Question

In: Operations Management

Briefly state the pros and cons of consensus decision making.. Then, give a practical example of...

Briefly state the pros and cons of consensus decision making.. Then, give a practical example of a management situation where consensus would be ideal , and also a situation

where consensus would NOT provide an optimal solution;. Lastly, state your opinion on whether consensus decision -making is optimal.

Solutions

Expert Solution

Before looking at the pros and cons of consensus decision making, one needs to understand what consensus decision making is. While using this method one can imagine themselves as going on a decision making journey where they have to build consensus towards the situation being discussed. In the simplest of terms, consensus is a general agreement over the said situation, by a majority of those present. Such decisions will pass even though some individuals may not agree with it. While opting for such decision making, the problem/issue at hand needs to be introduced and explained, then members of the team would give various proposals, the feasible and matching proposals would be singled out, discussed upon by others who point out the pros & cons and then a final decision needs to be made.

Now having clarified the term, let’s see the pros and cons of consensus decision making.

A. PROS

1. It helps reach accurate decisions as more members of the team are consulted. This involvement of various members also builds a sense of importance within the team member.

2. It generates cooperation within the team as all members work together to reach a consensus. Although there may be disagreements, the final goal is common— finding the best and feasible solution for the company of which everyone is part of.

3. As more people are involved in the decision making, the solution which all agree to, would be more representative as a majority has agreed to it.

4. It is easier to execute and apply a decision that a majority have agreed to, as the person will do it willingly. There is no feeling of autocratic imposition of a decision.

5. Everyone’s proposal has the same degree of importance. The person is free to agree or disagree without any pressure.

CONS

1. Consensus decision making is time consuming and tedious.

2. There is also a danger of conformity, where a team member may hide their true decision in order to not be seen as “different”.

3. The groupthink (propounded by Irving Janis) phenomenon also comes at play. This occurs when groups are cohesive. It is a situation where there is an appearance of unanimous decision making and no one dissents from it as it may dent the cohesion of the group/team.

4. As it is based on an agreement by the majority, there is also the danger of a situation where the majority might be wrong and the decision taken (although agreed by the majority) is not up to mark.

5. The minority in the group may have no say to the decision agreed upon by all, even if it is not in the best interests of the organization.

B. Practical example of a management situation where consensus would be ideal

Keeping in mind that there is enough time, consensus decision making maybe used in the following situation: Let’s say that the marketing team of a smartphone brand needs to decide how to publicize their new phone which will be launched shortly. The team members may propose various options such a teasers before the launch, giveaways, celebrity endorsements, lucky draws etc. In short this method should be used in situations where many members can work cooperatively to resolve one common issue and bring about creative solutions beneficial for the organization.

C. A situation where consensus would NOT provide an optimal solution

Let’s take the same example of a smartphone that is to be launched soon. Let’s say that a situation comes where the team must take an urgent decision to allocate more funds for the production of smartphone microchips. However, all team members are not present and the decision must be taken ASAP as it may impact the production of the smartphone and hence delay the launch. In this case, consensus decision making would not be the best of options.

D. Lastly, state your opinion on whether consensus decision -making is optimal.

As stated in the points above, consensus decision making is optimal only when the conditions are ripe for it. It would be foolhardy to opt for this method in situations where the decision needs to be taken urgently or the team just does not seem to agree on any one decision. It is the duty of the manager of the organization or the person in charge, to opt for the optimal decision making process as per the demands of the situation.


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