Corporate Decision Making: Exploratory Research of Individual versus Group Decision Making in an Icelandic High-Tech Manufacturing Organization

Abstract

The main objective of the research project is to highlight the difference between individual decision making and group decision making. Decision making is an important factor in the role of managers and is considered to be the toughest and riskiest task of any manager. They must perform both individual and group decision-making processes while being unconsciously affected by their habits, which they have developed with experience and intuition. Therefore, the aim of this research is to evaluate the competence needed in order to perform individual and group decision making. The research questions are as follows:1.Are models of individual decision making related in any way to models in group decision making? And is there a model that relates to them both?2.Is there a difference in how managers perform an individual decision-making process versus a group decision-making process?3.Do decision-makers tend to follow procedures and processes in decision making or do they rely on experience and intuition? Does it differ in individual decision making versus group decision making?4.Do corporate decision-makers fall into hidden physiological traps in their decision making?The research is based on a qualitative method to answer the four research questions that were presented. Eight interviews were conducted with managers at an Icelandic high-tech manufacturing organization. The purpose of the research was to examine the main differences between individual and group decision making with the intent to support the research with references to foreign studies. The results indicated that models in individual decision making are related to group decision making, as decision-makers tend to have processes developed by the organization to follow as guidelines, whether they are deciding individually or in groups. It also indicated that decision-makers do unconsciously fall into hidden psychological traps in their decision making. However, the guidelines they follow help them avoid falling into these hidden traps.Following on from the research, the researcher suggests that the managers at the organization attend decision-making courses and behavioral courses, which would support them in their decision making and increase their awareness of hidden psychological traps. This would lead to greater success in their corporate decision making