Making and Modern Management

How Consensus Decision-Making Works

Teams and groups are often successful in achieving goals and objectives in contemporary companies. Unlike the autocratic management styles of the mid-20th century, employee empowerment has been more prevalent and successful in the past few decades.

Although most experts and executives agree that the team/group philosophy is an approach that works well, there are still questions about the validity of consensus decision-making. Many managers believe it is an important component of the group approach, while others believe it may be inefficient and time consuming. The process itself creates these differing views.

Consensus decision-making involves having a group, whether senior executives, middle managers, or one or more employee teams, agreeing on goals, methods, techniques, or procedures to achieve operational or financial success. The process creates supporters and detractors.

As with most group decisions, there is rarely a subject that generates immediate unanimous support. The minority position needs to be recognized and allowed to exist within the context of the consensus decision. The process dictates that both the majority, consensus decision and the high points of the minority should be managed positively. Group members, even the minority, need to support the consensus decision to make the process work effectively.

The Benefits and Downside of Consensus Decision-Making

There are a number of benefits for companies using consensus decision-making. Here are a few of the primary positives that come from the process.

Empowerment. Regardless of the group composition, from executive to rank and file employees, using consensus decision-making provides a real sense of empowerment for group members. Their ideas and contributions are not only welcomed, but they are used in reaching decisions.

Multiple supporters. Since a team or group makes the decisions, the resulting action plan has multiple supporters, not just one person. This often motivates others to accept the decisions as good ones.

Promotion evaluation opportunities. The input and feedback of group members gives both peers and supervisors the opportunity to get to know the personalities and abilities of other team members. When future promotion decisions are made, this interaction may help some employees stand out from the rest.
Those less enamored of the consensus decision-making process often cite one or more potential negative results.

Time consumption. Obviously, time is a valuable commodity in business. It is an asset that, once used, cannot be regenerated. The time necessary to reach a consensus decision should be efficiently used or it can be wasted.
Minority position unhappiness. An autocratic decision, even if initially unpopular, is normally implemented and followed by staff with little comment. Consensus decisions that are unpopular with the minority members of the group might result in lingering resentment from those employees whose ideas were not used.
If managed properly, consensus decision-making typically makes a positive impact in contemporary business. Management should make the rules known to all participating groups so members know what is expected during and after the process. All team members should support a consensus decision, even if they had opposing views and ideas. If true consensus is achieved, the process can deliver positive benefits to company operations.

Consensus Decision-Making and Modern Management