Making Effective Decisions The purpose of group decision making is to determine the best course of action toward achieving a common goal characterized as:The purpose of group decision making is to determine the best course of action toward achieving a common goal characterized as: –The resource of group members are fully utilized. –Time is well used. –Decision is correct or of high quality. –Decision is implemented fully by all the required group members. –Problem solving ability of the group is enhanced.

Individual 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 Facilitation Effects on performance resulting 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 Polarization Tendency 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 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 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 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 Making An effective group understands each method of decision making well enough to choose the method that is best for the: Type of decision to be made Type of decision to be made Amount of time and resources available Amount of time and resources available History of the group History of the group Nature of the task being worked on Nature of the task being worked on Kind of climate the group wishes to establish Kind of climate the group wishes to establish Type of setting in which the group is working Type of setting in which the group is working Bean Jar exercise Bean Jar exercise

Methods of Decision Making Method One: Decision by authority without discussion Disadvantages: loss of resources and group cohesion Disadvantages: loss of resources and group cohesion Advantages: simpler, less time needed, people lacking skills don’t make decisions Advantages: simpler, less time needed, people lacking skills don’t make decisions Method Two: Decision by expert member Advantages: Expertise, no need for argument Advantages: Expertise, no need for argument Disadvantages: Who is the expert? Loss of group cohesion and resources Disadvantages: Who is the expert? Loss of group cohesion and resources

Method Three: Decision by average of members opinions Disadvantages: No gains from group discussion, no resolved conflict, no commitment Disadvantages: No gains from group discussion, no resolved conflict, no commitment Advantages: simple, useful when time is limited to meet Advantages: simple, useful when time is limited to meet Method Four: Decision by authority after discussion Disadvantages: Alienation, no full commitment to decision, low levels of group interaction Disadvantages: Alienation, no full commitment to decision, low levels of group interaction Advantages: good for time constraints, no consensus needed, speeds discussion Advantages: good for time constraints, no consensus needed, speeds discussion

Method Five: Decision by majority control Disadvantages: loss of resources, no commitment, conflict, low interaction levels Disadvantages: loss of resources, no commitment, conflict, low interaction levels Advantages: useful when consensus is not needed, time constraints, fewer members have relevant resources Advantages: useful when consensus is not needed, time constraints, fewer members have relevant resources Method Six: Decision by minority control Disadvantages: loss of resources, no commitment, conflict, low interaction levels Disadvantages: loss of resources, no commitment, conflict, low interaction levels Advantages: high quality decisions, commitment, resources, group makes better decisions in the future, useful for important decisions involving the whole group. Advantages: high quality decisions, commitment, resources, group makes better decisions in the future, useful for important decisions involving the whole group.

Method Seven: Decision by Consensus The most effective method. Defined as: Defined as: a collective opinion arrived at by a group of individuals working together under conditions that permit communications to be sufficiently open Group climate must be sufficiently supportive for everyone in the group to feel that he or she has had a fair chance to influence the decision When a decision is made in this fashion, all members are prepared to support it.

Factors Enhancing Group Decision Making Five essential elements of group work leading to high quality decisions: Five essential elements of group work leading to high quality decisions: Positive interdependence Positive interdependence Face-to-Face promotive interaction Face-to-Face promotive interaction Individual accountability Individual accountability Social skills Social skills Group processing Group processing

Factors Hindering Group Decision Making Lack of Group Maturity Lack of Group Maturity –Temporary groups don’t have the time and experience together to make an effective decision Social Loafing vs. Free riding Social Loafing vs. Free riding –Social Loafing A reduction of individual effort when working with others on an additive group task A reduction of individual effort when working with others on an additive group task –Free riding Benefiting from the task efforts of other group members while doing no work oneself Benefiting from the task efforts of other group members while doing no work oneself

Factors Hindering cont. Motivation Losses Due to Perceived Inequity: The Sucker Effect Motivation Losses Due to Perceived Inequity: The Sucker Effect –There is a tendency to reduce your efforts when other members are free riding Groupthink and Defensive Avoidance Groupthink and Defensive Avoidance –Decision makers sometimes turn to defensive avoidance (procrastinating, rationalizing, or denying responsibility for own actions) when they are having a difficult time making a decision Examples: Pearl Harbor, Bay of Pigs invasion and Vietnam War Examples: Pearl Harbor, Bay of Pigs invasion and Vietnam War

Factors Hindering Group Decision Making cont. Groupthink and Defensive Avoidance Groupthink and Defensive Avoidance –Groupthink occurs when the members are highly cohesive with a dynamic leader that leads them to follow shared views so strongly that the group ignores external information that is inconsistent with them

Factors Hindering Group Decision Making cont. Groupthink and Defensive Avoidance cont. Groupthink and Defensive Avoidance cont. –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) Stereotyping Stereotyping

Factors Hindering Group Decision Making cont. Conflicting Goals of Group Members Conflicting Goals of Group Members –May different ideas of how to proceed –Competition among group members Egocentrism of Group Members Egocentrism of Group Members –Competition over whose ideas are going to be dominant may develop if the members are not open minded to the other member’s ideas

Factors Hindering Group Decision Making cont. Lack of Sufficient Diversity Lack of Sufficient Diversity –Without diversity among group members, there is no conflict, incorrect solutions may be accepted, and there is less group productivity Interference or Production Blocking Interference or Production Blocking –Occurs because only one person can be talking at once, so ideas may be lost while waiting for one person to finish their thought.

Factors Hindering cont. Inappropriate Group Size Groups will be less effective if: Groups will be less effective if: –There is discrepancy between functional group size and actual group size –Group members see their efforts as nonessential for group success for group success –There is a high complexity of group structure –More time is needed to organize joint efforts –The effort of each member is minimal –The members identify less with the group –Members do not follow the group’s norms

Factors Hindering cont. Members not having relevant skills Members not having relevant skills –If group members do not have the needed skills to complete the task and work together effectively, the decisions they make will not be effective. Lack of individual incentives for and barriers to contributing Lack of individual incentives for and barriers to contributing –When there is a lack of incentives to contribute, members make a smaller effort 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 Quo  Change as little as possible  Delay and avoid making the decisions  Choose the first likely solution without considering all alternatives  Encourage considered and thoughtful decision making, in which all major alternatives are given a fair and thorough hearing

Considered and Thoughtful Decision Making Identifying and Defining the Problem Identifying and Defining the Problem Steps in Defining the Problem Steps in Defining the Problem Reach agreement about what the goals are Reach agreement about what the goals are Obtain valid information about state of affairs Obtain valid information about state of affairs Discuss difference between desired and actual state of affairs Discuss difference between desired and actual state of affairs Potential Barriers to Identifying the Problem Potential Barriers to Identifying the Problem Prematurely defining the problem Prematurely defining the problem Lack of clarity in stating the problem Lack of clarity in stating the problem Critical, evaluative, competitive climate Critical, evaluative, competitive climate Inadequate motivation to solve the problem Inadequate motivation to solve the problem

Considered and Thoughtful Decision Making cont Gathering Information About the Existence of the Problem Gathering Information About the Existence of the Problem Barriers to not getting information about the problem Barriers to not getting information about the problem Not getting the needed information Not getting the needed information Poor communication within the group Poor communication within the group

Considered and Thoughtful cont Formulating and Considering Alternative Solutions Formulating and Considering Alternative Solutions Force-Field Analysis Force-Field Analysis Portrays the problem as a balance between forces working in opposite directions; the balance that results between the helping and restraining forces is called a quasistationary equilibrium Portrays the problem as a balance between forces working in opposite directions; the balance that results between the helping and restraining forces is called a quasistationary equilibrium Vigilant Analysis Vigilant Analysis Should be done by structuring the evaluation with: Should be done by structuring the evaluation with: Impartial leadership Impartial leadership Critical evaluator role for every member Critical evaluator role for every member Devil’s advocate Devil’s advocate Outside experts Outside experts

Considered and Thoughtful Decision Making cont. Formulating and Considering Alternative Solutions Formulating and Considering Alternative Solutions Barriers to formulating a solution Barriers to formulating a solution Failure to identify the alternative courses of action Failure to identify the alternative courses of action Premature elimination of courses of action without proper analysis Premature elimination of courses of action without proper analysis Pressure is for conformity Pressure is for conformity Lack of inquiry and problem solving skills Lack of inquiry and problem solving skills Lack of procedures to aid analysis and synthesis Lack of procedures to aid analysis and synthesis

Considered and Thoughtful Cont. Deciding on a Solution Deciding on a Solution Second-Chance Meeting Second-Chance Meeting A meeting in which members are encouraged to express any remaining doubts or criticisms (Ex: saki talk) A meeting in which members are encouraged to express any remaining doubts or criticisms (Ex: saki talk) Presenting the Recommendation to the Organization Presenting the Recommendation to the Organization The key is to ensure that everyone participates, is involved in the decision, and is committed to implementing it. The key is to ensure that everyone participates, is involved in the decision, and is committed to implementing it. Evaluating Extent and Success of Implementation Evaluating Extent and Success of Implementation No decision is worthwhile unless it is implemented No decision is worthwhile unless it is implemented