Final answer:
Groups make better decisions when they collectively possess expertise and when effective strategies are employed to combat groupthink and group polarization. Leadership style and group size can also impact decision-making effectiveness, with democratic leadership and small-group cohesiveness being notable factors.
Step-by-step explanation:
Groups tend to make better decisions than individuals under certain conditions. One key condition is when the group has expertise, which allows for a diverse range of knowledgeable opinions, and consequently, more informed decision-making. However, it's important to acknowledge that groups may also succumb to various pitfalls that can impair effective decision-making, such as groupthink and group polarization.
Groupthink occurs when a group prioritizes harmony and conformity over critical evaluation of different viewpoints. This can lead to poor decisions, as the group may not consider all alternatives or may ignore dissenting opinions. To avoid groupthink, strategies like seeking outside opinions, private voting, and encouraging open discussion can be employed. Group polarization is another phenomenon where group discussions can intensify the initial position of the group, leading to more extreme decisions.
Effective group decision-making is also influenced by the leadership style. Democratic leaders foster participation and consensus but may slow down decision-making processes. Collective action problems, however, are less severe in small groups than in large due to stronger peer pressure, easier monitoring of individual behavior, and reduced ability to free-ride. Small groups are generally more cohesive, but this cohesiveness can also lead to challenges, especially when up against larger groups with competing interests.