’’GROUP DECISION MAKING ’’

Presentation on project

topic

Presenter members:-

Rishi kumar vyas

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).

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

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

GROUP DECISION MAKING TECHNIQUES

i. BrainstormingThis 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.

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.

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.

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.

Social decision schemes

Social decision schemes are the methods used by a group to combine individual responses

to come up with a single group decision. There are a number of these schemes, but the

following are the most common:

DelegationAn individual, subgroup or external party makes the decision on behalf of the group. For

instance, in an "authority scheme", the leader makes the decision.

AveragingGroup member makes their own independent decision, later "averaged" to produce a decision

PluralityGroup members vote on their preferences, either privately or publicly. These votes are then

used to select a decision, either by simple majority, supermajority or other more or less

complicated voting system.

UnanimityA 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.

RandomThe group leaves the choice to chance. For example, flipping a coin.

DECISION MAKING IN CORPORATES

Individual Decision MakingDecision 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 MakingThere 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.

ConsultationConsultation 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.

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.

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.

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.

REFERENCES

http://en.wikipedia.org/wiki/Group_decision-making#Group_decision-making_in_psychologyhttps://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 fromhttps://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