Conflict in decision-making

If you work in investments, there is a good chance you have sat in either an investment committee meeting or a team meeting when there has been an argument between members. I have seen this many times, with some more eventful than others!

Sometimes these instances create problems. However, sometimes these moments develop into positive sources of creativity.

When groups can achieve the ability to co-operate even when members disagree sharply, they become excellent problem solvers.

Consider the below..

A woman buys a $78 necklace at a jewellery store. She gives the jeweller a cheque for $100. Because he does not have the $22 change to hand, he goes to the shop next door. He exchanges the woman's cheque for $100 in cash.

He returns and gives the woman the necklace and $22 in change.

Later the cheque bounces and he must make good to the shop next door. He originally paid $39 for the necklace.

What is the jewellers total out-of-pocket loss?

When this problem is assigned to individuals, the majority become confused. When it is tackled by a group, members usually catch each others errors, according to Russo and Schoemaker (1989).

This is when arguing becomes productive. Everyone is incentivised to get to the right answer. Even better is a group who know each other already and have developed a mutual value-based respect for one another. In these instances, groups debate fiercely but crucially no-one falls out. This is a panacea for group decision-making.

What has your experience been of heated group decision-making?