Question

In: Economics

What are five decision-making methods for groups? Under what condition is each method an appropriate choice?

What are five decision-making methods for groups? Under what condition is each method an appropriate choice?

Solutions

Expert Solution

1) Consensus is a decision-making rule that groups may use when the goal is to gain support for an idea or plan of action. While consensus tends to take longer in the first place, it may make sense when support is needed to enact the plan. The process works by discussing the issues, generating a proposal, calling for consensus, and discussing any concerns

2) Multi-voting:It starts with a round of voting where an individual casts his vote for the shortlisted options. Each individual can cast one vote at a time. The options with the maximum number of votes are carried to the next round. This process is repeated until a clear winning option is obtained.

3) Delphi method:In this method of decision-making, the facilitator allows team members to individually brainstorm and submit their ideas “anonymously”. Other team members do not know the owner of the ideas. The facilitator then collects all the inputs and circulates them among others for modifying or improving them. This process continues until a final decision is made. In the above example, you can have a facilitator who collects strategies and passes them on to the others without revealing to whom the strategy belongs. Later, the facilitator collects the improvised strategies and chooses the best one.

4) Decision trees are diagrams in which answers to yes or no questions lead decision makers to address additional questions until they reach the end of the tree. Decision trees are helpful in avoiding errors such as framing bias. Decision trees tend to be helpful in guiding the decision maker to a predetermined alternative and ensuring consistency of decision making—that is, every time certain conditions are present, the decision maker will follow one course of action as opposed to others if the decision is made using a decision tree.

5)Majority rule - It refers to a decision-making rule in which each member of the group is given a single vote and the option receiving the greatest number of votes is selected. This technique has remained popular, perhaps due to its simplicity, speed, ease of use, and representational fairness. Research also supports majority rule as an effective decision-making technique. However, those who did not vote in favor of the decision will be less likely to support it.


Related Solutions

What is the difference between ‘decision making under uncertainty’ and ‘decision making under risk? Provide an...
What is the difference between ‘decision making under uncertainty’ and ‘decision making under risk? Provide an example of a decision that involves uncertainty and one that involves risk.
Discuss the differences among decision-making under certainty, decision-making under risk, and decision-making under uncertainty. Using the...
Discuss the differences among decision-making under certainty, decision-making under risk, and decision-making under uncertainty. Using the EMV criterion with a decision tree, describe how you would determine the best decision. Briefly discuss how a utility function can be assessed. What is a standard gamble, and how is it used in determining utility values?
Why are the maximin, maximax regret models appropriate for decision making under conditions of high uncertainty...
Why are the maximin, maximax regret models appropriate for decision making under conditions of high uncertainty but NOT appropriate when some conditions and probabilities have a moderate level of certainty or predictability?
What are some of the common decision-making errors that teams and groups encounter?
What are some of the common decision-making errors that teams and groups encounter?
Match each of the following statements with the appropriate selection decision making strategy. BE SURE TO...
Match each of the following statements with the appropriate selection decision making strategy. BE SURE TO EXPLAIN BRIEFLY WHY YOU TAKE A PARTICULAR STAND. a. Multiple regression d. Combination method b. Multiple cutoffs e. profile matching c. Multiple hurdle         9.         A "double-stage strategy" is a variation of this approach 10.       A hybrid of multiple cutoff and multiple regression approaches 11.       A nonsequential procedure 12.       A sequential procedure 13.       Applicants with different individual predictor scores can have identical overall predicted...
Probabilities are normally used in decision making under risk. You are involved in a decision making...
Probabilities are normally used in decision making under risk. You are involved in a decision making process that involves three decision alternatives and three states of nature. Discuss the methods you will use to assign probabilities to the states of nature. What conditions must be satisfied for the probabilities to exist and also how would you use the probabilities to make informed decisions? If you need to improve your decision making process for this problem, what would you have to...
Objective: Apply elementary mathematical concepts and quantitative methods in business decision making under certainty. Create a...
Objective: Apply elementary mathematical concepts and quantitative methods in business decision making under certainty. Create a context: Introduce a real-world business situation or an imagined business scenario that may benefit from the "math" presented in the prior two weeks (Weeks 1 and 2 - see the objective stated in bold above). While creating the context, ask yourself: What business use cases may benefit from the quantitative methods offered last week and this week? Basi algebraic numbers, binary operations, integral exponents,...
“Business decision making requires identification of decision alternatives, logging relevant costs/benefits of each choice, evaluating qualitative...
“Business decision making requires identification of decision alternatives, logging relevant costs/benefits of each choice, evaluating qualitative issues, and selecting the most desirable option based on judgmental balancing of quantitative and qualitative factors.” Explain the analytics for managerial decision making.
Under what condition or circumstances is the qualitative and quantitative market research appropriate for market research?
Under what condition or circumstances is the qualitative and quantitative market research appropriate for market research?
Decision making in finance is rarely black and white and one decision can be appropriate for...
Decision making in finance is rarely black and white and one decision can be appropriate for one situation and not appropriate for another. Point and counter-point discussions should highlight this as well as expand upon the ability to support a decision that may not be supported by others in the same department. Initial Post Instructions Consider the following point and counter-point arguments then use the Internet to learn more about the issue. Which argument to you support? Explain why and...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT