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MGHB02H3 (269)
Chapter 11

Chapter 11 Decision Making

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Department
Management (MGH)
Course
MGHB02H3
Professor
Julie Mc Carthy
Semester
Summer

Description
MGTB29 Chapter 11 Decision Making p.389-398 Group Decision Making p.389-394 - many problems solved by grps when ill-structured Why Use Groups? Decision Quality – higher quality b/c: 1. Grps more vigilant than indivs with more ppl scanning environment 2. Generate more ideas 3. Evaluate ideas better Vigilance: - problem some miss identiified by other grp members Alternatives: - diverse backgrounds and experiences bring diff perspectives - someone remembers others have forgotten Evaluate: - advantage of checks and balances - extreme position or incorrect notion held by one member offset by pooled judgments of rest of grp Decision Acceptance and Commitment – decisions made more acceptable b/c: • Ppl wish to be involved in decisions affecting them • Ppl better understand decision in which they participated • Committed to decision which invested personal time and energy - acceptability useful in getting decision implemented Diffusion of Responsibility Diffusion of responsibility: ability of grp members to share burden of negative consequences of poor decision - no one person singled out for punishment www.notesolution.com - indiv members abandon ship and exhibit biased hindsight Do Grps Actually Make Higher Quality Decisions? Grps should perform better when: Grp members differ in relevant skills and abilities, as long as diff doesn’t cause conflict Division of labour occurs Memory for facts important issue Indiv judgments combined by weighting them to reflect various expertise of various members Disadvantages of Grp Decision Making Time - seldom work quickly or efficiently compared with indivs - process loss in discussion, debate, coordination - time problem increases with grp size - if speed of solving problem a factor, organizations should avoid grps Conflict - participants have personal axes to grind or resources to protect - decision quality backseat to political wrangling and infighting - compromise b/w extreme pts might not result in highest quality or most creative decision Domination - meetings dominated by single indiv or small coalition - style does not lead to acceptance and commitment - grp decision ineffective if dominant misinformed Groupthink Groupthink: capacity for grp pressure to damage mental efficiency, reality testing, and moral judgment of decision-making grps - unanimous acceptance of decisions stressed over quality of decisions www.notesolution.com Reasons for Groupthink: • High grp cohesiveness • Strong identification with group • Concern for approval • Isolation from information sources • Promotion of decision by grp leader (strongest cause) Groupthink symptoms: • Illusion of invulnerability – overconfident, risk taking, ignore danger signals • Rationalization – counterarguments rationalized away, logical but improbable excuses given • Illusion of morality – decision perceived sensible and morally correct • Stereotypes of outsiders – unfavourable stereotypes of outside who are targets of decisions • Pressure for conformity – falling in line and conforming with grp views • Self-censorship – convince themselves avoid voicing opinions contrary • Illusion of unanimity – perceive unanimous support exists for chosen action • Mindguards – protect grp from info going against decisions - atmosphere of unreality leading to low-quality decisions - leaders must avoid exerting undue pressure for particular outcome and concentrate on good processes - leaders must establish norms that encourage and reward responsible dissent - outside experts should be brought in to challenge grp views How Do Grps Handle Risk? - argued sometimes grps make riskier decisions b/c security in numbers - diffusion of responsibility encourages taking greater chances - argued cautious with members checking and balancing each other that conservative outcome occurs www.notesolution.com Risky Shift: tendency for grps to make riskier decisions than avg risk initially advocated by indiv members Conservative Shifts: tendency for grps to make less risky decisions than avg risk advocated by indiv members - kind o
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