Decision Management

Decision management, also known as enterprise decision management or business decision management entails all aspects of designing, building and managing the automated decision-making systems that an organization uses to manage its interactions with customers, employees and suppliers.

Decision management is a process or set of processes for improving and streamlining action items :

The goal of decision management is to improve the decision making process by using all available information to increase the precision, consistency and agility of  decisions and making good choices taking known risks and time constraints into consideration. Decision management makes use of tools such as business rules, business intelligence (BI), continuous improvement (kaizen), artificial intelligence (AI) and predictive analytics. 

Decision management systems treat decisions as reusable assets and introduce technology at decision points to automate the decision-making process.  Decisions may be fully automated or they may be presented as possible choices for a human to select.  Increasingly, organizations who deal with financial services, banking and insurance are integrating decision-making software into their business process systems as well as their customer-facing applications. This approach is especially useful for high-volume decision-making because automating such decisions can enable more efficient, information-based and consistent responses to events.

 More information :

  • A group is better equipped as far as information is concerned.
  • An individual cannot have all the information that is available to a group as it consists of several individuals.

Diversity of views :

A group always has the advantage of varied views. This is because a group always has more than one member, and since every member is unique, there is bound to be a variety in their views also. This is also the reason why there are varied approaches to solving a problem. As group decisions tend to cover a greater area, they provide a better insight for decision-making.

Greater acceptability :

The views expressed by a group have more acceptance than those from an individual. This is because the decisions are not imposed, but are part of a larger consensus (general agreement). A group decision is automatically assumed to be more democratic, and the decision of an individual can be perceived as being autocratic (dictatorial).

Expert opinions :

There may be some group decisions that require expert opinion. The group can either include experts or can call them from outside to form a separate group to take a decision on a particular issue.

Degree of involvement :

The members of a group feel involved with a given problem. This minimizes their resistance. It strengthens an organisation and facilitates decision-making.

 Encourages people’s participation :

A group usually provides a platform for people to present their ideas. Group dynamics is more likely to draw out participation from people who may otherwise be hesitant to talk or interact. It encourages people to take an initiative as they feel part of the decision-making process.

Usually there is no individual onus (burden) in the event of failure, which makes it easier for people to come up with suggestions and solutions to problems.

Disadvantages :


A group involves several individuals. Getting them organised, planning and coordinating their meetings, defining and explaining to them the purpose of a meeting and the goals, and finally reaching a solution or arriving at a decision can be quite cumbersome. Making decisions in a group can, thus, be time-consuming. The time loss involved in group dynamics cannot be ignored.

Lack of onus

It is difficult to fix responsibility in a group. In an organisation, it is often essential to fix responsibility before a problem can be solved. It is difficult to do so if anything goes wrong with a decision made by a group.

Individual domination

Quite often, discussions in a group are dominated by a few members. Although a group discussion means a collective discussion, some people usually manage to usurp (draw to them) a position of informal leadership owing to their personality or style of participation.

This position can also be because of the position held within the organisation or simply because of self-confidence generated by previous experiences. Sometimes only a few individuals dominate and the others fade away in a group, thereby defeating the very purpose of group discussion.

Compromise decisions

The need to arrive at a group decision sometimes results in a compromise. The solution offered is not essentially the best. It is, instead, a compromise acceptable as a mid-point to all concerned. There are different demands and social pressures, and members may agree to a proposal without really evaluating it. Such support may not be wholehearted.


Group decision-making is quite expensive in terms of time, money, energy and man-hours. There is also a theory which says that the larger a group gets, the less is the individual contribution from each member.


The very word has negative connotations. Some members of a group may start harbouring a feeling that they are different from the others. This actually leads to informal groups within the larger formal group, which may generate negative sentiments towards other groups or people outside the group.