MANAGEMENT 3200 GROUP DECISION MAKING I GROUP DECISION MAKING GDM GDM Individual Efforts Contributions Assembly Effects Process Losses Group decision making is a function of individual efforts plus assembly effects i e the positive consequences of bringing a group together such as synergy more information diverse viewpoints checking errors and substantive conflict minus process losses i e the negative consequences of bringing a group together such as destructive interpersonal conflict free riding or social loafing domination by a few and more time and expenses The optimal size for a group one that makes the best decisions as discovered by empirical research is 5 to 7 people Preferably you should also have odd numbered groups 5 or 7 The group should also be made up of members who don t think alike you want heterogeneity If everybody thinks alike then what you really have is an individual decision being made One caution you don t want too much heterogeneity because this could lead to too much conflict You want people who agree on the basic values concerning the decision but they have different areas of expertise and different ways of viewing the problem A ADVANTAGES OF GDM Group decision making has several advantages 1 More information is available to help solve the problem greater pooled resources 2 Evaluation is superior because you have a wide range of viewpoints This wide range of viewpoints allows a clearer view of the strengths and weaknesses of each alternative 3 Individuals who participate in decisions are more satisfied with the decision and are more likely to support it Greater acceptance leads to more commitment to the decision which in turn leads to better implementation 4 Individuals get a better understanding of the decision that is made and as a result it is easier for them to communicate the decision to their subordinates 5 Fulfills need for personal growth for some employees They are allowed to participate and have greater autonomy on their jobs which fulfills their need to grow through their jobs 6 Helps individuals learn new skills e g how to make a decision how to get along with other people who don t always agree with you It helps to develop conceptual and human skills 7 It can also be perceived as being more fair than decisions made by sole individuals sets up a fairness image Because our society values democratic methods and since group decision making is consistent with those ideals group decision making may be perceived as being more fair than individual decision making An individual decision maker s complete power can create the perception that the decision was made autocratically and arbitrarily 8 Participation in decision making also reduces stress by lowering role ambiguity i e being unclear about one is supposed to be doing on his her job and role underutilization i e one s skills and abilities are not being on the job to their fullest potential Now individuals have a clear idea of what they are to do and what is expected of them prevents role ambiguity They also are allowed to use their skills and abilities to their fullest prevents role underutilization Overall GDM provides a greater sense of control for the employee B DISADVANTABES OF GDM These disadvantages can be considered process losses or the negatives that come from group decision making 1 Takes longer than individual decision making and as a result it is costlier Since GDM is so time consuming it may inhibit management s ability to act quickly and decisively when necessary 2 Indecisiveness groups can have a difficult time making a decision due to the natural disagreements that occur between people not to mention the power plays and office politics that often go on in organizations 3 Domination by a few powerful members or by a leader can negate the many virtues of group processes i e decreases the level of individual contributions dampens any assembly effects that might occur and discourages open and honest discussion of solutions0 In the case of domination by a leader or by one what you really have is an individual making a decision in a so called group If the domination is by low or medium ability members the group s overall effectiveness will suffer greatly However if the domination is by high ability members i e experts the group s effectiveness will be markedly less affected 4 Leveling effect or in other words compromise may occur group decisions often involve considerable compromise which may lead to less than optimal decisions being made 5 Free riders are a problem in groups As groups become larger the less effort each person puts forth This phenomenon is known as social loafing Free riders are more likely to engage in social loafing and are more likely to take it to an extreme They are getters who want to give little in return They provide very little to the group in terms of individual contributions and efforts 6 With corporate power and personal pride at stake disagreements over important matters that occur in groups can often lead to bad feelings ill will and destructive conflict between group members 7 Escalation of demands people may want to participate in things that are inappropriate for them to participate in They may want to participate in all decisions as a result of participating in some 8 Social motives may prevail over hard headed task orientation much time can be wasted in socializing or playing that is irrelevant to GDM II WHEN DO YOU USE INDIVIDUAL DECISION MAKING OVER GROUP DECISION MAKING The following are conditions situations where individual decision making is the preferred decision making method Condition 1 When time is limited short Condition 2 When the decision maker has all the relevant knowledge and expertise to solve the problem Condition 3 When subordinate acceptance of the decision is not an issue That is you are relatively sure of the fact that your employees will accept the decision if you make the decision alone Condition 4 When the subordinates that would make up the group do not get along well and where there is likely to be a personal conflict a type of conflict that is not conducive to the decision making process but rather is a destructive force between the subordinates Condition 5 When the subordinates do not share the organization s goals and there is a sense of distrust between management and labor As a result they may not make decisions that are in the best interest of the organization III EFFECTIVENESS AND EFFICIENCY OF GROUP DECISION MAKING