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

Belmont plc's board has strong cohesion, an influential chairman and little outside input. Which action would be most effective in reducing the risk of groupthink in its decisions?

Appointing a devil's advocate and inviting external experts to challenge proposals is most effective. It legitimises dissent and brings fresh views, whereas unanimity rules, fewer meetings or private deals with the chairman reinforce conformity and suppress critical debate.

  1. AAppoint a member to act as devil's advocate and invite external experts to challenge proposalsCorrect
  2. BReplace the chairman's votes with a consensus rule requiring unanimity
  3. CReduce the number of board meetings to avoid prolonged discussion
  4. DEncourage members to resolve disagreements privately with the chairman before meetings

Explanation

Janis suggested remedies such as assigning a critical evaluator and bringing in outsiders to challenge assumptions. Requiring unanimity pressures dissenters to conform, fewer meetings reduces debate, and private pre-meeting resolution with the chairman removes open challenge, so these increase the risk.

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