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Decision Making

Decision Making. Magnificent Seven. Decision making is like solving a puzzle. It is not complete unless you have all pieces. Consensus. Most group decisions in America are made by reaching consensus Decision is better than those reached alone People feel good and closer to team members

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Decision Making

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  1. Decision Making Magnificent Seven

  2. Decision making is like solving a puzzle It is not complete unless you have all pieces

  3. Consensus • Most group decisions in America are made by reaching consensus • Decision is better than those reached alone • People feel good and closer to team members • People feel invested in decision • Greater acceptance of group decision

  4. Consensus negatives • Groupthink: Why is it dangerous? • Little critical testing, analyzing, and evaluating of ideas • Research shows decision is of lower quality • Quiet members may feel disenfranchised

  5. Benchmarks of good decision-making process Clear objectives 100% Data collection & analysis BATNA 100% 100% Framing and Reference Points 100% 100% Evaluation 100% From: “Advances in Decision Analysis”, W. Edwards, R. Miles, and D. von Winterfeldt, Cambridge University Press, 1999. Implementation

  6. Devil’s Advocacy & Dialectical Inquiry • Devil’s Advocacy • One person proposes a plan, one person takes role of adverse critic

  7. Dialectical Inquiry • Dialectical Inquiry • Two groups: proposal and counter-proposal

  8. Benefits of DA/DI More rigorous Higher quality decision Questions underlying assumptions Can be speedier than consensus

  9. Negatives of DA/DI Needs to be learned Can be hard to implement when buy-in tends to be lower Can increase conflict

  10. Healthy environment for decision making • High cognitive dissonance • Not being afraid to disagree on the content • Low affective dissonance • Find ways to reduce personal conflict

  11. Institution Level: Nature of the decision

  12. If we are all in agreement on the decision - then I propose we postpone further discussion of this matter until our next meeting to give ourselves time to develop disagreement and perhaps gain some understanding of what the decision is all about. Alfred P. Sloan

  13. Magnificent Seven team • Susan Borges • Kristen Deren • Jennifer Gilmore • Jim Jepsen • Nina Joshi • Michael Soulios • Mariya Stoeva

  14. References • Amason, A. C., & Sapienza, H. J. (1997). The Effects of Top Management Team Size and interaction Norms on Cognitive and Affective Conflict. Journal of Management , 495-516. • Berniker, E., & McNabb, D. E. (2006). Dialectical Inquiry: A Structured Qualitative Research Method. The Qualitative Report , 643-664. • Dialectical Approaches. (2006, April 16). Retrieved May 03, 2009, from Creativity & Innovation: Mycoted Science & Technology: www.mycoted.com/Dialectical_Approaches • Frederic, A., & Humphreys, P. (2008). Encyclopedia of Decision Making and Decision Support Technologies. Idea Group, Inc. • Groupthink. (2009, September 06). Retrieved May 03, 2009, from University of Twente: Enschede - The Netherlands: http://www.tcw.utwente.nl/theorieenoverzicht/Theory%20clusters/Organizational%20Communication/groupthink.doc/ • Milkman, K. L., Chugh, D., & Bazerman, M. H. (2008). How Can Decision Making Be Improved? • Schweiger, D. M., Sandberg, W. R., & Ragan, J. W. (1986). Group Approaches for Improving Strategic Decision Making: A Comparitive Analysis Of Analysis of Dialectical Inquiry, Devil's Advocacy, and Consensus. Academy of Management Journal , 51-71. • Simons, T. L., & Peterson, R. S. (2000). Task Conflict and Relationship Conflict in Top Management Teams: The Pivotal Role of Intragroup Trust. Journal of Applied Psychology , 102-111.

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