Module 3: Managing People Topic 6 Spring 2003

Groups and Organizations Groups are collections of two or more people who work with one another regularly to achieve on or more common goals Groups offer the potential of synergy, which is the creation of a whole that is greater than the sum of its part

Why managers must take groups seriously? Good for people Help foster innovation and creativity Sometimes two heads are better than one Help gain commitments Help offset the negative effects of increasing organization size Natural phenomena

Benefits of Groups over Individuals (Shaw 1976) Groups can make better judgments when an “expert” is not present. Groups are more successful when problem solving can be handled by a division of labor. Groups are more creative and innovative since they tend to make more risky decisions.

Individual Needs and Groups Groups provide members with the wide range of need satisfactions. Groups provide social interactions and interpersonal fulfillments. Members receive “security” in a form of technical advice, as well as emotional support

Group Effectiveness Groups that achieve high levels of both task performance and human resource maintenance over time

Characteristics of Effective Groups Members are loyal to one another and to leader. Members and leaders have high confidence and trust in each other. Members are eager to help one another to develop their full potential. Members know when to conform and when not to Members communicate fully and frankly. Members are secure in making decisions. Group values and goals match values and needs of members. All activities occur in a supportive group atmosphere.

Factors affecting Group Effectiveness Organizational setting Nature of the group task Membership characteristics Group size

Stage of Group Development Forming Storming Initial integration Total integration Adjourning

Group Decision Making Decision by lack of response Decision by authority rule Decision by minority rule Decision by majority rule Decision by consensus Decision by unanimity

Advantages of Group Decision Making Sharing knowledge and expertise Decision made based on a broad vision Better understood final decision Better accepted final decision Commitment from members

Disadvantages of Group Decision Making Groupthink Individual domination Time requirements

Other issues related to managing groups Intergroup dynamics Self-managing teams Group change and development

Communication and Conferencing Software Synchronous VS asynchronous Criteria used to evaluate communication and conferencing software