Decision-Making Models and Group Dynamics

Covering Assessment Criterion 1.1 of 5CO02, this video addresses the theoretical foundations of decision-making as they relate to evidence-based practice in people management. The rational model of decision-making receives detailed attention — its step-by-step logic, its underlying assumptions about complete information and cognitive capacity, and the significant real-world limitations that prevent it from operating as intended in organisational settings. Against this backdrop, the video introduces Herbert Simon's concept of bounded rationality, which reframes how decision-makers actually behave when faced with constrained information, limited cognitive resources and time pressure, including the practice of satisficing rather than optimising.

The video then turns to the distinction between individual and group decision-making, examining the respective advantages and trade-offs of each approach in workplace contexts. Two specific group phenomena central to the 5CO02 indicative content are covered in depth: groupthink and group polarisation. The video examines the conditions under which each arises, the symptoms associated with groupthink including collective rationalisation and pressure on dissenters, and the mechanism behind group polarisation whereby pre-existing inclinations become more pronounced through discussion.

Across both the individual and group dimensions of decision-making, the video consistently connects these models and phenomena to the broader demands of evidence-based practice — specifically the need to justify decisions to others, apply critical thinking, identify sources of bias and form sound judgements despite real-world constraints. Practical considerations for people professionals facilitating collective decisions, including the use of devil's advocate roles and the creation of psychological safety for dissent, are also among the topics covered.