The document discusses the advantages and disadvantages of group decision making. Some key advantages are that group decision making considers multiple perspectives, leverages diverse expertise, and motivates involvement. However, some disadvantages are that it can be time-consuming, potentially lead to groupthink, and certain individuals may dominate the decision. The document provides examples from analyzing a case study where the author played the role of VP of Finance on a team making a product launch decision.
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Assignment DA
The document discusses the advantages and disadvantages of group decision making. Some key advantages are that group decision making considers multiple perspectives, leverages diverse expertise, and motivates involvement. However, some disadvantages are that it can be time-consuming, potentially lead to groupthink, and certain individuals may dominate the decision. The document provides examples from analyzing a case study where the author played the role of VP of Finance on a team making a product launch decision.
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Muhammad Meesam Temar
24110253
Decision Analysis
Sir Muhammad Tayyab
Assignment # 1
Question:
What are the Advantages and Disadvantages of Group Decision Making?
Ans: Whether it is Group Decision Making or Individual Decision Making, everything has pros and downsides. The benefits and drawbacks of group decision-making that we uncovered while breaking the BCPC Case were astounding. I was playing the role of Morgan Jones, the VP of Finance, and the advantages and drawbacks I met when reaching the Final Decision are outlined here. Advantages: 1. While deciphering the BCPC case and debating whether to go for a complete launch of the HIP, launch it in phases, or not launch it at all, one thing became clear: we had far too many views and potential solutions to evaluate. When you know every person's viewpoint on the problem, you may make a more acceptable conclusion that considers everyone's point of view. 2. In group decision-making, the concept that the whole is greater than the sum of its parts is apparent. We had all the skills we needed to make the judgment as a group. Finance was offering their insights, Operations was offering their experience, IT was offering their abilities, and so on. So, we were in a situation where we could take a closer look at the problem, which greatly aided us in making our ultimate decision. 3. In group decision-making, you collect information from each member of the group. Every individual has their own area of expertise and viewpoint on the decision- making issue. So, we had sales and profit margin predictions given by finance. Operations conducted its investigation on the launch and determined that we would require this level of technical support for a full launch. HR supplied us with the necessary training and workforce to carry out the strategy. As a result, we had a much larger picture of the process and its implementations. After reviewing the data from various departments, the plan's implementation and choice of an alternative appear to be more straightforward. 4. In group decision-making, decisions are made for the benefit of the organization or firm for which the group members work. When we initially gathered information on each department, they presented the choice in a way that benefited their department, but when you consider every department's interest, you can easily make a decision that benefits the firm rather than any specific department, which is another advantage of group decision-making. 5. When everyone's point of view is heard, respected, and valued in group decision- making, the issues become more evident to all group members. As a result, the decision becomes more effective and efficient. Every member knows the firm's position and each department's perspective on the problem. As a result, the general argument and plans become more precise. 6. When decisions are made in a group context, each group member recognizes that he is a part of the ultimate decision and that he must execute it effectively for it to succeed, which increases the team's overall motivation. Everyone in the team believes they are a part of the decision-making process and should follow the plans to implement them successfully. 7. All members feel satisfied with their work in group decision-making since they know they have autonomy and are included in making the ultimate choice. They are content in that they know the choice is theirs as well and that their voice is significant to the organization or firm in which they work. As a result, individuals experience autonomy and job satisfaction while working. 8. Group decision-making increases involvement and the interests of all group members. Everyone in the group feels included and understands how essential their involvement is to the company, so they become interested in their job when they make the decision. They feel a sense of responsibility and understand that the decision is solely theirs, and the consequences will reflect their performance. As a result, people become more engaged in their job and participate more actively. Disadvantages:
1. Groupthink is a phenomenon that happens when a group of people agrees without
using critical thinking or evaluating the ramifications or alternatives. Groupthink is motivated by a desire to maintain the equilibrium of a group of individuals. It is difficult to prevent groupthink when no one in a group act as the "Devil's Advocate." There was no groupthink in cracking the BCPC case because each department was correctly evaluating the other departments' comments on the subject. 2. Group decision-making takes a long time since it is difficult to establish an agreement. Establishing an agreement in a group context is difficult since it is extremely tough to look at the problem from each member's perspective. As a result, many time constraints arise when reaching a choice in a group context. 3. There may be moments when there is such a rush that a decision must be carried out by the group right away, such as in our class assignment. We needed to make a choice in less than 15 minutes; therefore, departments with more data, such as finance and operations, were more likely to make the decision, while all other departments stayed silent and did not have the opportunity to share their thoughts. 4. When members of a group come from diverse positions, most members gravitate toward the most powerful person in the group. One thing I noticed in our group assignment was that the team leader was very satisfied with the insights provided by the VP of Finance without questioning the authenticity of those insights. In contrast, the directors of other departments provided their insights with proper reasoning, but the team leader was more inclined towards the recommendations of the VP of Finance due to his powerful position. Furthermore, other departments, such as HR, changed their stance after being influenced by the VP of finance. 5. When a group decision is decided under the influence of a single person, the other group members lose motivation and work satisfaction. They lose motivation and stop working since they know the decision will never work out for them. 6. Some group members may become confused about their roles during group decision- making. All members must collaborate to make a solution that will benefit the company in the near future; however, one downside of group decision-making is that some group members misunderstand their position in the group and overuse their authority to control the group and influence the decision. 7. The team leader is in charge of weighing all of the arguments, thoroughly investigating the problem, and making a conclusion. He or she must listen to everyone and prefer those who have compelling arguments and facts. Frequently, the team leader fails to perform his obligations and makes a choice influenced by someone, which significantly impacts the final decision. 8. Making decisions in a group setting is quite expensive. Making a final decision takes a long time. It also reduces decision-making efficiency since group decisions need engagement, argument, and collaboration among group members, all of which are time-consuming, energy-intensive, and inefficient. Work Cited:
Black, Duncan, and Search for more articles by this author. “On the Rationale of Group
Decision-Making: Journal of Political Economy: Vol 56, No 1.” Journal of Political