Final answer:
Madison's realization that other kids in her class are better dancers indicates she is engaging in social comparison, which is a part of forming a self-concept by evaluating one's abilities against others.
Step-by-step explanation:
Madison has just begun to notice that some of the other kids in her dance class are better than her. This realization indicates that Madison has begun to engage in social comparison. Social comparison is a process through which individuals evaluate their own abilities, achievements, and qualities by contrasting them with those of others.
This tends to occur as part of normal social and cognitive development in which individuals form a self-concept by attributing value to their own skills and achievements in relation to others.
According to George Herbert Mead's theories on the development of the self, this process is essential for individuals to develop self-awareness. Mead suggested that the self emerges from social interaction, as we begin to see ourselves through the perspective of others, which in turn prompts self-evaluation and reflection. Madison’s realization can be related to Mead's stages of self-development, where she is moving beyond the play stage of mimicking actions and behaviors, towards a more mature understanding of herself in relation to her peers.