11.

3 EVIDENCE-BASED DECISION MAKING

THE BIGGER PICTURE

You can improve the quality of your decisions by looking for the best evidence and the best
available data to make, inform, or support them. This section of the chapter will help you
understand the role of evidence in decision making and the move toward big data and
artificial intelligence.

Evidence-based decision making is the process of conscientiously using the best LO 11-3
available data and evidence when making managerial decisions. It holds the promise
of helping avoid the decision-making biases discussed earlier and improving performance Explain evidence-
based decision
while reducing costs. Proponents also believe evidence-based decision making can help in
making.
the use of “big data” to market and sell products and services.
Consider the applications to farming and cruising.

EXAMPLE The Riensche family has been farming 12,000 acres in Iowa for six gen-
erations. Recently they signed up with Bayer’s Climate Corp. for a data analysis ser-
vice, which among other things, helped reduce the seed they use by 6 percent and
fertilizer by 11 percent—all while growing the best crops they’ve ever planted. Ben
Riensche, the most recent family member to manage the farm, still has his grandfa-
ther’s spiral notebooks that meticulously list crop and egg yields. Before data analysis,

More and more farmers are signing up for data analysis services, which can provide them with important data that can
help them manage their crops more efficiently and make decisions based on solid evidence.
Nolanberg11/Shutterstock

Decision Making and Creativity CHAPTER 11 437

 Carnival Corporation’s CEO and President, Arnold Donald, holds a Medallion tracking device.
Rick Wilking/Newscom

Riensche says, “there was no secret sauce other than just keeping notes and making
field observations. Now we have all these digital tools.” Climate Corp. and its com-
petitors use information supplied by farmers who subscribe to their services and
feed it into software programs that predict combinations of seeds, fertilizer,
and sprays to maximize yield and revenues.56

EXAMPLE Carnival Cruise Lines has introduced a tracking device on its Princess
cruise ships to help the company collect and analyze passenger data and prefer-
ences. The Medallion is a wearable device the size of a poker chip worn on the
wrist or around the neck that syncs to each passenger’s information stored in the
cloud. Not only does this technology allow for quicker check-ins and boarding, it
also helps the company track each guest’s interaction with various digital and gam-
ing experiences created to enhance their sea-going adventures. In addition, the
data-tracking system includes avatars called Tagalongs that accompany each pas-
senger around the ship, appearing on nearby digital screens and on the more than
3,000 digital devices that cruisers bring along on their trips. The company expects
digital tracking and data collection to enhance passengers’ cruise experiences
while helping the company zero in on making decisions to entice passengers to
book for future vacations.57

Using Evidence to Make Decisions

Managers use evidence or data in three different ways: to make a decision, to inform a
decision, and to support a decision. Here is what a team of researchers had to say about
how we use data to make decisions.
“Evidence is used to make a decision whenever the decision follows directly from the
evidence.” For example, if you wanted to purchase a particular used car such as a Toyota

438 PART 2 Groups

Prius based on price and color, you would obtain data from the Internet and classified ads
and then choose the seller offering the lowest-priced red Prius. “Evidence is used to inform
a decision whenever the decision process combines hard, objective facts with qualitative
inputs, such as intuition or bargaining with stakeholders.” For instance, when firms are
hiring new college graduates, objective data about their past experience, education, and
participation in student organizations is relevant input to the hiring decision. ­Nonetheless,
subjective impressions garnered from interviews and references are typically combined
with these objective data to make a final decision. These two uses of evidence are clearly
positive and should be encouraged. The same cannot be said about using evidence to
support a decision.
“Evidence is used to support a decision whenever the evidence is gathered or modi-
fied for the sole purpose of lending legitimacy to a decision that has already been
made.”58 This application of evidence has both positive and negative effects. On the
positive side, evidence collected after the fact can be used to convince an external audi-
ence that the organization is following a sound course of action in a complex and
ambiguous decision context. This can lead to confidence and goodwill about how a
company is responding to environmental events. On the negative side, the practice can
stifle employee involvement and input because people will come to believe that manage-
ment is going to ignore evidence and just do what it wants. In summary, because this
practice has both pros and cons, management needs to carefully consider when (if
ever) it might be appropriate to ignore disconfirming evidence and push its own agenda
or decisions.

Big Data: The Next Frontier in Evidence-Based

Decision Making
Researchers suggest that data creation has doubled in size every two years over the past
decade, and by 2025 the digital universe will grow to more than 163 zettabytes (ZB) or one
trillion gigabytes. This equates to ten times the 16 ZBs of data generated in 2016.59 The
term big data reflects the vast quantity of data available for decision making. It also
encompasses the collection, sorting, and analysis of that information, and the techniques
to do so.60 The analysis of big data has already revolutionized all aspects of our lives, and
companies are scrambling to hire qualified employees for the job.
According to the U.S. Bureau of Labor Statistics, the demand for people with data
analytic skills will increase by 27 percent between 2016 and 2026.61 Guess who is respond-
ing to this need? Universities. More universities are offering majors in data analytics to fill
the more than 2.7 million data and analytics positions that will be available in the U.S.
workforce by 2020.62 These degrees will train people to use quantitative and statistical tools
to analyze and interpret big data. Do you think you are suited for this career?
Managers and companies that effectively utilize big data, such as organizations in the
health care industry (see the OB in Action box), are expected to gain competitive advan-
tage. Big data creates value in the following ways:
• It can make information more transparent and usable.
• It allows organizations to measure and collect all types of performance information,
enabling them to implement initiatives to enhance ­productivity.
• It enhances decision making at all levels of the organization.
• It can be used to develop new products or services.63
One problem with big data is that private or sensitive information is more easily
obtained, which means it can be leaked to others. In a recent survey of senior managers,
the respondents ranked cybersecurity breaches as the single greatest data threat their
companies face.64

Decision Making and Creativity CHAPTER 11 439

 OB in Action
Big Data Helps Advance the Health Care Industry

Health care today is being revolutionized by the

application of big data to many medical challenges,
especially the uncovering of hidden patterns and
correlations that can lead to better diagnosis and
treatment of new and existing diseases. It was
recently estimated that investments in big data by
the health care and pharmaceutical industries would
total $4.7 billion for 2018 and would grow 12 percent
a year over the next several years, reaching more
than $7 billion by 2021. Health care providers
around the world already report reductions in cost,
patient wait times, and emergency room visits, with
improved patient outcomes and revenues.65
Big data thus has the potential not only to trans-
form the way health care providers operate as busi-
nesses, allowing them to become more efficient and The health care industry continues to be revolutionized by
reduce costs and errors. It can also speed and the use of big data to assist doctors and other professionals
improve the way they treat and care for their in improving patient care and outcomes.
patients.66 Here are just a few examples:67 Ariel Skelley/Blend Images LLC

• A company called Ginger.io gathers smart-

phone data from users with mental illness, • Seattle Children’s Hospital has adopted a sys-
providing a mobile platform that allows experi- tem to mine big data about patients to almost
enced health care professionals to deliver instantly find reliable diagnoses and custom-
better and more personalized care to those ized treatments that used to require days or
patients. even weeks of work poring over thousands of
• PeraHealth uses proprietary data sets and a bits of information.
graphic tool called the Rothman Index, which
YOUR THOUGHTS?
combines vital signs, lab results, and other live
patient data, to help identify patients who 1. Can you think of any other applications for big
might be at risk for certain complications data in health care decision making? What kinds
before they occur, and to suggest which of companies or organizations might be inter-
patients might need intensive-care treatment. ested in such tools?
• RDMD, a health care start-up, uses artificial 2. What drawbacks, if any, might arise from the col-
intelligence tools to sift big data from medical lection and use of big data in medical settings?
records of cases of rare diseases. It is then 3. Do you foresee any privacy concerns in medical
able to market the data to pharmaceutical applications of big data? How should the health
companies to help advance the search for care industry safeguard patients’ individual
treatments and cures. privacy?

Artificial Intelligence: Teaching Machines

to Make Decisions
New technologies are changing our world. Consider that Alphabet’s Waymo division
recently launched the United States’ first commercial self-driving taxi service and
China’s Xinhau News is using the first artificial intelligence–driven news anchor.68

440 PART 2 Groups

Artificial intelligence (AI) is a form of computing that allows
machines to perform cognitive functions, such as acting or react-
ing to inputs, similar to the way humans do.69
There are three key ways that AI can help managers enhance
business operations: automating business processes, gaining insight
through data analysis, and engaging with customers and employees.70
Back-office administrative tasks and other financial activities lend
themselves to automation and are considered the “least smart” type
of AI activity. For example, updating customer files with address
changes; replacing lost or stolen credit cards; and managing customer
communications are all tasks that can be handled by automated sys-
tems fueled by AI.
AI can also be used to gain business insights by creating algorithms
that can be used to detect patterns in vast amounts of data and actually
interpret their meaning. This type of task is a more moderate level of AI
activity utilized by many organizations. For example, by using these
algorithms, machine learning can predict what product or service a spe-
cific type of customer is likely to buy; detect financial or insurance
claim fraud in real time; automate personalized targeting of digital ads
on websites; and analyze warranty data to identify safety or quality
problems in manufactured products.
Another way managers and organizations can use AI in business
operations is through customer and employee engagement. This
application may include chatbots, a form of artificial intelligence
that simulates conversations with humans. These AI tools can also Coach Amanda, LEADx’s AI tool and coaching
offer 24/7 customer service to provide answers to basic, technical bot, provides tips, guidance, videos, and texts
questions—in the customer’s natural language; product and service that managers can consult for advice in real
time.
recommendation systems for retailers that increase shopper person- Courtesy of LEADx
alization, engagement, and sales; and company internal websites for
answering employee questions about technology, benefits, HR poli-
cies, and even ethics. For example, LEADx developed a coaching bot
called “Coach Amanda” that provides tips, guidance, videos, and texts that managers
can consult for advice in real time. Ken Ryzner told the Wall Street Journal that Coach
Amanda has helped him run richer brainstorming sessions with colleagues by suggest-
ing he ask more questions.71
With increasing computing power and the ability to harness vast amounts of data,
managers need to decide how best to utilize artificial intelligence as part of their business
strategies.72 Companies that utilize AI effectively recognize machine learning alone is not
the key to gaining competitive advantage. Research suggests companies that decide to
automate certain activities as a way to eliminate jobs may be losing their competitive
edge.73 In contrast, companies that automate processes and shift employees to more value-
added job tasks may see significant returns on their AI and human collaboration efforts in
terms of increasing revenues, retaining employees, and sparking innovation.74
The rise of AI and machine learning is not without challenges, however. Sometimes
humans pose situations in which machine learning must choose between two actions with
negative or unpleasant consequences and ask what the device should do.75 For example,
in a recent study, researchers asked participants about several real-world events that
involved “poor decisions” on the part of AI software that could be attributed to human
biases. Can AI be racist, sexist, or possibly spread hate? Or, were the algorithms created
by humans who have inherent biases when it comes to such “moral violations”? This
study and others suggest the relationship between AI and humans is a complex one that
needs continuing study.76

Decision Making and Creativity CHAPTER 11 441

 11.4 FOUR DECISION-MAKING STYLES
THE BIGGER PICTURE

Your decision-making style reflects the manner in which you use information to make deci-
sions. It’s an input in the Organizing Framework. Knowing the four general styles of decision
making will help you understand how your managers and coworkers are making their deci-
sions; and it will help you know yourself that much better too. The four decision-making styles
are directive, analytical, conceptual, and behavioral.

LO 11-4 We make countless decisions on a daily basis—what to wear, what to eat, what route to take
driving to school, whether to confront a negative colleague. These decisions are guided by
Compare the four our decision-making style. A decision-making style is the way an individual perceives
styles of decision
and comprehends stimuli and the general manner in which he or she chooses to
making.
respond to such information.77 A team of researchers developed a model of decision-
making styles based on the idea that styles vary along two dimensions: value orientation
and tolerance for ambiguity.78

Value Orientation and Tolerance for Ambiguity

Value orientation is the extent to which an individual focuses on either task and technical
concerns or people and social concerns when making decisions. Some people, for instance,
are very task-focused at work and do not pay much attention to people issues, whereas oth-
ers are just the opposite.
The second dimension pertains to a person’s tolerance for ambiguity. This character-
istic indicates the extent to which a person needs structure or control in his or her life.
Some people desire a lot of structure. They have a low tolerance for ambiguity and find
ambiguous situations stressful and psychologically uncomfortable. Others do not have a
high need for structure and can thrive in uncertain situations; their tolerance for ambigu-
ity is high. Imagine the ambiguity faced by Andrés Sepúlveda as he worked to rig politi-
cal campaigns across Latin America. He and his team of hackers “stole campaign
strategies, manipulated social media to create false waves of enthusiasm and derision,
and installed spyware in oppositions offices, all to help Peña Nieto get elected president
of Mexico,” according to Bloomberg Businessweek. Ambiguous situations can energize
people like Sepúlveda with a high tolerance for ambiguity. He is currently serving a
10-year prison term for his actions.79
When we combine the dimensions of value orientation and tolerance for ambiguity,
they form four styles of decision making: directive, analytical, conceptual, and behavioral
(see Figure 11.4). Let’s look at each of these.

The Directive Style: Action-Oriented Decision

Makers Who Focus on Facts
People with a directive style have a low tolerance for ambiguity and are oriented toward
task and technical concerns when making decisions. They are efficient, logical, practical,
and systematic in their approach to solving problems. Directive decision makers are action
oriented and decisive and like to focus on facts. In their pursuit of speed and results, how-
ever, they tend to be autocratic, exercise power and control, and focus on the short run.

442 PART 2 Groups

 FIGURE 11.4 Decision-Making Styles
High

Analytical Conceptual
Tolerance
for
Ambiguity
Directive Behavioral

Low
Task and People
Value
technical and social
Orientation
concerns concerns

SOURCE: Rowe, Alan J., and Richard O. Mason. Managing with Style: A Guide to
Understanding, Assessing, and Improving Decision Making. San Francisco:
Jossey-Bass, 1987.

Amazon CEO Jeff Bezos uses a directive style. Bezos is known to be decisive, makes
decisions quickly, and pivots at breakneck speed when a strategy or course of action needs
to be revised. According to Bezos, “Every day at Amazon is Day 1,” which means he
expects Amazon employees to embrace the characteristics of a start-up company—an orga-
nization that can shift its focus quickly to adjust to changing customer and market trends.80

The Analytical Style: Careful and Slow Decision

Makers Who Like Lots of Information
People with the analytical style have a much higher tolerance for ambiguity and tend to
overanalyze a situation. They like to consider more information and alternatives than do
those with a directive style. Analytical individuals are careful decision makers who take
longer to make decisions but who also respond well to new or uncertain situations. They
can often be autocratic.
IBM CEO Ginni Rometty appears to have an analytical style. She and her manage-
ment team must analyze business and technology trends worldwide to determine the best
course of action for increasing company revenues and moving the company forward in an

IBM CEO Ginni Rometty uses her analytic style to gather relevant data and evaluate
­business and technology trends worldwide to assist in making critical decisions for her
organization.
Justin Sullivan/Getty Images

Decision Making and Creativity CHAPTER 11 443

 era of digital disruption. As CEO, Rometty has shifted IBM’s focus from computers to
cloud computing, blockchain technology, big data, and artificial intelligence.81

The Conceptual Style: Intuitive Decision

Makers Who Involve Others in Long-Term
Thinking
People with a conceptual style have a high tolerance for ambiguity and tend to focus on
the people or social aspects of a work situation. They take a broad perspective on prob-
lem solving and like to consider many options and future possibilities. Conceptual types
adopt a long-term view and rely on intuition and discussions with others to acquire infor-
mation. They also are willing to take risks and are good at finding creative solutions to
problems. On the downside, however, a conceptual style can foster an idealistic and inde-
cisive approach to decision making. Netflix CEO Reed Hastings exhibits this style of
decision making.82

The Behavioral Style: Highly People-Oriented

Decision Makers
The behavioral style is the most people-oriented of the four. People with this style work
well with others and enjoy social interactions in which opinions are openly exchanged.
Behavioral decision makers are supportive, are receptive to suggestions, show warmth, and
prefer verbal to written information. Although they like to hold meetings, they prefer to
avoid conflict and can be too concerned about others. This can lead behavioral types to
adopt a conflict-avoidance approach to decision making and to have a hard time saying no.
Madeline Bell, CEO of Children’s Hospital of Pennsylvania, uses this decision-making
style successfully by identifying and engaging the key people who need to be on board with
major decisions made at one of the top children’s hospitals in the country.83

Which Style Are You?

Research reveals that very few people have only one dominant decision-making style.
Rather, most managers have characteristics that fall into two or three styles. Studies also
show that decision-making styles vary by age, occupation, personality type, gender, and
country.84 It’s important to understand your decision-making style because it affects the
quality of your decisions and team performance.85 Self-Assessment 11.2 will enhance your
understanding about your decision-making style.

SELF-ASSESSMENT 11.2 CAREER READINESS

What Is My Decision-Making Style?

Please be prepared to answer these questions if your instructor has assigned Self-
Assessment 11.2 in Connect.
1. Do you agree with your results? Explain.
2. Which of these styles is most important in your role as a student and in your cur-
rent job?
3. Based on your answer to question 2, what might you do to modify your decision-
making style?

444 PART 2 Groups

11.5 A ROAD MAP TO ETHICAL DECISION MAKING
THE BIGGER PICTURE

Sometimes you may find yourself confused about the ethics of a situation. One way to gain
some certainty is to graph the situation with a decision tree, which provides a framework for
ethical decision making.

Although research tells us that ethical behavior is related to inputs such as personality, LO 11-5
values, locus of control, and a culture and climate for ethics,86 there are few tools for help-
ing individuals to navigate through ethical dilemmas or challenges. An approach sug- Describe how to
assess the ethics of
gested by Harvard Business School Professor Constance Bagley can help fill the gap.
decision making.
Bagley recommends a decision tree to help managers make ethical decisions.87
A decision tree is a graphical representation of the process underlying decisions,
and it shows the consequences of making various choices. You can follow Bagley’s decision
tree, shown in Figure 11.5, by asking the following questions about your decision:

FIGURE 11.5 An Ethical Decision Tree

Yes Do it.

Is it ethical?
(To answer, weigh the effect on customers,
Yes employees, the community, the environment,
and suppliers against the benefit to the
shareholders.)

Does it maximize No Don’t do it.

Yes
shareholder value?

Yes Don’t do it.

Is the proposed
action legal? Would it be ethical not to take
the action?
No (To answer, weigh the harm or cost that
would be imposed on shareholders against
the costs or benefits to other stakeholders.)

No Don’t do it. Do it, but disclose the

No effect of the action to
shareholders.

SOURCE: Bagley, Constance E. “The Ethical Leader’s Decision Tree.” Harvard Business School Publishing, February 2003. https://hbr.org/2003/02/
the-ethical-leaders-decision-tree.

Decision Making and Creativity CHAPTER 11 445

 1. Is the proposed action legal? This
may seem like a common-sense
question, but some managers and
companies fail to ask it. Owners
of Purdue Pharma, maker of the
highly addictive opioid drug
OxyContin, recently faced fraud
charges in New York as a result of
transferring funds from the com-
pany to various family trusts in
an effort to shield company assets
from ongoing litigation.88
2. If “yes,” does the proposed ­action
maximize shareholder value? A
Unethical decision making by the parent company of the University of decision maximizes shareholder
Phoenix may have cost the for-profit education company dearly in
terms of student enrollment over the past several years.
value when it increases profits for
Kristoffer Tripplaar/Alamy Stock Photo
an organization, because these
profits are eventually distributed to
shareholders. Regardless of share-
holder value, however, the decision
tree shows that managers still need to consider the ethical implications of each deci-
sion or action.
3. If the decision maximizes shareholder value, the decision maker then considers
whether or not the action is ethical. Managers should answer this question by weigh-
ing the effect of the action on an organization’s other key constituents (customers,
employees, the community, the environment, suppliers) against the benefit to the
shareholders. For example, Apollo Education Group, the parent company of for-
profit University of Phoenix, has been the subject of both state and federal investiga-
tions that allege the company used aggressive and deceptive recruiting, advertising,
and financial aid practices. Negative perceptions of the University of Phoenix may
also be to blame for the substantial drop in student enrollment, more than 70 per-
cent between 2010 and 2017.89
4. If the decision does not maximize shareholder value, then the decision maker should
consider whether it would be ethical not to take the proposed action. If an action would
not directly benefit shareholders, consider whether it would be ethical not to take it.
The decision for the Apollo Education Group to continue to use existing, possibly
unethical practices could also have an impact on other stakeholders, such as Univer-
sity of Phoenix employees. A recent Glassdoor survey revealed that only 30 percent
of the school’s employees would recommend working at the university to a friend or
acquaintance.90
The decision tree cannot provide a quick formula that managers and organizations
can use to evaluate every ethical question. Ethical decision making is not always clear-
cut and is affected by cross-cultural differences and organizational culture and climate.
Organizations are encouraged to conduct ethics training and to increase awareness
about cross-cultural issues when the work engages people with mixed cultural back-
grounds.91 That said, the decision tree does provide a framework for considering the
trade-offs between managerial and corporate actions and managerial and corporate eth-
ics. Try using this decision tree the next time you are faced with a significant ethical
question or problem.

446 PART 2 Groups

11.6 GROUP DECISION MAKING
THE BIGGER PICTURE

You’ve probably seen both good and poor results from a group decision. OB confirms that
group decisions can lead to mixed results. It identifies five potential advantages and
four disadvantages. Knowing them arms you with information to help you maximize the
advantages and minimize the disadvantages. In this section you will find contingency
recommendations for working with groups in decision making and three helpful group
problem-solving techniques: brainstorming, the nominal group technique, and computer-aided
decision making.

Aristotle was an early proponent of group decision making. He concluded that “when LO 11-6
there are many who contribute to the process of deliberation, each can bring his share of
goodness and more prudence . . . some appreciate one part, some another, and all together Outline the basics
of group decision
appreciate all.”92 Aristotle is suggesting that group decision making is more effective when
making.
individuals in the group share and aggregate their information. As you well know, this does
not always happen when groups make decisions. This section will help you learn about
decision making in groups so you can achieve Aristotle’s proposed benefits.

Aristotle (384-322 bc) was a Greek philosopher and scientist. His writings span many subjects and he
highly believed in the value of using logic and empirical data when making decisions.
QEDimages/Alamy Stock Photo

Decision Making and Creativity CHAPTER 11 447

 Advantages and Disadvantages of Group Decision
Making
We often have to decide whether to make a decision alone or to consult with others. The
following list of advantages and disadvantages can help you decide what to do.

Advantages These five advantages are most likely to be found when the group has
experience with the issue at hand, and when it is diverse in terms of characteristics such as
personalities, gender, attitudes, and experience.93
• Greater pool of knowledge. A group possesses more information and knowledge
than one individual acting alone.
• Different approaches to a problem. Individuals with different backgrounds and expe-
riences bring varied perspectives to diagnosing and solving problems.
• Greater commitment to a decision. Participation and a voice in decision making are
more likely to result in commitment to a decision. This in turn leads group members
to accept and feel responsible for implementing a proposed solution.
• Better understanding of decision rationale. Participating in a decision increases
group members’ understanding about why the decision is being made and what
must occur to implement it. This in turn reduces miscommunication among people.
• More visible role modeling. Less experienced group members learn about group
dynamics and how to solve problems.94

Disadvantages The disadvantages of group-aided decision making relate to group

dynamics and interpersonal interactions.95
• Social pressure. The desire to look good in front of others, particularly the boss,
leads to conformity and stifles creativity.
• A few dominant participants. The quality of a group’s decision can be influenced by a few
vocal people who dominate the discussion. This is particularly problematic when the
vocal person is perceived as a powerful individual.
• Goal displacement. When the group is evaluating alternatives, secondary considerations
such as winning an argument, getting back at a rival, or trying to impress the boss can
override the primary goal of solving a problem. Goal displacement occurs when the
primary goal is overridden by a secondary goal.96
• Groupthink. Groupthink is “a mode of thinking that people engage in when
they are deeply involved in a cohesive in-group, when members’ strivings for
­unanimity override their motivation to realistically appraise alternative
courses of action.”97 Groupthink is thoroughly discussed in the next section.

Groupthink
The term groupthink, defined above, originated from an analysis of the decision-making
processes underlying the war in Vietnam and other U.S. foreign policy fiascos. Groupthink
happens when members fail to exercise sufficient reality testing and moral judgment due
to pressures from the group. If they passively ignore the danger, modern managers can all
too easily become victims of groupthink. Consider the group of 14 teachers and other staff
members in an Idaho school district who decided to dress up as ethnic stereotypes for
Halloween recently and followed that up with an impersonation of a Mexican border wall.
Despite being taken down from Facebook, these photos quickly went viral and sparked
outrage both locally and nationally. “We are better than this,” said the school superintendent—
all 14 individuals were placed on administrative leave.98
As you might imagine, groupthink negatively affects group performance and is often
driven by high levels of cohesiveness.99 Cohesiveness or a sense of “we-ness” tends to
override individual differences and motives. Members of groups tend to be cohesive

448 PART 2 Groups

for two fundamental reasons: (1) they like and enjoy each other’s company and
(2) they need each other to achieve a common goal. You can see how cohesiveness is a
double-edged sword in its effects on group-level outcomes in the Organizing Framework. It
can help you and your team reduce conflict, but it can also reduce performance if it limits
questioning and critical thinking and results in groupthink.100 How do you avoid group-
think? First, know the symptoms.

Symptoms of Groupthink There are eight common symptoms of groupthink. The

more that are present in a situation, the higher the probability that groupthink will occur.
1. Invulnerability. An illusion that the group cannot make a mistake breeds excessive
optimism and risk taking.
2. Inherent morality. Assuming the group is highly moral encourages members to ignore
ethical implications.
3. Rationalization. Members protect their personal or “pet” ideas and assumptions.
4. Stereotyped views of opposition. The group may underestimate opponents.
5. Self-censorship. Keeping ideas and questions to yourself stifles critical debate.
6. Illusion of unanimity. Members’ silence can be interpreted to mean consent.
7. Peer pressure. Be careful when the loyalty of dissenters is questioned.
8. Mindguards. Self-appointed protectors can shut out adverse information.101

Prevention Is Better than Treatment Prevention is better than treatment or cure

when dealing with groupthink. Table 11.1 provides excellent recommendations for removing
barriers to minority dissent. Minority dissent occurs when group members feel com-
fortable disagreeing with other group members. Research reveals that minority dissent
is positively related to participation in decision making and job satisfaction.102
Are you working on any project teams at school or work? If yes, you may be interested
in assessing the level of minority dissent and participation in decision making. Results from
Self-Assessment 11.3 can help you to improve your effectiveness within these teams.

TABLE 11.1 Techniques for Preventing Groupthink

1. Each member of the group should be assigned the role of critical evaluator or
dissenter. This role requires the active voicing of objections and doubts.
2. Top-level executives should not use policy committees to rubber-stamp decisions
that have already been made.
3. Different groups with different leaders should explore the same policy questions.
4. Managers should encourage subgroup debates and bring in outside experts to
introduce fresh perspectives.
5. Someone should be given the role of devil’s advocate when discussing major
alternatives. This person tries to uncover every conceivable negative factor.
6. Once a consensus has been reached, everyone should be encouraged to rethink
his/her position to check for flaws.
SOURCES: Thibodeaux, Wanda. “How to End Groupthink and Encourage Your Team to Be Creative.” Mansueto Ventures,
December 10, 2018. https://www.inc.com/wanda-thibodeaux/how-to-end-groupthink-encourage-your-team-to-be-creative.html;
Price, Dom. “Need Fresh Ideas? 5 Ways to Disrupt Groupthink.” Mansueto Ventures, October 23, 2018. https://www.inc.com/
dom-price/need-fresh-ideas-5-ways-to-disrupt-groupthink.html; and Janis, Irving L. “Victims of Groupthink.” Political Psychology 12,
no. 2 (June 1991): 247–78. https:// DOI: 10.2307/3791464.

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 SELF-ASSESSMENT 11.3

Assessing Participation in Group Decision Making

Please be prepared to answer these questions if your instructor has assigned
Self-Assessment 11.3 in Connect.
1. What is your level of minority dissent and participation in decision making?
2. Are you happy with these results?
3. How might you increase the level of minority dissent and participation in this
group? Consider the ideas in Table 11.1.

Practical Contingency Recommendations for

Group Decision Making
There are three practical considerations in decision making.
1. Routine and frequency: If the decision occurs frequently and is of a routine nature,
such as deciding on promotions or who qualifies for a loan, use groups because they
tend to produce more consistent decisions than do individuals.
2. Time constraints: Given time constraints, let the most competent individual, rather
than a group, make the decision.
3. Information and communication: In the face of environmental threats such as time
pressure and potential serious effects of a decision, groups use less information and
fewer communication channels. This increases the probability of a bad decision.

Reaching Consensus: The Goal of Group

Problem-Solving Techniques
Groups asked to make decisions must generally reach a consensus. According to a
­decision-making expert, a consensus “is reached when all members can say they
either agree with the decision or have had their ‘day in court’ and were unable to
convince the others of their viewpoint. In the final analysis, everyone agrees to sup-
port the outcome.”103 This definition indicates that consensus does not require unani-
mous agreement, because group members may still disagree with the final decision but are
willing to work toward its success. They must honestly and accurately communicate with
each other when trying to reach a consensus.

Practical Problem-Solving Techniques

Decision-making experts have developed a host of problem-solving techniques to aid in
problem solving. Three we discuss here are (1) brainstorming, (2) the Delphi technique,
and (3) decision support systems.

Brainstorming: A Tool for Generating Ideas Brainstorming helps groups gener-

ate multiple ideas and alternatives for solving problems. Developed by advertising exec-
utive A. F. Osborn, brainstorming can apply in a variety of contexts.104 They include solving
problems, developing creative ideas for new products, removing performance roadblocks,
and developing action plans to achieve goals. Brainstorming sessions begin by asking partici-
pants to silently generate ideas or solutions, which then are collected ­either in public or
anonymously and summarized in some fashion (such as on a whiteboard or a flip chart).

TIP It’s good to collect the ideas/solutions anonymously if the issue is emotional,
political, or highly salient/sensitive to some group members.105

450 PART 2 Groups

 At a second session group members critique and evaluate the alternatives. Today, many
brainstorming sessions are conducted electronically. Electronic brainstorming, some-
times called brainwriting, allows participants to submit their ideas and alternatives
over the Internet. Webinars and other virtual collaboration tools such as MeetingRoom.
io, MURAL, and Appear.in work well for this purpose.106
Managers are advised to follow the seven rules for brainstorming used by IDEO, a
product design company (see Table 11.2).
Brainstorming is an effective technique for generating new ideas/alternatives, and
research reveals that people can be trained to improve their brainstorming skills.107

The Delphi Technique The Delphi technique was originally developed by the
RAND Corp. for technological forecasting.108 It now serves as a multipurpose plan-
ning tool. The Delphi technique is a group process that generates anonymous
ideas or judgments from physically dispersed experts in multiple rounds of
brainstorming.
This technique is useful when face-to-face discussions are impractical, when disagree-
ments and conflict are likely to impair communication, when certain individuals might
severely dominate group discussion, and when groupthink is a probable outcome of the
group process.109

Decision Support Systems The increased globalization of organizations, the

­existence of big data, and the advancement of information technology have led to the
development of decision support systems. Decision support systems (DSS) are
“­ computer-based interactive systems that help decision makers to use data and
models to solve unstructured problems.”110 For example, Best Buy, Google, GE, Intel,
and Microsoft all use internal intranets to obtain input for their DSS from employees.
Both Best Buy and Google found DSS systems helpful in estimating the demand for new
products and services.111 They also improve information processing and decision making
within virtual teams.112

TABLE 11.2 Seven Rules for Brainstorming

RULE DETAILS
1. Defer judgment. Don’t criticize during the initial stage of generating ideas. Avoid phrases
such as “We’ve never done it that way,” “It won’t work,” “It’s too expensive,”
and “Our manager will never agree.”
2. Build on the ideas of others. Encourage participants to extend others’ ideas by avoiding “buts” and
using “ands.”
3. Encourage wild ideas. Encourage out-of-the-box thinking. The wilder and more outrageous
the ideas, the better.
4. Go for quantity over quality. Guide participants to generate and write down as many new ideas as possible.
Focusing on quantity encourages people to think beyond their favorite ideas.
5. Be visual. Use different colored pens (e.g., red, purple, blue) to write on big sheets of
flip chart paper, whiteboards, or poster board that is put on the wall.
6. Stay focused on the topic. Appoint a facilitator to keep the discussion on target.
7. Keep to one conversation Set ground rules that no one interrupts another person, dismisses
at a time. someone’s ideas, shows disrespect, or otherwise behaves rudely.
SOURCES: IDEO. “Effective Brainstorming Techniques.” Accessed May 22, 2019. https://www.ideou.com/pages/brainstorming; Shellenbarger, Sue. “Tactics to Spark
Creativity.” The Wall Street Journal, April 2, 2013. https://www.wsj.com/articles/SB10001424127887323611604578398342398991844; “How Entrepreneurs Come
Up With Great Ideas.” The Wall Street Journal, April 29, 2013. https://www.wsj.com/articles/SB10001424127887324445904578283792526004684; and Lehrer,
Jonah. “How To Be Creative.” The Wall Street Journal, March 12, 2012. https://www.wsj.com/articles/SB10001424052970203370604577265632205015846.

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