Chapter 8 Groupthink and Effective Decision Making

Dysfunctional decisions

When groups make poor choices due to communication failures, pressure, or bias. Example: A board ignoring warning signs because no one wants to disagree.

Janis and groupthink

Groupthink happens when members seek harmony and avoid conflict, leading to poor or risky decisions. Example: NASA ignoring engineers’ warnings before the Challenger launch.

Symptoms of groupthink

Warning signs include illusion of invulnerability, illusion of morality, stereotyping, self-censorship, illusion of unanimity, direct pressure, and mindguards.

Illusion of invulnerability

Group believes it cannot fail. Example: “We’ve always succeeded, so this will work too.”

Illusion of morality

Group assumes its decisions are morally right. Example: “We’re doing this for the greater good.”

Stereotyping

Group views outsiders or opponents as wrong or inferior. Example: Dismissing another department’s criticism as “negative.”

Self-censorship

Members hold back opinions to avoid conflict. Example: Staying silent even when noticing flaws in the plan.

Illusion of unanimity

Silence is mistaken for agreement. Example: No one speaks up, so everyone assumes consensus.

Direct pressure on dissidents

Members who disagree face criticism or pressure. Example: “Stop being negative—just go along with it.”

Mindguards

People who block opposing viewpoints from reaching the group. Example: A manager filters out critical emails before a meeting.

Preventing groupthink

Encourage open discussion, invite outside perspectives, assign a devil’s advocate, and create a safe environment for dissent. Example: Rotating leaders to reduce pressure and promote new ideas.

Functional theory of group decision making

Groups make better decisions when they fulfill five functions: define the issue, set criteria, identify options, evaluate them, and choose the best one. Example: A team that systematically reviews each step before deciding.

Critical functions of decision making

Groups should (1) understand the issue, (2) define minimum requirements, (3) identify realistic options, (4) evaluate against criteria, and (5) select the best fit. Example: Choosing the best fundraising strategy by reviewing data and goals.

Functional theory of group decision making Stage 1

The group should have a correct understanding of the issues to be resolved.

Functional theory of group decision making Stage 2

The group should determine the minimal characteristics required in order for any alternative to be acceptable.

Functional theory of group decision making Stage 3

The group should identify a relevant and realistic set of alternatives.

Functional theory of group decision making Stage 4

The group should carefully examine the alternatives in relation to each previously agreed-upon required characteristic.

Functional theory of group decision making Stage 5

The group should select the alternative that is most likely to have the desired characteristics.