TATA NANO-PEOPLE’SCAR• The tale of the creation and design of the Nano is one

of innovation and ingenuity, both inside and outside Tata's own organization.

• The introduction of the Nano received media attention due to its targeted low price.

• The Nano which had its grand entry in the Indian market paid off the hard efforts of its creators.

• Creation of this small car had its very own problem ?????

•In 2003, a BBC report revealed that Coca-Cola was distributing improperly treated sludge containing toxic carcinogens and heavy metals like cadmium and lead, as fertilizer to farmers in the region. •Coca-Cola shut down this plant in March 2004 owing to mounting pressure and decided to shift its operations. In addition to these accusations, in 2003, the Center for Science and Environment (CSE) made public the findings of its study wherein it reported that the products of both Coca-Cola and PepsiCo Inc. (Pepsi) that were sold in India, had a cocktail of harmful pesticide residues in them .•In an official statement, Coca-Cola denied that it had used death squads in Colombia. The company said that two judicial investigations in the country had not found any evidence in support of such allegations. Coca-Cola also claimed that there was no evidence linking it or its bottlers with the groundwater problems at its factory locations in India.

•Disney is most notable known for theme parks. Having destinations around the world, Paris, China, Japan, and the United States, these theme parks play a critical role in Disney’s profitability. •Currently, Disney is planning on laying-off, though the current number is undisclosed. They employ around 80,000 people in their parks; in the month of January they bought out 600 executives. • Currently, the economic recession has limited families to expend much of their income on vacations. Oil and energy prices have also fluctuated, which contributes to the dwindling number of visitors. Disney has special interest in natural gas and petroleum.• Also, profits for the December 2007 were down 24% in the parks. Currently, the economy is slowing down the sale of both of these goods, even though demand is still relatively high.

Chapter 2: Problem Solving and Decision Making

Contents•Common problem areas for managers•Problem solving and the management process.•Recognition: Key to solutions•Approaches to problem solving: •Potential problem analysis.

Costs

Decision-makingEmployee training

FinancingInformation distribution

MarketsMorale

Plant locationPricing

Products & services

Quality controlRecruitment &

selectionReports

2.1 common problem areas for managers

Social responsibilities

Sales effectivenessSupervising

Wage & salary administration

Waste elimination.

2.2 Problem Solving And The Management Process

1.Recognition of the problem:

2.Categorizing the problem:

2.3 Approaches to management problem solving

ROUTINE • Traditional • Standard operating procedures • Abide by superior’s order

•Employees coming late.

•Reordering of raw materials.

•Delays in supplies and payment. .

SCIENTIFIC• Identify the proposition• Acquire preliminary observation about the

proposition • Investigate proposition thoroughly, using both

current knowledge and controlled experiments• Classify data obtained• State tentative answer to proposition• Adjust and state answer to proposition.

•Machine breakdown.

•Quality problems.

•Product design

•Manufacturing defects.

DECISIONAL• State desired result• State the problem• List the alternatives• Evaluate probable outcomes of each

alternative in terms of critical factor• Select best alternative• Implement selected decision

•Selection of employees.

•Finalization on products/ plant/ machinery/

supplies.

•Selection of market place.

CREATIVE• Identify and state the problem• Prepare for creativity by acquiring needed raw

material• Encourage idea fluency to take place• Permit illumination of new idea

• Verify and evaluate the proposed answer • Apply the recommended answer

Change in organization structure.

Team building & co ordination.\

Conflicts among employees.

Lack of creativity.

QUANTITATIVE • Formulate the problem • Build a mathematical model to represent the system

under study • Derive the answer from the model • Test the model and answer derived to ensure its

practically• Place needed constraints over use of model and answer• Implement the solution

•Sales turn over.

•Low yearly profits.

•High employee attrition rate.

2.4 Potential Problem Analysis 1. list all the major potential problems you think might

arise from the proposed action2. Describe each potential problem. 3. The classification of potential problems by their

degree of risk is suggested.4. For each high risk problem, identify its possible

causes5. Assess the probability of occurrence for the causes

of each major potential problem 6. Decide how to handle the most serious potential

problems

2.5 Possible managerial actions to solve management problems arranged by fundamental functions of the management process

A. Planning 1. objectives of individuals. 2. objectives of enterprise 3. Policies covering authority,

prices attitude towards competition.

4. Procedures 5. Internal programs.B. Organizing 1. Span of authority. 2. Delegation of authority 3. Use of staff & service group. 4. Informal groups. 5. Integration of structural

activities.

C. Actuating 1. Leading 2. Developing & evaluating employees. 3. Fulfilling personal needs through work

satisfaction. 4. Job enrichment & enlargement. 5. Supervising.D. Controlling 1. Establishing Standards of

performances. 2. Measuring work performance. 3. Improving rate of return on investment. 4. Developing adequate budgeting. 5. Employing better cost & quality

controls.

Conclusion Good management is the art of making problems so interesting ……And their solutions so constructive…….. that everyone wants to get to work and deal with them………

:-Paul Hawken

• Thank you……….