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IAI Actuarial Core Principles · Business Management · Mission, business strategy, teamwork and time management

A project team at an Indian general insurer is working on a product filing. Members rarely challenge the team leader's proposals, dissenting views are suppressed to keep harmony, and the team feels sure that its plan cannot fail. Which problem does this most clearly illustrate?

This illustrates groupthink. The desire for harmony leads members to suppress dissent, defer to the leader and feel invulnerable, which weakens critical evaluation and risks poor decisions, unlike social loafing, role ambiguity or open conflict.

  1. AGroupthinkCorrect
  2. BSocial loafing
  3. CRole ambiguity
  4. DStorming
  5. Task interdependence

Explanation

Groupthink arises when desire for harmony and cohesion leads members to suppress dissent and feel invulnerable, producing poor decisions. Social loafing is reduced individual effort, role ambiguity is unclear duties, and storming involves open conflict, none of which is described.

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