Information sharing and group efficacy influences on communication and decision quality

Group efficacy has generally been found to have a positive effect on group performance. This study reveals a less favorable consequence of high group efficacy, its tendency to promote inferior group decisions under certain circumstances. Previous studies have found that members in a group generally exhibit bias towards utilizing shared information to make decisions. This study examines the effect of group efficacy on both the process (in terms of communication) and outcomes (in terms of decision quality and deviation from initial individual preference) of group decision-making. When information was not completely shared by group members prior to group discussion, members of low-efficacy groups communicated more and more readily changed their initial decision preferences. In the end, they were able to make objectively better decisions. These effects of group efficacy were even more pronounced when individual group members had conflicting information in the beginning about the issues prior to group discussion.