Many decisions in organizations are made by groups, teams, or committees. Decision-making groups may be widely used in organizations, but are group decisions preferable to those made by an individual alone? The answer depends on a number of factors. Groups generate more complete information and knowledge. This opens up the opportunity to consider more approaches and alternatives. Groups also lead to increased acceptance of a solution. Group members who participate in making a decision are more likely to support it enthusiastically and to encourage others to accept it later.

Group decisions also suffer from ambiguous responsibility. In a group decision, it is less clear who is accountable for the final outcome. Group decisions are generally more accurate than the decisions of the average individual in a group, but they are less accurate than the judgments of the most accurate person. If creativity is important, groups tend to be more effective. And if effectiveness means the degree of acceptance of achievable solutions, the nod again goes to the group.

With few exceptions, group decision making consumes takes longer than an individual tackle the same problem. Managers must assess whether increases in effectiveness are enough to offset the reductions in efficiency.