Decision Making
Chapter 9
9-1
Value of Group Decision Making
Advantages and Disadvantages of Group Decision Making

Advantages
 Process
 Higher

 Process
gain
loss
 Communication
quality decisions
 Motivational
Disadvantages
 Failure
effects
9-2
problems
to pool knowledge
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
9-3
Approaches to Group Decision
Making
9-4
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
9-5
Approaches to Group Decision
Making

Consensus
 Best
use of team resources
 Better likelihood of implementation
 Disadvantages:
Time
 Energy
 Skill

9-6
Approaches to Group Decision
Making
Evaluating Group Decision-Making Approaches
 Quality
 Speed
 Acceptance
or Support
9-7
Approaches to Group Decision
Making

Normative Decision-Making Theory
9-8
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

9-9
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
9-10
Insert Table 9.3 Table of
Groupthink
9-11
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

9-12
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

9-13
Decision Making Techniques

Ringi Technique
 Written
document developed anonymously
 Advantages:
Express true convictions
 Embarrassment avoided

 Disadvantages:
Slow
 No guarantee on agreement

9-14
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
9-15
Application: Consensus Decision
Making

Uses team resources fully

Support for implementation

Builds team skills

Achieved when all answer yes to following:
9-16
Application: Consensus Decision Making
9-17
9-18
9-19
9-12
Activity Continued
9-21

Insert Activity: Group Versus Individual
Decision Making (p. 182)
9-22