Question

    Vibha is a part of the product quality control team in

    an organization. It is one of the most cordial team in the organization famous for arriving at a consensus decision very quickly. However, the decisions have failed to yield much result for the organization and Vibha is at a loss of ideas and the reason for the ineffectiveness despite leading a happy and cordial team. She took outside help to analyze his team’s behavior and found out that the team just focused on reaching a consensus without brainstorming much and choosing the most easy or non-argumentative option so as to avoid conflicts within the members. What is this situation described as?
    A Anchoring Correct Answer Incorrect Answer
    B Bounded rationality Correct Answer Incorrect Answer
    C Escalation-of-commitment Correct Answer Incorrect Answer
    D Framing Correct Answer Incorrect Answer
    E Groupthink Correct Answer Incorrect Answer

    Solution

    Groupthink refers to a phenomenon where a group of individuals conform to a certain way of thinking or decision-making, often at the expense of critical evaluation of alternative options or viewpoints. Groupthink occurs when the members of a group prioritize group cohesion and harmony over independent thinking and constructive dissent. As a result, the group may overlook important information, fail to consider all possible alternatives, and make irrational or suboptimal decisions

    Practice Next
    More Financial Management Questions

    Relevant for Exams:

    ask-question