Groupthink can be the leading cause of malfunctions within any company. Conformity, group polarization and social loafing are all signals within an organization that will create an atmosphere of failure within a company. Business leaders should be aware of the warning signs of groupthink so that change can be implemented before it is too late. Several warning signs to look for are: a false impression of imperviousness, group efforts to downsize warnings, unquestioned believe in group integrity, a shared fantasy of agreement and more. Leaders of companies should always encourage criticism in a constructive manner and disagreement with policies. Individuals showing a disagreement are exactly as it states, individuals and are necessary for a business to be successful.
Social psychology theory
Many businesses experience difficulty creating an open and creative atmosphere when groups get caught up in a groupthink atmosphere. "Although group judgments tend to be more accurate than individual judgments, accuracy depends in part upon how group members combine answers."
Many group members begin to feel stifled and fail to react effectively in situations where a dictatorship is perceived. When a single person is responsible or thought to be solely in charge of making decisions the group then begins to lose creative control and chooses not to make any changes or decisions.
It is not uncommon for people who are naturally social to base his or her decisions and judgments on influences from other people within his or her own group. Although pressures from group members have impact on the decisions that are being made he or she does not in fact affect the fundamental judgments of the individual.
A leader in an organization should always encourage other members within the organization to express themselves whether in a positive or negative way. Feedback is essential to creating an...