MGT3002

Individual and Group Decision Making

Which is better—individual or group decision-making? This is not an easy question to answer.

Generally speaking better-quality decisions come from groups. This is because groups contain people

with a variety of experiences and information that can be pooled together and these diverse views can

be examined by all of the group members. Individuals are also more committed to the �nal decision because of their participation in the decision-making process. However, individual decision-making is

usually faster, and when deadlines lead to time constraints group decision-making may not be an

available option. 

In a typical work group, jobs are allocated to the members on an individual basis and they carry

individual responsibility and authority. In contrast with a work group, a work team has collective or

joint responsibility and authority. The work group meets primarily to share information and make decisions while the work team meets for a collective and coordinated effort to perform tasks.

Work teams are useful for various kinds of activities, such as in manufacturing, services, and contract

negotiations. Their increasing popularity is an indication of their effectiveness. The most common

types of work teams are problem solving teams, cross-functional teams, self-managed teams, and

virtual teams.

Since the 1970s, strong competition from manufacturers in countries including Japan, Germany, and

South Korea has led American companies to make a concerted effort to improve quality. With the success of quality circles in Japan, American companies have begun to recognize that employee

involvement through work teams is important for quality management. While not all companies are

enthusiastic about the use of work teams, evidence does suggest that they are becoming more popular.

Teams have become increasingly prominent in the workplace. A team-oriented organizational

structure means companies or divisions rely on small work groups or teams to manage various

products or tasks. Work teams offer some bene�ts because of the collaboration of several employees, but challenges also exist when work teams replace more individualized work.

Additional Materials

Individual and Group Decision Making, Work Teams, Quality Management and Teams

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