One of the strategies that seem to work fine for me (usually) was to run from the room where I encountered monsters to a room that was clear and fight them there (once they enter).
However this is not possible in open combat on the map, so try and get the rest of the guys as protected with magic ASAP (spells that surround them and protect them). OK, the thief can obviously hide from the attackers (which is very effective) so worry about the bard (let him sing at all time durring combat - it really helps) and of the magitian.
Another thing to take care off is to make sure your guys are not in the line of fire, or else you'll attack them while the magician is casting spells on the baddies.
You're right, their inteligence could be somewhat better.
You can control them individually though during combat, but it's a bit time consuming.
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