1.

1 INTRODUCTION

What is management? Management is the process of overseeing and coordinating

resources efficiently and effectively in line with the goals of an organization. In Layman’s term it
is the process of dealing with or controlling things or people. The person who holds the roles of
management is called manager. A manager is an individual who is directly responsible for
ensuring that tasks are performed by people or employees in an organization. The manager is
involved in various management functions. These functions are classified into planning,
organizing, leading and controlling.
1.2 DEFINITION OF DECISION MAKING

In the mind of every manager there should be a mindset where the mind visualizes the
ideal characteristics for each of the choices he has to makes. This is where decision
making skill and knowledge come in handy. Decision making in simple word is the
action or process of making important decisions. It also can be regarded as mental
process of selecting a logical choice from the various options. When making a good
decision a person must consider the pros and cons of each option and weight all the
alternatives. Whereas if a person wants to make an effective decision, he must be able to
forecast the outcome of each option as well and based on all these items, he ought to
determine which option is the best for that particular situation.
1.3 DECISION MAKING ENVIRONMENTS

Situation or environment is important aspect in decision making because decision making

in a situation is determined by the adequacy of information obtained in the process of decision
makings. Generally, there are three information situations in the process of decision making that
is certainty, uncertainty and risky. Firstly, the decision making in certain environment means that
the decision maker obtain perfect information and knowledge in order to smooth the progress of
his decision making. This environment is a very ideal situation for decision making. The
challenge is simply to study the alternatives and choose the best way out. The decision maker
can often anticipate this problem and plan to avert or solve them. The proactive one can even
plan the solution before the problem occurs. There is lower level of ambiguity and relatively low
chance of making an impractical decision.

Secondly, the decision making in uncertainty environment means that the decision maker
does not have any information that would aid in his decision making. When the information is so
poor until that the decision maker cannot even assign probabilities to the likely outcome of
alternatives because the situation is too ambiguous. In other word, uncertainty occurs when the
decision maker are unaware of the problem they face. In all cases, the responses to this situation
depend greatly on experience, reasoning, intuition, educated guess and hunches all of which
leave to significant room for error and risk. The decision maker needs to have a high propensity
towards risks in this situation. After all, this type of unexpected and unanticipated situation
usually requires novel solution. However, decision under uncertainty is the most ambiguous for
the decision maker and the possibilities of error are higher.

Last but not least, our third environment is making a decision in a risky situation. In this
state of situation, the decision maker has the information and knowledge but it is only partial.
Incomplete information will only give some insight in predicting what will happen, so the
outcome for the alternative cannot be accurately pre – determine. This type of situation is
actually fairly common decision making environment for the decision maker. Therefore, the
decision maker can guess the probable outcome on the basis of their experience, judgment,
research and any other available information. They can choose an alternative with highest
expected outcome. However, such decisions are largely subjective as no decision criteria are
fully reliable. Decision making under this condition is accompanied by moderate level of
ambiguity and chances of an impractical decision.

Figure 1.0: The decision making environment level of ambiguity.

1.4 TYPES OF GROUP DECISION MAKING

Technique for making decision can be separated into two broad categories: individual and
group decision making. I will only touch the group decision making since it is more important
when we work with other people. Group decision making is a situation where a group of
individuals collectively make a choice from the alternatives. Generally, there are three main
techniques that are used in group decision making: brainstorming, nominal group technique and
Delphi technique.

Brainstorming is a technique that encourages the production of ideas as much as possible

without any criticism. Brainstorming was more effective than individuals working alone in
generating ideas (Osborn, 1953). Usually, the members in the group takes turn to voice out their
idea and the group leader records each idea where the group can read it. After all ideas have been
recorded then, it will be evaluated.

The nominal group technique (NGT) is a manner of decision making whereby group
members put forward and weigh up their ideas individually before sharing them with the other
group members. More often than not, the ideas will be ranked by each member. There are
variations on how this technique is used. Options do not always have to be ranked, but may be
evaluated more subjectively.

The Delphi technique is a method where a panel that comprises several experts will
answer questions and work together until a solution is reached for a specific issue. This
technique does not require the panel members to meet face to face. They might interact by mail,
e – mail, and other means. It is also can be adapted to be used in face to face meetings, and is
then called mini – Delphi.
2.0 SELECTED METHOD FOR GROUP DECISION MAKING

The nominal group technique (NGT) was first introduced by Delbecq and VandeVen in
their article "A Group Process Model for Problem Identification and Program planning." Journal
Of Applied Behavioral Science VII (July/August, 1971), 466 – 91. This technique was then
applied to adult education program planning by Vedros in his thesis "The Nominal Group
Technique is a Participatory, Planning Method in Adult Education".

NGT gathers information by asking individuals to answer to questions posed by a

moderator, and then asking participants to prioritize the ideas or suggestions of all group
members. The process prevents the domination of the discussion by a particular person,
encourages all group members to play a part, and results in a set of prioritized resolutions or
recommendations that represent the group’s preferences.

The NGT are particularly useful to use to gain group consensus and when in particular
situations:

 When some group members are much more vocal than others.
 When some group members think better in silence.
 When there is concern about some members not participating.
 When the group does not easily generate quantities of ideas.
 When all or some group members are new to the team.
 When the issue is controversial or there is heated conflict.
 When there is a power-imbalance between facilitator and participants or participants: the
structure of the NGT session can balance these out.
 When stakeholders like (a/some) quantitative output of the process.
To use the NGT, a room large enough to accommodate five to nine people needs to be
prepared. Then, the NGT can proceed. Normally, the NGT involves five stages:

1. Introduction and explanation: The moderator welcomes the participants and

explains to them the purpose and procedure of the meeting.
2. Silent generation of ideas: The moderator presents the question or problem to the
group in written form and reads the question to the group. The moderator directs
everyone to write ideas in brief phrases or statements. During this period, the
moderator asks participants not to consult or discuss their ideas with others. This
stage lasts approximately 10 minutes.
3. Sharing ideas: Group members engage in a round-robin feedback session to
concisely record each idea (without debate at this point). The moderator writes an
idea from a group member on a flip chart that is visible to the entire group, and
proceeds to ask for another idea from the next group member, and so on. There is
no need to repeat ideas; however, if group members believe that an idea provides
a different emphasis or variation, feel free to include it. This process ensures all
participants get an opportunity to make an equal contribution and provides a
written record of all ideas generated by the group. This stage may take 15–30
minutes.
4. Group discussion: Each recorded idea is then discussed to determine clarity and
importance. The moderator’s task is to ensure that each person is allowed to
contribute and that discussion of all ideas is thorough without spending too long
on a single idea. It is important to ensure that the process is as neutral as possible,
avoiding judgment and criticism. The group may suggest new items for discussion
and combine items into categories, but no ideas should be eliminated. This stage
lasts 30–45 minutes.
5. Voting and ranking: Individuals vote privately to prioritize the ideas. The votes
are tallied to identify the ideas that are rated highest by the group as a whole. The
moderator establishes what criteria are used to prioritize the ideas.  Following the
voting and ranking process, immediate results in response to the question is
available to participants so the meeting concludes having reached a specific
outcome.
2.1 APPLICATION IN REAL – LIFE SITUATION

Usually, at the end of the year we usually plan where our group wants to go as a group
bonding. Our group only consists of 26 girls, each with different destination in our head. So, to
make it easier for us to make decision, we used the nominal group technique to aid us choosing
the destination. Instead of brainstorming, we use this method because it is suitable for us since
some of us are very vocal with their ideas while the others are easily intimidated with it. This
method is also used so that all of us can participate in making the decision. There is also an issue
conflicted whether we want to go place we have went before or choose the new place.

I remember when we first make this as a yearly event. We gave the decision maker
position to a very active bunch of us since they were very eager to organize it. How I wish we
did not do that. They chose to go for a jungle – trekking in Taman Negara for a 2 days 1 night
program. At first we didn’t really care because it is a normal activity for a group bonding
program until we saw the activities schedules. You see, some of us are not even an active person.
Five of us have medical issues which prevent them from joining such vigorous activities. Three
of us are horizontally – challenged which will make it difficult for us to ensure smooth progress.
When we told them about the problem, they just said that they cannot change the destination or
the program since them already booked the services and all.

Then the silent treatments started, not to mention the cat fights in the Facebook and
Twitter and some the language used were very colorful, I never heard some of them before. It
was funny actually, until you yourself were pulled into it. When our lecture heard about what
happened, all of us were scolded for acting like a child. After that, she became our mediator and
introduced us the NGT.

First, she reminded us why we created this event. It was suppose to help us get to know
each other more not to create a gap within our group. She then gave us a piece of paper each to
write any destination that we have in mind and while we do that we cannot consult or discuss
anything among us. She wrote all of the destinations in the whiteboard and we started to discuss
the suitability of the destinations with our event and objective in mind. It was a very good idea to
do it this way, I say. All of us were given the chances to speak our mind. After the discussion, we
anonymously voted for our desired destinations. Finally, she ranked our voting accordingly
presented it to us.

Funny thing is the top ranks destination that we chose was Taman Negara. However, we
did make some adjustment to the initial schedule. From 2 days 1 night, we changed it to 3 days 2
nights. The activities have been changed to complement all of us. Instead of vigorous activities,
we settled on more moderate activities which actually much more suitable for group bonding. In
the end, everyone was satisfied with the solution. We have learned lot of things that day. We
learned how to manage our event, how to voice out our opinion without any worries that others
will critics us and many more. Right now, we want to decide on our next destination. I hope
there would be no problem this time around.
2.2 ADVANTAGES

Every method of making decision has their respective advantages. Group decision
making has more advantages than individual decision making. Advantages of the nominal group
technique are the following:

 Generates a greater number of ideas than regular group discussions. Obviously the more
ideas that are generated, the wider the range of the options the group will have to decide
upon.
 Balances the influence of the individuals by limiting the power of decision maker
(particularly advantageous for use with teenagers where peer leaders may have an
exaggerated effect over group decisions). In simple word, each participant is equal
members of the group.
 Can be used as a total assessment tool in that it can be used to identify the problem,
generates solutions and implement them.
 Encourages everyone to contribute and prevents people from dominating the discussion.
This allows everyone’s opinions to be heard and judged equally.
 Participants may be of different background. Mixtures of background suggest a variety
of different perspectives and priorities.
 The written ideas encourage the commitment of the participants in taking part in the
planned action and encourage the participants to confront the issues through constructive
problem solving.
 Typically provides a greater sense of secure than can be obtained through traditional
group discussion.
 The least time consuming method in group decision making methods.
2.3 DISADVANTAGES

Although the nominal group technique offers many advantages, it also has its own
disadvantages. Below are the disadvantages of the nominal group technique.

 For a group that is newly formed and the participants have different background and
upbringing, need to check whether the participants can read and write or not. If wrongly
assumed, it will affect the outcome of the activity.
 It requires preparation. To prepare the meeting place and the supplies on the spot without
any prior arrangement will only makes the participants produce a desperate solution.
 Participants have to make them available for the required time. Which can proves to be
difficult task but can be attempted.
 For simple issues, the nominal group technique is a good method to use, but when issues
are more complicated and involves other people who are not within the participants, it is
required to combine the nominal group technique with other methods.
 Pressure to agree with group decision. For the nominal group technique to work
participant need to avoid groupthink.
3.0 CONCLUSION

This study attempts to explain about the types of environment for the decision making. It
also discussed about the various methods used to assists decision maker in making decision and
the selected group decision making method that can be applied in the real – life situations.
Another topic that has been elucidated was the advantages and disadvantages of the selected
group decision making method.

The decision and planning that has already been made can easily be jeopardized by a
slight of unexpected situations. Which is why, a decision maker need to have the skills and the
knowledge requires dealing with those unexpected conditions. As the level of the ambiguity
becomes higher, so does the risk propensity. While the certain condition is where the decision
maker feels most safe when making decision, they should be wary when they encounter the
uncertain and risky condition.

While the group decision making have three main methods which is brainstorming, the
nominal group technique and Delphi technique, in my opinion the nominal group technique is
the most suitable method to use in a real – life situations. The Delphi technique is much more
suitable used in an organization where the expert’s opinions are needed much. Brainstorming and
the nominal group technique are much alike. Both encourages the generation of ideas from its
participants however, unlike brainstorming where the easily intimidates and shy participants may
not voice out their ideas, the nominal group technique covers the holes where every participants
are given equal chance to collaborate and generates their ideas.

The nominal group technique gives the participants the opportunity to propose their
ideas anonymously. The ideas that have been laid out can be judge and discuss without any
criticism. Everything reasoning is purely educational and rational. Among all the group decision
making methods, the nominal group technique is where the time are least consuming given the
topics or problems are simple issues. Furthermore, this method is the most suitable method to be
use if the participants are teenagers since it alleviates the peer pressure effect. All in all, the
nominal group technique is the most suitable method to be use in real – life situations.

2841 words
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