In: Operations Management
When do groups make better decisions than individuals? Describe a situation in which a group would make a better decision and discuss why they would make a better decision and the process or technique that they would use to make the decision.
Groups make better decisions than individuals when the execution of decisions directly affects the whole group. For example, a single manager or superior deciding that everyone should work on weekends will lead to resentment among the employees and a loss in profitability of the company. Such decisions much be made after getting a consensus between the department head or after consulting the employees.
Similarly a manager lacking technical expertise cannot singularly decide whether to accept a project or not. He must involve others in the company especially the technical heads to make the decision. Doing this will help in understanding whether the company is capable to do the project.
So group decisions must be taken whenever the whole group is being affected by the decision or when an individual lacks expertise to make a decision. They can be made by obtaining consensus or consulting individuals.