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ACCA Applied Knowledge · Business and Technology · Team formation, development and management

A team at Kestrel Co has members who all share similar backgrounds, are very friendly, and strongly value agreement. During a review, nobody challenges the manager's preferred plan, which later fails because risks were ignored. Which phenomenon does this best illustrate?

This illustrates groupthink. In a highly cohesive, like-minded team the desire for harmony overrides critical evaluation, so nobody challenges the preferred plan and risks are ignored. Social loafing would involve reduced individual effort, which the scenario does not describe.

  1. ASocial loafing
  2. BGroupthinkCorrect
  3. CRole ambiguity
  4. DTeam adjourning

Explanation

Groupthink arises in cohesive groups where the desire for harmony overrides realistic appraisal of alternatives, so dissent is suppressed and risks are ignored. Social loafing is reduced individual effort in groups, which is not described. Role ambiguity concerns unclear duties, and adjourning concerns team break-up.

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