1. “Two Heads are better than one“
"Too many cooks spoil the broth”
"You can't accomplish anything in a meeting.
Everyone has his or her own agenda. The more
people, the more impossible it becomes."

2. (in organizations)
Louzel M. Linejan
MPA II
Xavier Univ – Ateneo de Cagayan

3. “Should the leader make the decision?”
“Should the leader delegate the decision
to some other members of the group?”
“Should the group make the decision
through some form of majority vote?”
“Should all decisions involving the
group be made by consensus?”

4. Decision-making is one of the central activities
of management and is a huge part of any
process of implementation
Good decision making is an essential skill to
become an effective leaders and for a
successful career

5.  the quality (correctness) of decision, for those
decision may represent a false consensus
 the required level of commitment to the decision by
group members
 the time available to make the decisions

6. Programmed & non-programmed decisions
One way of distinguishing among decisions is in terms of
whether they are fairly routine and well-structured, or
novel and poorly structured.
PROGRAMMED DECISIONS
Well-structured decisions, can be understood,
measured and are actually programmed
NON-PROGRAMMED DECISIONS
Poorly structured decisions, unique, non- routine
and more ambiguous and frequently more difficult to
make since it involves major planning issues

7. Individual & group decisions
Research revealed that GROUP DECISION
MAKING will outperform individuals working in isolation
Groups' solutions to problems are typically of
higher quality than the average of the individuals'
solutions.
However, best solitary worker may often outperform
the group who has diverse personalities that can not
arrive with a consensus.

8. Advantages of group decisions:
combine individual strengths of the group members
broader perspective owing to differences of perception
between individual in the group.
enhanced collective understanding of the course of action
to be taken after the decision is taken
gains greater group commitment since everyone has
his/her share in the decision making
imbibes a strong sense of team spirit among group
members and helps the group to think together in terms of
success as well as failure.

9. Disadvantages of group decisions:
 more time-consuming and more costly
 people whose opinions are not considered tend to be left out
from the decision making process and hence the team spirit
ceases to grow.
 Groupthink
 responsibility and accountability are not equally shared
 highly cohesive groups sometimes encourage a restricted
view of alternatives
 may give rise to hostility and conflict
 tends to be influenced by the relative status of group
members

10. Perceptual and judgemental factors
1. Limited Information Processing Capability
- We thought we have all the information we need, but we merely
have all the information we are willing and able to handle for the
moment.
2. Perceptual filters and biases
-We frequently rely on ineffective decision-making heuristics (rule of
thumb)
3. Changing Perceptions
- Our filters and perceptions change, via learning, experience,
attitude change and belief change
4. Inaccurate Perceptions
- Perceptions are subject to factors of attention, stress and many
perceptual phenomena

11. Perceptual and judgemental factors
5. First Perceptions
- Research shows that they are frequently not accurate, and
frequently long lasting
6. Stereotyping and categorization
- Our filters and perceptions change, via learning, experience,
attitude change and belief change
7. Halo Effect
- Tendency to over-generalise from one or two points of information
8. Contrast Effects
- Contrast or differences between pieces of information
9. Attribution
- people tend to contribute causes to actions and events

13. 1. NOMINAL GROUP THINK
The NGT is designed to help all team members participate and
express opinions while still building team consensus
The nominal group technique is a structured decision making
process in which group members are required to compose
a comprehensive list of their ideas or proposed alternatives
in writing
NGT is designed to help with group decision making by
ensuring that all members participate fully.

14. 1. NOMINAL GROUP THINK
NGT follows these steps:
7-10 individuals are brought together to participate in a
structured exercise that includes the following steps:
 Team members are presented with a problem, challenge or
issue
 Individual team members silently and independently write
down their ideas about how to tackle the problem.
 Each team member (one at a time, in round-robin fashion)
presents an idea to the group.
 Individuals silently and independently vote on each idea.

15. 2. DELPHI TECHNIQUE
Another technique which capitalises group's resources, while
avoiding several possible disadvantages of relying on group
decision-making processes
This approach, called the Delphi Technique, is similar to NGT in
several respects, but also differs significantly in that the
decision-makers never actually meet.
Its greatest advantage is that it avoids many of the biases and
obstacles associated with interacting groups (that is, groups
where the members meet face-to-face)

16. 2. DELPHI TECHNIQUE
DELPHI follows these steps:
 Select a group of individuals who possess expertise in a
given problem area
 Survey the experts for their opinions via a mailed
questionnaire.
 Analyse and distil the experts' responses.
 Mail the summarised results of the survey to the
experts and request that they respond once again to a
questionnaire.
 If one expert's opinion sharply differs from the rest, he or
she may be asked to provide a rationale.
 process is repeated several times, the experts usually
achieve a consensus

17. 3. STEPLADDER TECHNIQUE
A problem-solving structure recently proposed as a solution to
the problem of unequal participation in groups
The technique is intended to improve group decision-making
by structuring the entry of group members into a core group.
encourages all members to contribute on an individual level
before being influenced by anyone else
This results in a wider variety of ideas, it prevents people
from "hiding" within the group, and it helps people avoid being
"stepped on" or overpowered by stronger, louder group
members.

18. 3. STEPLADDER TECHNIQUE
Step 1: Before getting together as a group, present the task or
problem to all members. Give everyone sufficient time to
think about what needs to be done
Step 2: Form a core group of two members. Have them discuss
the problem.
Step 3: Add a third group member to the core group. The third
member presents ideas to the first two members
BEFORE hearing the ideas that have already been
discussed.

19. 3. STEPLADDER TECHNIQUE
Step 4: Repeat the same process by adding a fourth member,
and so on, to the group. Allow time for discussion after
each additional member has presented his or her ideas.
Step 5: Reach a final decision only after all members have been
brought in and presented their ideas.

20. 4. PARETO ANALYSIS - Choosing the Most Important Changes
to Make
 Pareto principle – the idea that by doing 20% of work you can
generate 80% of the advantage of doing the entire job
 Pareto analysis is a formal technique for finding the changes
that will give the biggest benefits. It is useful where many
possible courses of action are competing for your attention.

21. 4. PARETO ANALYSIS - Choosing the Most Important Changes
to Make
 80/20 Rule means that in anything a few (20 percent) are vital
and many(80 percent) are trivial.
 The value of the Pareto Principle is it reminds to focus on the
20 percent that matters. (Of the things you do during your day,
only 20 percent really matter. Those 20 percent produce 80
percent of your results)

22. 4. PARETO ANALYSIS
How to Use the Tool:
1. write out a list of the changes you would make
2. score the items or groups. The scoring method you use
depends on the sort of problem you are trying to solve.
3. The first change to tackle is the one that has the highest
score. This one will give you the biggest benefit if you solve
it.

23. 5. PAIRED COMPARISON ANALYSIS
- Working Out the Relative Importance of Different
Options
- PCA helps you to work out the importance of a number
of options relative to each other. It is particularly useful where
you do not have objective data to base this on.
PCA makes it easy to choose the most important
problem to solve, or select the solution that will give you the
greatest advantage. Paired Comparison Analysis helps you to
set priorities where there are conflicting demands on your
resources.

24. 5. PAIRED COMPARISON ANALYSIS
Overseas Home Customer Quality
Market (A) Market (B) Service (C) (D)
Overseas Market
--------------- A,2 C,1 A,1
(A)
Home Market
--------------- --------------- C,1 B,1
(B)
Customer Service
--------------- --------------- --------------- C,2
(C)
Quality
-------------- --------------- --------------- ---------------
(D)
Steps to use the technique:
 List the options you will compare. Assign a letter to each option.
 Mark the options as row and column headings on the worksheet.
 Note that the cells on the table where you will be comparing an option
with itself have been blocked out - there will never be a difference in
these cells!

25. 6. GRID ANALYSIS
Making a decision by weighing up different factors
Paired Comparison Analysis helps you to work out
the importance of a number of options relative to each
other. It is particularly useful where you do not have
objective data to base this on.
A useful technique to use for making a decision. It's
particularly powerful where you have a number of good
alternatives to choose from, and many different factors to
take into account.

26. 6. GRID ANALYSIS
Factors: Cost Board Storage Comfort Fun Look Total
Weights:
Sports Car 1 0 0 1 3 3
SUV/4x4 0 3 2 2 1 1
Family Car 2 2 1 3 0 0
Station Wagon 2 3 3 3 0 1
Factors: Cost Board Storage Comfort Fun Look Total
Weights: 4 5 1 2 3 4
Sports Car 4 0 0 2 9 12 27
SUV/4x4 0 15 2 4 3 4 28
Family Car 8 10 1 6 0 0 25
Station Wagon 8 15 3 6 0 4 36

27. 7. PLUS, MINUS, INTERESTING!
- Weighing the Pros and Cons of a Decision
PMI is an important Decision Making tool which focuses on
selecting a course of action from a range of options.
Plus Minus Interesting
Easier to find new job?
More going on (+5) Have to sell house (-6)
(+1)
Easier to see friends (+5) More pollution (-3) Meet more people? (+2)
More difficult to get own
Easier to get places (+3) Less space (-3)
work done? (-4)
No countryside (-2)
More difficult to get to
work? (-4)
+13 -18 -1

28. 8. SIX THINKING HATS
- Looking at a Decision from All Points of View
"Six Thinking Hats" is a powerful technique that helps you
look at important decisions from a number of different perspectives. It
helps you make better decisions by pushing you to move outside your
habitual ways of thinking. As such, it helps you understand the full
complexity of a decision, and spot issues and opportunities which you
might otherwise not notice.
Many successful people think from a very rational, positive
viewpoint, and this is part of the reason that they are successful

29. 8. SIX THINKING HATS
How to Use the Tool:
White Hat: focus on the data available.
Red Hat: look at the decision using intuition, gut reaction, and
emotion
Black Hat: look at things pessimistically, cautiously and
defensively.
Yellow Hat: think positively (optimistic viewpoint)
Green Hat: develop creative solutions to a problem.
Blue Hat: process control.

30. 1. Nominal Group Think
2. Delphi Technique
3. Stepladder Technique
4. Pareto Analysis
5. Paired Comparison Analysis
6. Grid Analysis
7. Plus, Minus, Interesting
8. Six Thinking Hats

32. METHOD 1 – DECISION MADE BY AUTHORITY
(without group decision)
Process:
The designated leader makes all decisions without consulting group
members
STRENGTHS WEAKNESSES
 Takes minimal time to make  No group Interaction
decision
 Familiarity - commonly used in  Team may not understand the decision
organizations or be unable to implement it
 High on assertiveness scale  Low on cooperation scale
Appropriate times for Method 1:
Simple, routine, administrative decisions; little time available to make
decision; team commitment required to implement the decision is low

33. METHOD 2 – DECISION BY EXPERT
Process:
Select the expert from group, let the expert consider the issues, and let the expert
make decision
STRENGTHS WEAKNESSES
 Useful when one person on the  Unclear how to determine who the
team has the overwhelming expert is (team members may have
expertise different opinions)
 No group interaction
 May become popularity issue or
power issue
Appropriate times for Method 2:
Result is highly dependent on specific expertise, clear choice for expert, team
commitment required to implement decision is low.

34. METHOD 3 – DECISION BY AVERAGING INDIVIDUAL’S OPINION
Process:
Separately ask each team member his/her opinion and average the results.
STRENGTHS WEAKNESSES
 Extreme opinions cancelled out  No group interaction, members are
not truly involved in the decision
 Error typically cancelled out  Opinions of least and most
knowledgeable members may cancel
 Group members consulted  Commitment to decision may not be
strong
 Useful when it is difficult to get the  Unresolved conflict may exist or
team together to talk escalate
 Urgent decisions can be made  May damage future team
effectiveness
Appropriate times for Method 3:
Time available for decision is limited; team participation is required, but lengthy
interaction is undesirable; team commitment required to implement the decision is
low.

35. METHOD 4 – DECISION MADE BY AUTHORITY AFTER GROUP
DISCUSSION
Process:
The team creates ideas and has discussions, but the designated leader makes the
final decision. The designated leader calls a meeting, presents the issue, listens to
discussion from the team, and announces her/his decision.
STRENGTHS WEAKNESSES
 Team used more than methods 1–3  Team is not part of decision
 Listening to the team increases the  Team may compete for the leader’s
accuracy of the decision attention
 Commitment to decision may not be
strong
 Still may not have commitment from
the team to the decision
Appropriate times for Method 4:
Available time allows team interaction but not agreement; clear consensus on
authority; team commitment required to implement decision is moderately low.

36. METHOD 5 – DECISION BY MINORITY
Process:
A minority of the team, two or more members who constitute less than 50% of the
team, make the team’s decision
STRENGTHS WEAKNESSES
 Method often used by executive  Can be railroading
committees
 Method can be used by temporary  May not have full team commitment to
committees decision
 Useful for large number of  May create an air of competition
decisions and limited time among team members
 Some team perspective and  Still may not have commitment
discussion fromteam to decision
Appropriate times for Method 5:
Limited time prevents convening entire team; clear choice of minority group;
team commitment required to implement the decision is moderately low.

37. METHOD 6 – DECISION BY MAJORITY VOTE
Process:
This is the most commonly used method in the United States (not synonymous with
best method). Discuss the decision until 51% or more of the team members make the
decision.
STRENGTHS WEAKNESSES
 Useful when there is insufficient time  Taken for granted as the natural, or
to make decision by consensus only, way for teams to make a decision
 Useful when the complete team-  Team is viewed as the “winners and the
member commitment is unnecessary losers”; reduces the quality of decision
for implementing a decision
 Minority opinion not discussed and
may not be valued
 May have unresolved and
unaddressed conflict
 Full group interaction is not obtained
Appropriate times for Method 6:
Time constraints require decision; group consensus supporting voting process; team
commitment required to implement decision is moderately high.

38. METHOD 7 – DECISION BY CONSENSUS
Process:
Collective decision arrived at through an effective and fair communication process (all
team members spoke and listened, and all were valued).
STRENGTHS WEAKNESSES
 Most effective method of team  Takes more time than methods 1–6
decision making
 All team members express their  Takes psychological energy and high
thoughts and feelings degree of team-member skill (can be
negative if individual team members
not committed to the process)
 Team members “feel understood”
 Active listening used
Appropriate times for Method 7:
Time available allows a consensus to be reached; the team is sufficiently skilled to reach a
consensus; the team commitment required to implement the decision is high.

39. 1. Decision made by Authority
2. Decision by Expert
3. Decision by Averaging
Individual’s Opinion
4. Decision made by authority after
group discussion
5. Decision by Minority
6. Decision by Majority vote
7. Decision by Consensus