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 Consensus  Best use of team resources  Better likelihood of implementation  Disadvantages: 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 Technique  Written ideas, discussion, rank order  Advantages: Quick Low conformity No social relations needed  Disadvantages: Requires facilitator Narrow problems only

9-13 Decision Making Techniques Delphi Technique  Series 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 Technique  Written 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

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9-12

9-21 Activity Continued

Insert Activity: Group Versus Individual Decision Making (p. 182) 9-22