Final answer:
Multi-criteria decision analysis (MCDA) is a structured decision-making process that scores alternatives against predefined criteria. It integrates both qualitative and quantitative aspects, often supported by tools such as cost/benefit analysis, to guide groups toward making informed choices.
Step-by-step explanation:
The group decision-making tool described in the question is known as Multi-criteria decision analysis (MCDA). This process entails defining the characteristics of a successful decision and then evaluating each alternative against those criteria. MCDA is particularly useful when decisions are complex and involve multiple competing objectives. It allows for a systematic comparison of alternatives by scoring them based on predefined criteria, which can include both quantitative and qualitative aspects.
For instance, when choosing a design concept for a product, various concepts' advantages and disadvantages are weighed against a set of criteria to determine the best fit. Tools like cost/benefit analysis, which maps out costs against benefits in a T-shaped chart, can be instrumental during MCDA to evaluate the economic feasibility of choices. Similarly, decision-making in groups can be influenced by the use of voting rules, transaction costs, and conformity costs, affecting the group's final decision.
Group decision-making can be complicated by factors like groupthink and group polarization, but these can be mitigated through practices like seeking outside opinions and private voting. Importantly, considering transaction and conformity costs can reveal the resources needed for decision-making and the discrepancies between desired and actual outcomes.