State the stages in the problem finding process.
A problem arises when an actual state of affairs differs from a desired state of affairs. The problem finding process is often informal and intuitive.
a) A deviation from past experience.
This means that a previous pattern of performance in the organisation has been broken e.g. a fall in the year’s sales figure, rising expenses, employee turnover has risen etc. Such events signal to the manager that a problem has developed.
b) A deviation from a set plan
This means that the manager’s projections or expectations are not being met e.g. profit levels are lower than anticipated. These events tell the manager that something must be done to get the plan back on course.
c) Other people
Other people often bring problems to the manager. Customer complaints: higher level managers set new performance standards for the manager’s department etc.
d) The performance of competitors
These can also create problem solving situations e.g. when competitors develop new processes or improvements in operating procedures, the manager may have to re-evaluate the processes or procedures in his or her own organisation.
