Groupthink can lead to flawed decisions from "summary" of Judgment in Managerial Decision Making by Max H. Bazerman,Don A. Moore
Groupthink occurs when a group's desire for harmony and conformity overrides its ability to make rational decisions. In such situations, group members prioritize agreement and consensus over critical evaluation of alternative viewpoints. As a result, dissenting opinions are suppressed, and individuals may feel pressured to conform to the group's consensus. This can lead to flawed decisions as group members fail to consider all available information and perspectives. Groupthink often occurs in cohesive groups where members share similar backgrounds, beliefs, and values. In these situations, individuals may be more concerned with maintaining social harmony than with thoroughly examining the decision at hand. This can create a dangerous dynamic where group members fail to challenge each other's assumptions or consider alternative courses of action. Moreover, groupthink can be exacerbated by strong leadership or dominant personalities within the group. When individuals in positions of authority express a particular opinion or preference, group members may be more inclined to defer to their judgment rather than critically evaluating the decision themselves. This can stifle creative thinking and lead to a lack of diversity in perspectives within the group. In the context of managerial decision-making, groupthink can have serious consequences for organizational outcomes. When groups fail to consider all available information and viewpoints, they are more likely to overlook potential risks and make flawed decisions. This can result in missed opportunities, financial losses, and damage to the organization's reputation. To mitigate the risk of groupthink, it is important for managers to promote a culture of open communication and constructive debate within their teams. Encouraging dissenting opinions, inviting diverse perspectives, and fostering a climate of psychological safety can help prevent the pitfalls of groupthink and lead to more informed and effective decision-making processes.
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