There are two flows here.
- Delete a group
- Reassign a user
It appears to me that you are trying to fit these two operations in a single action. I would avoid that. I would rather design a system which has two separate operations. Delete group and reassign user.
If an admin tries to delete a group which has users associated to it, I'd notify the admin to reassign or any other possible operation which decouples the user from the group. This notification will end the flow of that user action. (I might also think of not giving a delete option for a group which has users, but for that I need more information on the system and user comfort level of the system).
The admin user then may decide to open that group see the users in that group and individually or collectively perform actions on them. Those would be different flows triggered by separate action.
About designing the screens, we will need more information as to how you plan to show these relationships currently, how many groups are possible, how many users per group are possible, can user be part of more than group, etc. I'd request you to add mock ups of your current approach, and this forum might be able to give more effective feedback.