Importance Of Groupthink In Decision Making

Register to read the introduction… Groupthink hypothesis is an essential explanatory tool in explaining why certain decisions taken may not always follow the rational model based on aspects of the decision making body itself. ‘According to the groupthink hypothesis, members of any small cohesive group tends to maintain esprit de corps by unconsciously developing a number of shared values and related norms that interfere with critical thinking and reality testing’ (Janis,(1972) 2002). The illusions of invulnerability, unlimited confidence and confidence in a leader are all symptoms of groupthink which leads to decisions that may seem otherwise illogical. Decision making which is affected by the effects of groupthink leads to decisions being taken once it is agreed by all in the group that what is being decided is the right thing although it may be risky. Contrary to the available information to facts pointing to the success of such a path, decisions are taken with the belief that ‘luck will be on our side’. It has been sited by Janis (1972), based on accounts of the Bay of Pigs blunder that Groupthink was a prevailing factor leading to the decision to invade Cuba. According to Guthman, (1972) groupthink was evident in the Kennedy camp when deciding to invade Cuba based on discussions with a confident of Robert Kennedy with whom he discussed the invasion plan the day it was launched who is quoted as having said, ‘We believed that if we face up to the nations problems and applied bold, new ideas with common sense and hard work, we would overcome whatever challenged us’. Once these euphoric characteristics take hold and the ‘we feeling’ takes hold, decision making for everyday activities as well as long range planning is likely to become seriously impaired as members of this cohesive group are reluctant to question; to …show more content…
Assessing risks in advance of deciding on innovation is the industry’s way of maximizing the areas where there appears to be more control. It must be noted however, that the decision making process itself may prejudice risk management. Risk management can both influence the decision making process as well as be influenced by it in business. There is much at stake in business and it is no surprise that innovators strive to make decisions as rational as practically possible. The greater the control the industry has over R&D the more likely it is that decisions about innovation are