Why can the group decision-making process be both efficient and effective?   Please explain in detail

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Why can the group decision-making process be both efficient and effective?

 

Please explain in detail 

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Group decision-making has the advantage of drawing on more individual experiences and perspectives. Therefore, they have the potential to be more creative and lead to  more effective decision making. In fact, groups can sometimes achieve more than they could have achieved as individuals. Groups also make the task more enjoyable for the members involved. Finally, when decisions are made by groups rather than individuals, they are easier to implement because the members of the  group are involved in the decisions. If your group is diverse,  different group members may have different ideas based on their backgrounds and experiences, which can help you make better decisions.

Studies show that for top management teams, a diverse group that discusses issues makes better decisions that are more inclusive and  for the bottom line in terms of profitability and sales.  groupthink, a tendency to avoid critical evaluation of ideas favored by others. It takes longer than decision making. Therefore, whether an individual or  group decision is preferable depends on the specifics of the situation.

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