Evaluation of Collaborative Decision-making Effectiveness in Terms of Accuracy and Reliability

Abstract

A lack of understanding of the nature of decision-making in organisations results in a behavioural pattern of poor decision-making strategies and tactics. Сollaborators must recognize the strengths and weaknesses within their own efforts. This paper addresses the need for more research on why and how to evaluate collaborative rationality-based decisions, setting the stage for future studies in developing holistic evaluation solutions. Theoretical and empirical work suggests that collective decisions can be more accurate than individual decisions. As compared to individuals, groups tend to show a decision advantage in their response accuracy. The results obtained demonstrate that the conventional view of the wisdom of crowds may not be informative in complex and realistic environments, and that being in small groups can maximize decision accuracy across many contexts. The article also propose that decision-making style will moderate the relationship between knowledge creation process and organizational performance. We discuss means of managing some pitfalls on this way and make recommendations on how to ensure better group decisions.