As the description of decision making in the microcomputer industry implies, many decisions are made by a group rather than

by an individual manager. Important managerial decisions are marked by conflict among interested parties. Therefore, many decisions are the result of intensive social interactions, bargaining and politicking.

POTENTIAL ADVANTAGES OF USING A GROUP 1. More information is available when several people are making the decision.
2. A greater number of perspectives on the issues, or different approaches to solve the problem are available.
3. Group discussion provides an opportunity for intellectual stimulation.

4. People who participate in a group discussion are more likely to understand why the decision was made.
5. Group decision typically leads to a helper level of commitment to the decision.

POTENTIAL PROBLEMS IN USING A GROUP 1. Sometimes one group member dominates the discussion. When this occurs such as when a strong leader makes his or her preferences clear the result is the same as if the dominant individual made the decision alone. 2. Satisficing is more likely with groups.

3. Pressure to avoid disagreement can lead to a phenomenon called groupthink. Groupthink occurs when people choose not to disagree or raise objections because they dont want to break up a positive team spirit. 4. Goal displacement often occurs in groups. The goal of group members should be to come up with the best possible solution to the problem. When goal displacement occurs, new goals emerge to replace the original ones.

ORGANIZATIONAL REALITIES It is about the complex realities of the decision making process in an organizational context.

CONCEPTS AND PROCESSES IN DECISION MAKING

1. Constraints on Decision Makers Financial, legal, market, human and organizational.

2. Negotiations and Politics Decision makers often need to negotiate, bargain, or compromise.

3. Decision Making in a Crisis.