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    Business and Group Decision-making

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    The CEO read your strategic plan and is very impressed with your suggestions and the speed with which your group developed the plan. He would like more groups within the organization to be as effective and efficient as your group was with this project. In order for other members of management to benefit from your group's experience you are to create an article for the corporate management newsletter that addresses the following:


    What type of decision making process did your group use to arrive at a consensus decision?
    In what ways is the group decision making process different from the individual decision making process?
    Did your group avoid or reduce group biases or errors? If yes, how? If no, why not or what happened?
    What are the implications of social influence for individuals and organizations?

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    Solution Preview

    Please see the attached response for best formatting.

    1. What type of decision-making process did your group use to arrive at a consensus decision?

    Let's look briefly at the different types of group decision-making methods. Note: I highlighted one possible decision-making process that you could have used for your group (for you to consider).


    AI Autocratic or directive style of problem solving.
    The leader defines problem, diagnoses problem, generates, evaluates and choose among alternative solutions.

    AII Autocratic with group information input
    The leader defines the problem. Although the leader diagnoses the cause of the problem, the leader may use the group as an information source in obtaining data to determine cause. Using his or her list of potential solutions, the leader may once again obtain data from the group in evaluation of these alternatives and make a choice among them.

    AIII Autocratic with group's review and feedback.
    The leader defines the problem, diagnoses its causes, and selects a solution. The leader then presents his or her plan to the group for understanding, review, and feedback

    CI Individual Consultative Style
    The leader defines the problem and share this definition with individual members of the work group. The leader solicits ideas regarding problem causes and potential solutions. The leader may also use these individuals expertise in evaluation of alternative solutions. Once this information is obtained, the leader makes the choice of which alternative solution to implement.

    CII Group Consultative Style
    Same as CI, except the leader shares his or her definition of the problem with the group as a whole.

    GI Group Decision Style
    Leader shares his or her definition of the problem with the work group. The group them proceeds to diagnose the causes of the problem. Following diagnosis, the group generates, evaluates, and chooses among solutions.

    GII Participative Style
    The group as a whole proceeds through the entire decision making process. The group defines the problem and performs all other functions as a group. The role of the leader is that of process facilitator.

    GIII Leaderless Team
    The group has no formal leader, but rather is assembled as a leaderless team. If no substitute for task leadership, or process leadership is present, a process leader often emerges. This person may change from problem to problem. The group generates its own problem definition, performs its own diagnosis, generated alternatives, and chooses among alternatives.


    In sum, the group's decision making model was based on participatory style and applied the six-step process, using brainstorming technique for idea and solution generation, and came to the final conclusion employing the consensus approach.

    2. In what ways is the group decision-making process ...

    Solution Summary

    This solution explains the group business decision-making process through discussion and illustrative examples. Different types of group decision making processes are explained in terms of arriving at a consensus decision and compared to the individual decision making process. It also explains ways for a group to avoid or reduce group biases or errors and the implications of social influence for individuals and organizations.