Effective Decision-Making Groups: Structure and Size
**Types of Decision-Making Groups**
**Decision-Making (DM) Groups**
Have the responsibility and authority to make decisions on matters brought before them. They have original authority, e.g., boards of directors, or delegated authority.
**Advisory or Study Groups**
Generate some of the information used in DM. For example, they generate alternative plans or candidates for a manager to choose from. After such study, they advise the manager which alternative should be chosen.
**Coordinating Groups**
Individual members exchange information that helps them fulfill their assignments. These groups are created because of dependencies among the units represented by the group members, and they often make decisions to deal with these dependencies.
**Organizing the Decision Group**
**Ensure Key Information is Available**
Groups are often formed so different elements of information can be brought simultaneously. For example, if in the choice-making step the group needs information from an expert, we can provide this in three ways: appoint the expert as a continuing group member, as a member in this step only, or as a consultant to the group.
**Ensure Participation of Those Affected**
This reduces resistance to the decisions and increases cooperation in the implementation phase.
**Do Not Let Past Practices Dictate Group Membership**
Previous practices are useful to decide who to include in the group but should be reviewed before using them.
**Appoint a Group-Oriented Leader with Control**
The advantages of using decision groups will be greater if the group leader focuses on using the group’s efforts to carry out its assignment. Groups with a strong, controlling leader are more effective in achieving their assignments and providing their members with a high degree of satisfaction.
**Assign Different Members to Different Task Parts**
The use of subgroups to perform tasks that need not be done by the whole group is very useful for efficiency.
**Explore the Problem**
Include people who have observed the problem’s symptoms and people who have analyzed such issues before.
**Generate Alternatives**
Include people who have analyzed such problems before and people who are specially trained to deal with such problems.
**Choose an Alternative**
Include people who are experts in analyzing choice situations and people who will be affected by the choice.
**Optimal Size of the Decision Group**
Groups of two, three, or four members without a leader have difficulty solving problems and providing satisfaction for their members. Groups of six or more have lower satisfaction because of the lower level of participation (a few members tend to dominate the proceedings). Therefore, a decision group of five is the most effective. In groups larger than seven, members don’t see others as individuals, except if they know each other, work together for a long period, or each one represents a different area. Larger groups have difficulty sharing assignments, except if the leader has experience. Groups of strangers should be smaller than groups of friends, and they will need strong leadership.
**Group Heterogeneity**
Homogeneous groups have similar members (in their attitudes and occupations). When the task requires little creativity or judgment, a homogeneous group is better. These groups work well together and complete their tasks quickly. Heterogeneous groups have members who differ in such respects. These groups are more effective if the task requires different perspectives and information. They usually have the assembly effect (the group product is better than adding inputs from the individual members). Creative solutions come from conflicting points of view, not from similar points of view. However, if the differences (status, attitude, or expertise) are too extreme, the group members may not be able to work together effectively.