In 2006 Ford Motor Company was in tough shape and had lost 25% of its market share since 1990. They had lost $12.7 billion‚ its worst performance ever. They held a portfolio of brands that require major capital infusions like Jaguar‚ Land Rover‚ Aston Martin‚ and Volvo. Labor costs were as high as $76/hour and was making the company’s operating margins uncompetitive here in the U.S. and overseas. Japanese automakers development of new automobiles were months ahead of Ford’s at the time also leading
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Risk Analysis (Pinto Case) Three social issues that are in this case are that one‚ social issue in this case was Ford claimed the reason for the recall of the 1.9 million Ford Pintos was not for safety but for “reputational” reasons. This is a social issue because‚ after all the evidence was piled up on their company for being unsafe and hazardous‚ they couldn’t just admit they made a mistake and recall the vehicles to make them safer. No‚ they had to use the reputation card to help their company’s
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Groupthink is when you are placed in a situation where a group of people believe that the majority vote is the best idea‚ that everyone has the same idea so not everyone speaks up‚ and a limit to the individual thought process. The consequence of this process is that not all ideas or thoughts are express. This means that right or the best option to a problem is never expressed. In a group the majority vote makes one idea get voted over another which means that some people individual ideas get covered
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Avoiding the Groupthink Trap Remain impartial. The leader should not take a directive role but should remain impartial. Seek outside opinions. The leader should invite outside opinions from people who are not members of the group and who are less concerned with maintaining group cohesiveness. Create subgroups. The leader should divide the groups into subgroups that first meet separately and then meet together to discuss their different recommendations. Seek anonymous opinions. The
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After watching this video where Danny Gioia talks about his time at Ford and listening to these students pick his brain about his experience with the Pinto Fires scenario. Overall‚ after reading the case and Gioia’s personal memoir about his experience and how he grew‚ I felt strongly connected to his case. After writing my ethical dilemma paper‚ I found myself falling into scripting my unethical behavior and also not fully being aware of their ethical situation. I knew that something felt weird
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The term groupthink originated in 1952 in Fortune magazine by the author William Whyte. The theory‚ however‚ was not researched or clearly defined until around 1972 by Irving Janis. Whyte acknowledged that groupthink was a definition in progress; Janis picked up and further developed the study many years later. Groupthink is defined as a group’s inability to make correct decisions as a result of the implied need for group cohesion. “Janis provides a series of statements that collectively are
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supposedly independent minds. A number of problems will be examined: group polarization‚ groupthink‚ brainstorming and escalation of commitment. In this essay‚ it will focus on groupthink and firstly will give the definition and then talk about symptoms‚ give some examples about how groupthink make decision false and give some ideas about how to prevent it and finally give a conclusion. According to Janis (1982)‚ groupthink is a condition that occurs when group member’s primary drive is to achieve group
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What Is the Difference Between Group Polarization and Groupthink? When we join together in groups‚ most times we have to make decisions about something the group will do. Social psychologists have discovered tendencies which we do while making group decisions. Two of theses tendencies are group polarization and groupthink. Group polarization refers to a situation in which the attitudes or decisions of people in the group come on much stronger than in actuality. Usually when people with different
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Major points Groupthink is a form of a phenomenon characterized by members of a group choosing to evaluate consensus and conformity and preservation of the group above other values. In the example of Pennsylvania State University football assistant coach Jerry Sandusky abused children. While Sandusky colleague’s choses to protect him rather than doom Penn State image and program. The decision was based primarily on how group members will react rather than what was at the ethical or professional
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Pinto Fire Case Analysis Identify Decision Options Available to decision makers The affected Parties Ford Motor Company The Consumers purchasing the Ford Pinto The Decision Options Available 1.) The first decision available to Ford was to have taken Mr. Knudsen’s idea of foregoing the small car market and focus on the most profitable medium size cars market. This would have made it unnecessary for the company to shorten its regular production time‚ which resulted in cutting corners in the
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