MGMT-UB 1 Lecture Notes - Lecture 10: Reference Class Problem, Patientslikeme, Wisdom Of The Crowd
11 May 2016
School
Department
Course
Professor
Document Summary
Groups outperform individuals on a wide range of problems. The performance of the group is generally better than the arithmetic average of its members. As the demonstrability of the task increases, group performance generally increases over that of individuals. The potential of groups is higher than the potential of the avg individual. Group potential is often not realized or fulfilled. Groups can end up making worse decisions than the avg individual. How to improve the group decision-making process. New product development choice: anonymous vote vs. team discussion/decision. Normative: how x should be chosen/judged in optimal/rational conditions. Problem i: first is the best fallacy. Information is often not shared because teams decide on the first acceptable alternative rather than looking for the best alternative. Why: confirmation bias, dont want to create unnecessary conflict. The tendency of group members to conform to the consensus viewpoint in group decision-making. Need to fit in (especially earlier in tenure)
