Group decision making aims to pool diverse expertise to coordinate actions for a common goal. The decision making process involves defining the problem, identifying criteria, gathering and evaluating data, listing and evaluating alternatives, selecting the best alternative, and implementing and following up. Groups tend to make satisfactory rather than optimal decisions due to limitations in time, resources, and information. Effective teams share goals, believe in collective productivity, have important contributions from all members, and supportive leadership.
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. 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. 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. 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. 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. 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. 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. Why do groups make
bad decision?
Information sharing biases
Risky shift phenomenon
Social loafing
Conformity
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. 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. 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. 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
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. Effective Individual
Productivity
Team
Personal
Innovation Follow up
Self
Measurement Discipline
Critical Personal
Events Conduct
Momentum Atmosphere
Coordination Synergy
Team
Productivity
31. Punctuated Equilibrium Model
Explains temporary group with deadlines. These temporary
groups go through transitions between inertia and activity
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. 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. Components of an effective team
Positive corporate culture
Give recognition
Outstanding performance
Continued performance
Improved performance
Positive feedback
Provide new opportunities
37. Team Creativity
Creativity skills contribute to teams working smarter and
exceeding their previous levels of performance
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. Characteristics of Team Creativity
Preparation
Challenging individuals
Maximizing participation
Structured presentation
Supportive climate
