Groups and Teams 17

A definition of the term group as used in the context of management A thorough understanding of the difference between formal and informal groups Knowledge of the formal types of formal groups that exist in organizations

An understanding of how managers can determine which groups exist in an organization An appreciation for what teams are and how to manage them

Groups Definition of a Group Reasons to Study Groups A group is any number of people who interact with one another, are psychologically aware of one another, and perceive themselves to be in a group. Groups have frequent communication and are relatively small in size. Reasons for studying groups include: Groups exist in all kinds of organizations Groups form in all facets of an organization’s existence Groups can cause either desirable or undesirable consequences within the organization An understanding of groups can help managers raise the probability that the groups with which they work will cause desirable consequences within the organization

Kinds of Groups in Organizations Formal Groups Kinds of Formal Groups Examples of Formal Groups A formal group is a group that exists within an organization by virtue of management decree to perform tasks that enhance the attainment of organizational objectives (see next slide). Formal groups are divided into command groups (a formal group that is outlined in the chain of command on an organization chart) and task groups (a formal group who interact with one another to accomplish most of the organization’s nonroutine tasks). Examples of formal groups include committees and work teams.

Kinds of Groups in Organizations This figure represents an organization chart showing a formal group. The group including and reporting to Supervisor A is a formal group.

Kinds of Groups in Organizations Formal Groups (continued) Committees Work Teams A committee is a group of individuals charged with performing a type of specific activity and is usually classified as a task group. Some people-oriented guidelines for committees include rephrasing ideas already expressed, binging all members into active participation, and stimulating further thought by members. Managers should also be aware of the concept of groupthink (the mode of thinking that group members engage in when the desire for agreement so dominates the group that it overrides the need to realistically appraise alternative problem solutions). A work team is a type of task group. It evolved from problem-solving teams, consisting of 5 to 12 volunteer members from different areas of the department who meet weekly to discuss ways to improve quality and efficiency.

Kinds of Groups in Organizations Committees exist in virtually all organizations and at all levels. This figure shows that the larger the organization, the greater the probability that it will use committees on a regular basis.

Kinds of Groups in Organizations Formal Groups (continued) Stages of Formal Group Development Acceptance Stage Bernard Bass has suggested that group development is a four-stage process. They may or may not occur sequentially. Each stage is examined on this slide and the next. The acceptance stage occurs only after the initial mistrust experienced by group members goes away and is replaced by mutual trust and acceptance.

Kinds of Groups in Organizations Formal Groups (continued) Communication and Decision-Making Stage Group Solidarity Stage Group Control Stage The communication and decision-making stage occurs when there is frank communication between group members. This facilitates decision-making. In the group solidarity stage, members become more involved in group activities and cooperate, rather than compete, with one another. In the group control stage, group members attempt to maximize the group’s success by matching individual abilities with group activities and by assisting one another.

Kinds of Groups in Organizations Informal Groups Kinds of Informal Groups Benefits of Informal Group Membership An informal group is a collection of individuals whose common work experiences result in the development of a system of interpersonal relations that extend beyond those established by management (see next slide for an illustration). Informal groups can be divided into interest groups (an informal group that gains and maintains membership primarily because of a common concern members have about a specific issue) and friendship groups (an informal group that forms in organizations because of the personal affiliation members have with one another). The benefits of informal group membership include: Perpetuation of social and cultural values Status and social satisfaction Increased ease of communication Increased desirability of the overall work environment

Kinds of Groups in Organizations This figure shows that informal group structures can deviate significantly from formal group structures. For example, Supervisor A is a member of more than one informal group.

Managing Work Groups Determining Group Existence Understanding the Evolution of Formal Groups The most important steps for managers to take when managing work groups is determining who their members are and what informal groups exist within the organization. Sociometry is an analytical tool managers can use to get information on the internal workings of an informal group, including the identify of the group leader, the relative status of group members, and the group’s communication network (see next slide for an example of sociograms). To understand the evolution of informal groups, a model developed by George Homans is helpful (see two slides hence for a depiction of Homans’s model).

Managing Work Groups This figure shows two sample sociograms – in this case, two groups of boys in a summer camp – the Bulldogs and the Red Devils. One can conclude that more boys within the Bulldogs were chosen as being desirable to spend time with. The implication is that the Bulldogs are a closer-knit informal group than the Red Devils. Second, the greater the number of times an individual was chosen, the more likely it was that the individual would be the group leader. Thus, individuals C and E are probably Bulldog leaders, whereas L and S are probably Red Devil leaders. Third, communication between L and most other Red Devils members is likely to occur directly, whereas communication between C and other Bulldogs is likely to pass through other group members.

Managing Work Groups This figure illustrated Homans’s model for the development of informal groups. The informal group is established to provide satisfaction and growth for its members. At the same time, sentiments, interactions, and activities that emerge within an informal group result from the sentiments, interactions, and activities that already exist within a formal group. The ultimate consequence will be to reinforce the solidarity and productiveness of the formal group.

Teams Groups Versus Teams Types of Teams in Organizations Problem-Solving Teams Self-Managed Teams Cross-Functional Teams A team differs from a group in that a team is a group whose members influence one another toward the accomplishment of an organizational objective(s). A problem solving team is a team set up to help eliminate a specified problem within the organization. A self-managed team is a team that plans, organizes, influences, and controls its own work situation with only minimal intervention and direction from management. A cross-functional team is a work team composed of people from different functional areas of the organization who are all focused on a specified objective.

Teams This figure illustrates some possible combinations that managers could create. For example, “a” in the figure represents a team that is problem-solving, self-directed, and cross-functional, and “b” represents one that is problem-solving, but neither cross-functional nor self-directed.

Stages of Team Development Forming Storming Norming Performing Adjourning Forming is the first stage of team development. Here, members of the newly formed team become oriented to the team and acquainted with one another. Storming is characterized by conflict and disagreement as team members become more assertive in clarifying individual roles. Norming is characterized by agreement among team members on roles, rules, and acceptable behavior while working on the team. Performing is when the team fully focuses on solving organizational problems and meeting assigned challenges. Adjourning is when the team finishes its job and prepares to disband.

Stages of Team Development Team Effectiveness Trust and Effective Teams Effective teams are those that come up with innovative ideas, accomplish their goals, and adapt to change when necessary. Members are highly committed to both the team and organizational objectives (see next slide for a figure listing factors contributing to team effectiveness). Some steps to build trust and effective teams include communicating often to team members, showing respect for team members, being fair to team members, being predictable, and demonstrating competence.

Stages of Team Development This figure shows the factors that contribute to team effectiveness. Starting with people-related factors, there are certain steps that managers can take to build an effective team including trying to make work satisfying, building mutual trust and team spirit, etc. Next, the focus is on organization-related factors, which include building stability and job security, showing that management is involved, interested, and supportive, etc. Finally, task-related factors include providing clear objectives, directions, and project plans, providing proper technical direction and leadership, and so forth.