Group decision making aims to pool diverse expertise to coordinate actions for a common goal. The decision making process involves defining the problem, identifying criteria, gathering and evaluating data, listing and evaluating alternatives, selecting the best alternative, and implementing and following up. Groups tend to make satisfactory rather than optimal decisions due to limitations in time, resources, and information. Effective teams share goals, believe in collective productivity, have important contributions from all members, and supportive leadership.

1. Group Decision Making

2. Need for group decisions
 To pool diverse expertise in order to coordinate the actions
of all for a common goal
 Decisions made by groups are superior to the decisions made
by individuals
 Groups outperfom individuals

3. Decision-Making Process
Define the Problem
Decisions: Choices of actions
from among multiple feasible
Identify Criteria alternatives
• Define the problem
Gather and Evaluate Data – Gaps between where we are
today and where we would like to
be tomorrow
• Identify the criteria
– What information is needed in
order to evaluate alternatives?
• Gather and evaluate data
– Collect information relevant to
the criteria and potential
alternatives

4. Decision-Making Process
Define the Problem
Decisions: Choices of actions
from among multiple feasible
Identify Criteria alternatives
• List and evaluate alternatives
Gather and Evaluate Data – Develop an complete list of
possible solutions to the
problem (few constraints)
– Assess each alternative using
List and Evaluate Alternatives each criterion from step 2
• Select best alternative
– Choose the one which satisfies
Select Best Alternative the criteria the best
• Implement and follow up
– Monitor the results
Implement and Follow Up

5. Optimal versus Satisfactory Decisions
 Optimal decision
 The maximizing decision, yielding the absolute best result
 Satisficing decision
 Satisfactory rather than optimal decision
 Lack capability to collect and process all of the information relevant for a
particular decision
 Will never know if all possible alternatives have been identified
 Lack of time and other necessary resources for completing all of the decision
activities
 Thus, a tendency to choose the first satisfactory alternative discovered

6. Decision-Making Styles
 Individual’s predispositions can affect decision process at two
critical stages
 Gathering (Perceiving) of information
 Sensing style
 Intuition style
 Evaluating (Judging) of alternatives
 Thinking style
 Feeling style

7. Define the Problem
Decision-Making Styles
Identify Criteria
Sensing Intuition
Perceptual
Influences
Gather and
Evaluate Data Using the five Using abstractions
senses to identify and describing the
Feedback
factual details “big picture”
Develop and
Evaluate List of Thinking Feeling
Perceptual
Influences
Alternatives
Using objective Using subjective
Choose Best analysis and values with emotional
Alternative rational procedures and personal factors
Implement and
Follow Up

8. Degree of Acceptable Risk
 Risk exists when the outcome of a chosen course of action is
not certain
 Risk-taking propensity (Willingness to take chances)
 Low risk takers
 May collect and evaluate more information
 May become paralyzed by trying to obtain and consider too much
information
 High risk takers
 May may decisions based on too little information
 May jump to decisions too quickly

9. Why do groups make
bad decision?
 Information sharing biases
 Risky shift phenomenon
 Social loafing
 Conformity

10. Team Building

11. Types of Team
 Recommender Teams: those that recommend things –
task forces or project groups
 Doer Teams: those that make or do things – manufacturing,
operations, or marketing groups
 Managing Teams: those that run things – groups that
oversee some significant functional activity

12. Types of Team
 Recommender Teams are often part-time; great for
reviewing work but can lack a “team engine” for getting detailed
work done
 Managing Teams are often staffed with senior executives
who have serious time management challenges and are unlikely to
engage with traditional team communication
 Doer teams are great for doing things but their networks
may be limited to their own functional areas which can blind them
to some innovation and cross-functional opportunities

13. Types of Team
 Task Force - a temporary team assembled to investigate a
specific issue or problem
 Problem Solving Team - a temporary team assembled to
solve a specific problem
 Product Design Team - a temporary team assembled to
design a new product or service
 Committee - a temporary or permanent group of people
assembled to act upon some matter

14. Types of Team
 Work Group - a permanent group of workers who receive
direction from a designated leader
 Work Team (Self-Directed Work Team) - an ongoing group of
workers who share a common mission who collectively manage
their own affairs within predetermined boundaries
 Quality Circle - a group of workers from the same functional
area who meet regularly to uncover and solve work-related
problems and seek work improvement opportunities

15. Stages of Team Development

16. Team Development Stages
PERFORMING
NORMING
STORMING
FORMING

17. Forming Stage
Becoming Acquainted and Organized

18. Forming Stage
Feelings of . . .
 Excitement
 Suspicion
 Fear
 Anticipation
 Optimism
 Anxiety

19. Storming Stage
Clarifying project needs and goals

20. Storming Stage
Feelings of . . .
 Resistance to the task
 Uncertainty about the team’s success
 Impatience
 Hostility
 Discomfort

21. Norming Stage
Determining solution methods

22. Norming Stage
Feelings of . . .
 Safety and security
 Acceptance
 Relief
 Renewed Energy

23. Performing Stage
Implementing the project

24. Performing Stage
Feelings of . . .
 Satisfaction
 Pride
 Excitement

25. Adjourning
Feelings of . . .
 Satisfaction
 Completion
 Excitement
 Sadness

26. Team Development Stages

27. Team Effectiveness

28. Team Effectiveness Model
 Goals
 Roles
 Procedures
 Relationships
 Leadership

29. Effectiveness in Teams
Team members . . .
 Share the same goal. The team works together to accomplish a
common aim
 Believe they are more productive working together than by
themselves
 Each feel that he or she has an important contribution to make to
the team
 Are supportive of one another
 Have a good “coach” or leader who provides
direction and guidance

30. Effective Individual
Productivity
Team
Personal
Innovation Follow up
Self
Measurement Discipline
Critical Personal
Events Conduct
Momentum Atmosphere
Coordination Synergy
Team
Productivity

31. Punctuated Equilibrium Model
 Explains temporary group with deadlines. These temporary
groups go through transitions between inertia and activity

32. Punctuated Equilibrium Model

33. Sequence of Actions
1. Setting group direction
2. First phase of inertia
3. Half-way point transition
4. Major changes
5. Second phase of inertia
6. Accelerated activities

34. Requirements
 Common purpose or goals or objectives
 Awareness of membership and commitment
 Common operating norms
 A need for each other/interdependence
 Accountability to a higher level

35. Components of an effective team
 Positive corporate culture
 Give recognition
 Outstanding performance
 Continued performance
 Improved performance
 Positive feedback
 Provide new opportunities

36. Team Creativity

37. Team Creativity
 Creativity skills contribute to teams working smarter and
exceeding their previous levels of performance

38. Team Creativity
 Brainstorming
 Nominal group technique
 Structured team interaction
 Scenario Planning
 “Surprise free” scenario
 Continuation of the present
 Worst possible events
 “One plus two” formula
 Working backwards

39. Characteristics of Team Creativity
 Preparation
 Challenging individuals
 Maximizing participation
 Structured presentation
 Supportive climate

40. Technique for Team Creativity
 Brainstorming
 Reverse brainstorming