Defining the Management Problem

01132391
Basic Research Methods in Business

Bougie, R. and Sekaran, U. (2020). Research Methods for Business: A Skill Building Approach.
Defining the Management Problem

Looking for
Decision
Fixing situations
Introduction Opportunities or
that are broken
areas for
improvement

Providing
feedback to the Managerial
client implications
organization
 Learning Objective
1. Identify problem areas that are likely to be studies in organization.
2. Explain why it is important to distinguish between two different types of
situations that may or may not lead to a research project.
3. Carry out an exploration.
4. Make a diagnosis.
5. Distinguish between different types of action problems: technical problems,
information problem, consensus problems and a combination of information
and consensus problems.
6. Define the management problem.
Introduction
Introduction
▪ Every research project starts with a problem (an
information problem!) that the researcher wants to
address.

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 Two situations that may lead to
research
▪ Research is often needed when managers are
proactively looking for ________________.

▪ Applied research may also result from a specific

situation that a manager wants to ______.

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Looking for Decision Opportunities
or Areas for Improvement
Looking for decision opportunities
▪ Looking for decision opportunities or areas for
improvement. Instead of waiting for a situation
that is imposed upon them, they show initiative.

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Looking for decision opportunities
▪ Along these lines, there are many potential
applications for research. These applications include
the following:
– Monitoring performance
– Identifying market opportunities and constraints
– Considering new product introductions or entries into new markets
– Customer analysis
– Organization’s competitive environment
– Industry evaluation
– Idea generation

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Looking for decision opportunities
▪ Process starts with exploration
– To conduct or not to conduct research
– Defining the management problem

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The first step of the research process:
Exploration

To conduct Defining the

research or management
not problem

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 To conduct research or not
▪ Four factors influence the decision to conduct
research
– The potential usefulness of the research results
– The resources available for implementing the research
results
– The attitude of various stakeholders towards the project
– The costs and benefits of the project

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 Stakeholders
▪ What are questions to assess the position of stakeholders?

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Defining the management problem
▪ It is often helpful to define the management problem
in terms of the following
– The existing situation
– Why this situation is problematic
– The desired situation (the management objective)

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Fixing Situations that Are Broken
If organizational objectives are not achieved or if the
organization is not operating in the best possible
manner, it is the manager’s task to solve the problems.

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A problem-solving process is often set in motion if a
manager finds that the existing situation is undesirable
or the situation does not meet a certain norm or
standard.

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Existing situation Gap Desired situation

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A research process is set in motion when the manager
commissions a researcher to help to solve the
organizational issues.
- Exploration and diagnosis will help the researcher to define
the management problem.

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 Fixing situations that are broken

▪ Process starts with exploration and diagnosis

▪ Objective exploration: make a decision with

regard to diagnose or not
▪ Objective diagnosis: to define the management
problem

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The first step of the research process:
Exploration
▪ The first step that must be taken by the researcher is
exploration, that is, the researcher tries to find more about
the core issue:
– What is happening? And why is it problematic?
– These two questions need a provisional answer at this stage.

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The first step of the research process:
Exploration
Based on the results of the exploration stage, the
researcher should be able to make an informed decision
whether to carry on with the process of problem
solving or not.

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The first step of the research process:
Exploration
Since making a diagnosis is the logical next step. The
first decision that has to be made in this respect is
“Are we going to invest in diagnosis or not?”

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The first step of the research process:
Exploration
There are two scenarios that the researcher would like
to avoid
1. Overestimating the problem
2. Underestimating the problem

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Useful Questions for Exploration
▪ xxxxx ▪ xxxx

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 Suggestion for Exploration
▪ Keep an open mind. ▪ Keep everything flexible.
▪ Do not focus too quickly: a broad ▪ Do not accept predefined solutions.
scope is better than a narrow one at ▪ Try to make a realistic assessment
this stage. of the severity of the problem.
▪ Do not jump to conclusions. ▪ Think about the organization of next
▪ Make sure that your information. stage: diagnosis. What do you need
comes from many different sources form whom?
(people and documents). ▪ You may come to the conclusion
▪ Distinguish facts from that the process ends here.
interpretations. ▪ Do not continue if the issue is not
▪ Uncertainty is an important worth investigating
characteristic of this stage. This
make it difficult for many people.
▪ There is no need to come up with a
final definition of the problem at
this stage. 31
 The second step of the research
process: Diagnosis
▪ The diagnosis stage is, in many ways, the most
important stage of the change process.
▪ In the diagnosis stage, the researcher will delve
deeper into the problem, in order to profusely
understand the situation.

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A diagnosis process can take place at the level of the
organization, a department or strategic business unit
(SBU) or at the level of the individual, such as an
employee or a client.

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 The second step of the research
process: Diagnosis

Relationship between level of Diagnosis and Broad Topic

Topic Level of diagnosis
Organizational performance, stakeholder satisfaction Organizational level
Team effectiveness, quality of work Group level
Job satisfaction, personal development Individual level

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 Useful tools diagnosis

Five times why Tichy matrix

7s Model Fishbone diagram

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Five times why

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 Tichy matrix
Technical features Objectives and Task and Expertise
strategy responsibilities • Qualification
• Objectives • Organization demands
• Strategy • Division of task • Team
• Research • Consultation composition
• Budget • Procedures • Expertise
• Rewards
Political features Policy influencers Decision-making Autonomy
• Leaders • Participation • Degree of
• Contractors • Contracting freedom
• Stakeholders • Negotiation • Needs and wants
• Investors • Regulations • Perspectives
• Risks
Cultural features Culture Cooperation Attitude
• Quality standards • Planning • Competencies
• Involvement • Team building • Willingness
• Perceptions • Idea generation • Creativity
• Habits • Methods • Improvization
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7s Model

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7s Model

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Fishbone diagram

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Useful Questions for Diagnosis

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 Example
Problems versus symptoms of problems

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Example: Problems versus symptoms of problems

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Example: Problems versus symptoms of problems

▪ Thus finding the right answer to the wrong problem definition will not
help.
▪ Hence, it should be recognized that correct problem identification is
extremely critical for finding solutions to vexing issues.

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Example: Problems versus symptoms of problems

▪ 5 Whys or 5 times why

– Why? Because they are not satisfied with their jobs.
– Why? Because they do not find a challenge in their jobs.
– Why? Because they do not have control over their work.
– Why? Because they do not have a lot of influence over planning, executing and
evaluating the work they do.
– Why? Because we have been reluctant to delegate.

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Example: Problems versus symptoms of problems

▪ One of the primary objectives of diagnosis is to define the management

problem.
– The existing situation
– Why this situation is problematic (the motive to change the existing
situation)
– The desired situation (the management objective)

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 Example: Defining the management problem

▪ Existing situation: The undesirable turnover of personnel who have been in

service for less than a year is on average 18% over the past three calendar
years.
▪ Why this is problematic (the motive to change the existing situation): The high
turnover rate among employees who have been working for the organization
for less than a year leads to dissatisfaction, demotivation and dropping out of
colleagues who have chosen not to leave, to frustration with regard to
supporting inexperienced and inefficient recruits, to extra management time
needed to deal with the negative consequences of turnover, and to high
recruitment costs.
▪ Desired situation (the management objective): To reduce the undesirable
turnover of personnel who have been in service for less than a year with 50%.

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Different types of action problems
▪ Diagnosis is aimed at defining the management
problem and the constraints of the solution.
▪ That is why diagnosis is a crucial stage in the
problem solving process.
▪ All these matters affect the solvability of the
problem.

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In general, the solvability of a
problem is determined by two factors
• the degree of consensus on whether there is a
problem, on what the problem is and on the
constraints that should be met by the solution;
• the extent to which relevant knowledge is
available on how the problem can be solved.

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Different types of action problems

Type of problem Solving strategy

Technical problem Planning and action
Information problem Research
Consensus problem Negotiation
Combination of information/consensus problem Leadership

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Different types of action problems

Type of problem Solving strategy

Technical problem Planning and action
Information problem Research
Consensus problem Negotiation
Combination of information/consensus problem Leadership

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Different types of action problems

Type of problem Solving strategy

Technical problem Planning and action
Information problem Research
Consensus problem Negotiation
Combination of information/consensus problem Leadership

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Different types of action problems

Type of problem Solving strategy

Technical problem Planning and action
Information problem Research
Consensus problem Negotiation
Combination of information/consensus problem Leadership

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 Management problem
▪ First the management problem has to be defined

▪ If research is needed the researcher develops a

research problem.

▪ The research problem helps the researcher to

explain to the manager how the collection of
information may help to solve the management
problem.
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Providing feedback to the client
organization
Managerial implications
End