Problem Solving
in Organization
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[Link] Executive Master of Finance Master of Public
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Contents
PSO process
01
02 Key notes
Sample case 03
2
PSO process
3
PSO Process
1. Identify symptom
Problem
definition 2. Validate symptom
3. Identify potential problem
4. Validate problem
Analysis
& 5. Identify possible cause
Diagnosis
6. Validate cause
7. Suggest alternative solutions
8. Justify solutions
Solution
design
9. Design action plan
4
PSO Process
Stage 1
1. Identify symptom Project Proposal
Problem
definition • Primary data (observation / interview)
• Secondary data (internal reports)
➢ Which are the inappropriate things currently
Analysis happening in the organization?
&
Diagnosis ➢ Typically, symptoms are easily recognizable
5
PSO Process
Stage 1
1. Identify symptoms Project Proposal
Problem
definition Common symptoms:
Analysis
&
Diagnosis
6
PSO Process
Stage 1
2. Validate symptom Project Proposal
Problem
definition • Primary data (observation / interview)
• Secondary data (internal & external
reports)
• SWOT analysis
Analysis ➢ How each symptom influences on the
& company performance?
Diagnosis
➢ How are symptoms related to each other?
➢ Which one(s) is true and the most serious? 7
PSO Process
3. Identify potential problems
Problem
definition • Primary data (interview).
• Secondary data (internal reports).
Note: No experience-based or perception-based
or academic literature
Analysis
&
Diagnosis
8
PSO Process
4. Validate problem
Problem
definition • Primary data (interview).
• Secondary data (internal reports).
• Relevant academic literature.
Note: Emphasize on problem existence &
Analysis importance
&
Diagnosis => which problem(s) do exist and cause the
validated symptom
9
PSO Process
Problem 5. Identify potential causes
definition
• Primary data (interview)
• Secondary data (internal reports)
• Literature / theory
Analysis
&
Which are the factors potentially causing the
Diagnosis validated problem?
10
PSO Process
6. Validate cause
Problem
definition • Primary data (interview)
• Secondary data (internal reports)
• Literature / theory
Note: Emphasize on cause existence &
Analysis
&
importance
Diagnosis
=> which cause(s) do exist and cause the
validated problem
11
PSO Process
Problem 7. Suggest alternative solutions
definition
• Secondary data (Relevant academic
literature)
• Primary data (interviews)
• Personal knowledge & experience
Analysis
&
Diagnosis Note: At least 2 solutions that are alternative
=> Which are the potential solutions addressing
the validated cause?
12
PSO Process
Problem 8. Justify solutions
definition
• Mechanisms to solve the problems
• Pros & cons
• Cost – benefit analysis
Analysis
&
• Company constrains / strategy
Diagnosis
=> Which is the better / best solution addressing
the validated cause effectively
13
PSO Process
Problem 9. Design action plan
definition
• Objectives (target outcomes)
• Actions
• Resources required
Analysis
&
• Detailed timelines
Diagnosis
=> What, Where, When, Who
14
Key notes
15
Which is “Problem” in the PSO approach?
“Problem” in the company (thesis topic):
• Obstacles / Difficulties / … that are negative to the company; or
• Opportunities / positive things / … that are currently positive to the
company but still being underperformed
“Problem” in the cause – effect maps:
Cause Problem Symptom
Cause Effect
Cause Effect
1
6
Theory-informed (evidence-based)
Contextualizing theories
• Systematic review
• Critically analysis (evidences)
• Creative use
1
7
Symptom identification
➢ Symptom definition
• Controllable: company-related (not industry-related)
• Specific scope (not too broad)
• Significant (does significantly influence business
performance)
• Avoid:
✓ Pre-defined issues
✓ Target issues
18
Symptom identification
➢ Transcripts of interviews / discussions are required
➢ Citation style: Vancouver (not APA as usual)
19
SAMPLE CASE
20
Sample Case
➢ Identify and justify symptoms
• Many employees quit their jobs
• New employees recruited frequently
Symptoms are analyzed and justified based on data from:
- Internal reports / industry reports
- Qualitative research
(Are they true? Are they unexpected? Do they impact performance negatively? Which
are the possible reasons? ...)
21
Sample Case
➢ Identify and justify symptoms
High turnover rate
22
Sample Case
➢ Explore potential problems
High turnover rate
Potential problems
identified by: Qualitative research (interviews / discussions)
• Relevant participants:…
• Questions:
23
Sample Case
➢ Explore potential problems
Low salary
Poor working
environment High
turnover rate
Heavy workload
Unclear career
path
24
Sample Case
➢ Validate the potential problems
Based on data from:
- Internal reports / industry reports
- Qualitative research (interview / discussion)
- Academic literature
to justify:
- Whether the salary is low
- Whether the working environment is poor
- Whether the workload is heavy
- Whether the career path is unclear
and consequently conclude: which is the main problem
causing the high turnover rate
25
Sample Case
➢ Identify the main problem
Updated cause – effect map
Low salary
Poor working
environment High
turnover rate
Heavy
workload
Unclear career
path
26
Sample Case
➢ Define the main problem
Based on relevant academic literature to define:
• What heavy workload is (main problem definition)
• How heavy workload influences businesses (main
problem consequences)
27
Sample Case
➢ Identify possible causes
Potential causes are identified
based on data from:
• Interviews / discussions Updated cause – effect map – version 2
• Academic literature
• Company reports
Poor skills
Many new
customers
Lack of
workforce
28
Sample Case
➢ Validate the possible causes
Based on data from:
- Internal reports / industry reports
- Qualitative research (interview / discussion)
- Academic literature
to justify:
- Whether the skills of the staff are poor
- Whether there are so many new customers acquired
- Whether the is a lack of workforce
and consequently conclude: which is the root cause leading to
the heavy workload
29
Sample Case
➢ Identify the root cause
Poor skills
Many new
customers
Lack of
workforce
Final cause – effect map
30
Sample Case
➢ Develop alternative solutions addressing the root ca
use: lack of workforce
Based on data from
• Academic literature
• Interviews / discussions
Alternative
Option 1: Recruit new employees
Option 2: Workforce re-allocation
31
Sample Case
➢ Justify solutions:
• Mechanisms to solve the problems
• Pros & cons of each proposed solution
• Cost – benefit analysis
• …
Workforce re-allocation
32
Sample Case
➢ Design action plan to implement the selected solution:
• Objectives / targeted outcomes
• Actions
• Who
• When
• Resources required
33
Thank you!