Objectives 1. A definition of the term group as used in the context of management 2. A thorough understanding of the difference between formal and informal groups 3. Knowledge of the types of formal groups that exist in organizations 4. An understanding of how managers can determine which groups exist in an organization 5. An appreciation for what teams are and how to manage them

Groups Group is any number of people who: (1) interact with one another (2) are psychologically aware of one another (3) perceive themselves to be a group Why managers should study groups: 1. Exist in all kinds of organizations 2. Form in all facets of organizational existence 3. Cause either desirable or undesirable consequences 4. Raise the probability of causing desirable consequences

Kinds of Groups in Organizations Formal Groups Examples of Formal Groups Committees Reasons for establishing committees: 1. Allow organization members to exchange ideas 2. Generate suggestions and recommendations 3. Develop new ideas for solving existing organizational problems 4. Assist in the development of organizational policies Why Managers Should Use Committees Improve quality of decision making Encourage expression of honest opinions Increase members’ participation in decision making Ensure representation of important groups in decision-making process

Kinds of Groups in Organizations

Kinds of Groups in Organizations Formal Groups Examples of Formal Groups Committees What Makes Committees Successful Procedural Steps Define goals clearly, preferably in writing Specify authority Determine optimum size Select chairperson Appoint permanent secretary Distribute agenda and support material before meeting Start meetings on time and announce ending time at outset People-Oriented Guidelines. Rephrasing ideas already expressed Bringing all members into active participation Stimulating further thought by members

Kinds of Groups in Organizations Formal Groups Examples of Formal Groups Work Teams Special-Purpose and Self-Managed Teams Stages of Formal Group Development The Acceptance Stage The Communication and Decision-Making Stage The Group Solidarity Stage The Group Control Stage Members function as a unit Members participate effectively in group effort Members are oriented toward a single goal Members have equipment, tools, and skills necessary to attain goals Members exchange suggestions, opinions, and information

Kinds of Groups in Organizations Informal Groups Kinds of Informal Groups Interest groups Friendship groups Benefits of Informal Group Membership 1. Perpetuation of social and cultural values 2. Status and social satisfaction 3. Increased ease of communication 4. Increased desirability of the overall work environment

Teams Groups Versus Teams Types of Teams in Organizations Group consists of any number of people who: Interact with one another Are psychologically aware of one another Think of themselves as a group Team is a group whose members: Influence one another toward the accomplishment of objective(s) Types of Teams in Organizations Problem-Solving Teams Self-Managed Teams Cross-Functional Teams

Stage of Team Development

Stage of Team Development Stages of Team Development Forming Storming Norming Performing Adjourning

Stage of Team Development Team Effectiveness People-related steps: 1. Trying to make the team’s work satisfying 2. Developing mutual trust among team members and between the team and management 3. Building good communication 4. Minimizing unresolved conflicts and power struggles within the team 5. Dealing effectively with threats toward and within the team 6. Building the perception that the jobs of team members are secure

Stage of Team Development

Stage of Team Development Team Effectiveness Organization-related steps: 1. Building a stable overall structure team members view as secure 2. Becoming involved in team events and demonstrating interest in team progress and functioning 3. Properly rewarding and recognizing teams for accomplishments 4. Setting stable goals and priorities for the team

Stage of Team Development Team Effectiveness Task-related steps: 1. Developing clear objectives, directions, and project plans for the team 2. Providing proper technical direction and leadership for the team 3. Establishing autonomy for team and challenging work within the team 4. Appointing experienced and qualified team personnel 5. Encouraging team involvement 6. Building visibility within the organization for the team’s work

Stage of Team Development Trust and Effective Teams Communicate often to team members Show respect for team members Be fair to team members Be predictable Demonstrate competence