Title: 11.5 Decision Making in Groups – Principles of Management
Headings: 11.5 Decision Making in Groups
11.5 Decision Making in Groups
Learning Objectives
When It Comes to Decision Making, Are Two Heads Better Than One?
Groupthink
Recommendations for Avoiding Groupthink
Groups Should:
Individuals Should:
Group Leaders Should:
Tools and Techniques for Making Better Decisions
Key Takeaway
Exercises
References

Content: Finally, when the decision is made by a group rather than a single individual, implementation of the decision will be easier because group members will be invested in the decision. If the group is diverse, better decisions may be made because different group members may have different ideas based on their background and experiences. Research shows that for top management teams, groups that debate issues and that are diverse make decisions that are more comprehensive and better for the bottom line in terms of profitability and sales (Simons, et. al., 1999). Despite its popularity within organizations, group decision making suffers from a number of disadvantages. We know that groups rarely outperform their best member (Miner, 1984). While groups have the potential to arrive at an effective decision, they often suffer from process losses. For example, groups may suffer from coordination problems. Anyone who has worked with a team of individuals on a project can attest to the difficulty of coordinating members’ work or even coordinating everyone’s presence in a team meeting.