The Problem Solving Model 2-1

Summary

This module delves into business ethics, contrasting the inclusive 'warrior' manager with the exclusive 'gladiator'. It emphasizes the importance of ethical management and developing skills to solve ethical issues. The instructor introduces a problem-solving model applicable to various business aspects, stressing the sequential process of decision-making. The concept of 'thinking outside the box' is explored, encouraging managers to expand their constraints and consider new options. The module also discusses the necessity of correctly defining problems, identifying stakeholders, and distinguishing facts from opinions to make informed ethical decisions.

Takeaways

• 🧩 The concept of 'inclusive' versus 'exclusive' management is introduced, emphasizing the importance of being a 'warrior' who includes all stakeholders in ethical decision-making.
• 🌐 The 'partners' in business include employees, customers, shareholders, and the environment, which are all integral to ethical management.
• 🔍 Problem-solving in business ethics is a sequential process applicable across various company functions, requiring a structured approach to reasoning.
• 🤔 'Thinking outside the box' is defined as expanding the constraints to explore new solutions, moving beyond traditional limitations to find innovative answers.
• 💡 Constraints in business can be financial, managerial, or environmental, and understanding these can help in thinking creatively to overcome them.
• 📋 Defining the problem accurately is crucial; the Coca-Cola 'New Coke' example illustrates the consequences of misidentifying the issue.
• 👥 Identifying stakeholders and understanding how they are affected by an issue is essential for effective problem-solving.
• 🔑 Separating fact from opinion is vital for making informed business decisions, as opinions can cloud judgment and lead to poor outcomes.
• 🛠️ Once the issue and stakeholders are clear, the next step is to isolate key objective facts to form a solid foundation for decision-making.
• 📈 After establishing facts, the process involves creating options that address the issue, thinking expansively to include possibilities not initially considered.
• 🗣️ The final step is to choose and present an option supported by ethical arguments and moral standards that align with the company's culture.

Q & A

What is the concept of the 'warrior versus the gladiator' in ethical management?

The 'warrior versus the gladiator' concept refers to the idea of being an inclusive versus an exclusive manager in ethical management. The 'warrior' represents an inclusive manager who works collaboratively with partners in business, while the 'gladiator' represents an exclusive manager who may focus on winning at all costs, potentially to the detriment of others.

Who are considered the 'partners' in a business according to the transcript?

The 'partners' in a business, as mentioned in the transcript, include employees, customers, shareholders, and to some extent, the environment or the materials used to make the products.

What is the significance of the problem-solving model in ethical management?

The problem-solving model is significant in ethical management because it provides a sequential process for decision-making that can be applied across various aspects of a company. It helps in addressing issues by applying learned principles to reach a successful resolution.

Why is 'thinking outside the box' important in business problem-solving?

'Thinking outside the box' is important because it involves moving beyond the constraints of a situation to explore new possibilities. This can lead to innovative solutions that might not be apparent when considering only traditional approaches.

What does 'thinking outside the box' mean in the context of business?

In the context of business, 'thinking outside the box' means thinking beyond the existing constraints or limitations (like budget, management directives, or the business environment) to find new and creative solutions to problems.

What was the issue Coca-Cola faced with its competition with Pepsi in the 1980s?

Coca-Cola faced an issue where it consistently lost taste tests against Pepsi. The management concluded it was a flavor problem and introduced 'New Coke' to address it, which turned out to be a costly mistake.

Why is defining the problem correctly crucial in ethical management?

Defining the problem correctly is crucial because it sets the direction for finding a solution. If the problem is misunderstood, the solution developed may not address the actual issue, leading to ineffective resolutions and potentially negative consequences.

What are the key stakeholders or partners in a business problem?

The key stakeholders or partners in a business problem can include employees, customers, shareholders, and the environment. Understanding their involvement and how they are affected by the problem is essential for effective problem-solving.

How does understanding the stakeholders' impact help in problem-solving?

Understanding the stakeholders' impact helps in problem-solving by identifying who is affected by the issue and how. This insight can guide the development of solutions that consider the well-being and interests of all parties involved.

What is the importance of isolating key facts from opinions in ethical decision-making?

Isolating key facts from opinions is important in ethical decision-making because it ensures that decisions are based on observable and verifiable information rather than personal biases or emotions. This leads to more objective and fair decisions.

How does the process of thinking outside the box help in creating options for problem-solving?

The process of thinking outside the box helps in creating options for problem-solving by expanding the range of possibilities beyond the initial constraints. This allows for the identification of innovative and potentially more effective solutions.

What is the final step in the problem-solving process as described in the transcript?

The final step in the problem-solving process is to choose one of the developed options, solidify it with ethical arguments using the company's moral standards, and present it to the relevant group or decision-makers.