Managerial Decisions- B

B

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Groups

Positives:

  • more strategies
  • increased legitimacy/knowledge
  • positive synergy/motivation
  • successful implementation
  • less errors 
  • snowball effect

Negatives:

  • quick commitment to ideas
  • cost/time increased
  • leader may dominate
  • ambiguous responsibility
  • clash of ideas/minority views
  • different goals
  • Group Think
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Group Think

Group members share a strong desire to reach a consensus that they lose the ability to critically evaluate all points of view:

  • sense of invulnerability and righteousness- creates excessive optimism that encourages risk taking
  • pressures to conform
  • dissenters pressurised- members are under pressure not to express arguments
  • illusion of unanimity- majority view is thought to be unanimous
  • rationalisation/discounting warnings
  • stereotyped views of other competing groups
  • loss of independent thinking/creativity
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Effective Groups

  • task/objective well understood
  • some disagreement
  • non dominating chair
  • everyone participates/listens
  • consensus seeking
  • decision process reviewed

Risky Shift- people want to shift towards risky decisions to gain status/approval                          from other members, as they need to be seen as brave

                   => shared blame, exposure to wide range of views

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