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’’GROUP DECISION MAKING ’’

’’GROUP DECISION MAKING ’’

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’’GROUP DECISION MAKING ’’

  1. 1. ’’GROUP DECISION MAKING ’’ Presentation on project topic Presenter members:- Rishi kumar vyas
  2. 2. ROOTS OF GROUP DECISION MAKING - 1978 Herbert Alexander Simon (June 15, 1916 – February 9, 2001) Simon was among the founding fathers of several of today's important scientific domains, including artificial intelligence, information processing, decision-making, problem-solving, attention economics, organization theory, AND complex systems. He receive the Nobel Memorial Prize in Economics "for his pioneering research into the decision-making process within economic organizations" (1978).
  3. 3. GROUP DECISION MAKING An Overview It is a situation faced when individuals collectively make a choice from the alternatives before them. Decisions made collectively tend to be more effective than decisions made by a single individual. However, there are also examples where the decisions made by a group are flawed,  Bay of Pigs invasion
  4. 4. Factors that impact group behaviors also affect group decisions. Like: 1. Designation/status 2. Dominative character 3. Experience/Age 4. limited time 5. Facts and figures 6. Economical condition 7. Financial constraints
  5. 5. GROUP DECISION MAKING TECHNIQUES i. Brainstorming This technique involves a group of people, usually between five and ten, sitting around a table, generating ideas in the form of free association. The primary focus is on generation of ideas rather them on evaluation of ideas. Brainstorming technique is very effective when the problem is comparatively specific. ii. Nominal Group Technique (NGT) Nominal group technique is similar to brainstorming except that the approach is more structured. Members form the group in name only and operate independently, generating ideas for solving the problem on their own, in silence and in writing. Members do not interact with each other so that strong personality domination is avoided. It encourages individual creativity.
  6. 6. iii. Delphi Technique: This technique is the modification of the nominal group technique 1. The problem is identified and a sample of experts is selected. These experts are asked to provide potential solutions through a series of carefully designed questionnaires. 2. Each expert completes and returns the initial questionnaire. 3. The results of the questionnaire are compiled at a central location and the central coordinator prepares a second questionnaire based on the previous answers. 4. Each member receives a copy of the results along with the second questionnaire. 5. Members are asked to review the results and respond to second questionnaire. The results typically trigger new solutions or cause changes in the original position. 6. The process is repeated until a consensus is reached.
  7. 7. iv. Didactic interaction: This technique is applicable only in certain situations, but is an excellent method when such a situation exists. The type of problem should be such that it results in a yes-no solution. For example, the decision may be to buy or not to buy, to merge or not to merge, to expand or not to expand and so on. Such a decision requires an extensive and exhaustive discussion and investigation since a wrong decision can have serious consequences.
  8. 8. Decision-making in social settings Decision-making in groups is sometimes examined separately as process and outcome. Process refers to the group interactions. The use of politics is often judged negatively, but it is a useful way to approach problems when preferences among actors are in conflict. Gathering Sub-committee Participatory There are no perfect decision-making rules. Depending on how the rules are implemented in practice and the situation, all of these can lead to situations where either no decision is made, or to situations where decisions made are inconsistent with one another over time.
  9. 9. Social decision schemes Social decision schemes are the methods used by a group to combine individual response to come up with a single group decision. There are a number of these schemes, but the following are the most common: Delegation An individual, subgroup or external party makes the decision on behalf of the group. For instance, in an "authority scheme", the leader makes the decision. Averaging Group member makes their own independent decision, later "averaged" to produce a decis Plurality Group members vote on their preferences, either privately or publicly. These votes are the used to select a decision, either by simple majority, supermajority or other more or less complicated voting system. Unanimity A consensus scheme whereby the group discusses the issue until it reaches a unanimous agreement. This decision rule is what dictates the decision-making for most juries. Random The group leaves the choice to chance. For example, flipping a coin.
  10. 10. DECISION MAKING IN CORPORATES Individual Decision Making Decision making without a group's input or a decision made regardless of the group's opinion is, naturally, an individual decision. This is the more traditional decision making approach and can work effectively for a manager when the group's input is not required or in certain cases, desired. Group Decision Making There are several models of group decision making that you can put to use. Two examples are consensus and consultation. Consensus decision making involves posing several options to the group and using the most popular option to make a decision. Consultation Consultation takes the opinions of the group into consideration when making a decision. Both methods require the group's participation and call for a manager who respects the opinions and input of the group in the decision making process.
  11. 11. Advantages of Group Decision Making Group decision making provides two advantages over decisions made by individuals: synergy and sharing of information. Synergy is the idea that the whole is greater than the sum of its parts. When a group makes a decision collectively, its judgment can be keener than that of any of its members. Through discussion, questioning, and collaboration, group members can identify more complete and robust solutions and recommendations. The sharing of information among group members is another advantage of the group decision-making process. Group decisions take into account a broader scope of information since each group member may contribute unique information and expertise. Sharing information can increase understanding, clarify issues, and facilitate movement toward a collective decision.
  12. 12. Disadvantages of Group Decision Making 1. Diffusion of Responsibility One possible disadvantage of group decision making is that it can create a diffusion of responsibility that results in a lack of accountability for outcomes. In a sense, if everyone is responsible for a decision, then no one is. Moreover, group decisions can make it easier for members to deny personal responsibility and blame others for bad decisions. 2. Lower Efficiency Group decisions can also be less efficient than those made by an individual. Group decisions can take additional time because there is the requirement of participation, discussion, and coordination among group members. Without good facilitation and structure, meetings can get bogged down in trivial details that may matter a lot to one person but not to the others.
  13. 13. 3.Groupthink One of the greatest inhibitors of effective group decision making is groupthink. Groupthink is a psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome. By isolating themselves from outside influences and actively suppressing dissenting viewpoints in the interest of minimizing conflict, group members reach a consensus decision without critical evaluation of alternative viewpoints. Loyalty to the group requires individuals to avoid raising controversial issues or alternative solutions, and there is a loss of individual creativity, uniqueness, and independent thinking. The dysfunctional group dynamics of the in-group produces an illusion of invulnerability (an inflated certainty that the right decision has been made). Thus the in-group significantly overrates its own decision-making abilities and significantly underrates the abilities of its opponents (the out-group). Furthermore, groupthink can produce dehumanizing actions against the out-group.
  14. 14. REFERENCES http://en.wikipedia.org/wiki/Group_decision-making#Group_decision- making_in_psychology https://www.boundless.com/management/textbooks/boundless-management- textbook/decision-making-10/managing-group-decision-making-81/advantages-and- disadvantages-of-group-decision-making-388-5156/ http://www.yourarticlelibrary.com/management/4-techniques-for-group-decision- making-process-more-effective/3506/ http://en.wikipedia.org/wiki/Herbert_A._Simon Source: Boundless. “Advantages and Disadvantages of Group Decision Making.” Boundless Management. Boundless, 14 Nov. 2014. Retrieved 19 Dec. 2014 from https://www.boundless.com/management/textbooks/boundless-management- textbook/decision-making-10/managing-group-decision-making-81/advantages-and- disadvantages-of-group-decision-making-388-5156/ http://smallbusiness.chron.com/group-vs-individual-decision-making-business- 448.html

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