GROUP DECISION MAKING

Rakesh Shrestha EM-09-11, HIST

GROUP DECISION MAKING

Why

groups can make higher quality decisions? When to use a group? Vroom-Yetton Model Importance of Quality Decision Making Advantages and disadvantages of Group Decision Making Techniques of Group Decision making

WHY GROUPS CAN MAKE HIGHER QUALITY DECISIONS?

According

to Gary John, there are three assumptions that form basis of this argument: Groups are move vigilant than individuals Groups can generate more ideas & develop more alternative solutions than individuals Groups can evaluate ideas better than individuals When to use a Group?

Two criteria Quality of the decision Acceptability of the decision

THE VROOM YETTEN MODEL

Model is used for deciding whether to use a group for decision-making purposes? Divide the decision making into 5 styles ranging from individualized decision making by the manager on one extreme to Totally participative decision making at the other extreme. This model considers the style of decision making as follows: A Stands for autocratic C Stands for Consultative G stands for Group

THE VROOM YETTON MODEL

1.

These styles are explained as below: A Autocratic Style

2.

3.

A1 : The manager unilaterally makes the decision and his decision is based upon whatever information and facts are available to him A2 : The manager makes the decision himself but gets all the information needed personally from his subordinates. C Consultative Style C1 : Consult the subordinate who are expected to be involved with the outcome of the decision making C2 : Meet subordinates in a group G Group Style G2 : Participative style

IMPORTANCE OF QUALITY OF DECISION

The quality of the decision is important, and the same may be either made by the manager himself or by the group. The same may be in the following scenarios : The extent to which the manager possess the information and expertise to make a high quality decision The extent to which the subordinates have the necessary information to assist in generating a high quality decision The extent to which problem is structured The probability that a managers decision will be accepted by the subordinates The extent to which the subordinates would go to attain organizational goals The extent to which acceptance on the part of subordinates is critical to the effective implementation of the decision The extent to which the subordinates are likely to disagree over preferred solutions

Advantages of group decision making Groups members may have different specialities Implementation of decision may be more effective Eliminates biases Builds up foundations as a training ground Democratic in nature Disadvantages of Group Decision Making Time consuming Social pressure Own interests to protect May not be in accord with the goals and objectives of the organization Groupthink

TECHNIQUES OF GROUP DECISION-MAKING

Brainstorming Delphi Technique Nominal technique Fishbowling Didactic Interaction

BRAINSTORMING

Brainstorming technique involves a group of people, usually between five and ten, sitting around a table in classroom setting, generating ideas in the form of free association. The primary focus is on generation of ideas, rather than on evaluation of ideas, the idea being that if a large number of ideas can be generated, then it is likely that there will be unique and creative solution among them. The rules to be followed in the process of brainstorming are explained by leader and include the following: No judgments are to be made on these ideas when they are generated. No idea is to be criticized or evaluated in any way until all ideas have been considered. Welcome wild ideas, no matter how absurd they might seem. The ideas that are too wild and unfeasible can always be discarded later. Strive for quantity and not quality. Each participant is encouraged to improve or modify other participants suggestions.

FISH-BOWLING

This is a variation of the brainstorming, but is more structured and is to the point. The decision making group of experts is seated around in a circle with a single chair in the centre if the circle. One member of the group is invited to sit in the centre chair and gives his views about the problem and his proposition of solution in discussion. The other group members can ask him questions but no cross talk is allowed. Once the member finished and his viewpoint is fully understood, he leaves the center and joins the group in the circle.

Exchange between the center chair and the group members continues until the chair is vacated. All exchanges must be between the center and the group and no two group members are allowed to talk directly.
This technique results in each member favoring a particular course of action, since all members are acting upon the same database and also since each idea offered by the central members is thoroughly questioned and examined. After all the experts have expressed their views, the entire group discusses the various alternatives suggested and pick the one with consensus.

DIDACTIC INTERACTION

This technique is applicable only in certain situations, but is an excellent method when such a situation exists. The type of problem should result into a yes-no solution. There are two group, one favouring yes and other favouring no. The first group will list all the pros of the problem solution and the second group will list all the cons. These two groups meet and discuss their findings and their reasons. After an exhaustive discussions, the groups switch sides and try to find weaknesses in their own original viewpoints. This interchange of ideas and tolerance and understanding of opposing viewpoints results in mutual acceptance of facts as they exist so that a solution can be built around these facts and opinions relating to these facts and thus a final decision is reached.

THANK YOU!