What is Individual and Group Decision?
In simple language, an individual decision is one that is made by a single person whereas a group decision is one made by more than two people.
Based on the participation of people in the decision-making process the types of decisions are two individual and group decisions. Let’s discuss individually the group and individual decisions.
What is Individual Decision?
An individual decision refers to a decision when an official member or a manager alone makes decisions for the sake of the organization.
In other words, in the individual decision-making process, a single person involved in decision-making may be a top manager, general manager, departmental manager, or any official person.
Generally, chief executives have sole authority to make decisions. While making decisions, the executive should use his/her intuitive reasoning, creativity, and valid judgment.
Most importantly he must consider organizational objectives, work environment, opportunities, and the organization’s abilities before coming to any conclusion.
In small organizations like sole trading, the owner or manager has the sole authority to make decisions to run the firms. Moreover, the practice of individual decision-making prevails in autocratic organizations.
What is Group Decision?
When a group of individuals gathers to discuss a topic, they make a conclusion with a mutual agreement this is referred to as a group decision.
Generally, the board of directors, management committee, partners, etc. are formed in a group. Big organizations, joint-stock companies, and partnership firms are involved in such a decision-making process.
Additionally, firms that use democratic management practices implement group decision-making.
In such cases, a panel of experts will thoroughly discuss the issue before deciding by consensus or a majority of votes.
These discussions are conducted because the subject matter is original or creative. Although a group decision requires more time to make, it is practical and simple to carry out.
Difference Between Individual and Group Decisions
In individual decisions, a single person is involved in the decision-making process whereas in group decisions a group of persons is involved in the decision-making process.
Following are some key differences between group and individual decision-making.
Definition
In the individual decision, a single person makes the organizational decisions that affect the firm’s performance.
On the other hand, in group decisions, more than two persons form a group and make decisions for the betterment of the firms.
People’s Involvement
In individual decisions, a single person is involved in decision-making.
Whereas in the group decision, more than two or many people are involved in decision-making.
Time
Making a group decision is more time-consuming than making an individual decision.
Implementation
Group decisions are often easier to implement due to collective ownership and consensus, while individual decisions can face resistance if others do not fully understand or agree with the decision-maker’s intent.
Related: Programmed and Non-Programmed Decisions
Diversity of Ideas
Decisions made individually reflect the personal perspective, experience, and creativity of one person. It may lack diverse viewpoints, which can limit innovation.
Whereas, group decisions incorporate a variety of perspectives and ideas, as multiple individuals contribute to the decision-making process. This diversity can lead to more innovative and comprehensive solutions.
Accountability
The responsibility for the outcomes (success or failure) of an individual decision lies solely with the decision-maker. This can increase pressure but also ensure clear accountability.
Whereas, accountability is shared among the group members, which can dilute individual responsibility. However, shared accountability also means collective ownership of outcomes.
Conflict Potential
In individual decisions, since only one person is involved, there is little to no conflict during the decision-making process.
In a group, decisions can involve conflicts or disagreements due to differing opinions and interests.
Resolving these conflicts often takes time and effort, which can delay the decision-making process.
Read More: Objectives of Management
Similarities Between Individual and Group Decisions
Despite differences, both group and individual decisions have some similarities:
Goal-Oriented
Both individual and group decisions aim to achieve a specific objective or solve a problem.
Whether made by one person or a group, the goal remains the same: to improve the organization or address a particular issue effectively.
Require Information Gathering
Both types of decisions involve collecting relevant information.
Whether it’s an individual researching on their own or a group pooling their collective knowledge, accurate data is necessary for informed decision-making.
Impact Organizational Performance
Both individual and group decisions affect the overall functioning and success of an organization.
Whether decisions are made individually or collaboratively, the outcomes have consequences for the team, department, or entire organization.
Subject to Risks and Uncertainty
Both types of decisions involve risk and uncertainty.
No decision-making process is without risks, whether it’s a single individual making a choice based on personal experience or a group weighing different opinions and viewpoints.
Read Next: Organizational and Personal Decision
Sajan Kushmi is a content writer with more than 4 years of experience. He holds BIM Degree. He write on the topics related to Management, Marketing, and Entrepreneurship.