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CMA Foundation · Fundamentals of Business Economics and Management · Decision-making - Types and Process

In a Kolkata firm's board meeting, members privately doubt a proposed acquisition but stay silent because the chairman and most members appear strongly in favour, and the proposal is approved without debate. This is an example of:

This is groupthink. Members suppress their private doubts to conform with the apparent majority and the chairman, so the acquisition is approved without critical debate. The pressure for harmony overrides realistic appraisal of alternatives, which is the defining feature of groupthink.

  1. AGroupthinkCorrect
  2. BAnchoring bias
  3. CProgrammed decision-making
  4. DStatus quo bias

Explanation

Groupthink occurs when the desire for harmony and conformity suppresses critical evaluation and dissent in a group. Here doubts are withheld and no debate occurs. Anchoring relies on an initial figure, and programmed decisions are routine ones, so neither fits.

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