Decision Making
An Army of One
Agenda
•
•
•
•
Questionnaire
Introduction to group decision making
Activity #1
Debriefing/Lecture
Typical Approaches to Decision
Making
•
•
•
•
Stay with the status quo
Change as little as possible
Delay and avoid making the decision
Choose the first likely solution
• Encourage considered and thoughtful
decision making where all of the
alternatives are given a fair and thorough
hearing
Effective Decisions
•
•
•
•
•
Resources utilized effectively
Time well used
High quality decision (if possible to know)
Implemented by all group members
Problem solving ability of group enhanced
(or not lessened).
Individual vs. Group Decisions
• Advantages of group decision making
–
–
–
–
–
Process gain
More likely to identify and reject incorrect solutions
More accurate memory of facts and events
Greater informational resources
Increased commitment for implementation
• Disadvantages of group decision making
– Time
– Groupthink
• Other Effects
– Group polarization
Groupthink
• Groupthink- syndrome of bad decision-making
12.17
Group Polarization
Group Polarization- tendency to shift toward more
extreme positions after group discussion
Risky
Neutral
Cautious
Group Decisions
Group 1
Group 2
800
800
700
700
600
600
500
500
400
400
300
300
200
200
100
100
0
0
A
E
MC
A-D
AVG
MV
Con
A
E
MC
A-D
AVG
MV
Con
7 Methods of Group Decision
Making
•
•
•
•
Decision by authority without group discussion
Decision by expert
Averaging individual’s opinions
Decision by authority with group discussion
Decision by minority
• Decision by majority
• Consensus
Decision Quality vs. Time Needed
Highest
Decision
Quality
Lowest
Individual
Average of
Individuals
Minority
Control
Majority
Control
Consensus
Selecting the Appropriate Method
• Guidelines for effective groups
– #5 Ensure decisions are made using the
appropriate method
• How do you select appropriate method?
• Vroom-Yetton Model
– Select the method that allows you to make best
quality decision that will be accepted by group
members in the time allowed.
Vroom-Yetton Normative Model
Decision Processes
A1
A2
C1
C2
G2
Decision Acceptance
Decision Quality
Time
Situational Moderators
1.
2.
3.
4.
5.
Amount of relevant info possessed by leader and subordinates
Likelihood subordinates will accept autocratic decision
Likelihood subordinates will cooperate if allowed to participate
Amount of disagreement among subordinates in their preferences
Amount of problem structure (need for creativity)
Decision Making Example
You are the head of a personnel department which reports
to the company president. The president has asked you to
make recommendations on how to change and update the
performance appraisal system. You are not sure about the
approach to take. Your specialty is selection and you desire
more information on performance appraisal. Fortunately,
three members of your staff are experienced with the
various aspects of performance appraisal. However, they
rarely agree with each other on the best way to achieve
something when it comes to performance appraisal.
Fortunately, for this project, these employees will not
implement the recommendations.
Factors Hindering Group Decision
Making
•
•
•
•
•
•
•
•
•
•
Lack of group maturity
Social loafing
Free riding
Defensive avoidance
Groupthink
Poor conflict management
Egocentrism
Lack of heterogeneity
Premature closure
Lack of individual incentives
• How can we avoid these problems?
Considered and Thoughtful
Decision Making
• Defining Problem
• Gathering Information
– Force field analysis
• Formulating and Considering Alternatives
– Potential Pitfalls
•
•
•
•
•
Failure to identify alternatives
Premature elimination of alternatives
Pressure for conformity
Lack of inquiry and problem solving skills
Lack of procedures to aid analysis
• Deciding on a solution
Summary
• Groups have advantages over individuals in making
decisions
– Groups must work hard to leverage these advantages
• How decisions are made impacts
– Quality
– Acceptance/implementation
– Amount of time needed
• Thoughtful decision making requires groups using
these steps
–
–
–
–
Defining Problem
Gathering Information
Formulating and Considering Alternatives
Deciding on a solution