Functional vs. Dysfunctional

Group Decision-Making

International MarketingMarketing 3348

What Key Factors Affect Group

Functionality?•The Group’s Decision-Making Style

vs.•The Individual’s Decision-Making Style

Functionality is in the eye of the

beholder

The same group may be perceivedas highly functional by one memberand highly dysfunctional by another

Functionality is in the eye of the

beholder

The key is the match between the group’s style and

the individual’s style

Group Decision-Making Styles

•Autocratic

•Functional

•Consensus

Specialized by Function

Marketing

Finance

Distribution

Operations

Consensus-Based

Style AUTOCRATIC FUNCTIONAL CONSENSUS

Effectiveness

Efficiency

Group Decision-Making Styles

Individual Decision-Making Style

•The individual’s preferred style is based on key personality traits:– Introversion vs. Extroversion– Leadership– Locus of Control– Need for Cognition– Assertiveness

Avoiding (or Correcting) Dysfunction

•Have a quick discussion about the group’s decision-making style in period 1:– Was it intentional or did you just

fall into it?– Does it seem to be effective?– Do you want to change it?