Making Effective Making Effective DecisionsDecisions

• The purpose of group decision making is to The purpose of group decision making is to determine the best course of action toward determine the best course of action toward achieving a common goal characterized as:achieving a common goal characterized as:– The resource of group members are fully The resource of group members are fully

utilized .utilized .– Time is well used.Time is well used.– Decision is correct or of high quality.Decision is correct or of high quality.– Decision is implemented fully by all the Decision is implemented fully by all the

required group members. required group members. – Problem solving ability of the group is Problem solving ability of the group is

enhanced.enhanced.

Individual vs. Group Decision MakingIndividual vs. Group Decision Making

Groups are more productive because they promote:– A greater variety of ideas, insights and strategies– Recognition and rejection of incorrect solutions– Higher motivation to achieve– The likelihood of making riskier decisions– Group involvement in decisions increasing

commitment to implement them– Changes in behavior to implement decisions

Social FacilitationSocial FacilitationEffects on performance resulting Effects on performance resulting from the presence of others when:from the presence of others when:

Working in a group– Cooperative context– Members promote each

others success– Members give each

other assistance

Working Individually– Source of competitive

feelings– Fear of being

obstructed– Evaluation

apprehension

Group PolarizationGroup PolarizationTendency for group members to shift

toward more extreme positions than held at the start, as a function of group discussion.

Explanations for group polarization:– Normative Influences: want to make a good

impression on other members– Informational Influences: a new or compelling

idea that polarizes the group’s ideas– Social identification: people want to be

considered members, so they try to identify with the group

Involvement in Decision MakingInvolvement in Decision Making

Two reasons to involve group members are:– Increases the quality of decision by fully

utilizing the resources of all members– Increases members’ commitment to implement

the decision

Types of TasksTypes of Tasks Groups are better at divisible, maximizing, and

optimizing tasks. (example: race car pit crew)

Individuals are better at unitary tasks– Disjunctive: group score is that of the best individual

member– Conjunctive: group score is that of the worst individual

member– Additive: group score is the sum of all member

contributions– Discretionary: group score is any combination of

individual scores the group wants to put together

Potential Group ProductivityPotential Group Productivity

One way groups are inferior to individuals is in the productivity per person.

Example: If the number of minutes per person required to complete a project were compared (solution time x size of the group), the individuals solve the problem in fewer minutes per person than groups.

Methods of Decision MakingMethods of Decision MakingAn effective group understands each method An effective group understands each method of decision making well enough to choose the of decision making well enough to choose the method that is best for the:method that is best for the: Type of decision to be madeType of decision to be made Amount of time and resources availableAmount of time and resources available History of the groupHistory of the group Nature of the task being worked onNature of the task being worked on Kind of climate the group wishes to establishKind of climate the group wishes to establish Type of setting in which the group is workingType of setting in which the group is working Bean Jar exerciseBean Jar exercise

Methods of Decision MakingMethods of Decision MakingMethod One: Decision by authority without discussionMethod One: Decision by authority without discussion DisadvantagesDisadvantages: loss of resources and group cohesion: loss of resources and group cohesion AdvantagesAdvantages: simpler, less time needed, people lacking skills : simpler, less time needed, people lacking skills

don’t make decisionsdon’t make decisions

Method Two: Decision by expert memberMethod Two: Decision by expert member AdvantagesAdvantages: Expertise, no need for argument: Expertise, no need for argument DisadvantagesDisadvantages: Who is the expert? Loss of group cohesion : Who is the expert? Loss of group cohesion

and resourcesand resources

Method Three: Decision by average of members Method Three: Decision by average of members opinionsopinions DisadvantagesDisadvantages: No gains from group discussion, no resolved : No gains from group discussion, no resolved

conflict, no commitmentconflict, no commitment AdvantagesAdvantages: simple, useful when time is limited to meet : simple, useful when time is limited to meet

Method Four: Decision by authority after discussionMethod Four: Decision by authority after discussion DisadvantagesDisadvantages: Alienation, no full commitment to decision, : Alienation, no full commitment to decision,

low levels of group interactionlow levels of group interaction AdvantagesAdvantages: good for time constraints, no consensus : good for time constraints, no consensus

needed, speeds discussionneeded, speeds discussion

Method Five: Decision by majority controlMethod Five: Decision by majority control DisadvantagesDisadvantages: loss of resources, no commitment, : loss of resources, no commitment,

conflict, low interaction levelsconflict, low interaction levels AdvantagesAdvantages: useful when consensus is not needed, : useful when consensus is not needed,

time constraints, fewer members have relevant time constraints, fewer members have relevant resourcesresources

Method Six: Decision by minority controlMethod Six: Decision by minority control DisadvantagesDisadvantages: loss of resources, no commitment, : loss of resources, no commitment,

conflict, low interaction levelsconflict, low interaction levels AdvantagesAdvantages: high quality decisions, commitment, : high quality decisions, commitment,

resources, group makes better decisions in the resources, group makes better decisions in the future, useful for important decisions involving the future, useful for important decisions involving the whole group.whole group.

Method Seven: Decision by Method Seven: Decision by ConsensusConsensus

The most effective method.The most effective method. Defined as: Defined as:

a collective opinion arrived at by a group of individuals a collective opinion arrived at by a group of individuals working together under conditions that permit working together under conditions that permit communications to be sufficiently opencommunications to be sufficiently open

Group climate must be sufficiently supportive for Group climate must be sufficiently supportive for everyone in the group to feel that he or she has had a everyone in the group to feel that he or she has had a fair chance to influence the decision fair chance to influence the decision

When a decision is made in this fashion, all members When a decision is made in this fashion, all members are prepared to support it.are prepared to support it.

Factors Enhancing Group Decision Factors Enhancing Group Decision MakingMaking

Five essential elements of group work Five essential elements of group work leading to high quality decisions:leading to high quality decisions:Positive interdependencePositive interdependenceFace-to-Face promotive interactionFace-to-Face promotive interaction Individual accountabilityIndividual accountabilitySocial skillsSocial skillsGroup processingGroup processing

Factors Hindering Group Factors Hindering Group Decision MakingDecision Making• Lack of Group MaturityLack of Group Maturity

– Temporary groups don’t have the time Temporary groups don’t have the time and experience together to make an and experience together to make an effective decisioneffective decision

• Social Loafing vs. Free ridingSocial Loafing vs. Free riding– Social LoafingSocial Loafing

•A reduction of individual effort when working A reduction of individual effort when working with others on an additive group taskwith others on an additive group task

– Free ridingFree riding•Benefiting from the task efforts of other group Benefiting from the task efforts of other group

members while doing no work oneselfmembers while doing no work oneself

Factors Hindering cont.Factors Hindering cont.• Motivation Losses Due to Perceived Motivation Losses Due to Perceived

Inequity: The Sucker EffectInequity: The Sucker Effect– There is a tendency to reduce your efforts There is a tendency to reduce your efforts

when other members are free ridingwhen other members are free riding

• Groupthink and Defensive AvoidanceGroupthink and Defensive Avoidance– Decision makers sometimes turn to Decision makers sometimes turn to

defensive avoidance (procrastinating, defensive avoidance (procrastinating, rationalizing, or denying responsibility for rationalizing, or denying responsibility for own actions) when they are having a own actions) when they are having a difficult time making a decisiondifficult time making a decision•Examples: Pearl Harbor, Bay of Pigs invasion Examples: Pearl Harbor, Bay of Pigs invasion

and Vietnam Warand Vietnam War

Factors Hindering Group Factors Hindering Group Decision Making cont.Decision Making cont.

• Groupthink and Defensive AvoidanceGroupthink and Defensive Avoidance– Groupthink occurs when the members Groupthink occurs when the members

are highly cohesive with a dynamic are highly cohesive with a dynamic leader that leads them to follow shared leader that leads them to follow shared views so strongly that the group ignores views so strongly that the group ignores external information that is inconsistent external information that is inconsistent with themwith them

Factors Hindering Group Factors Hindering Group Decision Making cont.Decision Making cont.• Groupthink and Defensive Avoidance cont.Groupthink and Defensive Avoidance cont.

– Reasons for Groupthink:Reasons for Groupthink:•Self-censorship (just going with the flow)Self-censorship (just going with the flow)

• Illusion of unanimity (fear of asking questions in class)Illusion of unanimity (fear of asking questions in class)

•Direct pressure on dissenters (peer pressure)Direct pressure on dissenters (peer pressure)

•Mind guards (Taliban)Mind guards (Taliban)

• Illusion of invulnerability (4 drunk teens in a car)Illusion of invulnerability (4 drunk teens in a car)

•Rationalization (college education)Rationalization (college education)

• Illusion of morality (genocide; Holocaust)Illusion of morality (genocide; Holocaust)

•StereotypingStereotyping

Factors Hindering Group Factors Hindering Group Decision Making cont.Decision Making cont.

• Conflicting Goals of Group MembersConflicting Goals of Group Members– May different ideas of how to proceedMay different ideas of how to proceed– Competition among group membersCompetition among group members

• Egocentrism of Group MembersEgocentrism of Group Members– Competition over whose ideas are going Competition over whose ideas are going

to be dominant may develop if the to be dominant may develop if the members are not open minded to the members are not open minded to the other member’s ideasother member’s ideas

Factors Hindering Group Factors Hindering Group Decision Making cont.Decision Making cont.

• Lack of Sufficient DiversityLack of Sufficient Diversity– Without diversity among group members, Without diversity among group members,

there is no conflict, incorrect solutions may there is no conflict, incorrect solutions may be accepted, and there is less group be accepted, and there is less group productivityproductivity

• Interference or Production BlockingInterference or Production Blocking– Occurs because only one person can be Occurs because only one person can be

talking at once, so ideas may be lost while talking at once, so ideas may be lost while waiting for one person to finish their thought.waiting for one person to finish their thought.

Factors Hindering cont. Factors Hindering cont. Inappropriate Group SizeInappropriate Group Size

• Groups will be less effective if: Groups will be less effective if: – There is discrepancy between functional group There is discrepancy between functional group

size and actual group sizesize and actual group size– Group members see their efforts as Group members see their efforts as

nonessential nonessential for group successfor group success– There is a high complexity of group structureThere is a high complexity of group structure– More time is needed to organize joint effortsMore time is needed to organize joint efforts– The effort of each member is minimalThe effort of each member is minimal– The members identify less with the groupThe members identify less with the group– Members do not follow the group’s normsMembers do not follow the group’s norms

Factors Hindering cont. Factors Hindering cont.

• Members not having relevant skillsMembers not having relevant skills– If group members do not have the needed If group members do not have the needed

skills to complete the task and work skills to complete the task and work together effectively, the decisions they together effectively, the decisions they make will not be effective.make will not be effective.

• Lack of individual incentives for and Lack of individual incentives for and barriers to contributingbarriers to contributing– When there is a lack of incentives to When there is a lack of incentives to

contribute, members make a smaller effort contribute, members make a smaller effort to achieve the group goals.to achieve the group goals.

Approaches to Decision Making Decisions can be made by trying to:Decisions can be made by trying to:

Stay with the status QuoStay with the status Quo Change as little as possible Change as little as possible Delay and avoid making the decisionsDelay and avoid making the decisions Choose the first likely solution without Choose the first likely solution without

considering all alternativesconsidering all alternatives Encourage considered and thoughtful Encourage considered and thoughtful

decision making, in which all major decision making, in which all major alternatives are given a fair and thorough alternatives are given a fair and thorough hearinghearing

Considered and Thoughtful Considered and Thoughtful Decision MakingDecision Making

Identifying and Defining the ProblemIdentifying and Defining the Problem Steps in Defining the ProblemSteps in Defining the Problem

Reach agreement about what the goals areReach agreement about what the goals are Obtain valid information about state of affairsObtain valid information about state of affairs Discuss difference between desired and Discuss difference between desired and

actual state of affairsactual state of affairs Potential Barriers to Identifying the Potential Barriers to Identifying the

ProblemProblem Prematurely defining the problemPrematurely defining the problem Lack of clarity in stating the problemLack of clarity in stating the problem Critical, evaluative, competitive climateCritical, evaluative, competitive climate Inadequate motivation to solve the problemInadequate motivation to solve the problem

Considered and Thoughtful Considered and Thoughtful Decision Making contDecision Making cont

Gathering Information About the Gathering Information About the Existence of the ProblemExistence of the Problem Barriers to not getting information about Barriers to not getting information about

the problemthe problem Not getting the needed informationNot getting the needed information Poor communication within the groupPoor communication within the group

Considered and Thoughtful contConsidered and Thoughtful cont Formulating and Considering Alternative Formulating and Considering Alternative

SolutionsSolutions Force-Field AnalysisForce-Field Analysis

Portrays the problem as a balance between Portrays the problem as a balance between forces working in opposite directions; the balance forces working in opposite directions; the balance that results between the helping and restraining that results between the helping and restraining forces is called a quasistationary equilibriumforces is called a quasistationary equilibrium

Vigilant AnalysisVigilant Analysis Should be done by structuring the evaluation Should be done by structuring the evaluation

with:with: Impartial leadershipImpartial leadership Critical evaluator role for every memberCritical evaluator role for every member Devil’s advocateDevil’s advocate Outside expertsOutside experts

Considered and Thoughtful Considered and Thoughtful Decision Making cont.Decision Making cont.

Formulating and Considering Formulating and Considering Alternative SolutionsAlternative Solutions Barriers to formulating a solutionBarriers to formulating a solution

Failure to identify the alternative courses of Failure to identify the alternative courses of actionaction

Premature elimination of courses of action Premature elimination of courses of action without proper analysiswithout proper analysis

Pressure is for conformityPressure is for conformity Lack of inquiry and problem solving skillsLack of inquiry and problem solving skills Lack of procedures to aid analysis and Lack of procedures to aid analysis and

synthesissynthesis

Considered and Thoughtful Cont.Considered and Thoughtful Cont. Deciding on a SolutionDeciding on a Solution

Second-Chance MeetingSecond-Chance Meeting A meeting in which members are encouraged to A meeting in which members are encouraged to

express any remaining doubts or criticisms (Ex: saki express any remaining doubts or criticisms (Ex: saki talk)talk)

Presenting the Recommendation to the Presenting the Recommendation to the OrganizationOrganization The key is to ensure that everyone participates, The key is to ensure that everyone participates,

is involved in the decision, and is committed to is involved in the decision, and is committed to implementing it.implementing it.

Evaluating Extent and Success of Evaluating Extent and Success of ImplementationImplementation No decision is worthwhile unless it is No decision is worthwhile unless it is

implementedimplemented