Diagnosis of a disaster

Posted on under Today's research

In an award-winning paper published in the journal Organization the author analyzed the behavior of bankers, politicians and economists up to and including the GFC. His diagnosis: collective mania where these people showed symptomatic behaviors such as  denial, omnipotence and triumphalism. The system, he believes, behaved like a psychologically disturbed individual and those errant symptoms are still present and will inevitably lead to another crisis. I have noticed the same behavior in organizations. In fact I have, for a long time, thought that you could diagnose corporations and firms in the same way that you could individuals. Some are normal, some depressed, some manic, some bipolar and many schizophrenic.

Source: http://www.eurekalert.org/pub_releases/2012-06/uol-fmw060712.php