DECISION MAKING

DEFINITION

• Decision making: A choice process, in which one among several possibilities is selected.

DEFINITION

Examples• From alternative solutions, have to

decide the best solution to solve a problem.

• To decide the future major from several majors in faculty.

• To decide what job to take.• To decide what to do today.

DEFINITION

• Emotional Intelligence helps one to make important life decisions.

SCOPE

1. Individual Decision Making

2. Group Decision Making

INDIVIDUAL DECISION MAKING

• Is done by the individual alone.

• To solve personal problems, academic problems, social problems, etc.

• Is more adaptive.

• Is constrained by imperfect information, time and cost factors.

INDIVIDUAL DECISION MAKING

• Factors that can affect decision:

1) Personality

One’s abilities, temperament, motives, attitudes, traits, aversion to or preference for risk.

INDIVIDUAL DECISION MAKING

2) EmotionWhen we feel happy, we tend to perceive things more positively, hence might decide to agree on someone’s request and vice versa.

“Love is blind!”

INDIVIDUAL DECISION MAKING

3) FramingThe way in which a problem or

question is presented.Example: Subjects of an experiments

agree to take the medicine when they were told that “the success rate is 50%” rather than when they were told that “the failure rate is 50%”

INDIVIDUAL DECISION MAKING

4) Perception

First impression, halo effect.

2 Examples:

First impression: Positive first impression might influence someone to overestimate the positive points in someone.

INDIVIDUAL DECISION MAKING

Halo Effect: A general impression that is favorable or unfavorable that is used to evaluate specific traits.

Example: A college professor with a strong belief in perfect attendance may downgrade the performance of students who attend class irregularly.

Group Decision Making

• Is done by more than one individual.

• Needed in organizations.

• Is known as “choice by consensus.”

Group Decision Making

• Advantages:

1) Greater sum total of knowledge or information

2) Greater number of approaches to a problem

3) Participation increases acceptance of the decision

Group Decision Making

4) Better comprehension of the decision

5) Responsibility is diffused and less risk for an individual.

Group Decision Making

• Disadvantages:

1) Social Pressure

The desire to be a good group member and to be accepted tends to silence disagreement.

Group Decision Making

2) Acceptance of solutions

The first solution that appears to receive strong support from the majority of the members tend to be accepted most of the time. Higher-quality solutions introduced after it has little chance of receiving real consideration.

Group Decision Making

3) Individual dominationChances for someone to exert more

influence on the decision.

4) Winning the decisionMembers feel the pressure to support

a particular position, and the result is, a compromise decision of lower quality.

Groupthink

• A mode of thinking that people engage in when they are deeply involved in a cohesive in-group, when the members’ strivings for unanimity override their motivation to realistically appraise alternative courses of action.

Groupthink

• Factors that cause it:

1) The process of polarization

The tendency for group discussion to make beliefs and attitudes more extreme.

Groupthink

2) The cohesiveness of the members of the group.

Members of cohesive groups prefer to agree with one another and discourage dissent.

Some members should play as the “devil’s advocate,” to challenge the group thinking.

Groupthink

3) The size of the group

The effect is more in a larger group.

Groupthink

• Consequences:

1) The illusion of invulnerability

Groups may make risky decision

“Titanic will never sink”

2) Shared stereotypes

Negative attitude towards outsiders or competitor.

Groupthink

3) Illusion of group morality

The unquestioned belief that the group’s decisions will be moral and good keeps group members from considering possible negative/unethical consequences of decisions.

Groupthink

4) Direct pressure

Pressure members not to express arguments against group to reestablish feeling of harmony or sign of loyalty.

Groupthink

5) Self-censorshipDoubts regarding the group decision

are suppressed

6) Mind guardingMembers protect each other from any

information that might interfere with the cohesiveness of the group.

Groupthink

• EXAMPLES of bad decision as a result of Groupthink:

1) President Kennedy’s ill-fated decision to send Cuban expatriates to defeat in the Bay of Pigs invasion of Castro’s Cuba

2) NASA’s fatal decision in 1986 to launch the space shuttle Challenger.

Groupthink

• How to avoid?

1) Bring in outside experts with opinions that differs from the group.

2) Ask all members to be `critical evaluators’ who look at all sides of the problems.

Groupthink

3)To keep influencing the group, the leader should:

- keep personal opinions to self until everyone has expressed theirs.

- occasionally miss a meeting and allow someone else to lead.

Groupthink

4) Once a tentative solution has been reached, give members a “second chance” to rethink their choice and to openly express any doubts before agreeing to the final solution.

Online notes

• Everyone read the points to ponder page 2- 4.

• Do not ask someone else to make decision for you.

• Be brave and confident to make your own decision.