Final answer:
The higher amount of communication passing through a smaller number of team members corresponds to a greater degree of centralization within a team. While this can reduce transaction costs and enhance decision-making efficiency, it could also lead to increased conformity costs and risks like social loafing, where team members may exert less effort.
Step-by-step explanation:
The more communication flows through fewer members of the team, the higher the degree of centralization. Centralization refers to the extent to which decision-making power is concentrated in the hands of few individuals within an organization or a team. This can lead to advantages such as reduced transaction costs by streamlining decision-making processes.
However, centralization may also entail downsides, including potential increases in conformity costs. Plus, it could lead to issues within the team dynamic such as social loafing, where members might reduce their effort knowing that individual performance may not be closely evaluated. It's important to balance centralization with enough dispersed communication to sustain team cohesiveness and engagement.
Social cohesion and effective communication are vital to maintain high performance and team integrity. When decision-making is more collaborative or spread across more members, there's often a greater sense of collective responsibility and motivation to contribute, which can mitigate the risk of social loafing.