Group decision making is decision making in groups consisting of multiple members/entities. An entity is something that has a distinct separate Existence, though it need not be a material existence The challenge of group decision is deciding what action a group should take. There are various systems designed to solve this problem.
Formal systems
- Consensus decision-making tries to avoid "winners" and "losers". WikipediaConsensus here as this is the article namespace and that information is irrelevant to the reader Consensus requires that a majority approve a given course of action, but that the minority agree to go along with the course of action. In other words, if the minority opposes the course of action, consensus requires that the course of action be modified to remove objectionable features.
- Voting based methods
- Range voting lets each member score one or more of the available options. Range voting (also called ratings summation, average voting, cardinal ratings, score voting, 0–99 voting, or the score The option with the highest average is chosen. This method has experimentally been shown to produce the lowest Bayesian regret among common voting methods, even when voters are strategic. In Statistics, Decision theory and Economics, a loss function is a function that maps an event (technically an element of a Sample space
- Majority requires support from more than 50% of the members of the group. A majority, also known as a simple majority in the US, is a Subset of a group that is more than half of the entire group Thus, the bar for action is lower than with unanimity and a group of “losers” is implicit to this rule.
- Plurality, where the largest block in a group decides, even if it falls short of a majority.
- Dictatorship, where one individual determines the course of action. A dictatorship is usually defined as an autocratic Form of government in which the Government is ruled by a Dictator.
Decision making in social setting
- See also: Groupthink
Decision making in groups is sometimes examined separately as process and outcome. Groupthink is a type of thought exhibited by group members who try to minimize conflict and reach consensus without critically testing analyzing and evaluating ideas Process refers to the group interactions. Some relevant ideas include coalitions among participants as well as influence and persuasion. The use of politics is often judged negatively, but it is a useful way to approach problems when preferences among actors are in conflict, when dependencies exist that cannot be avoided, when there are no super-ordinate authorities, and when the technical or scientific merit of the options is ambiguous.
In addition to the different processes involved in making decisions, group decision support systems (GDSS) may have different decision rules. An interactive Computer -based system that facilitates users finding (partial solutions to semi-structured problems A decision rule is the GDSS protocol a group uses to choose among scenario planning alternatives. Scenario planning '''scenario thinking''' or '''scenario analysis''' is a Strategic planning method that some organizations use to make flexible long-term plans
- Gathering involves all participants acknowledging each other's needs and opinions and tends towards a problem solving approach in which as many needs and opinions as possible can be satisfied. It allows for multiple outcomes and does not require agreement from some for others to act.
- Sub-committee involves assigning responsibility for evaluation of a decision to a sub-set of a larger group, which then comes back to the larger group with recommendations for action. A committee (some of which are titled instead as a "Commission" or other terms discussed below in) is a type of small Deliberative assembly that is usually intended Using a sub-committee is more common in larger governance groups, such as a legislature. A legislature is a type of representative Deliberative assembly with the power to create amend and change Laws The law created by a legislature is called Legislation Sometimes a sub-committee includes those individuals most affected by a decision, although at other times it is useful for the larger group to have a sub-committee that involves more neutral participants.
- Participatory, where each actor would have a say in decisions directly proportionate to the degree that particular decision affects him or her. Participation in Social science is an umbrella term including different means for the public to directly participate in political economic management or other social decisions Those not affected by a decision would have no say and those exclusively affected by a decision would have full say. Likewise, those most affected would have the most say while those least affected would have the least say.
Plurality and dictatorship are less desirable as decision rules because they do not require the involvement of the broader group to determine a choice. Thus, they do not engender commitment to the course of action chosen. An absence of commitment from individuals in the group can be problematic during the implementation phase of a decision.
There are no perfect decision making rules. Depending on how the rules are implemented in practice and the situation, all of these can lead to situations where either no decision is made, or to situations where decisions made are inconsistent with one another over time.
Moral dimension of decision making
The ethical principles of decision making vary considerably. Some common choices of principles and the methods which seem to match them include:
- the most powerful person/group decides
- everyone participates in a certain class of meta-decisions
- everyone participates in every decision
There are many decision making levels having a participation element. A dictatorship is usually defined as an autocratic Form of government in which the Government is ruled by a Dictator. Oligarchy' ( Greek, Oligarkhía) is a Form of government where Political power effectively rests with a small elite segment Meta (from Greek: μετά = "after" "beyond" "with" "adjacent" is a prefix used in English in order to indicate a concept Democracy is a form of government in which the supreme power is held completely by the people under a free electoral system Direct Democracy is a movement within the British Conservative Party dedicated to localism and Constitutional reform as a means of reviving public WikipediaConsensus here as this is the article namespace and that information is irrelevant to the reader A common example is that of institutions making decisions that affect those for whom they provide. In such cases an understanding of what participation level is involved becomes crucial to understand the process and power structures dynamics. Participation in Social science is an umbrella term including different means for the public to directly participate in political economic management or other social decisions
Control-Ethics. When organisations/institutions make decisions it is important to find the balance between the parameters of control mechanisms and the ethical principles which ensure 'best' outcome for individuals and communities impacted on by the decision. Controls may be set by elements such as Legislation, historical precedents, available resources, Standards, policies, procedures and practices. Ethical elements may include equity, fairness, transparency, social justice, choice, least restrictive alternative, empowerment.
Empowerment is a persons way of expressing control.
Decision making in healthcare
In the health care field, the steps of making a decision may be remembered with the mnemonic BRAND, which includes
- Benefits of the action
- Risks in the action
- Alternatives to the prospective action
- Nothing: that is, doing nothing at all
- Decision
Decision making in business and management
In general, business and management systems should be set up to allow decision making at the lowest possible level. Health care is the prevention treatment and management of illness and the preservation of mental health through the services offered by the medical, Nursing Value theory encompasses a range of approaches to understanding how why and to what degree humans should or do value things whether the thing is a person idea object or anything else Risk is a Concept that denotes the precise probability of specific eventualities Nothing is a concept that describes the lack or absence of anything at all Management (covering theory practice and scope of management and Manager' (covering the people who manage might help clarify and systematise
Several decision making models or practices for business include:
- SWOT Analysis - Evaluation by the decision making individual or organization of Strengths, Weaknesses, Opportunities and Threats with respect to desired end state or objective. A business (also called firm or an enterprise) is a legally recognized organizational entity designed to provide goods and/or services to SWOT Analysis is a strategic planning method used to evaluate the S trengths W eaknesses O pportunities and T hreats involved in a
- Analytic Hierarchy Process - procedure for multi-level goal hierarchy
- Buyer decision processes - transaction before, during, and after a purchase
- Complex systems - common behavioural and structural features that can be modelled
- Corporate finance
- The investment decision
- The financing decision
- The dividend decision
- Working capital management decisions
- Cost-benefit analysis - process of weighing the total expected costs vs. Buyer decision processes are the Decision making processes undertaken by consumers in regard to a potential market transaction before during and after the purchase of a This article describes complex systems as field of Science. For other meanings see Complex system. Corporate finance is an area of Finance dealing with the financial decisions Corporations make and the tools and analysis used to make these decisions Corporate finance is an area of Finance dealing with the financial decisions Corporations make and the tools and analysis used to make these decisions Corporate finance is an area of Finance dealing with the financial decisions Corporations make and the tools and analysis used to make these decisions Corporate finance is an area of Finance dealing with the financial decisions Corporations make and the tools and analysis used to make these decisions Corporate finance is an area of Finance dealing with the financial decisions Corporations make and the tools and analysis used to make these decisions Cost-benefit analysis is a term that refers both to a formal discipline used to help appraise or assess the case for a Project or proposal which itself is the total expected benefits
- Control-Ethics, a decision making framework that balances the tensions of accountability and 'best' outcome.
- Decision trees
- Decision analysis - the discipline devoted to prescriptive modeling for decision making under conditions of uncertainty. In Operations research, specifically in Decision analysis, a decision tree (or tree diagram is a decision support tool that uses a graph or Decision Analysis (DA is the Discipline comprising the Philosophy, Theory, Methodology, and Professional practice necessary to address Uncertainty is a term used in subtly different ways in a number of fields including Philosophy, Statistics, Economics, Finance, Insurance
- Program Evaluation and Review Technique (PERT)
- critical path analysis
- critical chain analysis
- Force field analysis - analyzing forces that either drive or hinder movement toward a goal
- Game theory - the branch of mathematics that models decision strategies for rational agents under conditions of competition, conflict and cooperation. The Program (or Project) Evaluation and Review Technique, commonly abbreviated PERT, is a model for Project management designed to analyze The Critical Path Method, abbreviated CPM, or critical path analysis, is a mathematically based Algorithm for scheduling a set of project activities Force field analysis is an influential development in the field of social science Game theory is a branch of Applied mathematics that is used in the Social sciences (most notably Economics) Biology, Engineering,
- Grid Analysis - analysis done by comparing the weighted averages of ranked criteria to options. A way of comparing both objective and subjective data.
- Hope and fear (or colloquially greed and fear) as emotions that motivate business and financial players, and often bear a higher weight that the rational analysis of fundamentals, as discovered by neuroeconomics research
- Linear programming - optimization problems in which the objective function and the constraints are all linear
- Min-max criterion
- Model (economics)- theoretical construct of economic processes of variables and their relationships
- Monte Carlo method - class of computational algorithms for simulating systems
- Morphological analysis - all possible solutions to a multi-dimensional problem complex
- optimization
- Paired Comparison Analysis - paired choice analysis
- Pareto Analysis - selection of a limited of number of tasks that produce significant overall effect
- Robust decision - making the best possible choice when information is incomplete, uncertain, evolving and inconsistent
- Satisficing - In decision-making, satisficing explains the tendency to select the first option that meets a given need or select the option that seems to address most needs rather than seeking the “optimal” solution. Greed and Fear are supposed together with Herd instinct, to be the three main emotional motivators of stock markets and business behavior and one of the Neuroeconomics combines Neuroscience, Economics, and Psychology to study how people make decisions In Mathematics, linear programming (LP is a technique for optimization of a Linear Objective function, subject to Linear equality Minimax (sometimes minmax) is a decision rule used in Decision theory, Game theory, Statistics and Philosophy for mini mizing Monte Carlo methods are a class of Computational Algorithms that rely on repeated Random sampling to compute their results Morphological analysis can refer to Morphological analysis (problem-solving or general morphological analysis a method developed by Fritz Zwicky for exploring In Mathematics, the term optimization, or mathematical programming, refers to the study of problems in which one seeks to minimize or maximize a real function In Constraint satisfaction, constraint optimization (also called constrained optimization) seeks for a solution maximizing or minimizing a Cost function In paired comparison analysis, also known as paired choice analysis, a range of options are compared and the results are tallied to find an overall winner Pareto analysis is a statistical technique in Decision making that is used for selection of a limited number of tasks that produce significant overall effect Robust decision is a term dating back to the late 1990s It is used to identify decisions made with a process that includes formal consideration of uncertainty Uncertain EP was the first album of the Irish band The Cranberries. Satisficing (a Portmanteau of "satisfy" and "suffice" is a Decision-making strategy which attempts to meet criteria for adequacy rather than
- Scenario analysis - process of analyzing possible future events
- Six Thinking Hats - symbolic process for parallel thinking
- Strategic planning process - applying the objectives, SWOTs, strategies, programs process
- Trend following and other imitations of what other business deciders do, or of the current fashions among consultants. Scenario analysis is a process of analyzing possible future events by considering alternative possible outcomes (scenarios The de Bono Hats system (also known as "Six Hats" or "Six Thinking Hats" is a thinking tool for group discussions Strategic planning is an Organization 's process of defining its Strategy, or direction and making decisions on allocating its resources to pursue this strategy In Finance, trend following is an Investment strategy that tries to take advantage of long-term moves that seem to play out in various markets. Imitation is an advanced Behavior whereby an individual observes and replicates another's
Decision-makers and influencers
In the context of marketing, there is much theory, and even more opinion, expressed about how the various 'decision-makers' and 'influencers' (those who can only influence, not decide, the final decision) interact. In popular usage "marketing" is the promotion of products especially Advertising and Branding However in professional usage the term has a wider meaning of Large purchasing decisions are frequently taken by groups, rather than individuals, and the official buyer often does not have authority to make the decision.
Decision Support Systems
Decision making software is essential for autonomous robots and for different forms of active decision support for industrial operators, designers and managers. See also Robot Robotics is the science and technology of Robots and their design manufacture and application
Due to the large number of considerations involved in many decisions, computer-based decision support systems (DSS) have been developed to assist decision makers in considering the implications of various courses of thinking. Decision support systems constitute a class of computer-based Information systems including knowledge-based systems that support Decision-making activities They can help reduce the risk of human errors. Risk is a Concept that denotes the precise probability of specific eventualities The word error has different meanings and usages relative to how it is conceptually applied [1] DSSs which try to realize some human/cognitive decision making functions are called Intelligent Decision Support Systems (IDSS), see for ex. Cognition is a concept used in different ways by different disciplines but is generally accepted to mean the process of awareness or thought In engineering in psychology as well as in common parlance function denotes the property of something which is used/applied for an objective/ goal / Purpose / Scope "An Approach to the Intelligent Decision Advisor (IDA) for Emergency Managers, 1999". On the other hand, an active/intelligent DSS is an important tool for the design of complex engineering systems and the management of large technological and business projects, see also: "Decision engineering, an approach to Business Process Reengineering (BPR) in a strained industrial and business environment". For all other uses see Project (disambiguation. A project, as defined in the field of Project management, consists of a temporary
References
- ^ Flyvbjerg, Bent, "From Nobel Prize to Project Management: Getting Risks Right." Project Management Journal, vol. 37, no. 3, August 2006, pp. 5-15.
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