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# Group Decision Making

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### Group Decision Making

1. 1. Group Decision Making
2. 2. Need for group decisions  To pool diverse expertise in order to coordinate the actions of all for a common goal  Decisions made by groups are superior to the decisions made by individuals  Groups outperfom individuals
3. 3. Decision-Making Process Define the Problem Decisions: Choices of actions from among multiple feasible Identify Criteria alternatives • Define the problem Gather and Evaluate Data – Gaps between where we are today and where we would like to be tomorrow • Identify the criteria – What information is needed in order to evaluate alternatives? • Gather and evaluate data – Collect information relevant to the criteria and potential alternatives
4. 4. Decision-Making Process Define the Problem Decisions: Choices of actions from among multiple feasible Identify Criteria alternatives • List and evaluate alternatives Gather and Evaluate Data – Develop an complete list of possible solutions to the problem (few constraints) – Assess each alternative using List and Evaluate Alternatives each criterion from step 2 • Select best alternative – Choose the one which satisfies Select Best Alternative the criteria the best • Implement and follow up – Monitor the results Implement and Follow Up
5. 5. Optimal versus Satisfactory Decisions  Optimal decision  The maximizing decision, yielding the absolute best result  Satisficing decision  Satisfactory rather than optimal decision  Lack capability to collect and process all of the information relevant for a particular decision  Will never know if all possible alternatives have been identified  Lack of time and other necessary resources for completing all of the decision activities  Thus, a tendency to choose the first satisfactory alternative discovered
6. 6. Decision-Making Styles  Individual’s predispositions can affect decision process at two critical stages  Gathering (Perceiving) of information  Sensing style  Intuition style  Evaluating (Judging) of alternatives  Thinking style  Feeling style
7. 7. Define the Problem Decision-Making Styles Identify Criteria Sensing Intuition Perceptual Influences Gather and Evaluate Data Using the five Using abstractions senses to identify and describing the Feedback factual details “big picture” Develop and Evaluate List of Thinking Feeling Perceptual Influences Alternatives Using objective Using subjective Choose Best analysis and values with emotional Alternative rational procedures and personal factors Implement and Follow Up
8. 8. Degree of Acceptable Risk  Risk exists when the outcome of a chosen course of action is not certain  Risk-taking propensity (Willingness to take chances)  Low risk takers  May collect and evaluate more information  May become paralyzed by trying to obtain and consider too much information  High risk takers  May may decisions based on too little information  May jump to decisions too quickly
9. 9. Why do groups make bad decision?  Information sharing biases  Risky shift phenomenon  Social loafing  Conformity
10. 10. Team Building
11. 11. Types of Team  Recommender Teams: those that recommend things – task forces or project groups  Doer Teams: those that make or do things – manufacturing, operations, or marketing groups  Managing Teams: those that run things – groups that oversee some significant functional activity
12. 12. Types of Team  Recommender Teams are often part-time; great for reviewing work but can lack a “team engine” for getting detailed work done  Managing Teams are often staffed with senior executives who have serious time management challenges and are unlikely to engage with traditional team communication  Doer teams are great for doing things but their networks may be limited to their own functional areas which can blind them to some innovation and cross-functional opportunities
13. 13. Types of Team  Task Force - a temporary team assembled to investigate a specific issue or problem  Problem Solving Team - a temporary team assembled to solve a specific problem  Product Design Team - a temporary team assembled to design a new product or service  Committee - a temporary or permanent group of people assembled to act upon some matter
14. 14. Types of Team  Work Group - a permanent group of workers who receive direction from a designated leader  Work Team (Self-Directed Work Team) - an ongoing group of workers who share a common mission who collectively manage their own affairs within predetermined boundaries  Quality Circle - a group of workers from the same functional area who meet regularly to uncover and solve work-related problems and seek work improvement opportunities
15. 15. Stages of Team Development
16. 16. Team Development Stages PERFORMING NORMING STORMING FORMING
17. 17. Forming Stage Becoming Acquainted and Organized
18. 18. Forming Stage Feelings of . . .  Excitement  Suspicion  Fear  Anticipation  Optimism  Anxiety
19. 19. Storming Stage Clarifying project needs and goals
20. 20. Storming Stage Feelings of . . .  Resistance to the task  Uncertainty about the team’s success  Impatience  Hostility  Discomfort
21. 21. Norming Stage Determining solution methods
22. 22. Norming Stage Feelings of . . .  Safety and security  Acceptance  Relief  Renewed Energy
23. 23. Performing Stage Implementing the project
24. 24. Performing Stage Feelings of . . .  Satisfaction  Pride  Excitement
25. 25. Adjourning Feelings of . . .  Satisfaction  Completion  Excitement  Sadness
26. 26. Team Development Stages
27. 27. Team Effectiveness
28. 28. Team Effectiveness Model  Goals  Roles  Procedures  Relationships  Leadership
29. 29. Effectiveness in Teams Team members . . .  Share the same goal. The team works together to accomplish a common aim  Believe they are more productive working together than by themselves  Each feel that he or she has an important contribution to make to the team  Are supportive of one another  Have a good “coach” or leader who provides direction and guidance
30. 30. Effective Individual Productivity Team Personal Innovation Follow up Self Measurement Discipline Critical Personal Events Conduct Momentum Atmosphere Coordination Synergy Team Productivity
31. 31. Punctuated Equilibrium Model  Explains temporary group with deadlines. These temporary groups go through transitions between inertia and activity
32. 32. Punctuated Equilibrium Model
33. 33. Sequence of Actions 1. Setting group direction 2. First phase of inertia 3. Half-way point transition 4. Major changes 5. Second phase of inertia 6. Accelerated activities
34. 34. Requirements  Common purpose or goals or objectives  Awareness of membership and commitment  Common operating norms  A need for each other/interdependence  Accountability to a higher level
35. 35. Components of an effective team  Positive corporate culture  Give recognition  Outstanding performance  Continued performance  Improved performance  Positive feedback  Provide new opportunities
36. 36. Team Creativity
37. 37. Team Creativity  Creativity skills contribute to teams working smarter and exceeding their previous levels of performance
38. 38. Team Creativity  Brainstorming  Nominal group technique  Structured team interaction  Scenario Planning  “Surprise free” scenario  Continuation of the present  Worst possible events  “One plus two” formula  Working backwards
39. 39. Characteristics of Team Creativity  Preparation  Challenging individuals  Maximizing participation  Structured presentation  Supportive climate
40. 40. Technique for Team Creativity  Brainstorming  Reverse brainstorming