This study examines the effect of groupthink on organizational structure. The objectives were to identify the causes of groupthink and how it affects organizational structure. The study used explanatory design which is based solely on insights drawn from the analysis of the existing literature of different studies, periodicals and books related. The findings revealed that groupthink leads to bad decisions in an organization due to lack of opposition. It was also revealed that groupthink leads to lack of creativity and innovation may sometimes be oppressed. It was equally shown that through groupthink, optimal solutions to problems may be overlooked. It was moreso shown that groupthink breeds lack of feedback on decisions and hence poor decision-making. It was further shown that groupthink can ruin relationships over a long period of time, especially when one’s opinions          are always sidetracked because of what the majority favors. With groupthink, problems could be solved in an inefficient manner because not all possibilities are considered. Based on this, it was recommended that managers should assign each member the role of “critical evaluator”. This allows each member to freely air their objections and doubts. Also, managers should absent themselves from many of the group meetings to avoid excessively influencing the outcome.

KEYWORDS: organizational structure, managers, contributions, mutual agreement