DECISION-MAKING IN GROUPS

MAGC 206 LESSON D (FINALS)

 GROUPS are more effective decision makers than
individuals, particularly when dealing with problems that
have a known solution (INTELLECTIVE TASKS)
rather than problems that have no clear
right or wrong answer (JUDGMENTAL TASKS).
 A FUNCTIONAL THEORY OF GROUP DECISION-MAKING
1. ORIENTATION STAGE
- the group identifies the problem to be solved and plans
the process to be used in reaching the decision
(Shared Mental Model)

2. DISCUSSION STAGE
- the group gathers information about the situation,
identifies and weighs options, and tests its assumptions
(Collective Information Processing Model)
3. DECISION STAGE
- the group relies on an implicit or explicit SOCIAL DECISION scheme
to combine individual preferences into a collective decision (Common
Schemes – delegating schemes, statisticized decisions (let each one
select one priority to find out which ranked 1st) , plurality decisions (majority
or 50%+1), unanimous decisions and random decisions (settle with what
seem to be the best possible choice)

4. IMPLEMENTATION STAGE
- the group carries out the decision
and assesses its impact
Who decides – INDIVIDUALS or GROUPS
• Normative Model of Decision-Making
- suggests that different types of situations call for different types
of decision-making methods
Basic Types:
Autocratic I (A1)
- the leader solves/decides on the problem
Autocratic II (AII)
- the leader obtains necessary information from members
then come up with decisions; consults but members are
not aware of the problematic situation
*AI & AII – management decisions
Consultative I (CI)
- getting members’ opinions/their side one by one, but not
bringing them together, then decision is made by the leader
Consultative II (CII)
- leader discusses with the members, collectively get their
ideas, but decision is still from the leader
Group II (GII)
- there is discussion of problem; they devise alternatives;
leader does not influence members’ decision
• Unstructured Problem Rule
- no clarity about the problem
- do not use AI, AII, CI

• Acceptance Rule
- everybody must accept your decision
- use CI and CII or GII
DECISION-MAKING CONSTRAINTS
• Cognitive Constraints
= occur when group members fail to consider all relevant
information because they don’t have access to it, don’t have
the ability to understand it, or don’t have time to consider it e.g. don’t have the luxury of time
• Affiliative Constraints
= happen when members do not share information or concerns
because of worries about impairing relationships with other
group members e.g. give up saying “no” or “yes” to avoid hurting the others
• Egocentric Constraints
= evident when some group members suppress the input of
others and push their own agenda
GROUPS AS COLLECTIVE INFORMATION PROCESSORS
• Collective Information-Processing Model
= each member is an informational resource to the group and
it is through discussion that these resources are shared; the
more unshared information that the groups pool, the better
their decision will be
- solve problem with egocentric constraints
- pool unshared information
--- talk to all and get enough information
• How to enhance the pool?
1. Brainstorming
2. Group Support Systems
3. Nominal Group Technique
= brainstorm individually, then come together to pool ideas
- silent generation of ideas
- serial discussion
- voting
- plurality of decision

4. Delphi Technique
= a way to collect/ synthesize the ideas of the
group/ experts through written communications
GROUPS AS IMPERFECT DECISION MAKERS
• Group Discussion Pitfalls
1. Procastination
2. Bolstering
3. Avoiding Responsibility – delegating
4. Ignoring Alternatives
5. Satisficing – content with any alternative that meets minimal result
6. Trivializing the Discussion – focusing on minor issues

• Shared Information Bias

• Cognitive Limitations
3 Categories of Potential Bias
1. Sins of Commission
- information is available but not used properly
2. Sins of Omission
- members who have the information wouldn’t like to share
e.g. those in low position have the idea or confirmation but are not heard
3. Heuristics
- relevance on things that have been proven/ tested or already in place
• Group Polarization
= following group discussion, members’ attitudes and opinions
tend to shift in the direction already favored by the group,
leading the group to agree on a position that is more extreme
than the average opinion of its members
= “Risky Shift Phenomenon”
- tend to believe more what the group would believe in as
a group than as individuals/ individually
e.g. one at first didn’t agree in gambling but when with the group,
tend to agree with them (shift to what the group believes in)
*The problem --- when the decision/ action of the group or what the group wants to undertake is riskier
FACTORS CONTRIBUTORY TO GROUP POLARIZATION
• Persuasive Arguments Explanation
= suggests that in the course of discussion, our pre-existing
opinions are strengthened as we hear additional arguments
offered by others

• Social Comparison Explanation

= suggests that we want to be liked and accepted in the
group, so we adjust our position to fit the group sentiment
and take our position a step further so that we can be better
than the average
• Social Identity Theorists
= add that when identification with the group is strong,
other group members are seen as valid sources of
information, and members are more likely to move
in the direction of what appears to be a shared
group norm
GROUPTHINK : A Worst-case Scenario
• Groupthink
= describe the defective decision making that arises in a
cohesive group when premature consensus seeking
leads members to quickly seize upon a proposed solution
before they have fully reviewed alternative courses of action
• Antecedents of Groupthink
1. Cohesiveness
2. A Provocative Situational Context --- there is pressure to do decision now
3. Structural Faults of the Group --- lack of impartial leadership, lack of methodological norms
for decision making and insulation or takes information from outside experts
• of Groupthink
= Overestimation of the power and morality of the group
= Closed-mindedness
= Underestimation of competitors or enemies
= Self-appointed mind guards
– mind-guards --- any source of information that is not within the group is blocked

• of Groupthink
= Poor information search
= Biased processing of available information
= An incomplete survey of alternatives
= Failure to critically examine preferred choice
= Failure to have a back-up plan
DECISION STYLES & GROUP DECISION
• Normative Decision Model = LEADERS should use one of the decision styles, depending on Three
Situational Factors: DECISION QUALITY, DECISION ACCEPTANCE, and TIME
• Group members may have different DECISION STYLES
1. Directive Style
– to make decisions quickly without considering many alternatives
2. Analytical Style
– carefully consider a range of alternatives after collecting detailed data
3. Conceptual Style
– like to consider new and unusual ideas and focus on the “big picture”
4. Behavioral Style
– like to make decisions in a group and are concerned with how their
fellow group members feel and what is good for the organization
19