Final answer:
Individual performance goals can lead to dysfunction in groups by creating competition, leading to phenomena like social loafing. Solutions to collective dilemmas in such group dynamics involve aligning individual and group incentives, and while diversity can pose communication challenges, it may enhance team performance.
Step-by-step explanation:
Individual performance goals can be dysfunctional when people work in a group if the goals create competition among team members. The presence of competition in a group setting can lead to issues such as social loafing, where individuals exert less effort than they would individually because their performance is not separately evaluated. This phenomenon can result in a decline in performance, particularly on easier tasks. Moreover, the collective performance may suffer from challenges such as poor communication, decision-making issues, and internal conflict.
One specific problem that arises in group dynamics is the collective dilemma where individual motivations differ from the group's shared interests. This can lead to decisions that are detrimental to both the group and individual members. The solution to such dilemmas often involves establishing decision-making rules that align individual incentives with group objectives. Additionally, diversity within teams, such as gender diversity, can have a significant impact on team performance. While it can introduce challenges in communication, it can also broaden the skill sets available within the team, potentially improving performance.
When tasks are complex and difficult, contrary to social loafing, people in a group may feel more motivated and believe that their individual input is vital for the group's success. However, if performance goals generate competition among members, it can undermine the cohesiveness needed for effective teamwork and lead to situations where the group's potential is not fully realized.