Human resource development, organizational behaviour, group decision making
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UNIT II Group Decision Making
Meaning A choice between two or more then two alternatives is called decision. Decision making is the act of choosing one alternative from among a set of alternatives. We have to first decide that a decision has to be made and then secondly identify a set of feasible alternatives before we select one.
CHARACTERISTICS OF DECISION MAKING It is a process of choosing a course of action from among the alternative course of action. •It is a human process involving to a great extent the application of intellectual abilities. •It is the end process preceded by deliberation & reasoning. •It is always related to the environment. A manager may take one decision in a particular set of circumstances & another in a different set of circumstances.
It involves a time dimension & time lag. •It always has a purpose. Keeping this in mind, there may be a decision not to decide. •It involves all actions like defining the problem & probing & analyzing the various alternatives which take place before a final choice is made.
TYPES OF DECISIONS AND PROBLEMS Programmed Decisions: Programmed decisions are those that are repeated over time and for which an existing set of rules can be developed to guide the process. These decisions might simple, or they could be fairly complex, but the criteria that go into making the decision are all known or can at least be estimated with a reasonable degree of accuracy. Non-programmed Decisions: nonprogrammed decisions are novel, unstructured decisions that are generally based on criteria that are not well-defined. With nonprogrammed decisions, information is more likely to be ambiguous or incomplete, and the decision maker may need to exercise some thoughtful judgment and creative thinking to reach a good solution. These are also sometimes referred to as nonroutine decisions or as high-involvement decisions because they require greater involvement and thought on the part of the decision maker.
DECISION MAKING STEPS Identify the Problem: When making a decision a person first needs to identify and define the problem or conflict . Identify Decision Criteria: When a problem identified, the decision criteria important to resolving the problem must be identified. That is, managers must determine what is relevant in making decision.
Characteristics of Decision‐Making Decision making is a selection process • This is the End process • The application of intellectual abilities to a great extent • Decision gives happiness to the endeavor • A dynamic process 6 Decision making is situational • Decision is taken to achieve the objectives of an organization • Decision maker has the freedom to take a decision • Decision making involves the evaluation of available alternatives through critical appraisal methods
Decision-Making Models Rational decision-making model It has six steps: Define the problem Identify the criteria you will use to judge possible solutions Decide how important each criterion is Generate a list of possible alternatives Evaluate those alternatives Determine the best solution
The rational model counteracts a lot of the factors – like faulty assumptions – that can lead us to bad decisions. It can minimize risk and uncertainty. This model is also one you can use on your own or as part of a team. However, it's not the best model to use when you're under time constraints or in a fast-changing situation. It's also important to remember that you won't always have all the information you need to use this model. And, even if you do, going through the full process isn't efficient or necessary for some decisions
Simon’s Bounded rationality decision-making model You may have also heard this model called "satisficing." Satisficing: Choosing a solution that meets a minimum standard of acceptance Instead of rigorously seeking the best possible decision, you're just looking for a "good enough" decision. You can use bounded rationality when you don't have enough time or information to follow the full rational decision-making model. Sometimes it's better to have a good enough decision sooner vs. a "perfect" decision that's delayed. And it burns a lot less mental energy and other resources.
To help you deal with all the information you have to process and all the decisions you have to make in a day, your brain likes to take shortcuts Judgmental Heuristics Availability Heuristic: A decision maker’s tendency to base decisions on information that is readily available in memory. Representativeness Heuristic: The tendency to assess the likelihood of an event occurring based on one’s impressions about similar occurrences .
Objection handling decision making
The garbage can model- Cohen, D., March, J.G., & Olsen, J.P The garbage can model is an irrational model of decision-making, which assumes that problems, solutions and participants are disconnected and exist as separate organizational streams . Choice opportunities are initiated by the organization, but none or few problems may be solved in the process and then only by chance T he garbage-can theory (Cohen, March, and Olsen 1972) adds that an organization "is a collection of choices looking for problems, issues and feelings looking for decision situations in which they might be aired, solutions looking for issues to which they might be the answer, and decision makers looking for work“ https://www.youtube.com/watch?v=F7iPVDly4Fo
Individual performance and Group performances Individual-level performance draws upon those things you have to do in your job, or in-role performance , and those things that add value but which aren’t part of your formal job description. These “extras” are called extra-role performance or organizational citizenship behaviors (OCBs) . A group is a collection of individuals. Group-level performance focuses on both the outcomes and process of collections of individuals, or groups. Individuals can work on their own agendas in the context of a group.
DYSFUNCTIONS OF GROUPS Dysfunctions of groups refer to the negative functions of groups. These include the following four: Norm Violation Norm is the standard against which appropriateness of a behavior is judged. Thus, norms determine the behavior expected in a certain situation. By providing a basis for predicting others' behaviors, norms enable people to behave in a manner consistent with and acceptable to the group. Without norms, the activities of the group would be chaotic. Groups often tend to violate norms by displaying antisocial behavior, lying, sexual harassment, rumor mongering, etc
Role ambiguity Role ambiguity is a source of conflicts, low productivity and disengagement. Also, workers with unclear responsibilities will tend to underperform and to blame their lack of productivity on this apparent confusion. It is impossible to properly assess a person’s performance if the expected results are not established transparently since the individual starts working for the institution. Managers should be careful to promptly deal with employees that manifest confusion about their responsibilities and place within the organizational structure. An effective team understand what is expected of them and how the workflow is designed to accomplish the company’s overall goals.
Problems in Group decision making Group Think is a phenomenon of group think is related to norms. It describes situation in which group pressures forconformity deter the group from critically appraising unusual, minority, or unpopular views. Group think is disease that attacks many groups and can dramatically hinder their performance. It is the phenomenon that occurs when group members become so enamored of seeking concurrence; norm for consensus overrides the realistic appraisal of alternative courses of action and the full expression of deviant, minority or unpopular views. It describes deterioration in and individual's mental efficiency, reality testing, and moral judgment as a result of group pressures
Group shift Group shift refers to a condition where the position of an individual in the group changes to adopt a more extreme position due to the influence of the group. Risky shift occurs when people change their decisions or opinions to become more extreme and risky when acting as part of a group, compared with acting individually; this is one form of the phenomenon known as group polarization. The result is that group decisions are bolder and more adventurous than those made by individuals alone and even riskier than the average of the individuals’ opinions and decisions before group discussion.
However, sometimes people in groups shift such that the group decision is actually more conservative, which is known as cautious (or conservative) shift . The group’s initial tendency toward risk is important in predicting if risky shift will occur. The direction of the shift (to be more risky or more conservative) tends to be in line with the general direction of group initial viewpoints.
Advantages of Group Decision Making 1. You will receive more diversity in the availability of opinions. 2 . It promotes greater interest and participation from the rest of the team. 3. You’ll create more understanding and positivity within the team. 4. It creates an opportunity to create collective contributions. 6. It promotes the idea that collective thinking is an advantage. 7. Group decision making can increase the strength of an organization. 8. It is a process that allows a team to take advantage of a smart risk-taking opportunity .
Disadvantages of Group Decision Making 1. The group decision-making process can take a significant amount of time to complete 2. You can receive irrelevant opinions and ideas with the group decision-making process. 3. Some people refuse to share their perspectives during group decision making 4. Groups can have a different priority than what the decision requires. 5. The final choice can go against the outcomes of an organization. 6. Groups reduce the amount of accountability that occurs in the workplace. 7. It can result in an overuse of authority. 8. Group decision making can cause everyone to see themselves as a leader. 9. People in a group can decide to “go with the flow.”
Other issues
Cognitive Biases in Decision Making Cognitive biases can affect your decision-making skills, limit your problem-solving abilities, hamper your career success, damage the reliability of your memories, challenge your ability to respond in crisis situations, increase anxiety and depression, and impair your relationships Some of the biases can be: Confirmation bias, hindsight bias, self-serving bias, anchoring bias, availability bias, the framing effect, and inattentional blindness
Methods and techniques to improve DM Brain storming: Brainstorming is a popular group decision-making technique that is used for generating ideas . In brainstorming, the leader of the session presents a problem or question, clarifies the rules of the session and then the group offers ideas in a round-robin format. Ideas are written down so that every member can see them. Nominal group technique: The nominal group technique is a variation of brainstorming where individuals come up with ideas on their own rather than as a group . Once different ideas are established, they are evaluated, ranked, and agreed upon collectively. The top-ranked ideas are selected as the output of this process.
Delphi technique: The Delphi method is a process used to arrive at a group opinion or decision by surveying a panel of experts . Experts respond to several rounds of questionnaires, and the responses are aggregated and shared with the group after each round. Consensus mapping: Consensus decision making is a creative and dynamic way of reaching agreement between all members of a group. Instead of simply voting for an item and having the majority of the group getting their way, a group using consensus is committed to finding solutions that everyone actively supports, or at least can live with. This ensures that all opinions, ideas and concerns are taken into account. Through listening closely to each other, the group aims to come up with proposals that work for everyone.
Creative thinking Creative decision-making is the ability to consider all perspectives and solve a problem in a new way . It can establish new or better alternatives, offer a new method or even help discover a new product or service for a business to offer. Some of the types of creative thinking are: Negative brainstorming Brainwriting. Five W's and one H Random words Gallery method Storyboarding Roleplaying