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ACCA Applied Knowledge · Business and Technology · Individual and group behaviour in business organisations

A board of a small company is highly cohesive. Members never challenge the chairman's proposals, assume everyone agrees, and dismiss outside advice that contradicts the plan. Which problem does this most clearly illustrate?

This illustrates groupthink. A highly cohesive group suppresses dissent, assumes everyone agrees and ignores contrary outside advice, which leads to poor decisions. Social loafing concerns reduced individual effort, and role ambiguity concerns unclear role expectations, so neither fits the behaviour described.

  1. AGroupthinkCorrect
  2. BSocial loafing
  3. CRole ambiguity

Explanation

Groupthink (Janis) occurs when a cohesive group suppresses dissent, assumes unanimity and ignores outside information, leading to poor decisions. Social loafing is reduced individual effort in a group, and role ambiguity is unclear expectations of a role. Neither is described here.

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