Business Ethics

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Groupthink

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Business Ethics

Definition

Groupthink is a psychological phenomenon that occurs within a group of people, in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome. It typically arises when a group makes faulty decisions because group pressures lead to a deterioration of mental efficiency, reality testing, and moral judgment.

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5 Must Know Facts For Your Next Test

  1. Groupthink can lead to poor decision-making, as groups become overly cohesive and resistant to considering alternative viewpoints.
  2. Symptoms of groupthink include illusions of invulnerability, collective rationalization, and pressure toward uniformity.
  3. Groupthink is more likely to occur in highly cohesive groups with strong leadership, isolation from outside information, and a perceived crisis or threat.
  4. Diversity and inclusion in the workforce can help mitigate the effects of groupthink by introducing different perspectives and encouraging critical thinking.
  5. Effective leadership that fosters a culture of open communication and constructive dissent can also reduce the likelihood of groupthink.

Review Questions

  • Explain how groupthink can negatively impact decision-making in a diverse and inclusive workforce.
    • Groupthink can lead to poor decision-making in a diverse and inclusive workforce by causing group members to conform to the dominant perspective, even if it is flawed or biased. When group members feel pressure to maintain harmony and avoid conflict, they may be less likely to critically evaluate alternatives or consider minority viewpoints. This can result in decisions that fail to take into account the diverse perspectives and experiences within the group, ultimately leading to suboptimal outcomes. Fostering a culture of open communication and encouraging dissent can help mitigate the effects of groupthink and promote more effective and well-rounded decision-making.
  • Analyze the role of cognitive biases in the emergence of groupthink within a diverse and inclusive workforce.
    • Cognitive biases can contribute to the development of groupthink in a diverse and inclusive workforce. For example, the confirmation bias may lead group members to seek out and prioritize information that supports the dominant perspective, while ignoring or discounting contradictory evidence. The in-group bias can cause individuals to favor and trust information from members of their own group, while being more skeptical of outsiders. Additionally, the sunk cost fallacy may lead groups to persist with a course of action, even if it is no longer optimal, due to the investment of time and resources. These cognitive biases can undermine the potential benefits of diversity and inclusion, as group members become increasingly resistant to considering alternative viewpoints and challenging the status quo. Addressing these biases through training and fostering a culture of critical thinking can help mitigate the emergence of groupthink.
  • Evaluate how the principles of diversity and inclusion can be leveraged to counteract the negative effects of groupthink in the workforce.
    • Diversity and inclusion in the workforce can be powerful tools for counteracting the negative effects of groupthink. By bringing together individuals with diverse backgrounds, experiences, and perspectives, organizations can foster a culture of open communication and constructive dissent. This can challenge the tendency towards conformity and encourage critical analysis of decisions and proposed solutions. Additionally, inclusive practices that value the contributions of all team members, regardless of their position or seniority, can help prevent the formation of rigid hierarchies and power structures that often facilitate groupthink. Furthermore, exposure to diverse viewpoints can help individuals recognize and overcome their own cognitive biases, leading to more well-rounded and informed decision-making. Ultimately, embracing the principles of diversity and inclusion can create an environment that is more resilient to the pitfalls of groupthink, ultimately leading to better outcomes for the organization and its workforce.

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