It was not a surprise to me to read this article from the PsyBlog which argues that people in groups tend not to make the best decisions because they don’t share information. From my experience in the money management world I know that people tend to tell you what you want to hear rather than what you ‘need’ to hear. People seek to find the consensus of a group and then quickly join in so as to avoid standing out.
I was aware that stock analysts and portfolio managers follow the herd, but this article cites evidence that even doctors fail to share information when it comes to diagnosing patients (that’s scary). So it would seem that people working in groups, regardless of the industry, tend to fall prey to this phenomenon.
When working on a group project the same issues apply; we have to create an atmosphere of trust where everyone feels safe to share information. We also have to be thorough so that we think about every piece of information that could be relevant to our project.
Check out this great article;http://entertheblog.com/1C
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