This document discusses introducing consensus decision making (CDM) into business organizations. CDM involves all parties having an equal voice in decision making through dialogue, cooperation, and transparency. The document reviews how CDM has been used successfully in politics, especially in divided societies like the Netherlands. It hypothesizes that applying CDM principles could help address problems in businesses caused by power struggles and lack of consensus building. The methodology section proposes a mixed qualitative and quantitative study using interviews and data analysis to evaluate how aspects of political CDM could translate to the business world.
3. INTRODUCTION
Todays society is increasingly polarized; perhaps
more so than since the late 1960s
Society, which encompasses many different
spheres, is based upon extremes and sees mostly
in black and white
oIts easier that way
There is always talk of society and people coming
together to work for the common good but little to
no planning or implementation of such policies
4. INTRODUCTION
In order for society to run better and more efficient
there must be a call for change in the ways which
different institutions operate internally
There are, basically, two types of institutions where
a more consensus driven approach would improve
all aspects of them
oPolitics/Government
oThe Business World
5. INTRODUCTION
Consensus Decision Making (CDM) is a type of
decision making where dialog, increased
involvement, cooperation, and transparency play
key roles in delivering an outcome
CDM breaks the mold of majority rule by involving
different players into the situation.
oAll of these different players have a voice and a say in
the decision making process
Every player has an equal presence
oNo one player is more important than the other
6. INTRODUCTION
In the political world CDM has been used for over a
century in some countries and organizations
oMost, almost all, have met with at least some betterment
stemming from the use of CDM
In the business world, especially today, there is little
consensus about anything.
oThe business world may be even more polarized than the
political world
The current financial and business situation we find
ourselves in is a result of many factors:
oA failure to listen
oTransparency
oGreed
oPride
oFear
7. INTRODUCTION
Problem Statement: Many problems in
organizations stem from a power struggle between
parties. There is a lack of consensus building tools
utilized.
Research Question: Can consensus building tools
used in government settings be used in
organizations to create a more productive
environment?
9. DEFINITIONS
Consensus Decision Making: A form of decision
making which takes into account the will of the
majority and the minority
Consensus Democracy: A democracy which
utilizes CDM in government affairs
Polder Model: A specific model of CDM used in the
government of the Netherlands
Consociational State: A state built upon the
principles of consensus where all groups have a
say in the affairs of the state
11. RATIONALE
The need for this article can be summarized in a
few short points:
oThe need for consensus is greater now more than ever
due to the decisive nature of todays social, political,
economic, and political nature
Lipjhart, 2002
This research will hopefully grasp a better
understanding of the need for consensus decision
making style negotiations
12. RATIONALE
The research is being done to help identify
problems in todays organizations and, hopefully,
find solutions to said problems vis--vis CDM
Some problems faced today in business
organizations are :
oGreed
oLack of transparency
oFighting factions with different, and sometimes
conflicting, interests
oLoss of vision
oOthers
14. HYPOTHESIS
If CDM is applied correctly and is aimed directly at
the problem at hand in the business organization,
many of the existing problems that create tension
can be resolved in a constructive and mutually
beneficial way.
16. LITERATURE REVIEW
When trying to approach the question of
consensus decision-making (CDM) in the business
world from an empirical approach one may run into
many different problems. First and foremost the
majority of literature on CDM is approached from a
political and governmental perspective not from a
lay organizational setting. This problem is,
however, easily remedied because in todays world
most governments are run like businesses. Arend
Lipjahrt describes government as a business for
the people (Lipjhart, 1999).
17. LITERATURE REVIEW
CDM is an inclusive way to resolve policy
problems and conflicts while, at the same time,
ensuring that the will of the majority is executed
(Diamond and Plattner, p259, para 2 2006).
CDM is not a utopian way of making decisions
where there will be no unhappy parties in the end.
Parties involved will be able to at least voice their
say and have that say taken into account when the
final decision is made.
18. LITERATURE REVIEW
CDM ensures that the decision making process will
not just quell the problems of the elites but will,
ultimately, benefit the people who will be affected
by the decisions that are made (Reynolds, 2002).
There are many famous examples of CDM being
used in the governmental theatre, the most notable
being found in the politics of the Kingdom of the
Netherlands.
oThe Netherlands is, contrary to popular belief, a deeply
divided society even by todays standards (Lipjhart,
1999).
21. LITERATURE REVIEW
These four pillars have very opposing ideas that
normally would be at odds with each other on
almost every issue.
However, the elites of each have always come
together and worked together on policy problems
that would ensure that the people, from any pillar,
would benefit (Barry, 1979).
oThey do this through a complex procedure of coalition
government formation where political parties
representing all or most of the four pillars are
represented.
22. LITERATURE REVIEW
It is not uncommon, in fact it is expected, to see
political parties representing socialists to be in a
government with a liberal party or for Catholics and
Protestants to work together in a governmental
setting (Lustick, 1997).
oThis phenomena is known as consocialism.
However, the initial cooperation between parties is
only one aspect of CDM.
The second aspect, and perhaps the most
important in terms of practical applications, is the
way in which the decisions are made once a
consensus group is put together
23. LITERATURE REVIEW
CDM calls for the establishment of different roles
for each person and each party to play (Butler and
Rothstein, 2004)
First, there must be a dominant player; this is
usually the group or political party with the most
seats in Parliament.
Secondly, there must be an opposing dominant
player, usually the party or group with the second
largest amount of parliamentary seats.
Thirdly, there must be what is called a unity player
or bridge builder (Crepez, Koelble, and Wilsford,
24. LITERATURE REVIEW
After the government is formed the negotiations
begin to present the Monarch with the government
plan or agenda of policies to be enacted.
CDM does not end there however, it must continue
for the tenure of the government for there will be
times when there will be disagreement even after
the policies have been agreed (Reynolds, 2002).
25. LITERATURE REVIEW
The application of CDM in the business world can
be seen as difficult when not looking at other
examples of CDM. Hopefully seeing how CDM can
be applied in a quasi-business setting will enable
the reader to see what it would be like in a modern
organizational setting.
27. METHODOLOGY
The way in which the research would be qualified
is that of a mixed or hybrid methodology
oApproximately 80-85% of the research will be
qualitative
o15-20% will be quantitative, meaning that some sort of
mathematics and formulas will be employed
The qualitative part will consist of the following
oInformation from typed resources
Books and Electronic Resources
Interviews via Email and face to face
interviews
28. METHODOLOGY
Sample interview questions may be:
oWhat are the advantages/disadvantages of CDM?
oCan CDM in the political sphere be seen as successful?
oIn what way can aspects of CDM be applied to the
business world
The qualitative part may include:
oGraphs and charts
oNumerical formulas
30. REFERENCES
Barry, Brian (1979).Political Accommodation and
Consocianal Democracy. British Journal of Political
Science. 17, 477-505.
Butler, CT & Rothstein, Amy (2004). On Conflict and
Consensus. San Francisco, CA: Thirteenth Printing.
Crepez, M, Koeble, T, & Wilsford, D (2000).
Democracy and Institutions: The Life and Work of
Arend Lipjhart. Ann Arbor, MI: University of Michigan
Press.
Diamond, L, & Plattner, M (2006). Electoral Systems
and Democracy. Baltimore, MD: Johns Hopkins
University Press.
31. REFERENCES
Lipjhart, Arend (1999). Patterns of Democracy.
New Haven, CT: Yale University Press
Lipjhart, Arend (2004). Constitutional Design for
Divided Societies. Oxford, UK: Oxford University
Press.
Lustick, Ian (1997). Lijphart, Lakatos and
Consocialism. New Haven, CT: Yale University
Press.
Reynolds, Andrew (2002). The Architecture of
Democracy, Constitutional Design and Conflict
Management. New York, NY: New York University