In: Economics
Groups are vital in organizations. Many times, it requires that employees are to work in groups to complete the tasks assigned to them by the organizations. However, sometimes it happens that groups are incapable to reach the goals. Decisions to be taken on time gets lagged and utter chaos happens in companies.
Therefore,
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Group decision making means is a situation when individuals collectively makes a decision from the various available alternatives.
Below mentioned are the points elaborating the importance of group decision making in functioning of the organizations:
1. Better Decision making.
Group decision making involves more than one member in a decision making process thus involving a varied views from the different individuals. It provides various alternatives for solving the particular problem and thus helps in bettter decision making.
2. Greater acceptability.
Group decision making helps in making greater accetable decisions in the organization. Since these decision is not taken by the individual but by the group of people. Thus decision is made on the basis of agreement among the group of people and is not imposed on the people.
Consensus decision making is a process of making effective decision with the agreement among the group members. In this decision made are for the benefit of whole group not for the individual member.
Below mentioned are the reasons due to which consensus is a good way of decision making:
1. Develops Teamwork.
It increases cooperation among the employees working together by taking a consensus decision for the welfare of the whole group.
2. Participatory.
The consensus decision making process actively involves maximum stakeholders in its decision making process which allow them to contribute their input and help in making effective decision .
Social loafing states that employees working in a group under perform that is work below their effciency due to the attitude of working casually towards the assigned resonsibilities and depending majorly upon the other team members.
The reasons due to which social loafing is a danger to the group functioning are:
1. Develops Negative Atmosphere.
It develops negative atomsphere in the organization since some team workers are lazy to work which creates negativity in other workers for working as they find working as a burden.
2. Wastage of Resources.
Social loafing leads to wastage of organization resources in terms of cost. Since hiring human resources involves cost but when the employee is not productive to the organization it act as a wastage of resource .
3. Decreases Efficiency.
Social loafing decreases the decision making efficiency of employees. An effective decision making is a result of involvement of all group members but here all the group members does not participate in the decision making process.