Question

what are the benefits and issues with groupthink? Give an example of groupthink that you have witnessed or been part of. why is this an example of groupthink?

Answer 1

What is Groupthink?

Groupthink is a psychological phenomenon whereby pressure within a group to agree results in failures to think critically about an issue, situation or decision.

occurs when a group makes faulty or ineffective decisions for the sake of reaching a consensus. Groupthink stifles individual creativity and independent thinking in group members. Common sense, the desire to present and debate alternatives, and the confidence to express an unpopular opinion are sacrificed for group cohesion, which can significantly hinder the decision-making and problem-solving abilities of a group. Groups affected by groupthink will disregard realistic alternatives and typically choose more illogical approaches in an effort to maintain harmony within the group. As a result, the outcomes of decisions shaped by groupthink have a low probability of success.

A group is more vulnerable to groupthink when the group is composed of members with similar backgrounds, is highly cohesive, has no clear rules or defined processes for decision making, has an outspoken leader, or is isolated from outsiders. However, there are some preventative measures that can be taken to reduce the chances of groupthink, including:

• Define rules and processes for decision making and uphold them.

• Encourage full participation of every group member.

• Divide group members up into smaller brainstorming groups before sharing ideas with the larger group.

• Support debate and productive conflict in the group.

• Make it a priority to examine all alternatives before making a decision.

• Invite outside experts in to share their perspectives and insights with the group.

• Ask leaders to hold their opinions or ideas until after the group has had a chance to express their opinion.

• Have a designated evaluator or 'devil's advocate' in the group to challenge ideas and decisions.

• Cooperation is Improved. When groupthink happens, the group agrees more often than not due the nature of the phenomenon in general. ...
• Harmony Exists. ...
• There Will be Less Stress. ...
• Finish it Quickly. ...
• Lower Quality. ...
• Wrong Decisions. ...
• It Could Ruin Your Relationships in the Long Run.

The Groupthink theory as progressed by Irving Janis has generated a lot of additional research on the topic. Of particular interest is the work done to attempt to validate his model. To benefit our ability make better decisions, it is important to confirm experimentally that the model is predictive, or more importantly, causal. Irving suggests that, in addition to high group cohesion, the following are the precursors needed to lead to groupthink:

1. organization faults such as directive leadership, lack of formal procedures, or lack of social diversity in the decision team; and
2. a challenging decision environment that could include stress from external threats, time pressure, and/or moral dilemmas.

Given these pre-existing conditions, one might wonder why the faulty decision making might not be attributed to some of the errors we have explored previously, such as those associated with decision timing.

Some of the follow-on research suggests problems with hindsight (Janis develops his model by looking at major past policy decisions) and insufficient definition, particularly with respect to the size of the group. An additional concern mentioned in the research is the derogatory use of the groupthink term as a way to criticize decisions that may not, in reality, be faulty.

The issue of conformity and group decision making

The potential problem of conformity deserves a closer look in the context of the team decision making process. For effective decisions, early definition effort must open the thought process. The group needs to adequately frame and characterize the decision situation and problem, and expand thought to identify a robust set of possible solutions that will create the need to gather information. Conformity during this stage of the process, or prior to evaluation of alternative solutions can be defective. When pressed for time, individuals may chose conformity as a way to relieve the resulting emotional stress.

However, after a solution is chosen, conformity, or alignment can be highly desirable to promote and accelerate execution of the selected solution. As a consequence, those supporting unselected alternatives must make their own individual decision to pursue the chosen solution alternative that in their mind is suboptimal, or even worse, inadequate. If a decision is evaluated based on the final result or outcome, because execution is included, conformity after selection can provide a large positive benefit.

Given this, it is important that a decision be evaluated based on the information and process effectiveness at the time the decision was made. Accountability for the choice should be limited to this, as the decision makers can only make a decision based on their understanding of the information presented. They should not be held responsible for failed execution and unknowable future events, to the extent that they are not responsible for the actual implementation of the decision.

Improving group decision making methods to address the problems suggested by groupthink

Despite the potential limits of groupthink theory, there are a number of improvements that are suggested from the model. The groupthink precursors point to some of the prevention opportunities that can be made part of an organization's group decision making methods and include:

• Having a structured decision making process that, when used routinely, helps prevents the short cuts that come from groupthink
• Creating a decision team that has a broad diversity of thought
• Increasing personal accountability for decision participants to counter the motivation toward conformity
• Encouraging an initial leadership choice with respect to the level of collaboration appropriate for decision being made
• Using outside experts that have no motivation to conform

If you are leading a critical team decision effort, here are two questions that can help quickly expose if the team has become victim to groupthink. They should be asked of all the participants in the group decision making activity.

What options did you consider?
What evidence or rationale do you have for supporting your position?

Groupthink Example

Let's say John, Jane, and Jeff are fund managers for the XYZ mutual fund company. They meet weekly to discuss their investing strategies and their top picks. The three get along well and trust each other's judgment.

One day, Jeff proposes buying shares of ABC Company for his fund. He plans to make a large buy and says he likes the company's fundamentals. John and Jane go along with the plan and buy the stock for their funds, too. Two weeks later, the stock has fallen by 50%.

John and Jane are the victims of groupthink. They didn't independently analyze the stock and relied on everyone else in the group to point out flaws in Jeff's thinking.

Psychologist Irving Janis coined the term in 1972. Janis cited eight signals of groupthink:

1. Excessive optimism
2. Discounting warnings
3. A belief that the other person's motives are ethical
4. A belief that people outside the group are troublemakers or create conflict
5. Pressure not to disagree with other members of the group
6. Failure to express doubts or differing opinions
7. Assumption that what most of the group believes is what all of the group believes
8. Members who "protect" the leader from conflicting information or dissenters

In the investing world, groupthink is akin to a "herd mentality." Knowing how to recognize groupthink provides a tremendous opportunity for contrarians to recognize when investors are buying or selling without thinking. This allows contrarians to question trends and even go in the opposite direction.

In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals