9-1

Decision Making

Chapter 9

9-2

Value of Group Decision Making

Advantages

Process gain

Higher quality decisions

Motivational effects

Disadvantages

Process loss

Communication problems

Failure to pool knowledge

Advantages and Disadvantages of Group Decision Making

9-3

Value of Group Decision Making

When Are Group Decisions Superior to Individual Decisions?

Group superior if resources are successfully pooled Group composition Good communication Need for groups

Individual decisions superior if: Action from most members not required Simple Quick

9-4

Approaches to Group Decision Making

9-5

Approaches to Group Decision Making

Consultative Efficient Disadvantages:

Not fully committed Ignores conflict Encourages competition

Democratic Quick, high quality Disadvantages:

Premature closing of discussion Lack of commitment Resentment

9-6

Approaches to Group Decision Making

ConsensusBest use of team resourcesBetter likelihood of implementationDisadvantages:

Time Energy Skill

9-7

Approaches to Group Decision Making

Evaluating Group Decision-Making Approaches

Quality

Speed

Acceptance or Support

9-8

Approaches to Group Decision Making

Normative Decision-Making Theory

9-9

Decision Making Problems Causes of Group Decision-Making Problems

Disagreement Premature closure

Time Pressure to Decide Support first decision Follow past solution Delegate decision

Outside Stress Groupthink Reduced generation of ideas

9-10

Decision Making Problems Group Polarization

Risky shift phenomenon Group norm shift

Group Think Structural decision-making flaws Group cohesiveness External pressure Prevent by:

Critical evaluator Consult outside experts

Insert Table 9.3 Table of Groupthink

9-11

9-12

Decision Making Techniques

Nominal Group TechniqueWritten ideas, discussion, rank order

Advantages: Quick Low conformity No social relations needed

Disadvantages: Requires facilitator Narrow problems only

9-13

Decision Making Techniques

Delphi TechniqueSeries of surveys

Advantages: Works with distance and large groups

Disadvantages: Time consuming Need skills to develop and analyze surveys

9-14

Decision Making Techniques

Ringi TechniqueWritten document developed anonymously

Advantages: Express true convictions Embarrassment avoided

Disadvantages: Slow No guarantee on agreement

9-15

Decision Making Techniques

Evaluation of Decision Making Techniques

Based on assumption these problems exist: Socializing Unequal participation Discussion

Impersonal atmosphere reduces acceptance and commitment to a decision

9-16

Application: Consensus Decision Making

Uses team resources fully

Support for implementation

Builds team skills

Achieved when all answer yes to following:

9-17

Application: Consensus Decision Making

9-18

9-19

9-12

9-21

Activity Continued

Insert Activity: Group Versus Individual Decision Making (p. 182)

9-22