Groupthink in Risk Management. Business & Marketing Essay (Essay Sample)

The Impact of Groupthink in Decision Making Process
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Groupthink is a term that was coined by the psychologist Irving Janis. Irving Janis argued that groupthink mostly result to faulty decision making under the influence of group pressures that leads of mental efficiency deterioration, lowered reality testing and moral judgment. As a result of such an influence the groups are unable to think rationally, ponder over alternatives that might be available thus leading to irrational actions. Any team is susceptible to groupthink when the team members have a common background, when the group is completely insulated from outside opinions, and when there is no defined decision making process. For instance, the famous “Swiss Air” collapsed as a result of groupthink decision to restructure its board thus the Air Company lost industrial expertise. This research paper will discuss the consequences of groupthink, factors that affect groupthink decisions, and the possible solutions to group thinking problems.