Groups & Decision Making - Session 10
Groups & Decision Making - Session 10
1
What are groups?
Two or more individuals interacting, are interdependent,
and have come together to achieve a particular objective
Groups
Formal Informal
1. Command 1. Interest
2. Task 2. Friendship
2
Why people join groups?
1. Security
2. Status
3. Self-esteem
4. Affiliation
5. Power
6. Goal achievement
3
Individual Behavior in Groups
• Let’s clap
4
Individual Behavior in Groups
5
Processes that affect members in a group
• Conformity
– Type of social influence in which individuals change their
attitudes or behavior in order to adhere to
– Asch’s conformity experiment (1951, 1955)
– With respect to conformity – cohesiveness – is the degree of
attraction felt by an individual towards an influencing group
• Compliance
– A form of social influence involving direct request from one
member to another
• Obedience
– A form of social influence in which one member simply orders
one or more members to perform some actions
– Milgram’s experiment (1965)
6
Aspects of the group that affect its members
• Role
– sets of behaviors that individuals occupying specific positions within
a group are expected to perform (leader, deviant, follower, Secretary,
Treasurer)
• Status
– position or rank within a group (nominal, figurative, real, king-maker)
• Norms
– rules within a group indicating how its members should or should
not behave (ends justify means)
• Cohesiveness
– all forces (factors) that cause group members to remain in the group
(brand, type of work ‘innovation’)
• Weaknesses
– Time consuming
– Conformity pressures
– Dominated by one or few members
– Ambiguous responsibility
8
Primary inhibitors of efficient group decision making
• Groupthink
– When norm of consensus overrides the realistic appraisal of alternative
courses of action,
– and full expression of deviant, minority, or unpopular views
• Groupshift
– When a discussion leads members towards extremes
– Conservatives: CAUTIOUS, Aggressive: RISKY
– Due to: Comfort, Diffusion of responsibility
9
Traps in Decision Making
1. Anchoring
2. Status Quo
3. Sunk Cost
4. Confirming Evidence
5. Framing
6. Estimating and forecasting
10
How perception influences individual decision
making
• It’s ironical that,
– on one hand, our cognitive abilities are impressive in many
respects;
– on the other hand, we are prone to errors that frequently prevent
us from recognizing even relatively simple solutions
• Hence, even intelligent and highly trained people are not
immune to errors that affect their ability to think and
reason effectively
– It might be that, because of n number of constrains imposed by
the situation, people might miss out on some very relevant
perspectives
Methods of Problem Solving
15
• Generally most decisions in the real world do not follow a rational model
For instance, individuals are usually content to find an acceptable or
reasonable solution rather than an optimal one
Because the capacity of the human mind in formulating and solving
complex problems is far too small to meet the requirements of full
rationality, individuals therefore operate within the confines of bounded
rationality
16
Obstacles to Problem Solving
Common Biases and Errors
• Belief Perseverance
The tendency to cling to beliefs even after they have
been discredited
• Mental Set
A tendency to approach a problem in a particular way,
especially if that way was successful in the past
• Gamblers’ Fallacy – the belief that if an event hasn’t happened for a while it
must happen soon because of the law of averages
• Illusory Correlation – the perception that associations and cause–effect
relationships exist when the evidence is non-existent
– e.g. correlation between positive characteristics and political party we support and between
negative characteristics and political party we dislike