This paper discusses the influence on our perceptions from the basic psychotic
disposition of organizations. Cognitive distortion is influenced by the psychotic
traits of an organization along a continuum of various states which include
paranoia, obsessive-compulsive, dramatic, depressive, schizoid, and narcissistic
tendencies. These tendencies may be of assistance in the early start-up phases of
a firm but overtime distort perceptions and behavior of the organization through
the defensive mechanisms that develop. The psychotic continuum is a worthy
paradigm through which to view organizational opportunity, strategy,
operations, and decision making, potentially capable of assisting in diagnosing
the causes of organization dysfunction.