, of behavior. The professional ethic—Take actions that would be viewed as proper by a disinterested panel of professional peers.  5. The TV test—Managers should always ask, “Would I feel comfortable explaining to a national TV audience why I took this action?” 6. The legal test—Is the proposed action or decision legal? Established laws are generally considered minimum standards for ethics. 7. The four-way test—Managers can feel confident that a decision is ethical if they can answer “yes” to the following questions: Is the decision truthful? Is it fair to all concerned? Will it build goodwill and better friendships? Will it be beneficial to all concerned?  Questions??? "All genuine learning is active, not passive. It is a process of discovery in which the student is the main agent not the teacher" ( Adler, 1982)