Essays on Decision Making and Group Dynamics in the Organization - Federal Bank of Australia Case Study

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The paper 'Decision Making and Group Dynamics in the Organization - Federal Bank of Australia" is a good example of a management case study. The purpose of this report is to analyze the various aspects and theories, and models of the decision making process and group dynamics in the workplace and being able to relate them with the activities of the Federal Bank of Australia. Sufficient information about the activities of the bank was readily available and thus guided the overall objective of the report. In order to meet the purpose of this report, it is important to understand the meaning of decision making and its different forms and also understanding the importance of group dynamics to an organization. The identification and choice of a solution towards a specific objective are referred to as the decision making process.

Decision making involves evaluating the various actions that are relevant to solving a particular problem and making a choice amongst the actions that are available. Decision making takes two forms which include programmed and non-programmed decision making. The nature of the programmed decision is that they are automatic and are routinely administered.

The decisions are already established in the form of rules and guidelines. Non-programmed decisions, on the other hand, are initiated by a response to an unpredictable or unusual phenomenon within the organization. The nature of this type of decision making is that there are no rules or guidelines that guide the decision. The manager is guided by his/her intuition and also the information that is related to the particular incident. The processes and the characteristic that influence the functioning of a group can be best understood through conducting group dynamics (Van, 2008).

A group is defined as a collection of two or more people who aim at achieving the same goals and objectives in the workplace. The members of the group may more or less share the same norms and identity. There are two types of groups which include formal and informal groups. Formal groups are involuntarily joined due to the fact that they are formed by the manager of an organization and strive towards to achieve the organizational objectives. They are expected to accomplish a set of assigned tasks that may be challenging to an individual.

They achieve this through brainstorming and combining individual efforts in order to come up with creative problem-solving mechanisms that are able to provide creative solutions for their problems. The group has the responsibility of implementing complex decisions and socializing new members into the organization through the group. Informal groups, on the other hand, are voluntarily formed by people who agree and share the values and norms of the same problems. The underlying purpose of such groups is to help the individuals attain their overall goals of issues such as security, self-esteem or even economical and social issues.

Informal groups are important to individuals because they satisfy their needs such as affiliation, recognition, self-esteem and identity within society. The groups moreover provide a platform for individuals to give their thoughts and opinions about social realities. In the workplace, informal groups are important because they provide the employee with a sense of security and also eliminate the feeling of inferiority in the employee (Van, 2008). Informal groups function as a means by individuals to find solutions for their interpersonal and social problems.

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Tuladhar, A., (2005). Governance Structures and Decision Making Roles in Inflation Targeting Central Banks. IMF Working Paper No.05/183 Van Vugt, M.; Schaller, M. (2008). Evolutionary approaches to group dynamics: An introduction. Group Dynamics: Theory, Research, and Practice.

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