Decision Making
Decision Making
Group Decision Making
Quote: "None of us alone is as smart as all of us together" (Myers, 2002)
Advantages:
More people = more information.
More people to distribute the workload.
Allows individuals to utilize their best skills.
Groups can effectively discuss and process information (error checking, etc.).
Decision-Making Processes in Groups
Groups have varied standards for decision-making (e.g., majority rules).
Members are more inclined to follow through on decisions made collectively.
Decision-making is influenced by multiple processes, leading to both advantages and potential faults.
More members often provide more support.
Why Make Decisions in Groups?
Groups can be more effective decision-makers:
Successful examples include investment groups, advisory boards, and medical teams.
Shaw's (1932) study showed groups solve more problems than individuals.
Group discussions can diagnose issues better (Glick & Staley, 2007) and retrieve information faster (Lazonder, 2005).
Groups often attain better results (Zimbardo et al., 2003).
Why Groups Might Be Ineffective
Potential pitfalls include:
Over-sampling shared information.
Unequal workload distribution, leading to free-riding.
Manipulation of discussions.
Increased risk-taking behaviors.
Issues of cohesion and groupthink.
Types of Decisions and Group Effectiveness
Group effectiveness often depends on task type:
Intellective Tasks: Tasks with clear right or wrong answers (e.g., math problems).
Judgmental Tasks: Tasks without a definitive correct answer (e.g., juries).
Groups generally excel in intellective tasks compared to judgmental tasks.
Anatomy of Group Decision Making
Functional Theory of Group Decision Making
While no two groups will make decisions the same way, effective groups typically follow structured procedures:
Phases include: Orientation, Discussion, Decision, Implementation, Post-Mortem.
Functional Model of Decision Making
Stages in Decision Making
Orientation:
Define the problem and ensure understanding among group members.
Establish rules and roles within the group.
Set strategy, goals, challenges, and resource allocations.
Time invested in this stage correlates with performance.
Discussion:
Engage in dialogue to explore and assess options.
Importance of shared mental models among members.
Brainstorming
Development: Created by Alex Osborn in 1941 to foster creativity in meetings.
Encourages spontaneous idea generation.
Brainstorming Rules
Be expressive.
Postpone evaluations.
Aim for quantity of ideas.
Promote building on others' ideas.
Valuate every idea equally.
Collective Information Processing
Information Exchange in Groups
Collective Information Processing Model: Focuses on gathering and reviewing relevant data.
Gathering & remembering information: 30% of comments are opinions, 10% suggestions, 10% orientation.
Importance of dialogue over debate for effective contribution.
Alternatives and Decision-Making
Gather a broad range of alternatives without dismissing any.
Discuss potential consequences carefully.
Encourage open communication and support among members.
Social Decision Schemes
Strategies to select alternatives:
Delegation: An individual or subgroup makes the decision (oligarchy).
Statistical Aggregation: Individual decisions are averaged.
Voting: Can use public or secret ballots; specific percentages often required for final decisions.
Consensus/Unanimous Decision: Requires discussion and agreement among all members.
Vroom’s Normative Model of Decision Making
Autocratic I & II: Leader makes decisions based on prior knowledge or group input.
Consultative I & II: Leader seeks input from selected group members or the whole group before deciding.
Group: Leader facilitates a collective decision-making process.
Planning Fallacy in Group Contexts
Groups tend to underestimate the time required for phases of tasks, resulting in inaccuracies compared to individuals.
The Difficulty of Discussion
Common Issues in Group Discussions
Inadequate discussion due to:
Poor communication.
Egocentric behaviors and distractions.
Non-participation from certain members.
Conflicting negative attitudes and lack of respect in interactions.
Shared Information Bias
Oversampling shared information can lead to poorer decision outcomes.
Contributing factors include:
Informational vs. normative influences.
Emphasis on consensus over correctness.
Reducing Shared Information Bias
Strategies for improvement:
Cultivating good leadership.
Enhancing diversity within groups.
Utilizing Group Decision Support Systems (GDSS).
Types of Decision-Making Errors
Cognitive Limitations
Sins of Commission: Errors caused by incorrect reliance on past information.
Sins of Omission: Ignoring relevant information or alternatives.
Sins of Imprecision: Failing to recognize probabilistic outcomes in joint occurrences.
Group Dysfunctional Post-Decision Processes
Groups often do not systematically check their work and may seek reassurance on decisions instead of evaluating effectiveness.
Issues include the Denial of Responsibility and Sunk Cost Paradox.
Implementation of Decisions
Striving for closure after decision-making.
Evaluating process and outcomes can reduce resistance to change.
Participation in implementation leads to better adherence and less turnover.
Post-Mortem Discussions
Evaluate decisions made and lessons learned to improve future decision-making.
Group Polarization
Often, group discussions lead to more extreme positions than individual opinions (social comparison theory).
Understanding Groupthink
According to Janis, groupthink can inhibit rational decision-making by promoting a desire for consensus.
Symptoms include overestimation of the group’s capabilities and pressures toward uniformity.
Symptoms of Groupthink
Overconfidence, close-mindedness, and group pressures may lead to defective decision-making processes.
Conditions Leading to Groupthink
High cohesiveness, lack of conflict, insulation of the group, and external pressures set the stage for groupthink.
Preventing Groupthink
Encourage open dialogue, utilize devil’s advocates, and apply sound decision-making techniques to mitigate risks.