Problem Solving Approaches to Business Concept
Contents
Approach to problem – qualitative or quantitative
Williams rational problem solving approach
Approach to problems – qualitative or quantitative
Williams rational problem solving approach
Meeting was held to discuss the implementation of personalised bookings for drivers. Personalised bookings are being considered as an extension of the current system due to the imminent arrival of Uber in the Cairns area.
The idea is to allow driver to take and advise of bookings that customers request for them to perform due to the high standard of customer service provided by that driver. Doing nothing has no extra benefit to our service levels and could even damage the company when compared to our competitor, however allowing this service not only improves the community perception of the taxi industry but also improves the moral and ability of the drivers, thus improving the overall customer service levels of the taxi industry in the Cairns area.
The more personalised the experience in a taxi, the more valued the customer feels. This in turn increases the customer’s use of the product on offer. If customers are not feeling recognised or appreciated, or things are not clear, then they will leave and go to our competitor (Earls 2017, pp 28).
Nature of problems
The problems faced by personalised bookings appear to be challenges that are complex series of features woven together interdependently. Professor Horst Rittel of the University of California suggested that the term “wicked problem” refers to that style of problem which is ill-formulated, where the information is confusing, where there are many decision makers with conflicting values, and where the ramifications in the whole system are thoroughly confusing. Rittel suggests decision makers often make various attempts to “tame” these wicked problems. Sometimes, it consists of “carving off” a piece of the problem and finding a rational and feasible solution to this piece (Churchman 1967, pp 141).
Problem formulation
The problems of personalised bookings can clearly be mapped (see appendices). Effective problem formulation depends on clearly understanding stakeholders and their interests so that problems can be formulated in such a way that they have a chance of being solved (Bryson 2004, pp 32,33). Thus the problem formulation factor in this instance is considered tame problem.
Testability
With the use of the training fleet and training room simulations can be run on the testability of solutions to foreseen problems, Potential solutions can be tested as either correct or false allowing for a smoother implementation. The solution to tame problems can be tested mistakes and errors can be pinpointed thus the testability of personalised bookings is a tame problem (Wit & Meyer 2010, pp 30).
Finality
There is always room for improvement and potential consequences may continue. Until implementation it, understanding how each of the 605 driver react and use the personalised booking is unknown and thus the finality factor is considered a wicked problem.
Level of analysis
It is possible to identify root cause of problems. There is no need to argue about the level at which to intervene. Once problems have been highlighted during implementation it will be easy to identify and fix root causes and thus the level of analysis factor is considered tame problem.
Replicability
Personalised bookings are easy to replicate and once drivers understand the process it may repeat itself many times and thus the replicability factor is considered tame problem.
Reproducibility
Before during and after implementation the problems and solutions can be trialled and excluded until the correct solution is found and thus the reproducibility factor is considered tame problem.
Approach to problem – qualitative or quantitative
As a manager when you make business decisions, you consider a number of factors. Some are qualitative factors like reputations, brand strength and employee morale, as well as quantifiable data such as sales figures, profitability and return on investment. When making the decision about personalised bookings both qualitative analysis and quantitative methods were being discussed to assist in making the final decision. Ultimately the decision that offers the required result and the desired outcome won’t always use one method to check whether the predictions of the other method are reasonable (Chron.com n.d.).
Using both the qualitative and quantitative methods were required when Cairns Taxis considered the implementation of personalised bookings into our system, making the wrong decision could have wider and long lasting ramifications to all stakeholders.
Williams Rational Problem Solving Approach
Problem Identification
Criteria Definition
Alternative Generation and Evaluation
Implementation
Do you have any recommendations for decision makers at various levels in your organisation based on your understanding of theory frameworks?
Market Growth using app
Nature of problems
|
Characteristic |
How it appears in tame problems |
How it appears in wicked problems |
|
Problem formulation |
Can be clearly written down. The problem can be stated as a gap between what is and what ‘ought’ to be. There is easy agreement about the problem definition |
Difficult to define. Many possible explanations may exist. Individuals perceive the issue differently. Depending on which explanation one chooses, the solution takes on a different form |
|
Testability |
Potential solutions can be tested as either correct or false |
There is no single set of criteria for whether a solution is right or wrong, they can only be more or less acceptable relative to each other |
|
Finality |
Problems have a clear solution and ending point |
There is always room for more improvement and potential consequences may continue indefinitely |
|
Level of analysis |
It is possible to bound the problem and identify its root cause. There is no need to argue about the level at which to intervene |
Every problem can be considered a symptom of another problem. It has no identifiable root cause and one is not sure of the appropriate level at which to intervene |
|
Replicability |
It may repeat itself many times |
Every problem is essentially unique |
|
Reproducability |
Solutions can be trialled and excluded until the correct solution is found |
Each problem is a one-shot operation. Once a solution is attempted, you cannot undo what you have already done |
Problem formulation
Testability
Finality
Level of analysis
Replicability
Reproducibility
Approach to problems – qualitative or quantitative
When you make business decisions as a manager, you take into account qualitative factors like reputations, brand strength and employee morale, as well as quantifiable data such as sales figures, profitability and return on investment. Both qualitative analysis and quantitative methods can be used to make decisions. The decisions that most often result in the desired outcomes use one method to check whether the predictions of the other method are reasonable.
Are the approaches appropriate for the type of problem?
Williams rational problem solving approach
How effectively do the processes used follow each step? What are the consequences where they are not followed? What gets in the way of the process being followed?
Problem Identification
Criteria Definition
Alternative Generation and Evaluation
Implementation
Do you have any recommendations for decision makers at various levels in your organisation based on your understanding of theory frameworks?
Bryson, J.M., 2004. What to do when Stakeholders matter – Stakeholder Identification and Analysis Techniques. Public Management Review, 6(1), pp.21-53.
Chron.com, Difference Between Qualitative & Quantitative Analysis for Managerial Decision Making | Chron.com. Available at: http://smallbusiness.chron.com/difference-between-qualitative-quantitative-analysis-managerial-decision-making-77298.html [Accessed March 6, 2017].
Churchman, C.W., 1967. Wicked Problems. Management Science.
Earls, E., 2017. Loyalty Points. The Caterer, 207(4962), pp.28-30.
Wit, B. de. & Meyer, R., 2010. Strategy : process, content, context, Cengage Learning. Available at: https://books.google.com.au/books?hl=en&lr=&id=tCspQP0CYgcC&oi=fnd&pg=PA27&dq=nature+of+problems+testability&ots=-hS5xDfIKp&sig=WbTndlDyTmLdBol6kVe-CZKkMZo#v=onepage&q&f=false [Accessed March 6, 2017].
