DEFINING GROUPS Broadly, a group is any collection of individuals who have mutually dependent relationships. A group may be defined as two or more individuals, interacting and interdependent, who have come together to achieve particular objectives.

A GROUP IS AN ASSOCIATION OF TWO OR MORE INDIVIDUALS WHO INTERACT WITH EACH OTHER FOR A COMMON PURPOSE. WHY GROUPS? SECURITY SOURCE OF INFO. MONOTONY IN JOB GROUP GOAL ACHIEVEMENT SOCIAL NEED

The Types of Groups Based on structure: Formal Group Informal Group Amity Business School The Types of Groups Based on structure: Formal Group A group that managers establish to achieve organization goals. (Standing task group/command group and task groups) Informal Group A group that managers or nonmanagerial employees form to help achieve their own goals or to meet their own needs.( friendship groups, interest groups, reference groups)

Types of Groups Formal Group Command group: Command group which is determined by the organizational chart depicting the approved formal connections between individuals in an organization. Task groups: are often not restricted to the organizational hierarchy and can be cross-functional in nature. Standing committee: is a permanent committee in an organization to deal with some specific types of problems that may arise more or less on a regular basis.

II) Informal Groups Interest groups: are formed when a group of employees band together to seek some common objectives, like joining the union to achieve a higher amount of bonus. Friendship groups: It satisfy affiliation need of members. Reference group: are the groups, with which individuals identify and compare themselves. These could be within the organization when a middle level executive compares himself with the higher-level executive. It might exist outside the organization as well when an individual compares himself with his batch mates working in other organizations

Other types of groups Based on change of membership: Open : constant state of change, changing membership, time perspective and equilibrium. Closed : quite stable, fixed membership, long-term. Based on beliefs, values and preferences: In-group: a group to which we belong, it is best. Caste, religion, community, etc. Out- group: a group to which we do not belong. Rival groups( neighbourhood gangs, warring nations).

Contributions of Groups to the Organization Synergy = the creation of a whole that is greater than the sum of its parts Superior performance (i.e., better than lone individuals) when: No clear expert to assign decision to Problem-solving can be handled by dividing work and sharing information Need for creativity and innovation (groups more willing to take risks than are individuals)

Contributions of Groups to the Organization (cont’d) Forum to learn and share information Satisfying needs for: Social interaction Security Emotional support Ego involvement in activities

Groups’ Contributions to Organizational Effectiveness Figure 14.1

GROUP DECISION-MAKING Advantages More information More alternatives considered Better understanding and acceptance of decision Greater commitment to decision Disadvantages Social pressure to conform Minority domination Time demands

Group Dynamics/ Determinants of group behaviour Amity Business School Group Dynamics/ Determinants of group behaviour 1.Group Norms Shared guidelines or rules that most group members follow. Groups may set their working hours, behavior rules, and output quotas.

Group Cohesiveness 2.Group Cohesiveness Amity Business School Group Cohesiveness 2.Group Cohesiveness The degree to which members are attracted or loyal to the group. Increases in group cohesiveness causes: Participation in the group to increase which helps get members actively involved, but too much involvement can waste the group’s time. Conformity to group norms to increase, although with too much conformity, group performance can suffer. Group goal accomplishment to increase in importance which can result in the group becoming more focused on itself than the organization.

Groups with high cohesiveness demonstrate lower tension & anxiety demonstrate less variation in productivity demonstrate better member satisfaction, commitment, & communication

Group Dynamics 3.Group size affects how a group performs. Amity Business School Group Dynamics 3.Group size affects how a group performs. Normally, small groups (2 to 9 members) interact better and tend to be more motivated. Larger groups can be used when more resources are needed and division of labor is possible. 4.Group tasks impact how a group interacts. Task interdependence shows how the work of one member impacts another; as interdependence rises, members must work more closely together.

5.Group Leadership :Effective leadership is a key ingredient in high performing groups, teams, and organizations. Formal groups created by an organization have a leader appointed by the organization. Groups that evolve independently in an organization have an informal leader recognized by the group.

6. Task Interdependence-Higher the level of exchange of resources among groups, higher would be degree of interdependence.

Group Development Groups generally pass through a standardized sequence of their evolution. This sequence is known as the five – stage model of group development. These stages are- Forming Storming Norming Performing Adjourning

The Stages of Group Development Figure 14.4

STAGES OF GROUP DEVELOPMENT

Forming : It is the first stage in group development, characterized by much uncertainty (about group’s purpose, structure, and leadership). Storming: It is characterized by intra-group conflict. Members accept the existence of group but there is resistance to the constraints that the group imposes on individuality. Members often show hostility towards each other and resist the leader’s control. If these conflicts are not adequately resolved, the group may even be disbanded.

Norming: This stage is characterized by close relationships and cohesiveness i.e., in this stage close relationships develop and people start having strong sense of identity. Performing: Structure at this point is fully functional and accepted. Group energy has moved from getting to know and understand each other to performing the task at hand. Adjourning: It is the final stage when the group, after achieving the objectives for which it was created, starts to gradually dissolve itself.

GROUP PROBLEMS 1. Social loafing = when people work less hard in groups than they would by themselves Why? Individual contributions less noticeable Prefer others to carry the workload To deal with social loafing Define members’ roles and tasks to maximize individual interests Make individual rewards dependent on contributions to group Enhance responsibility by identifying individual contributions to the group

Problem with Groups GROUPTHINK Groupthink = tendency of group members of cohesive groups to lose their ability to evaluate critically Groups affected by groupthink ignore alternatives and tend to take irrational actions that dehumanize other groups.  A group is especially vulnerable to groupthink when its members are similar in background, when the group is insulated from outside opinions, and when there are no clear rules for decision making.

Contd.. Groupthink occurs when groups are highly cohesive and when they are under considerable pressure to make a quality decision. Some ways to avoid groupthink: Assign role of “devil’s advocate” at meeting Impartial leader Subgroups work on same problem “second-chance” meetings Members discuss issues with outsiders and report back

GROUP SHIFT/RISKY SHIFT PHENOMENON: It is a tendency where group members take irrational or very higher degree of risk which would not have been taken if working in isolation/individually. It occurs as the risk is divided among members and if loss occurs that is also spread among all. Leads to unnecessary wastage of company resources.