1 People and Organizations Professor Yiannis Gabriel University of Bath Weeks 2 & 3 Organizations and groups The aim of this session is to: • Understan d the impo rtanc e of grou ps for organizational and social life • Appre ciate so me of the e ffec ts of gro ups on their members • Lear n about differ ent ty pes of g roups • Assess some grou p sy nergie s and dysfunctions • Compa re indi vidua l and gr oup de cision making processes
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1. I llusion of invulnerabi li ty Ignoring obvious danger signals, being
overly optimistic, and taking extreme
risks
2. Col lect ive rat ional izat ion Discredit ing or ignoring warnings that
run contrary to group thinking
3. Unquesti oned mora lit y Beli ev ing the groups positi on is e th ical
and moral while all others are
inherently evil
4. Excessive negative stereotyping Viewing the opposing side as too negative
to warrant serious consideration
5. Strong conformity pressure Discouraging the expression of
dissenting opinions under the threat
of expulsion for disloyalty
6. Self-censorship of dissenting ideas Withholding dissenting ideas and
counterarguments; keeping these to
oneself
7. Illu sion o f u nanimity Sh arin g th e fal se b elief th at ev eryo ne
agrees with the group’s judgments
8. Self -appointed mindguards Protect ing the group from the influx of
adverse information that might threaten
group complacency
Risk – The risky shift
How Risky Are You? Decide for Yourself
On questionnaire items such as this, it has been found that groups tend to make riskier decisions thanindividuals, a phenomenon known as the risky shift. (Source: Adapted from Kogan & Wallach, Risk Taking, New
York: Holt, Rinehart, & Winston, 1964.)
Mr. A, an electrical engineer, who is married and had one child, has been working for a large electronics
corporation since graduating from college five years ago. He is assured of a lifetime job with a modest, thoughadequate, salary, and liberal pension benefits upon retirement. On the other hand, it is very unlikely that his
salary will increase much before he retires. While attending a convention, Mr. A is offered a job with a small,
newly founded company which has a highly uncertain future. The new job would pay more to start and would
offer the possibility of a share in the ownership if the company survived the competition of the larger firms.
Imagine that you are advising Mr. A. Listed below are several probabilities or odds of the new company’s proving
financially sound.
Please check the lowest probability that you would consider acceptable to make it worthwhile for Mr. A to takethe new job.
_ The chances are 1 in 10 that the company will prove financially sound.
_ The chances are 3 in 10 that the company will prove financially sound.
_ The chances are 5 in 10 that the company will prove financially sound.
_ The chances are 7 in 10 that the company will prove financially sound.
_ The chances are 9 in 10 that the company will prove financially sound.
_ Place a check her if you think Mr. A should not take the new job no matter what the probabilities.