CMA Foundation · Fundamentals of Business Economics and Management · Decision-making - Types and Process
In a Chennai company's board meeting, members privately doubt a merger proposal but stay silent to keep harmony with a dominant chairman, and the proposal is approved unanimously without critical evaluation. Which problem best explains this?
This is groupthink. In a cohesive group with a dominant leader, the wish for harmony and consensus suppresses dissent and critical evaluation of alternatives, so a proposal gets approved unanimously even though members privately doubt it, which weakens decision quality.
- AGroupthinkCorrect
- BIntuitive decision-making
- CRisk aversion in programmed decisions
- DSelective perception of a single manager
Explanation
Groupthink occurs when the desire for consensus and conformity in a cohesive group overrides realistic appraisal of alternatives. Members suppress doubts and unanimity appears. Selective perception concerns one individual's biased view, not group pressure.
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