Functional theory of group decision making
four sets of operations that groups tend to perform as
they deal with decisions
- Orientation stage: group identifies the problem to be solved and plans the process to be used
in reaching the decision. Groups develop a shared mental model. - Discussion stage: members communicate with one another as they develop a mutual
understanding of the situation. Collective information processing model = groups gather
information and process that information to identify and weigh options, test assumptions,
and formulate decisions. > Gains: improved memory, exchange of information, processing of information, and
error detection. - Decision stage: group relies on an implicit/explicit social decision scheme to combine
individual preferences into a collective decision. Common schemes:
- Delegating = one person or a small subgroup is making the decision.
- Averaging = statistic decisions, taking the average.
- Voting = plurality decisions.
- Consensus = unanimous decisions. - Implementation stage: group carries out the decision and assesses its impact.
- Distributive justice = perceived fairness of the distribution of rights, resources, and
costs.
- Procedural justice = perceived fairness and legitimacy of the methods used to make
decisions
Vroom: normative model of decision making
suggests that different types of situations call for
different types of group decision-making methods:
- Decide (autocratic) = leader makes the decision and then announces it to the group. Group
members only provide the leader of information so that he can make the decision. - Consult (individual) = leader talks to individuals and acquires their suggestions. Then, the
leader makes the decision and announces it to the group. - Consult (group) = leader discusses with the groups and acquires their input. Then, the leader
makes the decision and announces it to the group. - Facilitate = leader coordinates a collaborative analysis of the problem, helping the group
reach consensus on the issue; leader is active but doesn’t make the decision all by himself > Leader implements decision that is supported by the entire group. - Delegate = the group reaches a decision without the leader’s direct involvement, but the
leader provides support, direction, clarification, and resources as the group deliberates.
Problems to decision making
- Planning fallacy
- Common knowledge effect / shared information bias
- Judgement errors
- Confirmation bias
Planning fallacy
underestimating how much time, information, and effort you will need to
complete a task.
- You need a contingency plan = what to do when it does not goes as planned.
Common knowledge effect / shared information bias
spend more time of the discussion
time examining details that two or more of the group members know in common than
discussing unshared information.
- Can be avoided by group decision support systems (GDSS) = set of integrated tools
that groups use to structure and facilitate their decision making.
Judgement errors
cause people to overlook important information and overuse unimportant
information.
Confirmation bias
starting off with an initial preference and then seek out additional
information to confirm the accuracy of their inclinations.
Kerr: three types of information-processing errors:
- Sins of commission: mistakes that are caused by the misuse of information
- Sins of omission: mistakes that are caused by overlooking information
- Sins of imprecision: mistakes that are caused by relying inappropriately on
mental rules of thumb (heuristics) that oversimplify the decision
Sins of commission
mistakes that are caused by the misuse of information:
- Belief of perseverance = rely on just viewed, incorrect information.
- Sunk cost bias = continuing an action that does not contribute
anything, but still use it because investments for that action are
made. - Extraevidentiary bias = using information although there is said that
it should be ignored. - Hindsight bias = tendency to overestimate the correctness of own
knowledge prior to a decision.
Sins of omission
mistakes that are caused by overlooking information:
- Base rate bias = not paying attention to information about general
tendencies. - Fundamental attribution error = emphasizing personal
characteristics as the cause of behavior expressed by others.
Sins of imprecision
mistakes that are caused by relying inappropriately on
mental rules of thumb (heuristics) that oversimplify the decision:
- Availability heuristic = basing a decision on information that is easily
available. - Conjunctive bias = not acknowledging that the probability that two
events occur together is smaller than the probability that only one of
the two occurs. - Representativeness bias = focusing too much on obvious but
misleading aspects of a problem.
The risky shift effect
group discussion generates a shift in the direction of riskier
alternatives.
-Risky shift effect was specific case of group polarization
group polarization
shift in the direction of
greater extremity in individuals’ responses when being in groups.
-Group polarization is caused by: desire to evaluate one’s own opinions by
comparing them to others (= social comparison theory), exposure to other
members’ pro-risk/pro-cation arguments (= persuasive-arguments theory),
and by social identity processes.
Janis: groupthink
group members strive for solidarity and cohesiveness to such an extent that any
questions/topics that could lead to disputes are avoided.
-Symptoms of groupthink:
> Overestimation of the group: illusion of invulnerability (= feeling that they are
invulnerable), and illusion of morality (= losing principles).
> Closed-mindedness: less open for new ideas/perspectives. Rationalizing own
decisions and using stereotypes about the outgroups.
> Pressures toward uniformity: illusion of unanimity (= seems like everybody agrees
even if it isn’t the case), using mindguards (= group members who protect the group
of negative/alternative information), self-censorship, and direct pressure on
dissenters.
-Causes of groupthink:
> Cohesiveness: causes more pressure on conformity.
> Structural faults of the group: isolation causes that group receives no other input.
> Provocative situational factors: decisional stress causes illogical approaches for
decision-making.
- Alternative models:
> Kruglanski: group-centrism theory = groups whose members have a high need for
cognitive closure are more likely to make poorer decisions.
> Baron: ubiquity model = many groups display the negative decisional features of
groupthink, but these factors combined with a shared social identity, restrictive
norms, and lack of confidence will trigger groupthink-like decisions.
illusion of invulnerability
feeling that they are
invulnerable
illusion of morality
losing principles
illusion of unanimity
seems like everybody agrees
even if it isn’t the case
mindguards
group members who protect the group
of negative/alternative information)
