Group Decisions Advantages – Pooled knowledge and information – Specialization of labor. – Scan the environment – Decision acceptance and commitment – Diffusion of responsibility

Group Decisions Disadvantages – Time to reach a decision – Conflict – Domination

Groups Exceed Individuals Complex Problems 1. Members have complementary skills 2. Ideas are communicated & accepted Groups are better than best member

Individuals Exceed Groups Simple Problem No one in the group has the correct answer Group does worse the worst member

Group Process in Decision Making Handling risk – Risky shift – Conservative shift Decision valence

Group Think Symptoms Outcomes Antecedents

Group Think The tendency of highly cohesive groups to conform to group pressures and to suspend reality testing and engage in consensus seeking. Antecedents –.High cohesiveness – Group structure – Stressful situations

Group Think Cont. Symptoms – Overestimation of the group – Close-mindedness – Increased pressure for uniformity Consequences – Defective decision making – High probability of a bad decision Preventive tactics

Improving the Effectiveness of Group Decisions Group training Brainstorming Delphi technique Nominal group technique Managing controversy Electronic groups

Group Training Problem stating in an objective manner Providing and sharing relevant information Drawing out group members Preventing domination Avoid moving to evaluation prematurely; Stimulating discussion and clarify points; Summarizing to mark group progress.

Group Training, Cont. Training also reduces 3 problems Unconflicted adherence Defensive avoidance Hyper-vigilance

Delphi Technique Enlist cooperation of experts and propose problem Experts record solutions Solutions are compiled and shared with others Experts comment on others’ solutions Solutions compiled and consensus sought

Nominal Group Technique Group gathers to hear problem Participants write down ideas privately All ideas are presented on a chart Each idea is discussed by group members Members privately rank ideas Highest ranked idea is the solution

Backwards and Forwards Summing up:Today we compared individual to group decision making and the situations when each functions best. We explored the phenomenon of groupthink and ways to improve group decision processes. Next time: We look at the use of power and political activities in organization