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Group Decision Making Report Essay

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THE UNIVERSITY OF NEWCASTE | CASE STUDY REPORT | HUMAN RESOURCES MANAGEMENT | | NGHIA DUNG DINH | C3179988 | | TABLE OF CONTENTS EXECUTIVE SUMMARY3 1. INTRODUCTION4 2. THE DECISION MAKING FRAMEWORK AT YELLOW AUTO 5 2a. A Sociological Perspective. 2b. The Social Exchange Theory 3. THE CRITICAL DECISION…………………………………………………………6 3a. A Sociological Perspective 3b. The Group Polarization………...………………………………………………… 4. CONCLUSION8 5. RECOMMENDATIONS8 REFERENCE LIST9 Executive Summary The report analysed the decision making framework of Yellow Auto Company from the perspective of sociology. Before 2001, Yellow Auto Company was a company which was owned and managed by a family.…show more content…
According to Frizgerald ( 2013), this was one method of decision making named : decision by authority without group discussion. This type of decision making was popular in organizations; the leader of the group took responsibility to make the decision without participating of other members. This caused to the conflict in organization, the other members might not agree or understand the decision and therefore they had trend to lack motivation to implement the decision. It was very important because as Applebaum and Batt (1994) reported that the commitment of group members was the key point for the success of group works. 2b.Social Exchange Theory According to Social exchange theory (SET), it assumed that people exchange their resources based on their expectation of high rewards for little cost ( Saavedra and Dyne, 1999). It meant that members of group might not be completely happy and satisfy with the groups norms but they still conform to those norms because of rewards they could get back. Higher rewards were realised, commitment and motivation of people in group increased. The individual goal at that time was put lower the group’s goal thus increased the group performance and cohesiveness. Generally, this theory was about members accept the
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