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8.3 Decision Making in Groups
Learning Objectives
1.Understand the pros and cons of individual and group decisions you will make in your career.
2.Learn to recognize the signs of groupthink and determine if it is happening to your workgroup.
3.Be able to recognize and use a variety of tools in your decision-
When It Comes to Decision Making, Are Two Heads Better Than One?
The answer to this question depends on several factors. Group decision making has the advantage of drawing from the experiences and perspectives of a larger number of individuals. Hence, a group may have the potential to be more creative and lead to more effective decisions. In fact, groups may sometimes achieve results beyond what they could have done as individuals. Groups may also make the task more enjoyable for the members. Finally, when the decision is made by a group rather than a single individual, implementation of the decision will be easier, because group members will be more invested in the decision. If the group is diverse, better decisions may be made, because different group members may have different ideas based on their backgrounds and experiences. Research shows that for top management teams, diverse groups that debate issues make decisions that are more comprehensive and better for the bottom line.Simons, T., Pelled, L. H., & Smith, K. A. (1999). Making use of difference: Diversity, debate, decision comprehensiveness in top management teams. Academy of Management Journal, 42, 662–73.
Despite its popularity within organizations, group decision making suffers from a number of disadvantages. We know that groups rarely outperform their best member.Miner, F. C. (1984). Group versus individual decision making: An investigation of performance measures, decision strategies, and process losses/gains. Organizational Behavior and Human Performance, 33, 112–24. While groups have the potential to arrive at an effective decision, they often suffer from process losses. For example, groups may suffer from coordination problems. Anyone who has worked with a team of individuals on a project can attest to the difficulty of coordinating members’ work or even coordinating everyone’s presence in a team meeting. Furthermore, groups can suffer from groupthink. Finally, group decision making takes more time compared to individual decision making, because all members need to discuss their thoughts regarding different alternatives.
Thus, whether an individual or a group decision is preferable will depend on the specifics of the situation. For example, if there is an emergency and a decision needs to be made quickly, individual decision making might be preferred. Individual decision making may also be appropriate if the individual in question has all the information needed to make the decision and if implementation problems are not expected. On the other hand, if one person does not have all the information and skills needed to make a decision, if implementing the decision will be difficult without the involvement of those who will be affected by the decision, and if time urgency is more modest, then decision making by a group may be more effective.
Figure 8.10 Advantages and Disadvantages of Different Levels of Decision Making
Groupthink
Figure 8.11
In January 1986, the space shuttle Challenger exploded seventy-
Source: http://en.wikipedia.org/wiki/Image:Challenger_flight_51-
Have you ever been in a decision-
1. Illusion of invulnerability is shared by most or all of the group members, which creates excessive optimism and encourages them to take extreme risks.
2. Collective rationalizations occur, in which members downplay negative information or warnings that might cause them to reconsider their assumptions.
3. An unquestioned belief in the group’s inherent morality occurs, which may incline members to ignore ethical or moral consequences of their actions.
4. Stereotyped views of outgroups are seen when groups discount rivals’ abilities to make effective responses.
5. Direct pressure is exerted on any members who express strong arguments against any of the group’s stereotypes, illusions, or commitments.
6. Self-
7. Illusions of unanimity occur, based on self-
8. The emergence of self-
Recommendations for Avoiding Groupthink
•Groups should do the following:
◦Discuss the symptoms of groupthink and how to avoid them.
◦Assign a rotating devil’s advocate to every meeting.
◦Invite experts or qualified colleagues who are not part of the core decision-
◦Encourage a culture of difference where different ideas are valued.
◦Debate the ethical implications of the decisions and potential solutions being considered.
•Individuals should do the following:
◦Monitor personal behavior for signs of groupthink and modify behavior if needed.
◦Check for self-
◦Carefully avoid mindguard behaviors.
◦Avoid putting pressure on other group members to conform.
◦Remind members of the ground rules for avoiding groupthink if they get off track.
•Group leaders should do the following:
◦Break the group into two subgroups from time to time.
◦Have more than one group work on the same problem if time and resources allow it. This makes sense for highly critical decisions.
◦Remain impartial and refrain from stating preferences at the outset of decisions.
◦Set a tone of encouraging critical evaluations throughout deliberations.
◦Create an anonymous feedback channel through which all group members can contribute if desired.
Sources: Adapted and expanded from Janis, I. L. (1972). Victims of groupthink. New York: Houghton Mifflin; Whyte, G. (1991). Decision failures: Why they occur and how to prevent them. Academy of Management Executive, 5, 23–31.
Tools and Techniques for Making Better Decisions
Nominal Group Technique (NGT)A technique designed to help with group decision making by ensuring that all members participate fully. was developed to help with group decision making by ensuring that all members participate fully. NGT is not a technique to be used routinely at all meetings. Rather, it is used to structure group meetings when members are grappling with problem solving or idea generation. It follows four steps.Delbecq, A. L., Van de Ven, A. H., & Gustafson, D. H. (1975). Group techniques for program planning: A guide to nominal group and Delphi processes. Glenview, IL: Scott Foresman. First, each member of the group begins by independently and silently writing down ideas. Second, the group goes in order around the room to gather all the ideas that were generated. This process continues until all the ideas are shared. Third, a discussion takes place around each idea, and members ask for and give clarification and make evaluative statements. Finally, group members vote for their favorite ideas by using ranking or rating techniques. Following the four-
Figure 8.12
Communicating is a key aspect of making decisions in a group. In order to generate potential alternatives, brainstorming and critical thinking are needed to avoid groupthink.
© 2010 Jupiterimages Corporation
Delphi TechniqueA group process that utilizes written responses to a series of questionnaires instead of physically bringing individuals together to make a decision. is unique because it is a group process using written responses to a series of questionnaires instead of physically bringing individuals together to make a decision. The first questionnaire asks individuals to respond to a broad question such as stating the problem, outlining objectives, or proposing solutions. Each subsequent questionnaire is built from the information gathered in the previous one. The process ends when the group reaches a consensus. Facilitators can decide whether to keep responses anonymous. This process is often used to generate best practices from experts. For example, Purdue University Professor Michael Campion used this process when he was editor of the research journal Personnel Psychology and wanted to determine the qualities that distinguished a good research article. Using the Delphi technique, he was able to gather responses from hundreds of top researchers from around the world and distill them into a checklist of criteria that he could use to evaluate articles submitted to his journal, all without ever having to leave his office.Campion, M. A. (1993). Article review checklist: A criterion checklist for reviewing research articles in applied psychology. Personnel Psychology, 46, 705–18.
Majority ruleA decision-
ConsensusA decision-
Group Decision Support Systems (GDSS)Interactive computer-
Decision treesDiagrams where answers to yes or no questions lead decision makers to address additional questions until they reach the end of the tree. are diagrams in which answers to yes or no questions lead decision makers to address additional questions until they reach the end of the tree. Decision trees are helpful in avoiding errors such as framing bias.Wright, G., & Goodwin, P. (2002). Eliminating a framing bias by using simple instructions to “think harder” and respondents with managerial experience: Comment on “breaking the frame.” Strategic Management Journal, 23, 1059–67. Decision trees tend to be helpful in guiding the decision maker to a predetermined alternative and ensuring consistency of decision making—that is, every time certain conditions are present, the decision maker will follow one course of action as opposed to others if the decision is made using a decision tree.
Figure 8.13
Utilizing decision trees can improve investment decisions by optimizing them for maximum payoff. A decision tree consists of three types of nodes. Decision nodes are commonly represented by squares. Chance nodes are represented by circles. End nodes are represented by triangles.
Source: http://upload.wikimedia.org/wikipedia/en/9/93/Investment_decision_Insight.png.
Key Takeaways
•There are trade-
•Groups have a greater diversity of experiences and ideas than individuals, but they also have potential process losses such as groupthink.
•Groupthink can be avoided by recognizing the eight symptoms discussed.
•Finally, there are a variety of tools and techniques available for helping to make more effective decisions in groups, including the nominal group technique, Delphi technique, majority rule, consensus, GDSS, and decision trees.
Exercises
1.Do you prefer to make decisions in a group or alone? What are the main reasons for your preference?
2.Have you been in a group that used the brainstorming technique? Was it an effective tool for coming up with creative ideas? Please share examples.
3.Have you been in a group that experienced groupthink? If so, how did you deal with it?
4.Which of the decision-
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