Importance Of Herd Mentality

1189 Words5 Pages
Traditionally, herd mentality was a phenomenon associated with animals. However, today herd mentality is associated with human behavior as well. It was in 19th century, French social psychologists Gabriel Tarde and Gustave Le Bon talked about herd mentality in their writings; additionally, Sigmund Freud and Wilfred Trotter have studied the Herd behavior . Herd mentality can happen in almost in every aspect of life, such as politics, economy, culture, religion, social life; ranging from big ideas such as nationalism, communism to very small ideas such as cloth style. It also can be dangerous in almost every aspects mentioned before. Hence, my aim in this research is to explain the herd mentality in business. To achieve this aim, I have organized this research into three main sections. In the first part, I have explained what herd mentality is in business, and why people follow it. In the second part, I have talked about the negative consequences of following herd mentality in business. In the end part, I have explained how it can be avoided. Herd mentality “is the mode of thinking that happens when the desire for harmony in a decision-making group overrides a realistic appraisal of alternatives; group members try to `minimize conflict and reach a consensus decision without critical evaluation of alternative ideas or viewpoints.” Throughout history, a lot of financial crisis has happened. In fact, the world’s history is full of financial crisis (see figure 1). It is true
Open Document