In: Operations Management
Sometimes, the desire to maintain group harmony overrides theimportance of making sound decisions. When that occurs, teammembers are said to engage in groupthink?
Groupthink happens when ever there occurs a situation of conflict, insubordination and opinion differences where the group decides to bring a generic decision to favour the group reputation and harmony by even comprimising and ignoring rational thoughts, decisions and moral consequences
The concept of groupthink has originated in early era where a group of leaders decides to zero in on group majority and to reach consenus to protect their group harmony at any costs. They give least priority to the consquences.
Group think Vs Sound Decisions
Let us take the example of an imaginary residential club 'ARISTO' with more than 300 members with about 15 panel members leading it.
Case 1 : Residential Club
Now members of ARISTO abide to their group policy of managing maintanence charges, miscallenous expense including electric/plumbing etc, Funding for a club house or additional buildings, Maintainence of Common premise including parks, play areas, Gym & Swimming pool. Here the decision on fixed and variable expenses are final with panel members and the rest need to abide by it. Now few of the members questions the decision on the booming expenditure year on year especially when it comes to acquiring new buildings/complex for the premise. They have their own rational stand on not opting for it and comes up with alternatives too, but is not taken or accepted by the panel.
This situation cannot prolong as those few members can later convince the majorities for support which can inturn leads to huge conflicts. This can even lead to legal wars.
Case 2: Corporate
Market is dynamic and subjective to changes. Any organisation willing to keep up with the change and the distruption may sustain.
Now we have a case of corporate firm with the Board of Directors who are well experienced and keeoing a long term shareholdership with the company. Any decisions pertaining to the change in process should be directed through them. Now a group of Mid level staffs identify a crisis and develop a new set of Process to be implemented for the betterment of system. This is to sustain market share and Revenue suspecting a disruptive trend in the industry. The process was taken to the Top level and passed on to the Directors
Now the directors have their consensus on Format structure and Position which they are unwilling to change. When the new process request reaches to their level it takes enormous time (probably months) to cover all Board of Directors as they give least priority to change of format and decisions in the organisation and their Business Model
Even though few of the Directors are willing to the change of process they won't vouch or open up as they don't want to disappoint others or challenge them on rolling out the new system of process.
This leads to huge setbacks with depletion in Revenue as well as Market share in future. Had they be willing to discuss on the Process change with Company staffs/Top Level Officials and made sound decisions such outcomes could be avoided in the arly stage.