Problem formulation and identification in organizational decision-making processes

¶ … Identification

Decision making and problem solving in companies are probably the most important processes in any business. These processes ensure that companies run smoothly and effectively. There are a variety of decision-making and problem-solving processes that ensure the effectiveness of business processes. Often, these are chosen on the basis of their effectiveness in the particular business setting involved. The automotive industry, for example, would not function on the same decision-making process as a childcare business. Particularly, problem identification relate to various problem-solving styles, including the morphological approach, the Kepner-Tregoe approach, inventive problem solving, constraints thinking, the collective-participative style, and the fairness approach. These will be related to five types of businesses, including an automotive business, a restaurant, an electronics business, a DVD store, and a preschool,

The first important step in problem solving is problem identification (Reference for Business, 2010). All five businesses investigated have a problem identification process in place. There are two approaches that can be taken in this paradigm; before the fact and after the fact. Before-the-fact problem identification entails that deficiencies are discovered before they can create problems for the company and its operations. Changes are then made according to the findings of such an investigation. The main problem with this approach is that many problems occur before they can be anticipated. Hence, many companies only follow the after-the-fact approach. Once a problem has been identified, a solution approach can be used to ensure the problem is solved and does not occur again.

Frankie's Auto Repairs is an automotive repair shop, which uses an after-the-fact approach to problem identification. Once problems have been identified, the manager favors a morphological approach to problem solutions. This approach uses two-or three-dimensional matrices to highlight solutions that are not immediately obvious. Hence, creative solutions are obtained by means of methods such as the decision tree. For Frankie's, this usually entails the involvement of all employees. Employees then participate in the decision-making process and contribute their creativity, which might otherwise have been overlooked.

The main benefit of this approach is the inclusive process, by means of which all employees are included for their potential to help solving problems. On the other hand, if all employees are included in this way, it means that the business has to come to a halt during the time required to come to a solution.

At the Hotspur Restaurant, an establishment whose main course generally consists of hamburger and steak, the main approach to problem solving is the Kepner-Tregoe approach. This has been established by Charles H. Kepner and Benjamin B. Tregoe. There are five stages to this approach, including situation appraisal, problem analysis, decision analysis, and potential problem analysis (Reference for Business, 2010). This is a basically rational approach, which requires individuals and teams to implement solutions after identifying problems and potential solutions.

JJ's Electronics is an establishments that sells both electronic components and creates alarm systems for homes and vehicles. They also build and repair electronic household equipment. Because it is an engineering firm, JJ's uses the theory of inventive problem solving, which was created specifically with the engineering industry in mind. As such, all employees at JJ's are required to have knowledge of 39 engineering parameters and 40 principles of invention. These are then used by problem-solving teams to find solutions to the engineering problems that they encounter on a daily basis. One possible drawback of this solution is that non-engineering problems, such as personnel management and other personal issues, could be overlooked in favor of the more technical problems.

Odin DVDs is a store that specializes in both renting and selling DVDs. The management at this store favors the constraints thinking process approach. This approach consists of identifying systems that are constrained within a business. Although originally created for the manufacturing business, these constraints can also apply to non-physical systems, such as a policy or the customer service process. The problem-solving process consists of four steps: identifying the constraints within a system, deciding how to exploit the existing constraints; subordinating everything else to this decision; elevating the system's constraints; and determining a further constraint within the system.

This is a very intensive system, and could have the disadvantage of overlooking potential problems while one system constraint is in the process of being resolved.