Group Decision Making

Summary

A survey reveals that 84% of companies use teams for special projects, and 74% for departmental issues and innovation. Group decision-making is favored for its potential to outperform individual decision-making on complex tasks, especially in problem definition and solution generation. However, pitfalls such as groupthink, time-consuming meetings, dominance by a few members, and a lack of accountability can hinder effective group decisions. Additionally, a quality bias may lead to overestimating the competence of group members.

Takeaways

• 👥 Teams are widely used by companies for special projects (84%) and departmental issues/innovation (74%).
• 🧠 Group decision-making is often superior to individual decision-making for complex tasks.
• 🔍 Groups excel at defining problems and generating alternative solutions during decision-making.
• ⚠️ Groupthink can occur when group members feel pressured to agree, limiting solutions and discussions.
• 🚪 Groupthink is more likely when the group is insulated, lacks diverse perspectives, or has no structured process.
• ⏳ Group decision-making can be time-consuming due to scheduling conflicts and unproductive meetings.
• 👑 Dominant individuals, such as the boss or strong-willed members, may control discussions, limiting ideas.
• 📉 Subject matter experts in groups can stifle discussions, as non-experts defer to their judgment.
• 👐 Group members may not feel personally accountable for decisions, unlike individual decision-making.
• ⚖️ An 'equality bias' can lead to underestimating highly competent members and overestimating less competent ones.

Q & A

What percentage of companies use teams for special projects according to the survey?

According to the survey, 84 percent of companies use teams for special projects.

Why do companies rely on groups for decision-making?

Companies rely on groups for decision-making because group decision-making, when done properly, can lead to better decisions than those made by individuals, especially on complex tasks.

What are the two important steps in the decision-making process where groups can outperform individuals?

Groups can outperform individuals in defining the problem and generating alternative solutions during the decision-making process.

What is groupthink and how does it affect decision-making?

Groupthink is a phenomenon in highly cohesive groups where members feel intense pressure to agree, leading to consideration of a limited number of solutions and poor decisions due to restricted discussion.

Under what conditions is groupthink more likely to occur?

Groupthink is likely to occur when the group is insulated from others with different perspectives, the group leader shows a strong preference for a decision, there's no established procedure for problem definition and exploration, and group members have similar backgrounds.

What are some common complaints about meetings and group decision-making?

Common complaints include unclear meeting purposes, underprepared participants, absence or tardiness of critical people, lack of focus in conversation, and no follow-up on decisions made.

How can the presence of subject matter experts in a group lead to a pitfall in decision-making?

The presence of subject matter experts can lead to a pitfall where they dominate discussions and limit the group's consideration of different problem definitions and alternative solutions, often resulting in poorer quality decisions.

Why might group members not feel accountable for the decisions made by the group?

Group members may not feel accountable for decisions because unlike individual decisions, there's a diffusion of responsibility within the group, leading to a reduced sense of personal responsibility.

What is the quality bias in group decision-making and how does it affect decision quality?

The quality bias is a tendency for individuals to treat all group members as equally competent. This can lead to highly competent individuals underestimating their abilities and less competent individuals overestimating theirs, potentially affecting the quality of group decisions.

How does the diversity of group members' backgrounds and experiences impact group decision-making?

Diverse backgrounds and experiences among group members can lead to a broader range of perspectives and solutions, potentially improving the quality of decisions. However, it can also lead to groupthink if not managed properly.

What steps can be taken to mitigate the negative effects of group decision-making highlighted in the script?

To mitigate negative effects, groups can establish clear meeting objectives, ensure all participants are well-prepared, involve critical members timely, maintain focus on the problem at hand, and follow up on decisions made. Additionally, fostering an environment that encourages open discussion and challenges to expert opinions can also help.