Chapter 9 Decision Making

1. Chapter 9Decision Making Lois Abbott, LaRonda Johnson, Evan Renner, Chase Huber, Ian Pennington

2. Learning Objectives • What are the main advantages and disadvantages in using groups to make decisions? • What factors produce team decisions that are superior to individual decisions? • How are consultative, democratic, and consensus decision making different? • What factors are useful for evaluating a decision-making approach? • How does the normative decision-making theory help teams make decisions? • What factors disrupt the ability of teams to make good decisions? • How do group polarization and groupthink affect a teams decision making process? • What are the benefits of and problems with structured decision making techniques, such as the nominal group technique? • How can teams improve their ability to achieve consensus decision making?

3. Value of Group Decision Making Advantages • Encourages people participation • More information • Greater acceptability • Degree of involvement

4. Value of Group Decision Making Disadvantages • Process loss • Individual domination • Compromise decisions • Expensive

5. Value of Group Decision Making Superior vs Individual Decisions • Team composition • Good communication • Need for to make decisions

6. “Plane Crash” Exercise

7. “Plane Crash” Exercise Objectives 1. Learn that a group may accomplish more than individual efforts. 2. Understand that good communication is important for a successful team. 3. Think about the different attitudes each individual on a successful team needs to have.

8. “Plane Crash” Exercise You and your companions have just survived the crash of a small plane. Both the pilot and co-pilot were killed in the crash. It is mid-January, and you are in Northern Canada. The daily temperature is 25 below zero, and the night time temperature is 40 below zero. There is snow on the ground, and the countryside is wooded with several creeks crossing the area. The nearest town is 20 miles away. You are all dressed in city clothes appropriate for a business meeting. Your group of survivors managed to salvage the following items:

9. “Plane Crash” Exercise A ball of steel wool A small ax A loaded .45-caliber pistol Can of Crisco shortening Newspapers (one per person) Cigarette lighter (without fluid) Extra shirt and pants for each survivor 20 x 20 ft. piece of heavy-duty canvas A sectional air map made of plastic One quart of 100-proof whiskey A compass Family-size chocolate bars (one per person)

10. Questions For Reflection • How were decisions made? • Who influenced the decisions and how? • How could better decisions have been made? • How was conflict managed? • How did people feel about the decisions? • What have you learned about the functioning of this group? • How would you do the activity differently if you were asked to do it again? • What situations at work/home/school do you think are like this exercise?

11. Approaches to Group Decision Making Leader Oriented Consultative: Leader consuls with team and then decides • Leader decides • Leader assigns expert to make the decision

12. Approaches to Group Decision Making Group Technique Democratic: Team votes, and majority rules • Team uses mathematical techniques (averages) • Team uses structured decision techniques

13. Approaches to Group Decision Making Full Participation Consensus: All team members participate and agree to accept the decision. • Team must discuss an issue until the final decision is agreed upon

14. Evaluating Group Decision Making Approaches • Quality • Speed • Acceptance

15. Normative Decision Making Theory • A leadership theory that can be used by teams to help select the best decision making approach • Based on the thought that the best type of decision making approach depends on the nature of the problem

16. Questions for Analyzing a Problem • Is a high-quality decision required? • Do I have enough information to make such a decision? • Is the problem structured? • It is crucial for implementation that subordinates accept the decision? • If I make the decision alone, is it likely my subordinates accept it? • Do subordinates share the goals that will be reached through the solution of problem? • Do subordinates disagree about the appropriate method for attaining goals so that conflict will result from the decision?

17. Decision Making Problems

18. Decision Making Problems • Disagreements • Impact of Emotions • Group Polarization • Groupthink

19. Decision Making Problems Disagreements • Premature closure • Too little disagreement • Substantial disagreements

20. Decision Making Problems Impact of Emotions • Positive emotions • Improve discussions • Negative emotions • Create problems

21. Decision Making Problems Group Polarization • Only occurs when the group has an initial tendency • Normative influences • Informative influences

22. Decision Making Problems Groupthink • Structural decision making flaws • Impairs the group decision making process • Group cohesiveness • Limits internal dissension • External pressure • Limits discussion time

23. Decision Making Problems Groupthink Symptoms • Belief in inherent morality of the group • Collective rationalization • Out-group stereotypes • Illusion of invulnerability • Direct pressure on dissenters • Illusion of unanimity • Mind guards

24. Decision Making Techniques Nominal Group Techniques • Can be used by any group of people Process: • Leader states the problem • People write down their solution • Each person publicly states his or her answers • People may ask non-critical questions regarding others’ positions • Participants rank solutions to rate their values • Group solution chosen by rank order – ex: Plane Crash Exercise

25. Decision Making Techniques Delphi Technique • Members of the group are selected because they are experts or they have relevant information Process: • Group members are given a survey containing several open-ended questions about the problem to be solved • Survey results are summarized and organized into a set of proposed solutions • Solutions sent to survey-takers, who are asked to comment • Process is repeated until group reaches an agreement on a solution

26. Decision Making Techniques Ringi Technique • Japanese technique used to avoid face-to-face confrontation when dealing with a decision Process: • A written document presenting the issues, it’s proposed resolution and supporting materials is developed and circulated anonymously • Group members individually write comments, edit the document, and forward it to other group members • After cycle is completed, document is re-written based on comments and re-circulated • Process continues until no further comments are written on the document

27. Decision Making Techniques Evaluation of Decision Making Techniques Pros: • Decisions made by these techniques can be as good as or better than those made by group discussion. • Research shows satisfaction with decisions made using these methods Cons: • Detached, impersonal techniques may reduce acceptance of and commitment to a decision. Not everyone sees socializing as a problem. • Political acceptability may not be as great as when the decision is made via group discussion.

28. Application: Consensus Decision Making • Are you willing to agree that this is what the team should do? • Can you go along with this positive position? • Can you support this alternative?

29. Guidelines to Help Reach Consensus • Avoid arguing for your own position without hearing others • Don’t change your position to reach a quick agreement by using conflict-reduction approaches, like voting or tossing a coin • Encourage others to explain other positions so that you can better understand any differences • Do not assume that someone must win or lose when there is a disagreement • Discuss the underlying assumptions and listen to one another • Look for creative and collaborative solution that allows both sides to win, rather than each side just gets a little piece of what they want

30. Thanks for Listening! Any questions?