The main objective of this chapter is for students to demonstrate that they can identify the manner in which biases and framing adversely impact the behavior of managers or directors when they work together in groups.

After completing this chapter students will be able to:

1. Explain why groupthink, poor information sharing, and inadequate motivation underlie suboptimal decisions made by a group engaged in judgmental tasks.
2. Assess the contribution of poor group process in the governance of firms that experienced major financial crises.
3. Describe the manner in which group process can amplify the risk attitudes of individual group members.
4. Identify debiasing steps that corporate groups can take to improve group process.