Solving Organizational Problems - Business Decision Making - ثاني ثانوي

Lesson 3 Chapter 6 www.ien.edu.sa Solving Organizational Problems: Adaptive Techniques 3-1 Using Adaptive Techniques Many groups use adaptive techniques to solve problems. Instead of gathering data, analyzing it, and exploring alternatives systematically-or trying to innovate with an idea nobody has tried before-most adaptive techniques involve a combination of intuition, logic, and common sense. Adaptive techniques are less precise than traditional problem-solving methods but are appropriate in many cases. You should be familiar with these approaches and when they should and should not be used. 168 6 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 168 DEFINITIONS Adaptive technique: An alternative method for solving problems. Instead of gathering data, analyzing it, and exploring alternatives systematically, most adaptive techniques involve a combination of intuition, logic, and common sense. Systematic technique: Systematic techniques rely on existing practices, information, and strategies, using data and rigorous planning to resolve problems. Innovative technique: A problem-solving approach involving a new idea, or a new implementation of an existing idea. 1. Consider when to use adaptive techniques You might not want, or be able, to follow a complete problem-solving process for many reasons. In the cases shown in Figure 6-8, it is appropriate to use an adaptive technique. FIGURE 6-8: Appropriate times to use adaptive techniques Consider using adaptive techniques when: • You have a limited amount of time to work, for example, a client has brought forward a four-month deadline to two months • An exhaustive analysis is not needed, for example, if the problem is straightforward, and only requires one or two simple actions • The risks are minimal and downside costs are low, for example, a client asks for an in-person meeting rather than a video call 30/06/2023 14:28

QUICK TIP The most obvious problems are not always the most important problems. QUICK TIP Monitor the problem so it doesn't escalate, and set a time limit so you don't delay indefinitely. 2. Manage by exception When time is limited, managing by exception may be appropriate. Spend your available time concentrating on the most important issues, and address symptoms that are clearly deviating from the expected norm. By focusing your attention on the most significant problems, you are more likely to make a difference than you would if you spread yourself too thin. 3. Make decisions incrementally When you are faced with an expensive option or an irrevocable decision, consider making incremental choices first. Make partial or intermediate decisions to avoid committing to a major decision. Imagine you are working for an adventure tour operator experiencing poor sales. You may decide to launch a new marketing campaign, but you might not know if your strategy is going to work. Instead of spending 100% of your budget on the campaign right away, you might instead decide to run just one or two advertisements, to see if they have an effect, before making more of a commitment. 4. Spread risk Committing to a single option or alternative is inherently risky. Spread your risk by avoiding decisions that lock you into a single choice. Consider a solution that includes multiple options. By using more than one approach, you are more likely to have some success—even if one approach doesn't work. 3-2 Finding Solutions If you are having trouble finding a good solution that meets your goals, slow down and delay selecting a single course of action. Use the time to develop other options and gather more information. Occasionally, the problem will resolve itself. More often, the symptoms continue to grow, or events change the nature of the problem. For example, the adventure travel company you are working at might be experi- encing poor sales performance. There may be many factors that explain this, and a variety of courses of action you could take to improve sales. By addressing problems in marketing, business strategy, and sales—rather than simply reducing prices, for instance-you create more opportunities for the problem to be solved. وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 169 DEFINITION Risk: An exposure to a chance of loss or damage. Decision-Making Processes in Organizations 169 30/06/2023 14:28

YOU TRY IT TABLE 6-2: Adaptive techniques do's and don'ts Guidelines Do Manage by exception Stagger decisions Spread risk •Spend your available time concentrating on the most important issues . • Use your limited time addressing factors deviating from the expected norm • Make incremental changes when faced with expensive or disagreeable alternatives • Look for a solution that includes multiple options Delay decision ⚫Slow down and delay committing yourself to a course of action • Find time to develop other options and gather more information Solving problems in a blink Many individuals rely on intuition, hunches, and other abilities to make decisions in the blink of an eye. Some commentators contend that these spontaneous decisions—one type of adaptive technique to sense what is important from a very narrow period of experience-can be better than those explored with scientific analysis and precision. This view holds that professionals often collect too much information, and that experts can make better decisions in snap judgments than they do after months of evaluating data. Don't • Don't focus on small or insignificant problems, even if they are easier to solve • Don't commit to a plan you cannot fulfil • Don't make a complete commitment to a major decision if you are not prepared to do so • Don't make decisions that lock you into a single choice Don't ignore the problem while you are deferring the decision Experienced physicians often use such techniques to diagnose diseases with uncommon symptoms. Effective salespeople use the technique as they meet customers and discuss their needs. However, in both cases, it's important to note that the intuitive decisions might be correct only because years of training, practice, and experience have been condensed to useful information that can be retrieved without conscious effort. A hunch may well prove correct, but it should always be backed up with solid evidence. Practice using adaptive techniques by finding solutions for common problems. Complete the following steps. 1. Choose one of the following problem descriptions. 1. A company trains and manages all of the customer service representatives at Specialty Travel, which includes up to eight employees working at the same time with customers on the phone or in person. The problem is that sales of extra and supplemental services such as travel insurance are low, though customer service reps have a script to encourage sales of these items. 170 6 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 170 30/06/2023 14:28

2. Leila is the tour developer for Specialty Travel's European tours. She thinks the European Adventure tour should be one of Specialty Travel's most popular tours. Customers report that the price is too high, the 12-day tour is too long, and the size of the tour group is too large. Leila wants to eliminate that tour and design a new one, which would be a major change for Specialty Travel. 3. As marketing director for Specialty Travel, Hashim needs to increase sales overall for the company. He usually encourages tour developers and salespeople to pursue the typical Specialty Travel customer: married, in the 41-60-year-old age group who do not have children living at home, and have household incomes of over 200,000 SAR per year. He wants to open new markets, such as younger travelers, travelers with disabilities, and Specialty group travel, such as for clubs and associations of professionals, students, and retired people. However, salespeople fear that they won't be able to sell as many tours to these new markets and their bonuses will be decreased. 4. Wahid, head of the Human Resources Department at Specialty Travel, has been interviewing potential tour assistants. If Specialty Travel does increase its tour sales by 12% as expected, the company will need more tour assistants. If it doesn't increase sales, the company will need to lay off tour assistants. 2. In your notebook, choose one of the problems above, then choose which adaptive technique to use when solving this problem. Give an example of a solution to the problem. REVIEW QUESTIONS 1. In which of the following scenarios is an adaptive technique not appropriate? a. You have a limited amount of time to work b. The solution is easily reversible c. The risks are minimal and the costs are low d. You need an exhaustive analysis 2. Negotiating new terms with a tour operator instead of dropping the tour is an example of: a. using your intuition b. managing by exception c. risk analysis d. staggering a decision وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 171 Decision-Making Processes in Organizations 171 30/06/2023 14:28