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Chapter 3 - Group Decision Making

The document discusses various group decision making techniques used by managers including brainstorming, nominal group technique, Delphi technique, and electronic brainstorming. It explains the steps and advantages and disadvantages of each technique.

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AzwandiHarry
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27 views

Chapter 3 - Group Decision Making

The document discusses various group decision making techniques used by managers including brainstorming, nominal group technique, Delphi technique, and electronic brainstorming. It explains the steps and advantages and disadvantages of each technique.

Uploaded by

AzwandiHarry
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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SMG 604

GROUP DECISION MAKING


 Managers believe they are success in doing
group decision making , goal setting, problem
solving.
 Dynamics of group decision making.
 More than consensus, take decision by
authority.
 Minority rule or by majority rule.
 Formal groups are deliberately created by the
organization in order to help the
organizational members achieve some of the
important the organizational goals.
 The informal groups, in contrast, develop
rather spontaneously among an organization’s
members without any direction from the
organizational authorities.
Types of Informal Group:
 Interest Group
 Friendship Group
 Reference Group
The factors requiring group decisions
include:
 Involving sensitive issues
 High cost alternatives
 Involving very high risk factor
 Strategic impact
 More complete information and knowledge.
 Increased diversity of views.
 Increased acceptance of a solution.
 Increased legitimacy.
 Larger pool of information
 More perspectives and approaches
 Intellectual stimulation
 People understand the decision
 People are committed to the decision
 Time consuming.
 Pressures to conform and fit in.
 Domination by the few.
 Disagreements may delay decisions and cause
hard feelings.
 One person dominates
 Satisfactory
 Group think
 Goal displacement
 Creativity:is the ability of the decision maker
to discover novel ideas leading to a feasible
course of action.

 A creative management staff and employees are


the key to the learning organization.
 Organizations can build an environment supportive
of creativity.
 Many of these issues are the same as for the learning
organization.
 Managers must provide employees with the ability to take
risks.
 If people take risks, they will occasionally fail.
 Thus,
to build creativity, periodic failures must be
rewarded.
 This idea is hard to accept for some managers.
 Innovation
 The implementation of a new idea
 Product innovation (new things)
 Process innovation (new way of doing things)
 Creativity
 A way of thinking that generates new ideas
 The Creative Process
 Preparation
 Incubation and illumination
 Evaluation

Copyright © 2006 Thomson Business and Economics. All


rights reserved. 4–10
Become familiar with the problem;
generate as many solutions as possible.

Take some time before working on the


problem again to gain additional insight.

Before implementing the solution,


evaluate the alternative to be sure it is
practical.
managers meet face-to-face to
 Brainstorming:
generate and debate many alternatives.
 Group members are not allowed to evaluate
alternatives until all alternatives are listed.
 Be creative and radical in stating alternatives.

 When all are listed, then the pros and cons of


each are discussed and a short list created.

 Productionblocking is a potential problem with


brainstorming.
 Members cannot absorb all information being
presented during the session and can forget their own
alternatives.
 Nominal Group Technique: Provides a more
structured way to generate alternatives in
writing.
 Avoids the production blocking problem.
 Similar to brainstorming except that each
member is given time to first write down all
alternatives he or she would suggest.
 Alternatives are then read aloud without
discussion until all have been listed.
 Then discussion occurs and alternatives are
ranked.
 Restricts
discussion or the interpersonal
communication during decision making.
 Members operate independently.

Steps in Nominal group technique.


 Each member independently writes down his
or her ideas on the problem.
 Each member presents one idea to the group.
 Group discusses the ideas for clarity and
evaluates them.
 Ranks the ideas. Final decision is based on
highest rank.
 DelphiTechnique: provides for a written
format without having all managers meet
face-to-face.
 Problem is distributed in written form to
managers who then generate written
alternatives.
 Responses are received and summarized by top
managers.
 These results are sent back to participants for
feedback, and ranking.
 The process continues until consensus is reached.

 Delphi allows distant managers to participate.


Steps in Delphi technique.
 Problem is identified and members are asked to
provide solutions through questionnaires.
 Each
member anonymously and independently
completes the first questionnaire.
 Resultsare compiled at a central location,
transcribed and produced.
 Each member receives a copy of the results.
 Members are again asked for the solutions.
 Steps are repeated until a consensus is reached.
 Blends the nominal group technique with sophiscated
computer technology.
 Participants type their responses on the computer
screen.

 Advantages:
 Participants can anonymously type any message they
want and it flashes on the screen.
 It allows people to be brutally honest without
penalty.
 It is fast because discussions don't go off the point
and many participants can "talk“ at once.
 Disadvantages:
 Those who can type fast can outshine
those who are verbally eloquent but poor
typists;
 Those with the best ideas don't get credit
for them.
 The process lacks the information
richness of face-to-face oral
communication.
 The process of generating novel alternatives
through role playing and fantasizing.

 The process of generating novel alternatives


through role playing and fantasizing.
 Before choosing a group decision making technique,
the manager carefully evaluates the group members
and decision situation.
 Then the best method for accomplishing the
objectives of the group decision making process can
be selected.

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