Dr. Manju Antil | Counseling Psychologist | Psychotherapist | Educator| Founder- Wellnessnetic Care

Decision Making in Teams, Committees, and Leadership Groups

An Organisational Psychology perspective

In modern organisations, important decisions are rarely made by individuals acting alone. Strategic planning, policy formulation, problem-solving, and crisis management are increasingly handled by teams, committees, and leadership groups. From an organisational psychology standpoint, group decision making is a social–cognitive process, shaped by interaction, power, emotions, and group dynamics. Understanding how groups make decisions—and why they sometimes fail—is essential for students of organisational psychology.

1. Meaning of Group Decision Making in Organisations

Group decision making refers to the process in which two or more individuals collectively analyse information, evaluate alternatives, and choose a course of action. In organisations, this occurs in:

• Work teams
• Committees and task forces
• Boards of directors
• Leadership and management groups

Unlike individual decision making, group decisions involve shared responsibility, negotiation, and influence.

2. Nature of Decision Making in Teams and Leadership Groups

Decision making in groups has a distinct psychological nature:

• It is interactive, involving discussion and debate
• It is socially influenced, shaped by norms and relationships
• It is emotionally charged, especially under pressure
• It is political, involving power and status differences

Thus, group decisions are not merely the sum of individual opinions—they emerge from group processes.

3. Why Organisations Use Teams and Committees for Decisions

Organisations rely on collective decision making because it offers several advantages:

• Access to diverse knowledge and expertise
• Multiple perspectives reduce blind spots
• Higher acceptance and commitment to decisions
• Shared accountability

From a psychological perspective, participation increases ownership and motivation, making implementation more effective.

4. Psychological Processes Involved in Group Decision Making

a) Social Influence and Conformity

Group members are influenced by:

• Majority opinions
• Authority figures
• Peer pressure

People may conform to avoid conflict or gain acceptance, even when they privately disagree.

b) Communication and Information Sharing

Effective group decisions depend on:

• Open communication
• Equal participation
• Willingness to share dissenting views

Poor communication leads to information silos and suboptimal decisions.

c) Power and Status

Leadership groups often include members with unequal power. High-status individuals may:

• Dominate discussions
• Influence outcomes disproportionately
• Suppress alternative viewpoints

This can reduce decision quality if unchecked.

5. Advantages of Group Decision Making

From an organisational psychology viewpoint, group decision making offers several benefits:

• Better problem analysis due to diverse inputs
• Higher creativity and innovation
• Greater legitimacy and acceptance
• Improved learning and knowledge sharing

Teams can outperform individuals, especially in complex and ambiguous situations.

6. Common Problems in Group Decision Making

Despite its advantages, group decision making is vulnerable to several psychological pitfalls.

a) Groupthink

Groupthink occurs when the desire for harmony overrides critical evaluation.

Characteristics:

• Suppression of dissent
• Illusion of unanimity
• Overconfidence in group decisions

Impact: Poor, risky, or unethical decisions.

b) Social Loafing

Some members reduce effort, assuming others will compensate.

Impact:

• Reduced accountability
• Lower-quality decisions

c) Group Polarisation

Group discussion can push members toward more extreme positions than initially held.

Impact:

• Riskier or overly conservative decisions

d) Dominance and Minority Suppression

Strong personalities or leaders may dominate, while quieter members remain unheard.

Impact:

• Loss of valuable insights
• Biased outcomes

7. Decision Making in Committees

Committees are formal decision-making bodies designed for governance, policy, or evaluation.

Psychological characteristics of committees:

• Structured roles and procedures
• Slower decision-making processes
• Emphasis on consensus and documentation

While committees increase fairness and transparency, they may suffer from:

• Delay
• Diffusion of responsibility
• Excessive compromise

8. Decision Making in Leadership Groups

Leadership groups (top management teams, boards) make high-stakes decisions affecting the entire organisation.

Psychological challenges include:

• Ego involvement
• Power struggles
• Risk aversion or overconfidence
• Strategic blind spots

Effective leadership group decision making requires:

• Psychological safety
• Constructive conflict
• Ethical accountability
• Clear role clarity

9. Improving Group Decision Making in Organisations

Organisational psychology suggests several strategies to improve group decisions:

• Encourage diverse viewpoints and dissent
• Assign a devil’s advocate
• Use structured decision-making techniques
• Reduce status barriers
• Promote ethical and reflective leadership

Leaders play a critical role in shaping how decisions are discussed, not just what decisions are made.

10. Contemporary Trends in Group Decision Making

Modern organisations increasingly use:

• Cross-functional teams
• Virtual and hybrid decision-making groups
• Data-supported group decisions
• Agile and participative leadership models

However, digital environments also introduce new challenges such as reduced non-verbal cues and increased miscommunication.

Conclusion

Decision making in teams, committees, and leadership groups is a complex psychological process, influenced by social dynamics, power, emotions, and organisational culture. While collective decision making offers clear advantages, it also carries risks such as groupthink, conformity, and diffusion of responsibility.

For organisational psychology students, understanding these processes provides critical insight into why group decisions succeed or fail—and how effective leadership and sound psychological principles can transform group judgement into a powerful organisational strength.