Discussion Topic
Respond to the following in a minimum of 175 words:
Share your experience working in teams. How do you believe your experience will help or hinder you when it comes to working with your classmates throughout the program?
What resources do you see in the Learning Team Toolkit that you believe will be helpful in the future?
Learning Team Toolkit
Home
Why Learning Teams?
Team Basics
Team Leaders & Charters
Getting Started
Getting to Results
Project Planning
Decision/Conflict Resolution
Team Learning
Decision/Conflict Resolution
Two important team processesmaking decisions and resolving conflict are the focus of this section. Decision-making is at the core of team performance. It is often the very reason for the teams existence, and the degree to which the team has an effective decision-making process is the degree to which the team is successful. In the first part of this section you will have the chance to examine the team decision-making process from several perspectives.
Additionally, team negotiation and conflict resolution skills are critical. Being an effective team leader or team member requires becoming an effective conflict manager and dispute-resolver. Negotiation and mediation have always been important skills. Getting to and through the performing stage of the team process will depend in large measure on our ability to manage the natural conflicts that arise in any team setting. Thats what the second part of this section is all about. DeJanaszDowdSchneider:
Interpersonal Skills in
Organizations
IV. Group Skills:
Understanding and
Working in Teams
18. Making Effective and
Ethical Decisions
The McGrawHill
Companies, 2001
371
18
Making Effective and
Ethical Decisions
How do I:
Decide between competing options and interests?
Make a decision before having all of the necessary information?
Make a decision that I can stick with?
Decide whether I should make the decision by myself or involve my team?
Know if I am making an ethical decision?
Know that Im making the right decision?
Help my employees make sound decisions?
Ashley was torn. She looked down at her registration card. She had gotten the courses
she wanted. Or had she? Approaching her junior year in college, Ashley was contem-
plating changing her major. She just didnt know what to do. Ashley is very intelligent
and capable. Like many other students, she thought she would major in businessa
practical major for any field, her parents and advisors assured her. She took the right
courses and got the necessary grades, even excelling in some areas. She had also worked
summers and as an intern for a consulting firm. Everyone told her she would be good in
business.
Despite all these positive signs, something was holding her back. In her sophomore
year she had discovered a love of literature. Nothing could be more different than
business. Yet she found it more interesting and satisfying than the business courses she
was taking. Ashley didnt know what to do. She was fearful of approaching her parents.
They had made it clear they were willing to pay for her college if she majored in some-
thing practical. Then again, her parents wouldnt know what classes she was taking.
Ashley tried contacting her advisor, but he didnt have time to see her. Her friends had
their own registration hassles. Her teachers wouldnt be supportive, she thought. Why
would they encourage her to drop out of their classes in favor of someone elses? She
didnt know what to do.
1. Why is Ashley in this situation?
2. What issues is she facing?
3. What options does she have available to her?
4. What should she do?
DeJanaszDowdSchneider:
Interpersonal Skills in
Organizations
IV. Group Skills:
Understanding and
Working in Teams
18. Making Effective and
Ethical Decisions
The McGrawHill
Companies, 2001
372 4 / Group Skills: Understanding and Working in Teams
(Alice standing at the crossroads), Cheshire-Puss, she began . . . Would
you tell me please which way I ought to go from here?1
Alice in Alice in Wonderland
Making decisionsand being able to live with them rather than second-guessing them
is one of the most difficult tasks we face in life and in business. Deciding what major to
choose can be just as difficult for a college student as deciding which company to acquire
for an ambitious CEO. In this chapter we discuss what decision making is and why it is
important, and we also examine ethical decision making. We describe the steps involved
and the strategies that can help you make decisions clearly and easily, or at least in an
organized way that gives you the confidence that youve made the right decision. At the
end of the chapter, weve included some exercises to help you assess and improve your
skills in decision making.
What Is Decision Making?
Decision making is a process by which several possibilities are considered and
prioritized, resulting in a clear choice of one option over others. Decision making is a fact
of life personally and in business. We make dozens of decisions each day. Some decisions
are simple, while others are complex. Some are made for us while others require a great
deal of analysis and thought. From what to wear to work to what computer system to
choose to how to reward top performers to what movie to see, we use a variety of
complex thought processes to make decisions from an array of options. Our ability to
make decisions helps us to navigate through life, avoiding potential problems and
expanding our horizons. Decision making plays a similar role in business. Decision
making aids managers in identifying and selecting among potential opportunities, helping
them solve immediate problems and make future problems more manageable.2 Good
decision makers are those who are effective at processing information, assessing risks,
and making choices that will have positive outcomes for their organization.3 While at
times intuitive or gut decision making is appropriate, in this chapter we focus our
attention primarily on the rational decision-making process, as it is most relevant to
working in organizations and as part of a group.
Effective decision making is essential for both organizations and individuals. Changes
in organizational structures, processes, technology, and the availability of data have
increased the need for members at all levels of organization to make decisions, and make
them effectively.
With the change from hierarchical to flatter, more participative organizational
structures, it is crucial for employees at all levels of the organization to have the informa-
tion and authority they need to react quickly to customer concerns, business issues, and
changing market trends. Having a decision-making frame of reference enables employees
to react quickly and make decisions that are in the best interest of the organization.
Today more business decisions are being made in team environments. Group
decision making is even more complex than decisions made by one or two individuals.
Employees in team environments need to understand how to gain buy-in for their
positions and how to work with others to arrive at a consensus about a preferred course
of action. A decision-making framework can provide the basis for identifying mutual
interests. This can serve as the foundation for healthy discussion and eventual selection
of one option over others.
Technology is literally speeding up the pace of business. Quick decision making is
not only desired, it is expected.4 Poor or slow decision making can result in failure or a
lack of competitiveness. In our fast-paced business environment, the ability to identify
potential problems and opportunities, collect the data needed to analyze their limitations
Why Is Decision
Making Important?
DeJanaszDowdSchneider:
Interpersonal Skills in
Organizations
IV. Group Skills:
Understanding and
Working in Teams
18. Making Effective and
Ethical Decisions
The McGrawHill
Companies, 2001
18 / Making Effective and Ethical Decisions 373
and merits, and make expedient determinations based on the information available has
become one of the most important managerial skills. Companies that train their employ-
ees to be good decision makers and encourage smart decision making can increase
efficiency and boost profits. By eliminating unnecessary steps, combining knowledge,
and simplifying processes to help speed up decisions, managers with honed decision-
making skills can have a tremendous impact on a companys bottom line.5
The vast amount of information available today through the media, Internet, and
other outlets makes decision making an essentialrather than a nice to haveskill.
The most effective managers are those who are able to quickly scan a wide variety of data
from numerous sources and determine which information is relevant for their needs.
Through decision-making processes, managers learn to translate, assimilate, and activate
the information they receive.6 Decision-making skills play a vital role in managerial
success.
Figure 181 represents a straightforward process for making almost any type of decision.
This framework can be used for decisions you face in your personal life, at school, and in
the workplace.
What is the concern you are addressing? What is it youre trying to change or react
to? In the first step of decision making, you need to determine your objective, stating
clearly and specifically what you want the end result to be.7 You want to select a movie
everyone can agree on. You want to choose a major that makes you happy. You want to
acquire a business that will increase your share of the market. By specifying the end
goal or desired state, you have a logical foundation for making a good decisionfor
sorting through options and determining which one or ones best meet your overall
objective.8
One of the most common errors in decision making is solving the wrong problem.
There is a tendency to define the problem too narrowly, resulting in fewer alternatives
from which to select to implement a satisfactory outcome. This is a condition known as
satisficing.9 It is important early in the decision process to step back and analyze the
situation from a broader perspective to ensure you are focusing on the real issues.10 This
takes discipline. Returning to our opening case, if Ashley were to rush to make a decision
about a major before shes ready because of the schools registration schedule, the
resolution of the problem might be temporary. Without the time to address the real issues
that are involveddeciding what is best for her long term, not just this semestershe
might find herself faced with the same dilemma next term. Its best to define a problem
clearly before taking action.11
Step OneIdentify the
Core Issues
The Decision-Making
Process
Figure 181
The Decision-Making
Process
Implement and monitor the decision
Reach a decision
Evaluate options
Research options
Generate options
Determine a decision-making approach
Identify the core issues
DeJanaszDowdSchneider:
Interpersonal Skills in
Organizations
IV. Group Skills:
Understanding and
Working in Teams
18. Making Effective and
Ethical Decisions
The McGrawHill
Companies, 2001
374 4 / Group Skills: Understanding and Working in Teams
How will you (and your group) make the decision? What options are available to you?
What are the possible ways in which you can respond to a situation? What are the
different steps that can be taken? In the case of selecting a movie with a group of friends,
you can flip a coin, you can each vote on your top choice, you can defer to the person
paying for the tickets, or you can take turns selecting a favorite to see. In our case
example, Ashley could agree to talk with her parents, make an appointment to meet with
an advisor, or even defer her decision and take a career planning course, all of which
could help her eventually make the real decision on which major to select.
Establish a course of action before attempting to make the decision. This sounds
simple. But often people rush to make a decision before agreeing on how the decision
will be made. The very act of discussing a potential process paves the way for
consideration of options that might not otherwise have surfaced.
By definition, making decisions implies that more than one option is available to you.
It is very rare and unusual for any problem or situation to have only one solution or
possibility. People who only consider one alternative or solution are setting themselves
up for failure or marginal success. Often the initial solution presented is not the best one.
Sometimes, we are unable to generate additional options because of our mistaken beliefs
or assumptions about a situation, such as there is only one right answer or one course of
action that meets our needs. Its a good idea to test such assumptions by asking questions
such as, What if theres a cheaper way to fix the problem? or What if I could get my
parents to see that there are other practical fields in which to major?
The best decisions are those made after consideration of varied or multiple options. Be
creative and brainstorm as many potential alternatives or solutions as possible. In cases
where more than one person is involved, examine alternatives from all perspectives to get
a near optimal or creative solution.12 In Ashleys case, she might findafter taking time to
explore her situation and discussing it with othersthat she can double major in business
and literature, or major in literature now and study business in graduate school. Generating
options is often a liberating step in decision making. Where initially you might feel
overwhelmed and pessimistic about the chances of solving your dilemma, by generating
alternatives you free yourself to consider things you might not have thought about before.
Well, if your decision is which movie to see, and you and your group are standing in front
of the theatre, youre probably not going to take the time to research the options, unless
you count reading movie reviews ahead of time as research! For most other decisions,
and for virtually all decisions in teams and in organizations, this is a crucial step. Often
one of the reasons were unable to move forward and make a decision is we simply dont
have the information needed to make a good decision. In Ashleys case, she lacks infor-
mation about how her parents would react, about suggestions her advisor might have for
her, or about how to make a double major or a combination of a major and a minor work.
By taking the time to gather data, you are able to increase your confidence that once the
decision is made it will be the right one, as it is based on the information available at the
time.
At this point, a little healthy pessimism is needed. Once youve been creative and
nonjudgmental in generating options and gathering information about them, you can
assess the pros and cons of each option.13 Assess the gains that would be derived from
each and any limitations that are inherent in each option. Also consider other factors that
are important to you when making the decision and evaluate the degree to which each
option relates to the factors of importance. For example, factors that might be important
to Ashley are choosing the major thats right for her, pleasing her parents, and choosing a
course of action that allows her to graduate within the next two years. The one option that
best meets these goals is the one Ashley should likely select. Majoring in business would
meet her need to please her parents. Majoring in literature is the option that would make
her happy. But changing her major at this point might result in her having to stay in
college for a fifth year, something she doesnt want to do. Overall, majoring in business
and adopting a literature minor might be the option that best meets a combination of all of
Step FiveEvaluate
Alternatives
Step FourResearch
Options
Step ThreeGenerate
Options
Step TwoDetermine a
Decision-Making
Approach
DeJanaszDowdSchneider:
Interpersonal Skills in
Organizations
IV. Group Skills:
Understanding and
Working in Teams
18. Making Effective and
Ethical Decisions
The McGrawHill
Companies, 2001
18 / Making Effective and Ethical Decisions 375
Ashleys needs. She can please her parents, take courses in an area in which shes truly
interested, and graduate in four years.
Many times we work with incomplete or imperfect information in the decision-making
process. We can reduce the risk factors by hypothesizing potential scenarios. For each
option, ask questions such as, What would happen if I decided to do option X? How would I
feel if I were to implement option X? How would option X affect other areas of my life or
the business? At this stage, its also appropriate to narrow the alternatives. Only consider the
options that are truly realistic and fulfill the goal or desired end state you defined in step one.
Seldom do we have a chance, like Ashley, to choose an option that meets most of
our primary needs. In real life we are faced with decision trade-offsaccepting
options that dont meet all of our needs in order to meet our most important or highest-
order needs. A systematic way to do this is to make a list of all of the factors that are
important to you in a decision, prioritize those factors, and then weigh each option
against the factors to determine the one that best meets your most important needs (see
Figure 182). This option may not meet all of your priorities, but it should meet your
top two or three.
Figure 182
Priority Grid
1
2
3
4
5
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10
1 2 3 4 5 6 7 8 9 10
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10
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10
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Item
Times
Rank
Section C
S
ec
ti
on
B
Se
ct
io
n A
Section D
1. Insert the items to be prioritized, in any order, in Section A.
2. Compare two items at a time, circling the one you preferamong the twoin Section B.
3. Count the number of times each item was circled. Enter total in Times box.
4. Times total determines items ranking. Most circled #1, next most circled #2, etc. If two items are
circled the same number of times, look back in Section B to see when those two were compared and
which one you preferred. Give that one an extra half point. Complete the rank order in Rank line of
Section C.
5. List items in Rank order in Section D.
Source: Reprinted with permission from What Color Is Your Parachute? 2001 Edition, by Richard Nelson Bolles.
Copyright 2001 by Richard Nelson Bolles, Ten Speed Press, Berkeley, CA. Available from your local bookseller or
by calling (800)8412665, or visiting http://www.tenspeed.com.
DeJanaszDowdSchneider:
Interpersonal Skills in
Organizations
IV. Group Skills:
Understanding and
Working in Teams
18. Making Effective and
Ethical Decisions
The McGrawHill
Companies, 2001
376 4 / Group Skills: Understanding and Working in Teams
Figure 183
Seven Helpful Techniques
for Generating and
Evaluating Alternatives14
Look for analogiesmake comparisons to other situations, projects within and outside of your
company.
Let data and impressions flowmanipulate data in various ways, allow for a variety of outcomes.
Build alternative hypothesesdevelop lists of possible strategies.
Take a break and let the subconscious workallow for the experiential and instinctual parts of
decision making to evolve.
Do an outcome analysis and measure the downsidecheck the comparisons, weigh and
understand probabilities.
Check for spurious precisionreexamine data and information to determine if specifics and vital
information were created and incorporated in the gathered data.
Do a reality shakedownexamine the alternative for the quality of execution by asking questions
such as, Do I have the resources needed for implementation? Do I have the time and people to
make this work?
With the availability of so much information in todays technology age, it is possible
to get caught up in having too many alternatives, too many ideas, and too much work.
This can lead to a lack of focus and momentum, which can lead to indecisiveness and a
loss of power.15 We may become overwhelmed by the options and never proceed to
selecting one, a condition known as analysis paralysis.16 Prioritizing the factors that are
important to you and evaluating your options against these priorities can help you to
narrow the options to those that are the most viable given the circumstances and your
goals in a specific situation.
Once all the information is in and youve had a chance to consult with others as necessary
and weigh the alternatives, its time to make a decision. Determine which option best
meets your overall needs and resolve to act on that option. But before taking the plunge,
envision taking the plunge first. Do a self-visualization to make sure the decision youre
making is one you can live with. One way to do this is to make a decision, but take
24 hours to think about it. Let your subconscious act as though youve made the decision,
but dont let anyone know and dont act on the decision yet. The next morning, before
you even rise, ask yourself how you feel about the decision you made yesterday. Listen to
what your heart tells you. Do you feel positive? Calm? Like it was the right choice? Or
do you feel negative? Panicked? Like it would be the wrong choice? If you feel fine about
the choice youve made, its an intuitive sign youve made the best decision given the
information available and you can probably act on it. If you still have serious reservations
about your decision, then youre not ready to act and you should defer action until youve
had a chance to resolve the conflict youre experiencing.
Once youve reached a decision, its time to act on your decision and monitor it to make
sure its resulting in the outcome you expected. Develop a plan that specifies the steps
youll take, a time frame, and the key players. In Ashleys case, she would make plans to
go home and talk with her parents, make an appointment to see her advisor, meet with
those of her instructors who might be affected by her decision, and plan a visit to her
colleges Career Center to learn about career options for the major(s) shes considering.
Then, monitor the plan to see if it is following the direction you wanted. Also observe
whether external factors have changed or if youre receiving information that might affect
your decision, and adapt your plan accordingly. For example, Ashley might find a book
that lists internship options for literature students, giving her hope she could look for a
job the following summer that utilizes her literature background. Taking the time to plan
and to monitor the decision after making a decision ensures that youll do the follow-
through necessary for the decision to be successful.
Organizational decision making is more complex than individual decision making
because of the number of people involved in making the decision and the volume of
people affected by the decision. Several different types of decision-making processes
Group Decision
Making
Step SevenImplement
and Monitor
Step SixReach
a Decision
DeJanaszDowdSchneider:
Interpersonal Skills in
Organizations
IV. Group Skills:
Understanding and
Working in Teams
18. Making Effective and
Ethical Decisions
The McGrawHill
Companies, 2001
18 / Making Effective and Ethical Decisions 377
can be used when making organizational decisions.17 The process chosen depends on
the type of leadership, on the people involved, and on the time available for a decision
to be made.
Autocratic decision making: This approach involves making decisions on your
own or independently. This approach is fast and timely and can be effective in matters
that are minor or trivial or where there would be more to lose than to gain by getting
others to participate. This approach can also be appropriate in times of crisis, when it is
critical for one strong person to be in charge. Potential problems that could stem from an
autocratic decision approach are lack of commitment by individuals to decisions imposed
on them, an increased likelihood that decisions made are wrong, lack of creative
expansion or development of ideas, and that decisions are made that reflect a single
perspective. For this approach to work, collect the data needed to make a decision and
communicate to others your rationale for taking a certain route immediately, pointing out
the benefits of that route to those who will be affected by the decision.
Expert member soliciting: This approach involves obtaining input from and
relying on the advice offered by a person with particular skill or knowledge in the area of
concern. This approach is effective when those involved in the decision lack expertise in
the area being addressed and when there is time to bring in outside opinions for
consideration by the decision-making body. A limitation of this approach is that it is
difficult for an outsider, no matter how competent, to understand fully the dynamics
involved inside any organization. The experts opinion about the subject might be viable
in other organizations but not in yours. To make this approach work, seek outside
counsel, and involve internal group members when making the final decision.18
Consultative decision making: This approach involves obtaining input from those
responsible for and affected by the decision and then making a decision independently
(rather than by consensus by the whole group, as outlined below). This approach has the
advantage of allowing for some suggestion and involvement by others (limited
empowerment). In this way, you can obtain others perspectives and help others to feel
included and to feel their insights and thoughts are taken into account before a decision is
made. The disadvantage of this approach is that it is more time-consuming to get others
involved before making a decision. Asking for others opinions without making your own
perspective known sometimes makes a manager appear to be indecisive. This approach
can also backfire if it appears that decisions are made without ever taking into account
others perspectives, leading others to believe their opinions were neither desired nor
included. For this approach to work, let the group know you have a strong opinion but
dont want to make a decision until theyve had a chance to give input. Incorporate at
least part of their suggestions into the decision. If this cant be done, explain clearly the
rationale so the group members feel they were heard, and assure them they will be
included in future decisions.
Minority control: This approach involves allowing a small portion of a larger
group to make a decision. This approach is effective when time constraints or logistics
make it impossible to get a large group together and the decision makers act on behalf
of the large group. It is also appropriate when only a small part of the group has the
expertise or interest in the issue. The disadvantage of this approach is that it is risky; the
chances of the majority of the group not being satisfied with the outcome are greatly
increased. For this approach to work, offer those who wont or cant be present for the
decision the chance for input and keep them informed of the issues under discussion and
the rationale for the decision ultimately made.
Majority control: This approach involves making the decision that is favored by
the largest number of people in the group. The advantage of this approach is that it
allows for the largest percentage of those involved to make and control the decision. It is
a practical means for large groups to bring closure to discussions to which many have
had input. A disadvantage of this approach is that it is often very time consuming to get a
majority on an issue. Another limitation is that sometimes in a majority rules context, a
few members can dominate the discussion, making it less possible for other perspectives
to surface and be considered. By definition, in a majority-rule situation, it is likely that
not all group members will be satisfied with the outcome. As the saying goes, You can
DeJanaszDowdSchneider:
Interpersonal Skills in
Organizations
IV. Group Skills:
Understanding and
Working in Teams
18. Making Effective and
Ethical Decisions
The McGrawHill
Companies, 2001
378 4 / Group Skills: Understanding and Working in Teams
please some people some of the time, but cant please all of the people all of the time.
Unfortunately this approach often results in an either/or proposition with one side ap-
pearing to win and the other to lose. In fact, the solution reached might not actually
be the best solution, but the one to which the fewest objected. To make this approach
work, lengthen the time during which creative options can be entertained, increasing the
likelihood of an option surfacing that can be acceptable to the vast majority of the group
and not just a small majority. In addition, consider imposing a two-thirds rule, where at
least two-thirds of the group has to support the decision, rather than a simple 51 percent
majority.
Consensus: This approach involves finding a proposal acceptable enough that
virtually all members can support it.19 This is the winwin scenario. To be clear,
consensus does not necessarily mean 100 percent agreement. Instead, because all
members were involved in an open and complete decision process and had input into the
decision, virtually all of the members of a group are satisfied with the outcome, and
confident in the viability of the solution reached. The chief advantage of this approach is
that the quality of the decision will be greatly enhanced because of the attention paid to
all interests in the group and the creativity involved in generating potential options. The
limitations of this approach are that it is very time-consuming and involves a great deal of
skill in dealing with people and helping the group to deal creatively with the situation. It
also means the manager cannot impose his or her will on the group and must be open to
others perspectives on how the situation should be addressed. To make this approach
work, provide the group with the information they need to take all important factors into
account, provide an atmosphere and resources that support creativity, and develop a
timetable that allows the creative process to work and the group to find a viable, creative
solution.
Each of the decision-making approaches weve discussed can be appropriate given the
situation youre facing as a manager. Group decision making considerations that
determine the approach thats best to use in a specific situation include time, member
competence, level of autonomy, amount of information available, and group size.
Time: Each approach has a different time requirement. The autocratic approach
generally takes the least amount of time while the consensus approach takes the most. For
any approaches other than autocratic to work, provide the time available to make a good
decision. When time is short, choose an approach by making trade-offs based on the time
available.
Member competence: Each approach implies a different level of group member
competence. The autocratic approach assumes the least competence; the consensus
approach, the most. Consider the skills and abilities of others in determining whether they
should be a part of the decision-making process. For any but the autocratic approach to
work, train the staff in how to interpret data and make comparisons between opposing
alternatives. Group decision making requires that each member has an understanding of
the issues involved and has the evidence needed to support the final decision.20
Autonomy and self-direction: Each approach assumes members have a specific
level of freedom and motivation. The autocratic approach assumes the group members
have the least amount of authority or desire for change; the consensus approach, the most.
The type of people involved, the amount of authority they have, and the extent to which
they are self-directed will influence the decision-making approach selected. For any but
the autocratic approach to work, increase the ability of the group to not just make but
implement the decisions made by the group. The more ownership they have over the
outcome, the more involved they will be in the process of sorting through alternatives
and selecting one to implement. And the more committed they will be to the outcome.
Availability of necessary information: Each approach assumes a diffe
