Group Dynamics & Decision Making

Group Dynamics & Decision Making

Many studies have investigated the impact of group dynamics on decision-making. The theoretical bases for these studies include social psychology, cognitive science, and economics. However, it is difficult to determine when groups function optimally or what external factors contribute to this functionality. In addition, the effect that internal team interactions have on an organization’s overall success is hard to measure, as many factors come into play. Group Dynamics & Decision Making can help explain some of these issues. However, its impact on organizational success has not been fully determined. When group dynamics are working optimally, an organization can reap the benefits of increased productivity and creativity through effective decision-making. But when group dynamics are not optimal, decision-making can be negatively impacted. Currently, there is no clear consensus on how to best measure Group Dynamics & Decision Making in organizational success; however, many studies have been conducted that propose theoretical models and provide certain guidelines for managers to follow when leading a group towards effective decision-making.

Theoretical Models

Several different theoretical models attempt to explain how group dynamics influence decision-making. One model, known as the Social Judgment Theory, was developed by psychologist Solomon Asch in the 1950s (Miller & Curry, 2016). This theory posits that individuals judge an issue by comparing their own opinions to those of the rest of the group. If a person’s opinion differs from the majority, they will likely change their opinion to match the majority to fit in and avoid social rejection. This theory has been used to explain phenomena such as herd behavior and groupthink.

Another model, known as the Social Influence Model, was developed by Lee Ross in the mid-1970s (Miller & Curry, 2016). This model is based on studies that show individuals are more likely to confirm if they have a high need for social approval, have low self-esteem, or perceive group pressures to be high. As an example of this model in action, consider the case study of the Stanford Prison Experiment. In this study, participants were randomly assigned to guards or prisoners. The prisoners quickly began to conform to the expectations of the guards, and the experiment had to be terminated prematurely because of the intense psychological stress inflicted on the prisoners.

External Factors

External factors can affect the effectiveness of group dynamics in decision-making. One factor is time pressure when a certain time limit is set on the decision-making process. This type of pressure can cause members to become frustrated and make it difficult to reach a consensus (Miller & Curry, 2016). In some cases, time pressure can be beneficial to the decision-making process. However, it has been shown that the most effective use of time pressure comes from self-imposed deadlines rather than imposed ones (Suzuki & Hur, 2020). Another external factor is group size. As group size increases, group cohesion typically decreases, and member satisfaction with the decision-making process decreases (Miller & Curry, 2016). However, group cohesion does not necessarily decline with increased group size. The level of cohesion within the group depends on other factors such as the familiarity or liking that members have for each other or whether they are heterogeneous or homogeneous to one another (Suzuki & Hur, 2020).

Larger groups tend to be less effective than smaller groups because they are more likely to experience communication problems and a lack of cohesion. In addition, the group’s composition can also affect its ability to make decisions effectively. A mixed group, which includes individuals with different levels of expertise, is more likely to come to a better decision than a group composed of individuals who share the same level of expertise. A mixed group is more likely to have different ideas and perspectives that can be synthesized into a better solution. Finally, the physical environment in which the group meets can also affect its ability to make decisions effectively. A quiet, private environment is typically more conducive to effective decision-making than a noisy, public environment.

Internal Factors

Internal factors can affect the effectiveness of group dynamics in decision-making. The most important factor is the level of trust within the group. If group members trust one another, they will be more willing to share ideas and information (Osborne & Hammoud, 2017). This increased exchange of information makes the group’s decision-making process more effective. Another internal factor is cohesion, which refers to how well the different members within the group get along (Miller & Curry, 2016). The ability of individual members to work well with one another is important because it creates the conditions that allow for effective coordination and communication.

Organizational Factors

Organizational factors can also affect group dynamics and decision-making. One of these factors is leadership. An effective leader will lead the group towards a consensus, producing a more well-rounded and complete solution than an individual or subgroup (Raaphorst & Loyens, 2020). Also, the leadership style of the leader can affect group dynamics. Leaders who are democratic will promote an open exchange of ideas among members, which produces better decisions than those made by leaders with either autocratic or laissez-faire styles (Miller & Curry, 2016). The second organizational factor that affects group dynamics is bureaucracy (Suzuki & Hur, 2020). This is the degree to which an organization is structured and regulated. A bureaucratic organization will have a lot of rules and regulations that impact the way employees work together. This can lead to frustration among employees and make it difficult to cooperate effectively. The final organizational factor that affects group dynamics is a lack of organizational support for decision-making groups. If employees do not believe that their organization values group decision-making, they will be more likely to try and work around it (Suzuki & Hur, 2020). This may have the effect of reducing the effectiveness of group processes on decision-making.

The major concepts, issues, and interventions related to group dynamics and decision-making in organizations are trust, cohesion, leadership, bureaucracy, and organizational support. Each of these factors can positively or negatively impact the effectiveness of group dynamics in decision-making. In general, trust among group members, cohesive groups, effective leaders, low levels of bureaucracy, and organizational support for decision-making groups lead to better decisions (Pérez et al., 2018). However, it is important to note that there is no one-size-fits-all solution for group dynamics and decision-making. Every organization is different and will respond differently to various interventions. The best way to determine what works in a particular organization is to experiment with different interventions and see the best results.

Implications

Group Dynamics has important implications for organizational performance. When trust is high among group members, they are more likely to share information and work cooperatively towards a common goal. This leads to higher quality decision-making processes, which leads to better organizational performance (Miller & Curry, 2016). In addition, group cohesion can lead to increased cooperation among members, improving decision-making processes and thus organizational performance. Effective leaders can help create a positive group atmosphere and resolve conflicts that arise among members, both of which can lead to improved decisions and better organizational performance. Finally, the resources that decision-making groups receive from the organization have important implications for the groups themselves and organizational performance (Osborne & Hammoud, 2017). When organizations provide decision-making groups with clear goals and critical resources, they are more likely to function effectively. This can lead to better decisions, which leads to higher levels of organizational performance.

Bureaucracy is often seen as a negative factor in group dynamics and decision-making. However, low levels of bureaucracy can be beneficial to the decision-making process. When there is less bureaucracy, group members can communicate more freely and make decisions more quickly. This can lead to better decisions and better organizational performance (Miller & Curry, 2016).

Finally, organizational support for decision-making groups is essential for ensuring that groups can function effectively. When groups lack the necessary resources, such as financial resources or personnel, they can have difficulty making decisions. In addition, conflict can arise when groups do not have clear goals or are working towards goals different from those of the organization (Pérez et al., 2018). Organizations can help avoid these conflicts by providing the necessary resources and setting clear goals for the groups. This can lead to better decisions and thus better organizational performance (Miller & Curry, 2016).

In conclusion, Group Dynamics & Decision-Making process is essential to organizational performance. By understanding the factors contributing to effective group decision-making, organizations can create an environment where groups can make the best decisions possible. This can lead to improved organizational performance.

References

Bragge, J., Kallio, H., Seppälä, T., Lainema, T., & Malo, P. (2017). Decision-making in a real[1]time business simulation game: Cultural and demographic aspects in small group dynamics. International Journal of Information Technology & Decision Making, 16(03), 779-815.

Miller, B., & Curry, B. (2016). Small-Group Dynamics, Ideology, and Decision Making on the US

Osborne, S., & Hammoud, M. S. (2017). Effective employee engagement in the workplace. International Journal of Applied Management and Technology, 16(1), 4.

Pérez, I. J., Cabrerizo, F. J., Alonso, S., Dong, Y. C., Chiclana, F., & Herrera-Viedma, E. (2018). On dynamic consensus processes in group decision making problems. Information Sciences, 459, 20-35.

Raaphorst, N., & Loyens, K. (2020). From poker games to kitchen tables: How social dynamics affect frontline decision making. Administration & Society, 52(1), 31-56.

Suzuki, K., & Hur, H. (2020). Bureaucratic structures and organizational commitment: findings from a comparative study of 20 European countries. Public Management Review, 22(6), 877-907.