DECISION MAKINGIntroductionIn recent years, the Browns Insurance Services became interested and invest a considerable amount to purchase new technology for their call centre located in North East England. However, this investment fails as it did not meet the expectation of the company. Consequently, the company has no choice but to find a solution to the problem. Moreover, Mr. Green (the CEO) is worried that the same Board who decided of this failed investment would make another bad decision in the future. To avoid failure, Mr. Green decided to look into the processes involve in group decision making and find out why the board decision fails and how it can be improved.
The following section includes review of theory on the advantages of deciding as a group and the factors affecting group judgement and decisions. Moreover, it also includes discussions regarding different approaches to improve group decision making and finally, recommendations on how the Board of Browns Insurance Services can improved their decision making activities. Group Decision MakingPeople usually make decisions but its importance differs widely from one individual to another (Verplanken and Ola Svenson 1997, p. 40).
For example, people make unimportant decisions in their everyday life such as everyday purchases that requires little thought. Important decisions are usually made in circumstances where high costs are involved such as investing on a business or purchasing a house. These are decisions that involved significant reasoning and choices from a considerable number of options. In other words, important decisions are essentially being made by people when the outcome of such decision will have a big impact on their well-being as a person (Verplanken & Svension 1997, p. 40).
According to Ullman (2006. p. 17), people are making many important decisions in their life but making the right decision in business organisations is a big issue particularly when this decision will not come from one individual but from a group of people. Deciding in a group has many challenges and basically these problems are arising from differences in interpretation of information and individual thinking coupled by uncertainties, lack of sufficient information, and bad decision making strategy. Typically, decision groups are being formed to make decisions but they don’t always work well.
What had happened to Browns Insurance Services may be a product of the following factors. According to Tropman (1996, p. 4), some of the reason why they cannot function property includes failure to set expectations, agendas were not created, members are not aware of the exact roles or positions, and lack of determination to arrive at better decisions. These also may include failure to identify problems because of ignorance and lack of knowledge about organisation boundaries and other conditions related to the problem (Lu & Ruan 2007, p. 7).
Another possible problem that had happened to the company is conflict of interest among members of the Board (Diamond 2006, p. 420) since business decision making group involves people with differing views or oriented to a particular department or section. For instance, one or couple of members of the Board may oppose and favour decisions that are more beneficial to their interest rather than the interest of all (Lasher 2007, p. 16).