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Group dynamics can influence decisionmaking from "summary" of Judgment in Managerial Decision Making by Max H. Bazerman,Don A. Moore

Group dynamics play a crucial role in shaping the decision-making process within organizations. The interactions and relationships among group members can significantly impact the choices made by the collective. People's behavior in groups is often influenced by various factors such as power dynamics, social norms, and communication patterns. One key aspect of group dynamics that can influence decision-making is the presence of a dominant leader or authority figure. In many cases, group members may defer to the opinions and decisions of a more powerful individual, even if they disagree with them. This can result in a lack of diverse perspectives being considered and potentially lead to suboptimal outcomes. Moreover, social norms within a group can also affect how decisions are made. People may conform to the group's expectations in order to fit in or avoid conflict, even if they have reservations about the chosen course of action. This desire for social harmony can hinder the group from fully exploring alternative options and evaluating risks objectively. Communication patterns within a group can either facilitate or impede effective decision-making. For instance, if certain members dominate discussions or if there is a lack of open dialogue, valuable insights and information may be overlooked. On the other hand, a group that fosters open communication and encourages diverse viewpoints is more likely to make well-informed decisions. Furthermore, the composition of a group can also impact decision-making processes. Homogeneous groups, where members share similar backgrounds and perspectives, may experience groupthink and struggle to consider alternative viewpoints. Conversely, diverse groups that bring together individuals with different experiences and expertise are more likely to generate innovative solutions and make better decisions.
  1. Group dynamics can significantly influence decision-making within organizations. By understanding and addressing the various factors that shape group interactions, managers can foster a collaborative environment that promotes critical thinking, diversity of thought, and ultimately, better decision outcomes.
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Judgment in Managerial Decision Making

Max H. Bazerman

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