Lecture 3.

Decision Making in Management

1. Decision Making in Management: Definition and Features

2. Decision-Making Styles
3. Rational Decision Making
4. Non-Rational Decision Making
5. Decision-Making Process
6. Barriers to Decision Making
7. Managing Group Decision Making

1. Decision Making in Management: Definition and Features

Decision making is the mental process of choosing from a set of alternatives.
Every decision-making process produces an outcome that might be an action, a
recommendation, or an opinion. Since doing nothing or remaining neutral is usually
among the set of options one chooses from, selecting that course is also making a
decision.

Steps in Decision Making

Decision making comprises a series of sequential activities that together
structure the process and facilitate its conclusion. These steps are:

1. Establishing objectives
2. Classifying and prioritizing objectives
3. Developing selection criteria
4. Identifying alternatives
5. Evaluating alternatives against the selection criteria
6. Choosing the alternative that best satisfies the selection criteria
7. Implementing the decision

Analysis of Alternatives
A major part of decision making involves the analysis of a defined set of
alternatives against selection criteria. These criteria usually include costs and
benefits, advantages and disadvantages, and alignment with preferences. For
example, when choosing a place to establish a new business, the criteria might
include rental costs, availability of skilled labor, access to transportation and means
of distribution, and proximity to customers. Based on the relative importance of these
factors, a business owner makes a decision that best meets the criteria.

The decision maker may face a problem when trying to evaluate alternatives in
terms of their strengths and weaknesses. This can be especially challenging when
there are many factors to consider. Time limits and personal emotions also play a role
in the process of choosing between alternatives. Greater deliberation and information
gathering often takes additional time, and decision makers often must choose before
they feel fully prepared. In addition, the more that is at stake the more emotions are
likely to come into play, and this can distort one's judgment.

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2. Decision-Making Styles
Managers and leaders adopt different styles of decision making based on their
personality, the situation they face, the culture of the organization, characteristics of
the people they are working with, and the nature of the decision itself. There are five
essential styles of decision making:

Autocratic: The group leader solves the problem using the information he
possesses. He does not consult with anyone else or seek information in any form.
This style assumes that the leader has sufficient information to examine all the
relevant options and make an effective decision.

Information seeking: When a leader does not possess sufficient information to

make an effective decision, she needs to obtain it from others. She may simply ask
for the input she needs without telling the others what the problem is. The leader then
evaluates the information and makes the decision.

Consultation: The leader explains the situation and provides relevant

information to a group or individual, and together they generate and evaluate many
alternatives. Another possibility is that the leader asks the group or individual to
conduct a survey or an investigation and make recommendations based on the results.
Finally, the leader evaluates the solutions or recommendations the group or
individual has put forward and then makes a decision, which may or may not take
these views into account.

Negotiation: The leader explains the situation to the group or individual and
provides the relevant information. Together they attempt to reconcile differences and
negotiate a solution that is acceptable to all parties. The leader may consult with
others before the meeting in order to prepare his case and generate alternatives that
are acceptable to everyone involved.

Delegation: Responsibility and authority for making the decision are given to
the group or individual. The leader provides all the relevant information that he
possesses. The leader's role then becomes that of facilitator or guide, but he does not
attempt to force his opinions on the group. He should be prepared to accept and
implement the proposed solution.

According to behavioralist Isabel Briggs Myers, a person's decision-making

style depends to a significant degree on how they think about and assess information,
or what is called their cognitive style. While some are more comfortable with an
objective analytical approach, others are confident in being guided by their feelings
and emotions. People who trust information that is concrete and present will seek out
facts and knowledge from others, while those who rely on intuition and instinct may
be more likely to make decisions without much participation from others.

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3. Rational Decision Making

Rational decision making is a multi-step process for making choices between
alternatives. The process of rational decision making favors logic, objectivity, and
analysis over subjectivity and insight. The word "rational" in this context does not
mean sane or clear-headed as it does in the colloquial sense.

The approach follows a sequential and formal path of activities. This path
includes:

1. Formulating a goal(s)
2. Identifying the criteria for making the decision
3. Identifying alternatives
4. Performing analysis
5. Making a final decision.

Figure 1. Rational-decision-making model

This flowchart illustrates the process of rational decision making.

Assumptions of the Rational Decision-Making Model

The rational model of decision making assumes that people will make choices
that maximize benefits and minimize any costs. The idea of rational choice is easy to
see in economic theory. For example, most people want to get the most useful
products at the lowest price; because of this, they will judge the benefits of a certain
object (for example, how useful is it or how attractive is it) compared to those of

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similar objects. They will then compare prices (or costs). In general, people will
choose the object that provides the greatest reward at the lowest cost.

The rational model also assumes:

 An individual has full and perfect information on which to base a choice.

 Measurable criteria exist for which data can be collected and analyzed.
An individual has the cognitive ability, time, and resources to evaluate each
alternative against the others.
The rational-decision-making model does not consider factors that cannot be
quantified, such as ethical concerns or the value of altruism. It leaves out
consideration of personal feelings, loyalties, or sense of obligation. Its objectivity
creates a bias toward the preference for facts, data and analysis over intuition or
desires.

Problems with the Rational Decision-Making Model

Critics of rational choice theory – or the rational model of decision-making –
claim that this model makes unrealistic and over-simplified assumptions. Their
objections to the rational model include:

 People rarely have full (or perfect) information. For example, the
information might not be available, the person might not be able to access
it, or it might take too much time or too many resources to acquire. More
complex models rely on probability in order to describe outcomes rather
than the assumption that a person will always know all outcomes.
 Individual rationality is limited by their ability to conduct analysis and
think through competing alternatives. The more complex a decision, the
greater the limits are to making completely rational choices.
 Rather than always seeking to optimize benefits while minimizing costs,
people are often willing to choose an acceptable option rather than the
optimal one. This is especially true when it is difficult to precisely
measure and assess factors among the selection criteria.

Alternative Theories of Decision-Making

Bounded Rationality
Other researchers in the field of behavioral economics have also tried to explain
why human behavior often goes against pure economic rationality. The theory of
bounded rationality holds that an individual's rationality is limited by the information
they have, the cognitive limitations of their minds, and the finite amount of time they
have to make a decision. This theory was proposed by Herbert A. Simon as a more
holistic way of understanding decision-making. Bounded rationality shares the view
that decision-making is a fully rational process; however, it adds the condition that
people act on the basis of limited information. Because decision-makers lack the

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ability and resources to arrive at the optimal solution, they instead apply their
rationality to a set of choices that have already been narrowed down by the absence
of complete information and resources.

4. Non-Rational Decision Making

The rational model of decision making holds that people have complete
information and can objectively evaluate alternatives to select the optimal choice.
The rationality of individuals is limited, however, by the information they have, the
cognitive limitations of their minds, and the finite amount of time they have to make
a decision. To account for these limitations, alternative models of decision making
offer different views of how people make choices.

Herbert A. Simon
American psychology and economics researcher Herbert A. Simon defined two
cognitive styles: maximizers and satisficers. Maximizers try to make an optimal
decision, whereas satisficers simply try to find a solution that is "good enough."
Maximizers tend to take longer making decisions due to the need to maximize
performance across all variables and make trade-offs carefully. They also tend to
regret their decisions more often (perhaps because they are more able than satisficers
to recognize when a decision has turned out to be sub-optimal). On the other hand,
satisficers recognize that decision makers lack the ability and resources to arrive at an
optimal solution. They instead apply their rationality only after they greatly simplify
the choices available. Thus, a satisficer seeks a satisfactory solution rather than an
optimal one.

Gerd Gigerenzer
German psychologist Gerd Gigerenzer goes beyond Simon in dismissing the
importance of optimization in decision making. He argues that simple heuristics—
experience-based techniques for problem-solving—can lead to better decision
outcomes than more thorough, theoretically optimal processes that consider vast
amounts of information. Where an exhaustive search is impractical, heuristic methods
are used to speed up the process of finding a satisfactory solution.

The Role of Emotion

Emotion is a factor that is typically left out of the rational model; however, it has
been shown to have an influential role in the decision-making process. Because
decisions often involve uncertainty, individual tolerance for risk becomes a factor.
Thus, fear of a negative outcome might prohibit a choice whose benefits far outweigh
the chances of something going wrong.

Robust Decision Making

Robust decision making (RDM) is a particular set of methods and tools
developed over the last decade – primarily by researchers associated with the RAND
Corporation – that is designed to support decision making and policy analysis under

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conditions of deep uncertainty. RDM focuses on helping decision makers identify

and develop alternatives through an iterative process. This process takes into account
new information and considers multiple scenarios of how the future will evolve.

5. Decision-Making Process
Decision making is a central responsibility of managers and leaders. It requires
defining the issue or the problem and identifying the factors related to it. Doing so
helps create a clear understanding of what needs to be decided and can influence the
choice between alternatives.

An important aspect of any decision is its purpose, or objective. This is different

from identifying a specific decision outcome; rather, it has to do with the motivation
to make the decision in the first place. For instance, customer complaints can imply
the need to change aspects of how service is delivered, so decisions must be made to
address them. Factors that are not related to service delivery would not be in
consideration in that decision.

There are a number of ways to define a problem, such as creating a team to

tackle it and gathering relevant data by interviewing employees and customers.

Developing a Group to Define the Problem

It is a good idea to be able to approach decision definition from different
perspectives. Doing so can capture dimensions of the issue that might otherwise have
been overlooked. Involving two or more people can bring different information,
knowledge, and experience to a decision. This can be accomplished through forming
a group to consider and define the problem or issue, and then to frame the decision
based on their collective ideas. Having a shared definition and understanding of a
decision helps the decision-making process by creating focus for discussions and
making them more efficient.

Gathering Data to Define the Decision

Most decisions require a good understanding of the current state in order to
understand all implications of the potential choices. For this reason it can be valuable
to consider the views of all parties that will be affected by the decision. These may
include customers, employees, or suppliers. Data should be gathered on how the
current problem is affecting people now. Some examples of important data to gather
include efficiency levels, satisfaction levels, and output metrics. Interviews, focus
groups, or other qualitative methods of data collection can be used to identify existing
conditions that may be connected to the decision in question. As much information as
possible should be gathered to build confidence that a decision has been accurately
and appropriately formulated before additional analysis and assessment of
alternatives begin.

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Once a decision has been defined, the next step is to identify the alternatives for
decision makers to select from. It is rare for there to be only one alternative; in fact, a
goal should be to identify as many different alternatives as possible without making
too narrow a distinction between them. The decision maker can then narrow the list
based on analysis, resource limitations, or time constraints. Often, doing nothing is an
alternative worthy of consideration.

Brainstorming
Brainstorming is a good technique for identifying alternatives. Making lists of
possible combinations of actions can generate ideas that can be shaped into
alternatives. Often this is best done with a small group of people with different
perspectives, knowledge, and experience. A formal approach to capturing the results
of brainstorming can help make sure options are not overlooked.

When a decision maker has successfully and accurately defined the problem and
generated alternatives, he or she can then conduct analysis useful to evaluating and
assessing each. This typically involves analysis of quantitative data such as costs or
revenues. Qualitative data is also used to be sure that considerations such as
consistency with strategy, effects on relationships, or ethical implications are taken
into account.

A first step in analysis is identifying all the sources of data needed to understand
the various alternatives and their potential outcomes. Finding this data often involves
research if relevant data do not exist. The results of data analysis are typically
gathered, summarized, and synthesized as the basis for discussions and deliberations
by decision makers.

Once decision alternatives have been identified and analyzed, the decision
maker is ready to make a choice. To do so it is important to have a set of criteria
against which to evaluate and even rank the alternatives. Selection criteria might
include total cost, time to implement, risk, and the organization's ability to
successfully implement the decision. Categorizing criteria in terms of importance
helps to differentiate between options that might have similar disadvantages but
different advantages, or vice versa. For example, consider two alternatives that are
equally risky, but one will cost more and the other will take longer to implement. In
this case, the decision would depend on whether cost or time is more important. On
occasion, decision makers may believe they do not have sufficient information about
a particular alternative, so additional analysis may be needed.

Decision makers should do their best to minimize their biases, or preconceived

ideas about which alternative is preferable, until they complete the analysis. The
benefit of using data to support decisions is that when analysis is done correctly it is
objective and factual, not based on emotions or subjective preferences. While it is

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natural to have biases based on experience or feelings, it is important for managers

and leaders to recognize them and take steps to keep them from butting their
judgment. People may be unable to eliminate all of their biases, especially when it
comes to their tolerance for risk. It is therefore important to be explicit about
assumptions and biases to the extent possible, so that people involved in making the
decision are aware of them and can adjust their deliberations accordingly.

After all of the alternatives have been analyzed and one has been selected, it is
time to implement the decision. Three essential actions to implementing a decision
are: developing a plan, communicating with stakeholders, and executing the plan
(which includes assessing outcomes and making adjustments as needed).

Developing a Plan
A decision is reached with a certain objective in mind. Once it is made,
managers identify the steps needed to reach that objective. These can include listing
necessary actions and activities, considering required financial and other resources,
and making a schedule for completing the work. The more thought that goes into
developing a plan, the less likely it is that important factors will be overlooked.

Communicating with Stakeholders

An implementation plan requires the involvement of different people, and the
consequences of decisions affect various stakeholders. For these reasons it is
important to have a plan for communicating important information related to the
decision and its implementation. This usually involves talking with employees, but
may also mean letting customers or suppliers know about the decision and any effects
it may have on them.

Executing the Plan

Accomplishing the decision's objective requires completing the steps outlined in
the implementation plan. Once this work is underway, managers assess progress and
may identify areas for improvement. Circumstances can change or new issues might
arise that had not been thought of during the planning process. These may require
additions to, or other changes in, the plan. Because most decisions are made under
conditions of uncertainty, as time passes what was once unknown can become
known. Where estimates were incorrect or the unexpected happens, adjustments need
to be made to the implementation plans. If the new facts are significant enough, it can
even require reconsideration of the decision.

During the implementation phase, decision makers should be aware that they
may be persuaded by pressures from stakeholders and employees to change their
decision, or to reconsider. A few of these pressures include coercive pressures and
normative pressures. Coercive pressures come from the social sanctions that can be
applied if one does not act in socially legitimate ways. Normative pressures arise
from broad social values, and they concern what people think they should do. Both

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coercive and normative pressures will likely be felt by the decision maker during the
implementation of the decision, especially if the decision is an unpopular one.
However, the decision maker should fall back on the analyses that originally brought
them to the decision and strive not to be swayed by these pressures.

After a decision has been made and implemented it is important to assess both
the outcome of the decision and the process by which the decision was reached.
Doing so confirms whether the decision actually led to the desired outcomes and also
provides important information that can benefit future decision making. Learning
from experience is important to continuous improvement and effectiveness.

Evaluating Outcomes
The objective of evaluating outcomes is for the decision maker to develop
insight into the decision. Many of the lessons developed in this stage come out of
examining the implications of the decision. Insight can be obtained by referencing
key business metrics such as increased revenue, lowered costs, larger market share, or
greater consumer awareness. One can also consider whether a decision had the
desired effect. For example, a decision to hold additional training seminars may have
been intended to make it more convenient for people to learn a new technology.
However, if overall attendance did not increase, then the decision may not have
addressed the underlying cause of why people did not go to training events. Once the
outcome of a decision is known, the results may imply a need to revise the decision
and try again.

When decision outcomes are not clearly measurable or have ambiguous results –
some parts good, some bad – is not uncommon for people to emphasize the favorable
data and discount the negative. Maintaining self-esteem also may cause decision
makers to attribute good outcomes to their actions and bad outcomes to factors
outside their control. This type of bias can limit an honest assessment of what went
right and what didn't, and thus reduce what can be learned by carefully evaluating
outcomes.

Appraising the Decision Process

It can also be valuable for decision makers to step back and examine the process
by which a decision was made. Often they can learn lessons that will benefit future
decisions. If the decision was made by a group, having a conversation with all
participants is often worthwhile. Whether enough information was gathered and
whether its quality was high enough are two questions that should be considered.
How the decision maker dealt with uncertainty or bias can be examined in the face of
the results that have transpired. If estimates were off, or it becomes clear that
emotions played too large a role in making a choice, it is important to learn from
those mistakes so they won't happen again. Finally, it is important to question
whether all the relevant parties contributed information and knowledge needed for the

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decision, and whether everyone who should have been involved was given the chance
to participate.

6. Barriers to Decision Making

Decision making is inherently a cognitive activity, the result of thinking that
may be either rational or irrational (i.e., based on assumptions not supported by
evidence). Individual characteristics including personality and experience influence
how people make decisions. As such, an individual's predispositions can either be an
obstacle or an enabler to the decision-making process.

From the psychological perspective, decisions are often weighed against a set of
needs and augmented by individual preferences. Abraham Maslow's work on the
needs-based hierarchy is one of the best known and most influential theories on the
topic of motivation—according to his theory, an individual's most basic needs (e.g.,
physiological needs such as food and water; a sense of safety) must be met before an
individual will strongly desire or be motivated by higher-level needs (e.g., love; self-
actualization.

Types of Cognitive Bias

Biases in how we think can be major obstacles in any decision-making process.
Biases distort and disrupt objective contemplation of an issue by introducing
influences into the decision-making process that are separate from the decision itself.
We are usually unaware of the biases that can affect our judgment. The most common
cognitive biases are confirmation, anchoring, halo effect, and overconfidence.

1. Confirmation bias: This bias occurs when decision makers seek out evidence
that confirms their previously held beliefs, while discounting or diminishing the
impact of evidence in support of differing conclusions.

2. Anchoring: This is the overreliance on an initial single piece of information or

experience to make subsequent judgments. Once an anchor is set, other judgments are
made by adjusting away from that anchor, which can limit one's ability to accurately
interpret new, potentially relevant information.

3. Halo effect: This is an observer's overall impression of a person, company,

brand, or product, and it influences the observer's feelings and thoughts about that
entity's overall character or properties. It is the perception, for example, that if
someone does well in a certain area, then they will automatically perform well at
something else regardless of whether those tasks are related.

4. Overconfidence bias: This bias occurs when a person overestimates the

reliability of their judgments. This can include the certainty one feels in her own
ability, performance, level of control, or chance of success.

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Time Pressure as a Barrier to Decision Making

Just as individual characteristics and cognitive biases can shape decision
making, time pressure can also distort how we consider and choose between
alternatives. Severe time constraints can make decision processes and individual
judgment less objective and more influenced by intuition as more formal and rigorous
approaches are ignored. All decisions are time-bound in the sense that we do not have
an infinite amount of time to make a selection. Still, firm and proximate deadlines
and limited resources are common causes of time pressure. Information overload is
another. While considering all relevant factors is important to build support for the
decision, data collection can eat up time better spent analyzing alternatives and
making the decision itself.

There are some effective approaches to dealing with time pressure. Clearly
defining the decision and its parameters early on can reduce ambiguity and make it
easier to hone in on relevant data. Setting clear boundaries on matters such as who
will participate and how long discussions will continue can similarly manage the
amount of time given to a decision. In many instances, the use of heuristics can be
applied to complex decisions to serve as shortcuts in conducting analysis and
weighing alternatives.

There is evidence that suggests the perception of time pressure may impact
decision quality. Decision makers who believe they have ample time to make a
decision tend to arrive at more logically crafted decisions than those who feel as
though they have an insufficient amount of time. While time pressure is generally
perceived as being a barrier to effective decision making, it may also have the exact
opposite effect. A limited time frame can focus mental energy and effort to bring the
appropriate resources to bear on a decision more quickly and efficiently than
otherwise might have been the case.

Group Conflict as a Barrier to Decision Making

Delegating key decision making to groups, teams, or committees occurs often
within organizations. Decisions made by groups can be better informed by broader
perspectives and different sources of information and expertise than those made by an
individual decision maker. Along with these advantages, however, interpersonal and
group dynamics presents dilemmas that can make it more difficult for groups to make
effective choices.

Group cohesion, or positive feelings between individuals and productive

working relationships, contributes to effective group decision making. In cohesive
groups information is more easily shared, norms of trust mean it is easier to challenge
ideas, and common values help focus decisions around shared goals. Encouraging
constructive disagreements and even conflict can result in more-creative ideas or
more solutions that are easier to implement.

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Groupthink
One of the greatest inhibitors of effective group decision making is groupthink.
Groupthink is a psychological phenomenon that occurs within a group of people in
which the desire for harmony or conformity results in an irrational or dysfunctional
decision-making outcome. By isolating themselves from outside influences and
actively suppressing dissenting viewpoints in the interest of minimizing conflict,
group members reach a consensus decision without critical evaluation of alternative
viewpoints.

Loyalty to the group requires individuals to avoid raising controversial issues or

alternative solutions, and there is a loss of individual creativity, uniqueness, and
independent thinking. The dysfunctional group dynamics of the in-group produces an
illusion of invulnerability (an inflated certainty that the right decision has been
made). Thus the in-group significantly overrates its own decision-making abilities
and significantly underrates the abilities of its opponents (the out-group).
Furthermore, groupthink can produce dehumanizing actions against the out-group.

Psychologist Irving Janus, the leading theorist of groupthink, identified ways of

preventing it:

 Leaders should assign each member the role of "critical evaluator." This
allows each member to freely air objections and doubts.
 Leaders should not express an opinion when assigning a task to a group.
 Leaders should absent themselves from many of the group meetings to
avoid excessively influencing the outcome.
 The organization should set up several independent groups working on
the same problem.
 All effective alternatives should be examined.
 Each member should discuss the group's ideas with trusted people outside
of the group.
 The group should invite outside experts into meetings. Group members
should be allowed to discuss with and question the outside experts.
 At least one group member should be assigned the role of devil's
advocate. This should be a different person for each meeting.

7. Managing Group Decision Making

Group decision making (also known as collaborative decision making) is when
individuals collectively make a choice from the alternatives before them. Such
decisions are not attributable to any single individual, but to the group as a whole. By
definition, group decisions are participatory, and often a member's contribution is
directly proportional to the degree to which a particular decision would affect him or
her. Group decisions are subject to factors such as social influence, including peer
pressure, and group dynamics. These social elements can affect the process by which
decisions are reached and the decision outcomes themselves. A group can make

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decisions by consensus, in which all members come to agreement, or it may take a

majority-rules approach and select the alternative favored by most members.

Advantages of Group Decision Making

Group decision making provides two advantages over decisions made by
individuals: synergy and sharing of information. Synergy is the idea that the whole is
greater than the sum of its parts. When a group makes a decision collectively, its
judgment can be keener than that of any of its members. Through discussion,
questioning, and collaboration, group members can identify more complete and
robust solutions and recommendations.

The sharing of information among group members is another advantage of the

group decision-making process. Group decisions take into account a broader scope of
information since each group member may contribute unique information and
expertise. Sharing information can increase understanding, clarify issues, and
facilitate movement toward a collective decision.

Disadvantages of Group Decision Making

Diffusion of Responsibility
One possible disadvantage of group decision making is that it can create a
diffusion of responsibility that results in a lack of accountability for outcomes. In a
sense, if everyone is responsible for a decision, then no one is. Moreover, group
decisions can make it easier for members to deny personal responsibility and blame
others for bad decisions.

Lower Efficiency
Group decisions can also be less efficient than those made by an individual.
Group decisions can take additional time because there is the requirement of
participation, discussion, and coordination among group members. Without good
facilitation and structure, meetings can get bogged down in trivial details that may
matter a lot to one person but not to the others.

Groupthink
One of the greatest inhibitors of effective group decision making is groupthink.
Groupthink is a psychological phenomenon that occurs within a group of people in
which the desire for harmony or conformity results in an irrational or dysfunctional
decision-making outcome. By isolating themselves from outside influences and
actively suppressing dissenting viewpoints in the interest of minimizing conflict,
group members reach a consensus decision without critical evaluation of alternative
viewpoints.

Loyalty to the group requires individuals to avoid raising controversial issues or

alternative solutions, and there is a loss of individual creativity, uniqueness, and

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independent thinking. The dysfunctional group dynamics of the in-group produces an

illusion of invulnerability (an inflated certainty that the right decision has been
made). Thus the in-group significantly overrates its own decision-making abilities
and significantly underrates the abilities of its opponents (the out-group).
Furthermore, groupthink can produce dehumanizing actions against the out-group.

The manager's role in group decision making is to create a supportive

context for the group

Decisions are often delegated to groups when members have the experience and
information needed to arrive at the appropriate choice. Managers and leaders can take
actions that support group decision making and lead to good decision outcomes.
Managers can help promote effective decision making by effectively choosing group
members, framing the decision, and organizing the decision process.

In order to maximize the potential of a group decision process, managers should

take the following important steps:

 Establish the team goal: By articulating the dimensions of the decision,

including its importance, a manager can reduce ambiguity and help group
members focus their analysis, discussions, and deliberations. A clear
statement of the question to be resolved can help unify the group and
create cohesion that engages members and improves collaboration.
 Facilitate a working environment: After the decision goal is established,
the working environment must allow for meaningful, honest, and open
communication among group members. The manager can help establish
norms about how members will interact with each other to foster
constructive discourse.
 Set clear expectations and responsibilities: By setting expectations,
managers help team members understand their decision tasks and
parameters (for example, deadlines). Managers might assign roles to help
structure the decision process, establish a sense of accountability for parts
of the group's work, and clarify responsibilities.
 Provide resources: Managers must be mindful that the group has
adequate resources to evaluate alternatives and make its decision.
Necessary adjustments may include providing additional staff, giving
more time, or freeing members from other work assignments so they can
fully participate in the decision-making process.
 Get out of the way: After the manager has established the context for the
group to make its decision, the best thing to do is step back and let the
team perform. The most useful role at this point is that of coach, such as if
the group needs help managing interpersonal relationships or if additional
clarity is needed about an alternative.

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