Omega Inc., a large appliances company, went bankrupt because of a series of poor managerial decisions and a downturn in the economy. In retrospect, it would seem that there was too much emphasis on the group reaching a consensus decision whenever the managers were involved in decision making. As a result, many decisions by the managers at Omega were made to avoid conflict. What disadvantage of group decision making does this scenario represent?

Question

Quizplus · Accepted Answer

This scenario illustrates groupthink. Groupthink is a situation that occurs when a group or team's desire for consensus and cohesiveness overwhelms its desire to reach the best possible decision.

Omega Inc, a Large Appliances Company, Went Bankrupt Because of a a Series