Dynamics of Decision Making in Cross-Functional Teams

Abstract

Group decision making is often associated with better qualitative decisions and outcomes than decisions made by individuals alone. The dynamics of the group decision-making process, as opposed to the consequences of such decisions, have received limited research attention. While there is considerable evidence to support that cross-functional team decision making facilitates easy implementation of decisions, and higher participation in decision making, the intricacies involved in the decision-making process remain underexplored. The paper aims to understand how different factors drive the behavior of the team members in the decision-making process in cross-functional teams and how decisions are reached in such teams. Under simulation conditions, we observed decision-making sessions involving six groups of six managers each, representing six different functions in a hypothetical organization. We find that the behavior of team leaders, the presence of `dominant’ team members and the self-interest of team members, drove the process and defined the final output.

Keywords: group decision making, cross-functional teams, consensus, leadership

JEL Classification: M1