scholarly journals Quality of group decisions by board members: a hidden-profile experiment

2021 ◽  
Vol 59 (13) ◽  
pp. 38-55
Author(s):  
Tessa Coffeng ◽  
Elianne F. Van Steenbergen ◽  
Femke De Vries ◽  
Naomi Ellemers
Keyword(s):  
Decision Making ◽  
Subjective Evaluation ◽  
Balance Sheet ◽  
Decisional Balance ◽  
Decision Quality ◽  
Board Members ◽  
Group Decisions ◽  
Content Type ◽  
Hidden Profile

PurposeReaching decisions in a deliberative manner is of utmost importance for boards, as their decision-making impacts entire organisations. The current study aims to investigate (1) the quality of group decisions made by board members, (2) their confidence in, satisfaction with, and reflection on the decision-making, and (3) the effect of two discussion procedures on objective decision quality and subjective evaluations of the decision-making.Design/methodology/approachBoard members of various Dutch non-profit organisations (N = 141) participated in a group decision-making task and a brief questionnaire. According to the hidden-profile paradigm, information was asymmetrically distributed among group members and should have been pooled to reach the objectively best decision. Half of the groups received one of two discussion procedures (i.e. advocacy decision or decisional balance sheet), while the other half received none.FindingsOnly a fifth of the groups successfully chose the best decision alternative. The initial majority preference strongly influenced the decision, which indicates that discussion was irrelevant to the outcome. Nevertheless, board members were satisfied with their decision-making. Using a discussion procedure enhanced participants' perception that they adequately weighed the pros and cons, but did not improve objective decision quality or other aspects of the subjective evaluation. These findings suggest that board members are unaware of their biased decision-making, which might hinder improvement.Originality/valueRather than using student samples, this study was the first to have board members participating in a hidden-profile task.

scholarly journals Mental simulation and the individual preference effect

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dawn H. Nicholson ◽  
Tim Hopthrow ◽  
Georgina Randsley de Moura
Keyword(s):  
Decision Making ◽  
Group Decision Making ◽  
Group Decision ◽  
Experimental Studies ◽  
Individual Preference ◽  
Mental Simulation ◽  
Decision Quality ◽  
Content Type ◽  
Hidden Profile ◽  
The Individual

PurposeThe “Individual Preference Effect” (IPE: Faulmüller et al., 2010; Greitemeyer and Schulz-Hardt, 2003; Greitemeyer et al., 2003), a form of confirmation bias, is an important barrier to achieving improved group decision-making outcomes in hidden profile tasks. Group members remain committed to their individual preferences and are unable to disconfirm their initial suboptimal selection decisions, even when presented with full information enabling them to correct them, and even if the accompanying group processes are perfectly conducted. This paper examines whether a mental simulation can overcome the IPE.Design/methodology/approachTwo experimental studies examine the effect of a mental simulation intervention in attenuating the IPE and improving decision quality in an online individual hidden profile task.FindingsIndividuals undertaking a mental simulation achieved higher decision quality than those in a control condition and experienced a greater reduction in confidence in the suboptimal solution.Research limitations/implicationsResults suggest a role for mental simulation in overcoming the IPE. The test environment is an online individual decision-making task, and broader application to group decision-making is not tested.Practical implicationsSince mental simulation is something we all do, it should easily generalise to an organisational setting to improve decision outcomes.Originality/valueTo the authors' knowledge, no study has examined whether mental simulation can attenuate the IPE.

Jumping to conclusions – an analysis of the NBA Draft Combine athleticism data and its influence on managerial decision-making

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tobias Berger ◽  
Frank Daumann
Keyword(s):  
Decision Making ◽  
Design Methodology ◽  
Predictive Power ◽  
Principal Component ◽  
Decision Makers ◽  
Decision Quality ◽  
Managerial Behavior ◽  
Managerial Decision ◽  
Content Type ◽  
Selection Behavior

PurposeThe NBA Draft policy pursues the goal to provide the weakest teams with the most talented young players to close the gap to the superior competition. But it hinges on appropriate talent evaluation skills of the respective organizations. Research suggests the policy might be valid but to date unable to produce its intended results due to the “human judgement-factor”. This paper investigates specific managerial selection-behavior-influencing information to examine why decision-makers seem to fail to constantly seize the opportunities the draft presents them with.Design/methodology/approachAthleticism data produced within the NBA Draft Combine setting is strongly considered in the player evaluations and consequently informs the draft decisions of NBA managers. Curiously, research has failed to find much predictive power within the players pre-draft combine results for their post-draft performance. This paper investigates this clear disconnect, by examining the pre- and post-draft data from 2000 to 2019 using principal component and regression analysis.FindingsEvidence for an athletic-induced decision-quality-lowering bias within the NBA Draft process was found. The analysis proves that players with better NBA Draft Combine results tend to get drafted earlier. Controlling for position, age and pre-draft performance there seems to be no proper justification based on post-draft performance for this managerial behavior. This produces systematic errors within the structure of the NBA Draft process and leads to problematic outcomes for the entire league-policy.Originality/valueThe paper delivers first evidence for an athleticism-induced decision-making bias regarding the NBA Draft process. Informing future selection-behavior of managers this research could improve NBA Draft decision-making quality.

The Impact of Conflict- Generating Techniques on Student Reactions and Decision Quality

1995 ◽  
Vol 58 (4) ◽  
pp. 39-45
Author(s):  
Granger Macy ◽  
Joan C. Neal
Keyword(s):  
Decision Making ◽  
Business Students ◽  
Decision Quality ◽  
Structured Decision Making ◽  
Constructive Conflict ◽  
Significant Difference ◽  
Student Reactions ◽  
Graduate Business Students ◽  
The Impact

This study examined the effectiveness of conflict-generating decision-making techniques in the college classroom. Utiliz ing constructive conflict in classroom exercises may affect decision-making quality and student reactions. This study of undergraduate and graduate business students found significant difference in both the quality of the decisions and in student reactions to the techniques. The findings and discussion indicate the potential for appropriate use of structured decision-making techniques in the classroom.

The impact of leadership churn on quality management in Australian hospitals

2019 ◽  
Vol 33 (7/8) ◽  
pp. 809-820
Author(s):  
Sandra Leggat ◽  
Cathy Balding
Keyword(s):  
Quality Of Care ◽  
Quality Management ◽  
Quality Indicators ◽  
Health Sector ◽  
Quality System ◽  
Board Members ◽  
Governing Board ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to explore the relationship between frequent turnover (churn) of the chief executive officer (CEO), quality manager and members of the governing board with the management of quality in eight Australian hospitals. Design/methodology/approach A mixed method three-year longitudinal study was conducted using validated quality system scales, quality indicators and focus groups involving over 800 board members, managers and clinical staff. Findings There were unexpected high levels of both governance and management churn over the three years. Churn among CEOs and quality managers was negatively associated with compliance in aspects of the quality system used to plan, monitor and improve quality of care. There was no relationship with the quality of care indicators. Staff identified lack of vision and changing priorities with high levels of churn, which they described as confusing and demotivating. There was no relationship with quality processes or quality indicators detected for churn among governing board members. Practical implications Governing boards must recognise the risks associated with management change and minimise these risks with robust clinical governance processes. Originality/value This research is the first that we are aware of that identifies the impact of frequent leadership turnover in the health sector on quality management.

The role of heuristic-driven biases in entrepreneurial strategic decision-making: evidence from an emerging economy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maqsood Ahmad ◽  
Syed Zulfiqar Ali Shah ◽  
Yasar Abbass
Keyword(s):  
Decision Making ◽  
Emerging Economy ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Decision Making Process ◽  
Strategic Decisions ◽  
Content Type ◽  
The Relationship

PurposeThis article aims to clarify the mechanism by which heuristic-driven biases influence the entrepreneurial strategic decision-making in an emerging economy.Design/methodology/approachEntrepreneurs' heuristic-driven biases have been measured using a questionnaire, comprising numerous items, including indicators of entrepreneurial strategic decision-making. To examine the relationship between heuristic-driven biases and entrepreneurial strategic decision-making process, a 5-point Likert scale questionnaire has been used to collect data from the sample of 169 entrepreneurs who operate in small- and medium-sized enterprises (SMEs). The collected data were analyzed using SPSS and Amos graphics software. Hypotheses were tested using structural equation modeling (SEM) technique.FindingsThe article provides empirical insights into the relationship between heuristic-driven biases and entrepreneurial strategic decision-making. The results suggest that heuristic-driven biases (anchoring and adjustment, representativeness, availability and overconfidence) have a markedly negative influence on the strategic decisions made by entrepreneurs in emerging markets. It means that heuristic-driven biases can impair the quality of the entrepreneurial strategic decision-making process.Practical implicationsThe article encourages entrepreneurs to avoid relying on cognitive heuristics or their feelings when making strategic decisions. It provides awareness and understanding of heuristic-driven biases in entrepreneurial strategic decisions, which could be very useful for business actors such as entrepreneurs, managers and entire organizations. Understanding regarding the role of heuristic-driven biases in entrepreneurial strategic decisions may help entrepreneurs to improve the quality of their decision-making. They can improve the quality of their decision-making by recognizing their behavioral biases and errors of judgment, to which we are all prone, resulting in a more appropriate selection of entrepreneurial opportunities.Originality/valueThe current study is the first to focus on links between heuristic-driven bias and the entrepreneurial strategic decision-making in Pakistan—an emerging economy. This article enhanced the understanding of the role that heuristic-driven bias plays in the entrepreneurial strategic decisions and more importantly, it went some way toward enhancing understanding of behavioral aspects and their influence on entrepreneurial strategic decision-making in an emerging market. It also adds to the literature in the area of entrepreneurial management specifically the role of heuristics in entrepreneurial strategic decision-making; this field is in its initial stage, even in developed countries, while, in developing countries, little work has been done.

Stressed decision makers and use of decision aids: a literature review and conceptual model

2019 ◽  
Vol 33 (2) ◽  
pp. 710-754 ◽  
Author(s):  
Monica Adya ◽  
Gloria Phillips-Wren
Keyword(s):  
Decision Making ◽  
Conceptual Model ◽  
Perceived Stress ◽  
Decision Aids ◽  
Decision Makers ◽  
Decision Quality ◽  
Negative Effects ◽  
Managerial Decision ◽  
Content Type ◽  
The Impact

Purpose Decision making is inherently stressful since the decision maker must choose between potentially conflicting alternatives with unique hazards and uncertain outcomes. Whereas decision aids such as decision support systems (DSS) can be beneficial in stressful scenarios, decision makers sometimes misuse them during decision making, leading to suboptimal outcomes. The purpose of this paper is to investigate the relationship between stress, decision making and decision aid use. Design/methodology/approach The authors conduct an extensive multi-disciplinary review of decision making and DSS use through the lens of stress and examine how stress, as perceived by decision makers, impacts their use or misuse of DSS even when such aids can improve decision quality. Research questions examine underlying sources of stress in managerial decision making that influence decision quality, relationships between a decision maker’s perception of stress, DSS use/misuse, and decision quality, and implications for research and practice on DSS design and capabilities. Findings The study presents a conceptual model that provides an integrative behavioral view of the impact of a decision maker’s perceived stress on their use of a DSS and the quality of their decisions. The authors identify critical knowledge gaps and propose a research agenda to improve decision quality and use of DSS by considering a decision maker’s perceived stress. Originality/value This study provides a previously unexplored view of DSS use and misuse as shaped by the decision and job stress experienced by decision makers. Through the application of four theories, the review and its findings highlight key design principles that can mitigate the negative effects of stressors on DSS use.

Three-way group decisions under hesitant fuzzy linguistic environment for green supplier selection

Kybernetes ◽  
2020 ◽  
Vol 49 (12) ◽  
pp. 2919-2945 ◽  
Author(s):  
Weimin Ma ◽  
Wenjing Lei ◽  
Bingzhen Sun
Keyword(s):  
Decision Making ◽  
Group Decision Making ◽  
Supplier Selection ◽  
Group Decision ◽  
Group Decisions ◽  
Content Type ◽  
Green Supplier Selection ◽  
Strategic Role ◽  
Fuzzy Linguistic ◽  
Selection Of

Purpose The purpose of this paper is to propose a three-way group decision-making approach to address the selection of green supplier, by extending decision-theoretic rough set (DTRS) into hesitant fuzzy linguistic (HFL) environment, considering the flexible evaluation expression format of HFL term set (HFLTS) and the idea of minimum expected risk in DTRS. Design/methodology/approach Specifically, the authors first present the calculation method of the conditional probability and discuss the loss functions of DTRS with HFL element (HFLE), along with some associated properties being investigated in detail. Further, three-way group decisions rules can be deduced, followed by the cost of every green supplier candidate. Thus, based on these discussions, a novel green supplier selection DTRS model that combines multi-criteria group decision-making (MCGDM) and HFLTS is designed. Findings A numerical example of green supplier selection, the comparative analysis and associated discussions are conducted to illustrate the applicability and novelty of the presented model. Practical implications The selection of green supplier has played a critically strategic role in sustainable enterprise development due to continuous environmental concerns. This paper offers an insight for companies to select green supplier selection from the perspective of three-way group decisions. Originality/value This paper uses three-way decisions to address green supplier selection in the HFL context, which is considered as a MCGDM issue.

A self-testing cloud model for multi-criteria group decision making

2016 ◽  
Vol 33 (6) ◽  
pp. 1767-1783 ◽  
Author(s):  
Ting-Cheng Chang ◽  
Hui Wang
Keyword(s):  
Decision Making ◽  
Group Decision Making ◽  
Group Decision ◽  
Cloud Model ◽  
New Approach ◽  
Content Type ◽  
Qualitative And Quantitative ◽  
Composite Scale ◽  
Self Testing

Purpose – The purpose of this paper is to select the best scaling coefficient during the quantitative-qualitative conversion. Design/methodology/approach – Cloud model can describe the qualitative concept of randomness and fuzziness, achieve uncertain transition between qualitative and quantitative in the field of multi-criteria group decision and has been receiving widespread attention. This paper discusses scale conversion issues of the cloud model when evaluating qualitative information. In order to improve the accuracy of the evaluation on multi-attribute decision problems based on uncertainty of natural linguistic information, this paper proposes a method of self-testing cloud model based on a composite scale (with the exponential scale and the scale as a basis). Findings – Through experimental verification results show that under composite scale, the best suitable selection of can effectively improve the accuracy and reliability of decision results. Originality/value – This research presents a new approach to determine the suitable value for coefficient based on uncertain knowledge of natural multi-criteria group decision making, and gives concrete steps and examples. This method has positive significance to improve the quality of qualitative and quantitative conversion based on cloud model.

Extension of TODIM combined with grey numbers: an integrated decision making module

2015 ◽  
Vol 5 (3) ◽  
pp. 367-391 ◽  
Author(s):  
Dilip Kumar Sen ◽  
Saurav Datta ◽  
Siba Sankar Mahapatra
Keyword(s):  
Decision Making ◽  
Decision Support ◽  
Decision Support Systems ◽  
Set Theory ◽  
Support Systems ◽  
Subjective Evaluation ◽  
Subjective Data ◽  
Content Type ◽  
Application Potential ◽  
Robot Selection

Purpose – Decision making is the task of selecting the most appropriate alternative among a finite set of possible alternatives with respect to some attributes. The attributes may be subjective or objective (or combination of both), depending upon the situation; requirements may also be conflicting. In practice, most of the real-world decision-making problems are based on subjective evaluation criteria which are basically ill-defined and vague. Since subjective human judgment bears ambiguity and vagueness in the decision making; application of grey numbers set theory may be proved fruitful in this context. The paper aims to discuss these issues. Design/methodology/approach – Owing to the advantages of grey numbers set theory in tackling subjectivity in decision making; the crisp-TODIM needs to be extended by integrating with grey numbers set theory in order to facilitate decision making consisting of subjective data. Hence, the unified objective of this paper is to propose a grey-based TODIM approach in the context of decision making. Findings – Application potential of grey-TODIM has been demonstrated through a case empirical robot selection problem. Result obtained thereof, has also been compared to that of existing grey-based decision support systems available in literature. Originality/value – Application potential of grey-based decision support systems (grey-TOPSIS, grey analysis, grey-MOORA) have been highlighted in available literature resource. However, the shortcoming of these approaches is that they do not consider decision-makers’ risk attitude while decision making. TODIM method is derived from the philosophy of Cumulative Prospect Theory (CPT) which considers risk averting attitude of the decision maker in case of gain and risk seeking attitude in case of loss, while comparing dominance between two alternatives with respect to a particular criterion. Hence, this paper contributes a mathematical foundation of TODIM coupled with grey numbers set theory for logical decision making.

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