Decision-Making-Part 3-Limited Rationality-2

Decision-Making Processes : 

Decision-Making Processes Part 3: Limited Rationality-2

III. Limited Rationality : 

III. Limited Rationality C. Making the Best of Limited Rationality: Effective Group Decision-Making There is evidence groups follow paths different from the normative rational sequence 25% follow the rational sequence 30% focus mainly on solutions 45% follow complex paths

III. Limited Rationality : 

III. Limited Rationality C. Making the Best of Limited Rationality: Effective Group Decision-Making 2. Functional Theory of Group Decision-Making Gouran and Hirokawa Best chance of making effective decision when: Correct understanding of the issues involved Define criteria for acceptable alternatives Generate a relevant and realistic set of alternatives Evaluate positive and negative aspects of alternatives Select that alternative that best meets criteria

III. Limited Rationality : 

III. Limited Rationality C. Making the Best of Limited Rationality: Effective Group Decision-Making Following the recommendations of the functional model enables groups to avoid groupthink Groupthink: When consensus seeking overrides the group’s motivation to make realistic appraisal of alternatives

III. Limited Rationality : 

III. Limited Rationality C. Making the Best of Limited Rationality: Effective Group Decision-Making Symptoms of Groupthink: Illusion of invulnerability Illusion of morality Stereotyping Self-censorship Illusion of unanimity Direct pressure on dissidents Reliance on self-appointed mindguards

IV. When Can Rational Decision-Making Occur? : 

IV. When Can Rational Decision-Making Occur? Rational Decision Making Both Possible and Preferable: Quantifiable outcomes Clear decision-effect links Redundant available sources Stable situation Well defined problem/situation Rational Decision Making Either Impossible or Inappropriate: Ambiguous outcomes Ambiguous decision-effect links Unknown or indefinite information needs Unstable situation Unprecedented or ill-defined problem/situation

The Bottom Line: Rational Decision-Making? : 

The Bottom Line: Rational Decision-Making?