Final answer:
Businesses use group decision making to harness increased diversity of perspectives, enhanced creativity and innovation, and improved problem-solving. Increased efficiency is not a typical advantage due to the potential increased transaction costs. Strategies to avoid groupthink include seeking outside opinions and promoting open discussion within groups.
Step-by-step explanation:
Businesses leverage group decision making for several key advantages:
- Increased diversity of perspectives, which enriches the decision-making process by bringing in different ideas and experiences.
- Enhanced creativity and innovation through the collaboration and the combination of various individual strengths and abilities.
- Improved problem-solving and decision-making abilities stemming from the collective intelligence of the group.
While group decision making can indeed improve the quality of decisions, the process can be less efficient, and productivity could suffer due to the time and effort needed to reach consensus among all members. Therefore, the fourth option (Increased efficiency and productivity) is not a consistent advantage of group decision making, especially when compared to decisions made by individuals or a smaller number of people.
Furthermore, businesses aiming to avoid groupthink and group polarization should adopt strategies that encourage the expression of different viewpoints and reduce the conformity pressure within groups. Effective strategies include seeking outside opinions, conducting secret ballots, and having leaders withhold their opinions until all members have contributed. Groupthink occurs when the desire for harmony overrides realistic appraisal of alternatives and can be avoided by fostering an environment where diverse opinions are valued and debated.