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Five Potential Problems of Team Decision Making in Business

written by: J. Smith•edited by: Michele McDonough•updated: 10/31/2010

Team decision making is a key part of business management. However, group setting can lead to several potential problems. By understanding these problems beforehand, you can run an effective team.

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    Team decision making Team decision making is a very important element in the business world. Typically, a group of people with knowledge in different areas can arrive at a better decision faster than a single person. However, there are a number of potential problems that can occur when attempting to find a solution to a problem. By understanding these common situations, you can hopefully avoid making incorrect choices or creating a dysfunctional group situation.

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    Unclear Goals

    The first thing that a team must do when making a decision is to analyze the current situation in order to completely understand the problem. If the group begins to work on a solution before fully comprehending their goals, the final result may not be the best fit for the company. For example, if a company is looking to expand the reach of their product, they must first determine the factors that are causing a limited product exposure.

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    Incorrect Information

    Another important aspect of team decision making is having correct information about the given situation. Not only should all of the information presented to the group be factually correct, but it should also be time relevant. If the team attempts to arrive at a decision with too little or incorrect information, the final result will likely result in an error and cost the company time and money.

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    Alternative Choices

    Yet another key factor of team decision making is understanding all of the potential alternatives to a chosen solution. If a group makes a hasty decision without first examining all of the positive and negative aspects of other choices, then the best possible decision for the business may be overlooked. Different ideas from members of the team should all be individually examined before the final choice is decided upon.

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    Data Interpretation

    As mentioned previously, it is essential that a team have all of the correct information before attempting to come to a decision. However, even if the group has all of the correct information the end result can still have flaws. Group members need to carefully interpret and understand all of the data that they have to work with in order to arrive at a logical and satisfactory decision for the company.

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    Limited Teamwork

    Finally, another very important part of the team decision making process is a properly sized group of people. Having only a few people in a group can limit the number of ideas generated, leading to a decision that is not the most effective choice for the business.

    Furthermore, having an overly large group can also cause problems, as the discussion can become overly complex and take quite a bit of time to complete. If the decision that needs to be made is on a deadline, a large group can be ineffective and detrimental to a company. Additionally, in a large group setting some people may not feel comfortable sharing their ideas, so good ideas relevant to the decision can be overlooked.

    Image Credit: renjith krishnan / FreeDigitalPhotos.net

Group Decisions in Business

Working as a team is an essential part of the business world. Learn new ideas and prevent common problems by reviewing the information presented in these articles.
  1. Four Ways to Make Group Business Decisions
  2. Five Potential Problems of Team Decision Making in Business
  3. Four Important Task Leadership Roles in a Group Business Setting
  4. The Four Key Process Leadership Tasks in Business Group Communication
  5. The Five Power Bases of Leadership in Business Management