Pdf the effects of group cohesiveness and leader behavior on janis 1982 symptoms of defective decision making were investigated within a laboratory. The group leader should encourage all group members to air their doubts and objec. Janis 1971,1972, 1982,1989 suggested methods to prevent or minimize the supposedly dysfunctional consequences of groupthink, including the following. Check your understanding of the concept of groupthink with this interactive quiz and printable worksheet. Evaluating janis groupthink model of faulty decision making in groups ps2030 social psychology word count. When there is a groupthink situation there are anywhere from two to seven people in the group. First, we assume that managers derive private benefits from operating a firm in addition to the value of any ownership share of the firm they have. The groups are informal in nature but have a formal purpose. See, for example, details of the 2001 first unionwachovia merger wall street journal may 16 c1, may 21 a4, and may 31 b14, 2001. Apr 18, 2020 kendra cherry, ms, is an author, educational consultant, and speaker focused on helping students learn about psychology. Irving janis introduced the theory of groupthink in his classic study victims of. However, there are a number of social forces that can hinder effective group decision making, which can sometimes lead groups to show process losses. According to the wikipedia entry on groupthink, it wasnt orwell, but rather william h.
Groupthink occurs when a homogenous highly cohesive group is so concerned with maintaining unanimity that they fail to evaluate all their alternatives and options. Groupthink groupthink is a style of thinking that people can engage in when they are deeply involved in a cohesive group. These results only partially support janis groupthink model. There is much stress because of great time pressure. A study of groupthink in project teams semantic scholar. Through a series of indepth case studies of historical incidents of group decisionmaking, successful and unsuccessful, janis adduces prima facie evidence that a principal impediment to good decisionmaking is groupthink, a syndrome in which. Group wants to achieve so bad they overlook possible alternatives. This document gives an overview of the book and contains the table of contents, a description of associated software, an excerpt from the preface, and an excerpt from chapter 1these give a sense of the.
Group decision making principles of social psychology 1st. Manz and sims 1982 conducted a study showing that autonomous work groups are susceptible to groupthink symptoms in the same manner as decisions making groups within businesses. Groupthink has been defined in a number of terms, but the recurring term most often used is conformity. Einerseits handelt es sich hier bei um ein sehr komplexes modell, denn es enthalt sehr viele variablen. Through a series of indepth case studies of histori. Gruppendenken ist ein moglicher prozess innerhalb einer gruppe. When groupthink occurs, the desire for group unanimity overrides the motivation to realistically discuss and appraise different alternatives janis. A psychological study of foreignpolicy decisions and fiascoes. For example, a selfmanagingcrossfunctional design team could combine the. In this spirit, we introduce a fourth method, the gdqs, an effort to combine. Another interesting definition of groupthink is decision making by a group in a way that discourages creativity or individual responsibility and is often characterized by excessive efforts to reach agreement. Define crossfunctional teams, discuss the management of virtual teams, and explain what makes a team effective.
Homogeneity of members social background and ideology b2 provocative situational context n. In order to explain the reasons why companies are keen on mergers and acquisitions, many motives have been proposed by financial economists. Study 22 groupthink irving janis, 1972, 1982 exam2 flashcards from amwe g. Profitability analysis of mergers and acquisitions mergers and acquisitions around the globe represent a huge reallocation of resources, within and across countries and therefore, it has been the interest of empirical studies for many years. Groupthink is a communicable critical mass for business. Groupthink irving janis, 1972, 1982 exam2 communication. According to irving janis 1982 groupthink is likely to occur. Groupthink theory defines several antecedent factors that combine to form the. Groupthink and theory of competition by gesa rosenberg on prezi. This relation establishes the link of post merger performance improvements towards shareholder value creation.
One of these two levels is the individual level and the reactions of the individual employees are insecurity, powerlessness, alienation, a drop in productivity, loss of energy. The ec merger regulation has been transformative, effecting significant and permanent change to eu competition law and practice. In other words, the decision considered that the merger would reduce transaction costs and allow a more efficient production process for digital maps. The failure to address the issues that concern merger and acquisition impacts the new and current organization very negatively at the stage of postmerger in two levels. Groupthink is a term first used in 1972 by social psychologist irving l.
What are the characteristics of groupthink, and what are the potential consequences of the groups decision making process. In 1982, social psychologist irving janisheir to a long line of others who had shown how social pressures and the power of the situation can combine to make. What are the characteristics of groupthink and what are the. Janis published an influential book in 1972, which was revised in 1982. I use the term groupthink as a quick and easy way to refer to the mode of thinking that persons engage in when concurrenceseeking becomes so dominant in a cohesive ingroup that it tends to override realistic appraisal of alternative courses in action. This paper advances an explanation for decision fiascoes that reflects recent theoretical trends and was developed in response to a growing body of research that has failed to. Groupthink members see themselves as part of an ingroup working against an outgroup opposed to their goals. According to janis 1982, five features are typically present when groupthink occurs.
The earlier remedies guide, issued in 2004, emphasized structural remedies such as divestitures as the preferred approach to resolving competitive problems with mergers. Groupthink principles and fundamentals in organizations journal. Second, we assume that there is a regime shift that creates potential synergies. Some group process losses are the result of groupthinkwhen a group, as result of a flawed group process and strong conformity pressures, makes a poor judgment. Toward the creation of constructive thought patterns in selfmanaging work teams human relations, 47 1994, pp. Groupthink is a psychological phenomenon that occurs within a group of people in which the. Janis summarizes this attitude as everything is going to work out all right because we are a special group. Two heads are better than one is a common misconception people have that group discussions and decisions are better than working individually. Janis 1982 said that groupthink is most likely to occur when three. Operating synergy types and their impact on postmerger. There have been three merger waves in the 1960s with the multinational takeovers, in the. Articles warning of the dangers of groupthink and suggesting remedies appeared in management, psychology, and sociology periodicals. How to avoid group think and achieve the wisdom of the crowd.
Two reference cycle expansions, unaccompanied by a strong upswing in stock prices, were marked by the absence of a merger revival. Apr 02, 2009 our theory of mergers is able to reconcile both of these stylized facts. Groupthink being a coinage and, admittedly, a loaded one a working definition is in order. Janis, 1982, houghton mifflin edition, in english 2nd ed. Janis that refers to a psychological phenomenon in which people strive for consensus within a group. You can tell if a group suffers from groupthink if it. Theories in merger and acquisition mergers and acquisitions.
This paper advances an explanation for decision fiascoes that reflects recent theoretical trends and was developed in response to a growing body of research that has failed to substantiate the groupthink model janis, 1982. Groupthink could have easily permeated my experience and delayed placement in a shelter even longer than it did. Groupthink is a term coined by psychologist irving janis in 1972 to describe a process by which a group can make bad or irrational decisions. In the first edition victims of groupthink, iriving l. Groupthink principles and fundamentals in organizations. The group is insulted from information coming from outside the group.
Guarding against groupthink in the professional work. Our theory of mergers is able to reconcile both of these stylized facts. Janis 1982 provided eight symptoms of groupthink see table 1 and a list. Psychological studies of political decisionmaking reflect different orientations and research traditions within. Evidence finds that the importance of various motivations for mergers and acquisitions changes over time. Evaluating janis groupthink model of faulty decision. Consensual decisionmaking in community forestry users group case study of nepal swati negi 1. This relation establishes the link of postmerger performance improvements towards shareholder value creation.
Evaluating janis groupthink model of faulty decision making. The 2011 revision to the antitrust division policy guide to merger remedies signals a shift in the department of justices approach to merger remedies. An adjunct of this study is the development of a comprehensive, computational model of postmerger integration dynamics. Groupthink became extremely popular in a wide range of literature. Majoritarian departmental politics and the professional. It is concluded that post merger performance improvements prove the existence of merger induced synergy. S it appears that merger expansion was not only a phenomenon of prosperity, but that it was also closely related to the state of the capital market. Majoritarian departmental politics and the professional pyramid.
Two reference cycle expansions, unaccompanied by a strong upswing in stock prices, were marked by. Profitability analysis of mergers and acquisitions. Kendra cherry, ms, is an author, educational consultant, and speaker focused on helping students learn about psychology. Janis showed how this phenomenon contributed to some of the major u. The term groupthink was coined by irving janis moorhead et al. This is one of the key characteristics of groupthink. Janis 1971,1972,1982,1989 suggested methods to prevent or minimize the supposedly dysfunctional consequences of groupthink, including the following. Groupthink according to irving janis 1982 is a deterioration of mental efficiency, reality testing, and moral judgment, that results from ingroup pressure all academic inc. Moreover even when testing the whole groupthink model, only weak support has been shown henningsen, henningsen, eden. Overestimation of the group illusion of invulnerability belief in inherent morality of the group type ii. The word synergy entered the merger lexic on during the 1960s merger wave to describe gains from conglomerate mergers that could not be readily identified, but were presumed to be present to explain why the mergers occurred. In a groupthink situation, each member of the group attempts to conform his or her opinions to what they believe to be the consensus of the group.
We are not talking about mere instinctive conformity it is, after all, a perennial failing of mankind. Every day in organizations, groups meet to make decisions. William graham sumner irving janis introduction october 30, 1840 april 12, 1910 taught social sciences at yale one of the founders of american sociology held nations first professorship in sociology may 26th, 1918 november 15th 1990 extremely well educated spent large. In studies of social clubs and other small groups, conformity pressures have frequently been observed. In practice this is mitigated by lockup fees and breakup options.
In the past few years, the federal trade commission and department of justice challenged one merger transaction, and considered challenging another, that departed from the enforcement paradigm of the last thirty years. Groupthink psychological studies of policy decisions and fiascos. Here are four simple ways to help them avoid group think and achieve the wisdom of the crowd. Cohesive decisionmaking groups can be victimized by groupthink when unanimity becomes more important than critical evaluation of alternative courses of action. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Effects of groupthink on tactical decisionmaking dtic. Irving lester janis developed a study on decision making based on human social behavior in which maintaining group cohesiveness and solidarity is felt more important than considering the facts in a realistic manner.
The articles opening quote from barry diller shows that the term is still used in the same way today. It is concluded that postmerger performance improvements prove the existence of mergerinduced synergy. A behavioral theory of the merger carnegie mellon university. Although janis groupthink theory was based on historical case studies and not empirical evidence it quickly found mass appeal. Closedmindedness collective rationalizations stereotypes of outgroups selfcensorship illusion of. The failure to address the issues that concern merger and acquisition impacts the new and current organization very negatively at the stage of post merger in two levels. Applied mergers and acquisitions aims to present a onevolume coverage of practice and research in a way that is both pragmatic and rigorous. The boxes on the left lay out the preconditions for a concurrenceseeking tendency to.
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