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.
Related: Programmed and Non-Programmed Decisions
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 of the 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
Implementation of decisions made in the group process is easy. But the decision made individually is difficult. Since an individual decision is the outcome of a single person, the second person might not get what the decision-maker expects to achieve and vice versa.
Read Next: Organizational and Personal Decision