9.5: Decision Making in Groups

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Nina Burokas
Lumen Learning

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The Benefits and Challenges of Group Decision Making

Learning Objectives

Apply decision-making strategies at work

Because they benefit from diverse viewpoints, experience, and knowledge, teams often make better decisions than individuals. Additionally, when more people are involved, more ideas can be generated, resulting in better solutions. This is why many businesses rely on teams for decision-making.

However, team decision-making has its challenges. Conflict often arises as members work toward a solution; and issues like social loafing—where some members contribute less—can create roadblocks to success. Unclear goals, conflicting priorities, and communication breakdowns can occur when the size of the team grows, leading to wasted time and substandard solutions.

Decision-Making Defined

Decision-making is the process of selecting a logical choice from available options. Often confused with problem-solving, decision-making comes after the problem-solving process, which involves analyzing the challenge and developing possible solutions. Once potential solutions are identified in problem-solving, the decision-making process begins.

Why Teams Make Decisions

Teams make decisions for several reasons:

Optimizing performance: Maximizing profits, sales, or market share
Minimizing risk: Reducing loss, expenses, or inefficiencies
Solving problems: Addressing challenges
Improving processes and procedures: Improving how tasks are done
Seizing opportunities: Taking advantage of trends and innovations

The Decision-Making Process

Once the problem-solving phase is complete, teams must evaluate and select a solution:

Assessing alternatives: Comparing options against specific, measurable criteria (e.g., cost, timeline, regulations, goals). For example, a team addressing declining sales may set criteria such as "cost-effective (not exceeding $X), completed by April 15, and expected to increase sales by 20% annually."
Evaluating risks and benefits: Considering potential failures, contingency plans, and success metrics (e.g., customer growth, revenue changes, market impact)
Using a structured approach: Applying frameworks such as checklists or weighted scoring to support decisions

Rowe and Boulgarides Decision Making Model — Figure 9.05.1: Decision-Making Styles in Teams

Decision-Making Styles in Teams

Rowe and Boulgarides Decision Style Theory ^[1]examines the context for decisions across two scales. One side relates to the decision-maker's tolerance of uncertainty (high tolerance to low), and the other relates to whether the decision maker is more task or social (people and relationships) oriented. Figure 1 illustrates the model, which shows the four types of decision makers:

Analytical (High ambiguity tolerance, task focused): Data-driven, methodical decision-making
Directive: (Low ambiguity tolerance, task focus): Fast, structured, rule-based decisions
Conceptual (High ambiguity tolerance, social focus): Big-picture, innovative approaches
Behavioral (Low ambiguity tolerance, social focus): Relationship-driven, consensus-seeking decisions

The following scenario illustrates the four decision styles.

Example: A Company Launching a New Product Line

A company that manufactures smart home devices is considering launching a new product—an AI-powered thermostat. Various decision-makers within the company demonstrate different decision-making styles.

Analytical (High ambiguity tolerance, task-focused) – The Data-Driven Product Manager
- The product manager insists on gathering extensive market research, analyzing customer preferences, and running predictive sales models before moving forward.
- The manager evaluates options, compares costs, and considers how long it will take to recoup start-up costs.
- Example: The manager uses a survey to poll customers before making a decision.
Directive (Low ambiguity tolerance, task-focused) – The Operations Director
- The operations director is focused on efficiency and structure, preferring clear guidelines and quick decisions.
- The manager pushes for a launch based on existing manufacturing capabilities and government regulations.
- Example: The manager sets strict deadlines for production, ensuring the supply chain is ready and pushing teams to follow a structured project plan.
Conceptual (High ambiguity tolerance, social-focused) – The CEO
- The CEO envisions how the product fits into the company's brand and image.
- The CEO encourages brainstorming with marketing and R&D to explore innovative features and target markets.
- Example: The CEO proposes integrating the thermostat with voice assistants and AI-driven home automation, even though customers may not be ready for this.
Behavioral (Low ambiguity tolerance, social-focused) – The HR and Culture Lead
- The HR and Culture Lead is concerned about how the launch will impact employees and work schedules.
- HR holds meetings to ask for feedback from managers.
- Example: Employees attend meetings so they can be involved in and informed about the new project. The more employees are involved, the more likely they are to accept leaders' decisions.

Each decision style plays a role in making the launch a success.

Methods for Group Decision Making

Different team decisions require different approaches:

Consensus: Encourages full participation and support; everyone agrees with the solution (e.g., startup cultures). This is the most time-consuming option because it requires a great deal of creativity, trust, and communication.
Voting: Majority rules; voting may be done in person, via a poll, anonymously, or in other ways (e.g., board elections, policy approvals). Teams must agree on how many members must agree (e.g., 51% or two-thirds).
Compromise: Balances conflicting interests; concessions may be made (e.g., labor negotiations). Although this method may seem fair, especially in the U.S., some team members may consider the decision unfair because they had to "give up" or "give in" to something they do not support.
Authority Rule: Leader-driven decisions, often in urgent situations (e.g., emergency response teams). While this method is efficient, members are often resentful when they have to follow someone's orders. If the group met for decision making and then didn't have any input, they will resent wasting precious time.

Decision Making In Groups Continuum — Figure 9.5.2 : The continuum of decision-making ( CC BY SA. Spaynton via Wikimedia.org)

As with leadership styles, appropriate decision-making processes vary from group to group depending on context, culture, and group members. No "one style fits all" applies to decision-making. When you are part of a decision-making group, consider the task, its complexity, and the impact of any decision before choosing the best method.

Groupthink Can Lead to Poor Decisions

Groupthink is the practice of thinking or making decisions as a group in a way that discourages creativity and individual responsibility. Succumbing to groupthink can lead to poor decisions and irreversible impacts. When groups do not consider other solutions or look for new information, they limit their options.

Groupthink can result in negative consequences such as "self-censorship," in which group members don't share their doubts or concerns about proposed solutions; "overconfidence," in which groups feel they have made the right decision because they have no explored other ideas; and "resistance to new ideas," in which groups may be reluctant to even consider new information. Groupthink can occur when teams rush to agree on a solution, leading to poor decisions.

How to Avoid Groupthink

Encourage open debate and diverse viewpoints
- Create a safe, inclusive workspace; encourage diverse viewpoints, and ensure everyone has a chance to participate.
Assign a "Devil’s advocate" to challenge assumptions, encourage in-depth discussions, and question solutions in a positive manner
- Choose someone who can identify risks, encourage deep thinking, push for more evidence and support, and encourage everyone's participation
Seek input from others outside the group to confirm decisions.
- Consult with other leaders, a coach or mentor, a facilitator, a project manager, etc. Asking for help should not be considered a weakness, but an opportunity to get a fresh perspective.

Selling and Implementing a Decision

How well does your solution improve the organization's processes, quality of product/service, financial status, brand engagement, etc.? Most decisions will impact a company's business needs: How will the company save money, reduce time to produce products or deliver services, and reduce waste and customer complaints? How will the solution improve a company's deliverables and customer benefits?

Once a decision is made, success depends on effective communication and execution:

Articulate the Benefits of Your Solution: Clearly state the reasons and benefits of the decision
Engage Stakeholders: Address concerns, anticipate objections, and ensure buy-in from those who will be impacted
Implement Strategically: Define criteria for success (e.g., quantify and qualify results), set milestones, and consider testing solutions through a pilot program before committing to a full rollout

You can present a solution persuasively by keeping it short and simple, engaging listeners, stating the problem, introducing the solution, and stating the impact.

Example: Present a Solution Persuasively

Gain attention; keep your message short and simple: AI is here; our employees need to know how to use it.
Engage the listener: Learning AI will help you to perform your tasks consistently and faster.
State the problem: Learning a new tool takes time and practice.
Introduce the solution: HR is offering online self-paced learning modules for all employees. Work with your manager to ensure adequate time to complete the four modules.
State the impact of the solution: When everyone in the company is trained, all stakeholders will benefit. Employees will have new skills, and our company will use innovation to drive our success.

Balancing Time and Efficiency

Group decision-making can be time-consuming, but teams can streamline the process. Teams should:

Set clear deadlines
Use project management tools such as Asana or Trello
Assign roles based on individual strengths
Involve all team members in the decision-making process whenever possible

Setting clear deadlines helps teams manage time and stay motivated to complete projects. Along with deadlines, clear expectations regarding deliverables, quality, and metrics help to reduce misunderstandings and conflicts.

Project management tools, along with AI websites, can facilitate decision-making because they can provide real-time project status using visual tools, streamline communication, and encourage task completion. They ensure everyone has access to the same information. Team members know who is assigned to individual tasks as well as the status and priority of the most critical work.

While leaders typically assign tasks based on individual strengths (e.g., Who is the best writer? Who works best under pressure?), you can let your team members know what you enjoy doing best or what you do better than most others. When team members use their strengths, they are more engaged and happier at work. Consider the role you would like to have in your next decision-making project: leader, organizer, analyzer, creative, collaborator, etc.

Why should all team member be involved in the decision-making process whenever possible? According to Lauren Landry in the Harvard Business School Online article, Why Managers Should Involve Their Team in the Decision-Making Process ^[2], team members are more likely to be engaged at work when they are involved in decisions. According to a Gallup report, engaged employees produce significantly better results, stay at their jobs longer, and report less burnout.

Tips for Making Better Decisions

Realize that you can't always make the best decision; some things are simply out of your control. Making bad decisions can help you to avoid similar bad moves in the future. Failure provides us with some of life's best lessons. However, you can make better decisions. In the article 5 Ways to Improve Your Decision-Making,³ Stuart S. Crandell, Senior Client Partner at Korn Ferry, advocates taking a deep breath, perhaps even deciding not to decide, and following these five guidelines:

Rely on purpose and values: What is important to the organization and to you?
Have the right information: Ensure you have collaborated with others, tapped experts, and done your homework
Ask, "And then what?": Consider the implications of your decision; analyze both short- and long-term consequences
Ask, "Do I have to decide now?": Sometimes the best decision is not to decide
Pause: Even if you must make a fast decision, take a breath; complicated decisions often need more processing time.

Decision-making on teams is more complicated than individual decision-making. However, understanding how others make decisions and how to make better decisions will enable you and your team to achieve greater success.

Additional Resources

Hart, R. Management Library. How to Help Groups Make Meaningful Decisions. August 13, 2023. management.org/groups/group-decision-making.htm

Heath, Chip, and Dan Heath. Decisive: How to Make Better Choices in Life and Work. New York: Crown Business, 2013.

Tannenbaum, Scott I., Eduardo Salas, and Jessica A. London. Teams That Work: The Seven Drivers of Team Effectiveness. Oxford: Oxford University Press, 2020.

Contributors and Attributions

Decision Making In Groups. Authored by: Susan Kendall. Provided by: Lumen Learning. License: CC BY: Attribution
Decision Making in Groups. Edited by: Rae Ann Ianniello
Rowe and Boulgarides - Decision Style Theory. Provided by: PAEI - Structures of Concern. Located at: http://paei.wikidot.com/rowe-boulgarides-decision-style-theory. License: CC BY-SA: Attribution-ShareAlike
How to Make Decisions. Authored by: Scott T Paynton and Linda K Hahn. Provided by: Humboldt State University. Located at: https://en.wikibooks.org/wiki/Survey_of_Communication_Study. License: CC BY-SA: Attribution-ShareAlike
Image of group decision continuum. Authored by: Spaynton. Located at: https://commons.wikimedia.org/wiki/File:Groupdecisions.png. License: CC BY-SA: Attribution-ShareAlike

Footnotes

^[1] Rose, Meleady, Hopthrow, Tim, Crisp, Richard J. "The Group Decision Effect: Integrative Processes and Suggestions for Implementation." Personality and Social Psychology Review (2012). Sage. Web.

^[2] Landry, L. Harvard Business School Online. March 20, 2020. //online.hbs.edu/blog/post/team-decision-making

^[3] Crandell, Stuart L. "5 Ways to Improve Your Decision-Making." KornFerry. (March 11, 2025) Web.

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Learning Objectives

Example: A Company Launching a New Product Line

How to Avoid Groupthink

Example: Present a Solution Persuasively