Group Decision Making

1. Group Decision Making • Up to 40% of a manager’s time is spent in meetings • All meetings involve decision making

2. What Experienced “Problem Solvers” say ... • First four steps • Collect and analyze information and data • Talk with people familiar with the problem • If at all possible, view the problem firsthand • Confirm all findings • The next four steps • Determine if the problem should be solved • Continue to gather information, search literature • Form simple hypotheses and quickly test them • Brainstorm potential causes and solution alternatives

4. Group Decision Making • Advantages • More complete information (diversity of experience, perspectives) • Identify / generate more alternatives • Increases acceptance of solutions • Increases legitimacy (democratic ideals, regardless of legitimate power) • Tend to be more accurate / better • More effective

5. Group Decision Making • Disadvantages • Time consuming • Potential for imbalanced influence / contribution • “Group-think” (pressure to conform) • Undermines individual’s critical thought • Ambiguous responsibility • “Size” sensitive (5 - 7 is ideal) • Tend to be slower than individual decision making • Less efficient

6. Management Science model • Analogous to Rational Model • Clarity of problem • Problems are analyzable • Problems are well structured • Clarity of decision criteria • Identify relevant variables • Suited to large number of variables • Issues of complexity

7. Management Science model • Advantages / Disadvantages • Difficulties in incorporating appropriate criteria • The nature of the data used to arrive at a decision • High in “Quantity” • Low in “Richness”

8. Carnegie Model • Analogous to a “Behavioral Model” (applying bounded rationality) • Based upon uncertainty / ambiguity • Goals & Objectives • Frequently ambiguous or inconsistent • Creates disagreements about priorities • Managers intend to be rational • Constrained by cognitive capabilities • Seek to gather information - reduce ambiguity

9. Carnegie Model • Coalition formation • Facilitates prioritization • “satisficing” rather than optimization • Managers more concerned with short-run • Problemistic search • Immediate environment for solution that will quickly solve problem • Don’t expect “perfect solution • First satisfactory solution presented

10. Carnegie “process”

11. Incremental Process Model • Another “behavioral model” • Less emphasis on social factors • More emphasis on structured sequence of activities • Most decisions = nonprogrammed • Require “custom” solutions

12. Incremental Process Model • Major organizational choices • Series of small choices • Combining to produce major decision • “Nibbles” vs. “Bites” • Decision “Interrupts” • Barriers • Requires cycling back through previous decision • Trying something “new”

13. Incremental Process Model • Identification • Recognition • Diagnosis • Development • Search / Screen alternative solutions • Design custom solutions • Selection • Judgement / evaluation - choice • Analysis / evaluation • Bargaining / evaluation - choice • Authorization

15. Contingency framework • Goal Consensus • Agreement about goals and outcomes • Agreement Disagreement • If agree • Goals are clear • Standards of performance are clear • Tends to be related to diversity of business

16. Contingency framework • Technical knowledge • Understanding / agreement about “how” to reach organization’s goals • Ability to achieve acceptable solution • Goals = Effectiveness • Technical knowledge = Efficiency

19. Compromise Intuition

20. Conceptions of order • Reality • Capability of objective assessment • “Real” truth • Causality • Reality is a chain of causes and effects • Choices influence results • Intentionality • The results were intended • Decisions are instruments of purpose & Self

21. Models of intentional decision • Rational choice • Evaluating anticipated consequences • Used in non-programmed decisions • Learning • Evaluating past experiences • Used in both programmed & nonprogrammed • Matching identity to rule/proc./policy • “What kind of problem” is it? • Used in programmed decisions

22. Garbage Can model • Problem preference • Ambiguous • Unclear, poorly understood technology • Cause and effect relationships ambiguous • Turnover of participants • Limitations / dynamics of participation

23. Concept of temporal sorting • When events occur • Together • Events occurring together are associated with each other • Distant in time • Events distant in time are treated as distant in connections with each other

24. Importance of “Problems” • Problems to not appear in particular order • Problems are not inherently important or solvable • Number of choices attached • Concepts of: • Recency • Primacy • Urgency • Pressure Relate to Heuristics

25. Problem Resolution • Typically, NOT accomplished • Generally, “flight” or “oversight” is utilized • Resolution only occurs • When choice opportunity is attached • When system load (energy drains) are light

26. Possible Results • What problems get “solved?” • Oversight • Choice opportunity without problems attached • Problem resolution • Choice opportunity with problems attached • Flight • Problems and choice opportunities exceed available energy

27. Participants in “System • Reformers • Systematic (rational) • Optimistic, blind faith in consistency • Pragmatists • Exploit the system (self-serving) • Assumes everyone else is naïve • Enthusiasts • Encourage organization attention/flexibility • Overestimate tolerance for confusion

28. Assessing performance of decision “system” • Activity • Problems attached to choice solutions • Latency • Problems activated, but not linked to choices • Decision time • Time that choices remain unmade • Hard to improve all 3 simultaneously • Related to problem structure • Unstructured problems overload system