What Are The Potential Advantages And Disadvantages Of Using A Group To Make Decisions?

Here we discuss the potential advantages and disadvantages of using a group or team to make quality decisions which a manager needs to achieve common objectives & goals.

Advantages Of Group / Team Decisions

1. Availability of Information

In a group or a team, each member shares his own knowledge, experience, ideas, opinions, suggestions, etc., to solve the problem. For example, to reach a decision on how to increase sales of the company, some members say that we should lower the price and improve the quality. Some team members may say that we need to design new packages of the products. In this way, the manager has alternatives solutions to identified problem and finally, can make the quality decision.

2. Different Perspectives And Approaches

When making a decision using a group or team, each member shares his own perspectives and approaches to solve a particular problem. For example, in order to grow the new business, one person approach may be to increase sales, other may be to hire quality staff to deliver valuable services to customers, etc.

3. More Creativity

Group or team work creates more creativity as everyone discusses important points with each other which increases the intellectual abilities of members. For example, for increasing sales of the business, group members discuss creative thinking with each other such as innovative ways, ideas, process, etc., to make an effective decision.

4. Better Understanding Of Decisions Made By Group Members

More and understanding of decisions made by members as they discuss and share each other argument for and against alternatives choices. For example, to satisfy customers, one member may give more importance in favor of customer support service, other may favor quality of product first as the company needs more to improve it.

5. Higher Level Of Motivation And Commitment

Each member shows higher level of commitment to make decision as it requires patience, time and lots of efforts to reach the results which encourages and motivates them to get desired results by executing the decision. For example, after taking great efforts and group discussions, the manager chooses the best solution is to improve the quality of product by adding a special feature in order to satisfy customers.

Disadvantages Of Group / Team Decisions

1. Domination Of A Member

It is possible that one member tries to dominate in the group discussion and impose his own opinions in the decision and as a result, the decision is taken without mutual understanding of the members which may lack quality work.

2. Lack Of Interest And Motivation

Some members don’t take interest in meeting and group discussion due to which acceptable or average decision is made rather than maximizing or optimizing decision.

3. Time Consuming

Group decision requires lots of time while a dynamic environment requires quick and quality decisions shortly and too late becomes costly for the business. For example, if the competitor decreases the price of substitute product, the company should make quick decision, otherwise the competitor may gain competitive advantage in the market, as more customers may shift to the competitor’s product.

4. Conflict

There is also need of agreement among members to reach a quality decision, otherwise, conflict arises among them, which affects the working performance of the members and manager fails to achieve common goals.

5. Creation Of Social Loafing

Sometimes some members are giving less importance, so they don’t put their full efforts in the decision-making process and show lower performance and start absenteeism, more frequently.