Threat Rigidity Hypothesi

When organizations are confronted by a threat, the tendency, at all levels, is to centralize decision making and restrict information.
Effects on Individuals

* Cognitive effects: restrictions in information that can be perceived (the individual relies heavily on prior expectations or internal beliefs about the environment, and is not able to process new information; also, one tends to narrow attention to dominant cues and exclude peripheral cues).
* Behavioral effects: individuals fail to pay attention to warnings or follow directions

Effects on Groups

* A threat leads to an increase in intragroup relationships and a decrease in intergroup ties.
* If a threat is attributed to an external source and it is expected that the group will meet it successfully, then increased cohesiveness, seeking for consensus, leadership support, and pressure for uniformity is predicted. Reaching consensus, however, will often involve the restriction of information, ignoring divergent solutions, downplaying the role of deviant positions, constriction of control (more influence for the dominant members). This may lead to faulty group decision making (Groupthink).

Organizational level effects

* At the organizational level, threats result from resource scarcity, competition, or reduction in market size. Organizations respond by:
o Reduced information processing (caused by overloaded communications channels), reliance on prior knowledge, and a reduction in communication complexity.
o Constriction of control through centralization of authority and increased formalization of procedures.
o Increased focus on conserving resources through cost-cutting and efficiency improvements

Source: Staw, Sandelands, and Dutton (1981) – Threat-rigidity effects in organizational behavior: A multilevel analysis