Groupthink

AAA

DEFINITION of 'Groupthink'

A phenomenon developed in groups and marked by the consensus of opinion without critical reasoning or evaluation of consequences or alternatives. Groupthink evolves around a common desire to not upset the balance of a group of people by creating conflict, with creativity and individuality considered potentially harmful traits that should be avoided.

INVESTOPEDIA EXPLAINS 'Groupthink'

Groupthink in a business setting can cause employees and their bosses to overlook potential problems in the pursuit of consensus thinking. Because individual critical thinking is deemphasized or frowned upon, employees may self-censor themselves and not bring up alternatives or risks for fear of upsetting the status quo.

RELATED TERMS
  1. Corporate Hierarchy

    The arrangement of individuals within a corporation according ...
  2. Corporate Culture

    The beliefs and behaviors that determine how a company's employees ...
  3. Corporate Ladder

    A conceptualized view of a company's employment hierarchy in ...
  4. Career-Ending Move

    A huge mistake or bad decision made by an employee that has big ...
  5. Cover Your Ass

    A tactic used by employees to share blame or divert blame should ...
  6. Cash Bonus

    A lump sum of money awarded to an employee, either occasionally ...
Related Articles
  1. ogether, management and the board of directors have the ultimate goal of maximizing shareholder value.
    Investing Basics

    The Basics Of Corporate Structure

    CEOs, CFOs, presidents and vice presidents: learn how to tell the difference.
  2. Professionals

    The Path To Becoming A CEO

    Think you have what it takes to be chief executive? Find out what those at the top have in common.
  3. Options & Futures

    Governance Pays

    Learn about how the way a company keeps its management in check can affect the bottom line.
  4. Options & Futures

    Putting Management Under The Microscope

    We tell you where to find the telltale signs of corporate misdeeds.
  5. Investing Basics

    Enterprise Resource Planning System: A How To

    An ERP system won’t transform poor management into good management, but the real-time business analytics can help make good management even better.
  6. Investing Basics

    Using Appreciative Inquiry To Solve Management Problems

    In its purest form, appreciative inquiry is a powerful tool for shifting the focus of an organization to something much greater than its bottom line - although the eventual outcome will often ...
  7. Investing News

    Starbucks As An Example Of The Value Chain Model

    Management consulting guru Micahel Porter developed the value chain model in 1985; here's how it works, using a well-known real live case study: Starbucks.
  8. You may not know it, but you probably depend on a Qualcomm product just about every day. Here's how.
    Stock Analysis

    How You Depend On Qualcomm Every Day

    You may not know it, but you probably depend on a Qualcomm product just about every day. Here's how.
  9. Few people build a multi-billion dollar business and leave it. But these did just that.
    Investing News

    What Bill Gross, Steve Jobs and Steve Wynn Share

    Few people build a multi-billion dollar business and leave it. But these did just that.
  10. If there's any bank that's too big to fail, JPMorgan Chase & Co. may very well be the best example. Just look at its return on equity.
    Stock Analysis

    JPMorgan Chase: Too Big (And Profitable) To Fail

    If there's any bank that's too big to fail, JPMorgan Chase & Co. may very well be the best example. Just look at its return on equity.

You May Also Like

Hot Definitions
  1. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  2. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  3. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  4. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  5. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  6. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
Trading Center