You are a Director at SkyGames, a leading gaming software technology company. Your team is tasked with making a crucial decision regarding a major investment in a new product line. Before the group discussion, individual members had differing opinions about the level of risk associated with this product investment. Some believed it was a high-risk venture, while a few others thought it was relatively low-risk. After a lengthy and comprehensive group discussion, the majority of the team members have shifted their stance and now strongly believe the investment is low risk. This shift can be attributed to:
Group polarization
The diffusion of decision responsibility among group members
Group member diversity
The risky shift phenomenon
Group polarization is the most likely reason for the shift in the team members' beliefs about the level of risk associated with the product investment. Group polarization occurs when the initial tendencies of individuals within a group are amplified after group discussion. In this case, the individuals who initially believed the investment was high-risk likely presented arguments and evidence that further solidified their position during the group discussion. On the other hand, those who believed it was low-risk may have been persuaded by the stronger arguments of their colleagues, leading to a shift in their beliefs towards the majority view.
The diffusion of decision responsibility among group members refers to the shared responsibility for the final decision within the group. While this can influence the decision-making process, it is not the primary reason for the shift in the team members' beliefs.
Group member diversity can also influence the decision-making process as different perspectives and experiences can contribute to a more comprehensive discussion. However, it is not the main reason for the shift in beliefs in this scenario.
The risky shift phenomenon refers to the tendency for group decisions to be riskier than individual decisions, but in this case, the majority of the team members have shifted to believing the investment is low risk, indicating a shift towards a more cautious approach rather than a riskier one.