Decision Making and Problem Solving

Define different perspectives and concepts of problem solving in diverse contexts and business situations. (C.L.O :1.2) Demonstrate decision tools and employ appropriate analytical business models to break down complex issues. (C.L.O :2.2) 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: Talal, CEO and the president of a pharmaceutical company based in Riyadh. Talal is going to retire after three months and has been asked to select his successor. He wanted to decide one candidate from the following three best possible candidates he feels would best take over his position. 1) Badar the VP Marketing, Working with company from 20 years and under Talal for 7 years. 2) Rayyan the VP-Operations, been with company 23 years has most experience. 3) Sayeed VP-HR, been with company for 15years but has worked his way up the ladder impressively. Outside the workplace Badar, Rayyan, Sayeed are close friends and after receiving word that they are the finalists for the job promotion. Tension rises both within and outside the workplace. They also find out that the decision will not be announced until few weeks, which causes that tension to raise that much more. Outside the work the three close friends have not talked nearly as much since the promotion announcements and is causing negative effects in their home lives. With the three of them failing to communicate, they won't know how they each perceive the situation, thus building on the already present stress and anxiety. Talal ultimately chooses Badar due to his experience under him as VP. This puts even more responsibility in Badars hands. The decision surely sends shockwaves throughout the company, starting with Rayyan and Sayeed. Rayyan is extremely upset with the decision, and with him being a very verbally aggressive person, he starts to cause some conflict with his work behaviour. Sayeed, who is also highly upset, decides he cannot work under Badar, quits the job, and cuts off the friendship they had. To resolve this conflict, Badar calls multiple meetings hoping to improve the communication within the business, however, this backfires tremendously. Rayyan's work behaviour continues to spiral out of control and is constantly verbally aggressive in meetings, targeting Badar in certain comments, which only makes things worse by making the rest of the group uncomfortable, this leaves Badar clueless as what to do simply because he has not done anything wrong. He was awarded a job promotion and has not done anything to provoke Rayyan or Sayeed to act the way they have. Read the above case study and answer the following questions: Q1: What is the main problem in the above case? [Marks 3] Q2: Discuss the problem with 5-Why analysis. Draw a cause-and-effect diagram based on the problem of the case? [Marks 4] Q2: If you are consultant and asked to solve the problem, how will you solve the problem of case? What are the steps you will follow to solve? [Marks 3]

Sample Solution

Case Study Analysis: The Successor Problem

Q1: What is the main problem in the above case? [Marks 3]

The main problem is a breakdown in communication and leadership transition within the pharmaceutical company. This breakdown manifests in several ways:

Tension and conflict: The secrecy surrounding the CEO's decision and the extended wait time created tension among the candidates, impacting their personal lives and work relationships.
Poor decision management: The lack of clear communication regarding selection criteria and the decision itself left Rayyan and Sayeed feeling blindsided and disrespected.
Ineffective leadership transition: The decision to promote Badar without addressing the potential for conflict with Rayyan led to further disruption and hampered Badar's ability to lead effectively.

Q2: Discussing the Problem with 5-Why Analysis [Marks 2]

1. Why is Rayyan exhibiting aggressive behavior?

Because he feels unfairly passed over for the promotion and disrespected by the decision-making process.

2. Why did Sayeed quit?

Because he couldn't work under Badar after the promotion and the broken friendship caused by the competition.

3. Why did Badar's attempt to improve communication backfire?

Because he didn't address the underlying feelings of resentment and anger from Rayyan and Sayeed.

4. Why wasn't the promotion process managed better?

Because the lack of transparency and communication created unnecessary tension and competition among the candidates.

5. Why did Talal not consider the impact of his decision on company dynamics?

Because he may not have anticipated the strong emotional reactions or the importance of a smooth leadership transition.

Cause-and-Effect Diagram:

Central Problem: Breakdown in communication and leadership transition

Contributing Causes:

Secrecy surrounding CEO decision
Lack of clear selection criteria
Absence of communication regarding decision rationale
Failure to address potential conflict between finalists

Effects:

Tension and conflict among candidates
Rayyan's aggressive behavior at work
Sayeed's resignation and broken friendship
Difficulty for Badar to lead effectively

Q3: Consultant's Approach to Solving the Problem [Marks 3]

Step 1: Facilitation and Open Communication:

Conduct individual meetings with each candidate (including Sayeed if possible) to understand their perspectives and feelings.
Organize a facilitated group discussion (without Badar initially) to promote open communication and address any unresolved issues among the candidates.

Step 2: Conflict Resolution and Relationship Building:

Employ mediation techniques to help Rayyan and Sayeed express their frustrations and work towards reconciliation (if Sayeed is open to it).
Focus on rebuilding trust and fostering a more collaborative environment within the company.

Step 3: Leadership Transition Support:

Coach Badar on effective communication strategies to address team concerns and manage conflict.
Develop a plan for Badar to meet individually with key personnel to establish rapport and build relationships.

Step 4: Continuous Improvement:

Implement a company-wide communication strategy to ensure clear and transparent processes for future promotions and decision-making.
Encourage open communication and feedback loops within the management team.

By facilitating open communication, addressing underlying conflicts, and supporting Badar's leadership transition, the consultant can help restore trust, collaboration, and a healthy work environment within the company.

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Decision Making and Problem Solving

Sample Solution

Case Study Analysis: The Successor Problem

Q1: What is the main problem in the above case? [Marks 3]

Q2: Discussing the Problem with 5-Why Analysis [Marks 2]

Q3: Consultant's Approach to Solving the Problem [Marks 3]

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