OB - Chapter Three
OB - Chapter Three
Thus while not all groups are teams, all teams can be considered groups. Much of what we discuss
in this chapter applies equally well to both
3.2. Classifying teams and/or groups
3.2. 1 Types of Groups
We can better understand and manage groups if we recognize the various types of groups that may
exist within organizations. In general, groups within organizations fall in two major categories:
formal & informal groups.
1. Formal Groups
A designated work group defined by the organization’s structure is formal group. Formal groups
are groups brought into existence by the structure of an organization. In formal groups, the
behaviors that one should engage in are stipulated by and directed toward organizational goals.
Formal groups can be further classified as Command Groups and Task Groups.
Command group is a group which is determined by the organizational chart depicting the
approved formal connections between individuals in an organization. Examples of command
Status: a person’s relative rank, prestige, or standing in a group. Inclusion in a group that is viewed
as important by others provides recognition and status for its members.
Affiliation: is the desire to establish and maintain friendly and warm relations with others. Groups
can fulfill social needs. People enjoy the regular interaction that comes with group membership.
Humans are by nature gregarious. Groups provide a natural way for people to gather in order to
satisfy their social needs. For many people, these on-the-job interactions are their primary source
for fulfilling their needs for affiliation.
Interpersonal interaction can result in group formation. Two important facets of interpersonal
interaction are proximity and attraction. Proximity involves the physical distance between
employees performing a job. Attraction designates the degree to which people are drawn to each
other because of perceptual, attitudinal, performance, or motivational similarity.
3. Power: What cannot be achieved individually often becomes possible through group action.
There is power in numbers.
4. Goal Achievement: There are times when it takes more than one person to accomplish a
particular task there is a need to pool talents, knowledge, or power in order to get a job completed.
3.4 Group Development (GD Stages)
Group members must resolve several issues and pass through several stages of development before
emerging as an effective work unit. They must get to know each other; understand their respective
roles, discover appropriate and inappropriate behaviors, and learn how to coordinate their work or
social activities. This is an ongoing process because groups change as new members join and old
members leave. The group development stages according to five-stage model are forming,
storming, norming, performing, and adjourning.
1. FORMING(Orientation)
In this stage a primary concern is the initial entry of members to a group. During this stage,
individuals ask a number of questions as they begin to identify with other group members and with
To conclude, it can be said that the composition of a group may sometimes prove to be a critical
factor in its total performance and turnover. Whereas diversity to a certain extent can result in
higher group productivity, large differences tend to enforce conflicts and negative behavior leading
to turnover. Essentially, the logic goes like this: Turnover will be greater among those with
dissimilar experiences because communication is more difficult. Conflict and power struggles are
more likely and more severe when they occur. The increased conflict makes group membership
less attractive, so employees are more likely to quit. Similarly, the losers in a power struggle are
more apt to leave voluntarily or be forced out. The implication of this line of inquiry is that the
composition of a group may be an important predictor of turnover.
7. Group cohesiveness
It is the degree to which members are attracted to each other and are motivated to stay in the group.
Studies consistently show that the relationship of cohesiveness and productivity depends on the
performance -related norms established in that group. Members of cohesive groups have a strong
desire to stay in the group. Attractiveness is a key ingredient in cohesiveness.
Determinants of cohesiveness
Cohesiveness can be affected by such factors as time spent together, the severity of initiation,
group size, external threats, and previous successes.
1. Time spent together: the amount of time spent together influences cohesiveness. As people
spend more time together, they become friendlier. They naturally begin to talk, respond,
gesture and engage in other interactions. These interactions typically lead to the discovery of
common interests and increased attraction.
Group behavior has been a subject of interest in social psychology for a long time, and many
aspects of group behavior have been studied over the years. The work group is usually the primary
source of social identity for employees. The nature of the group can affect their performance at
work as well as relationships outside the organizations. Groups interact and affect one another’s
behavior. The interaction that exists among group members and between groups is called Group
Dynamics–that involves both intra-group and inter-group behavior. Intra-group: is the
Group dynamics is concerned with interaction and forces between group members in a social
situation. A group may attack and resolve problems, creatively explore possibilities or alternatives,
or execute well-developed plans, among other activities. It is therefore important for managers to
understand group member behavior and deal effectively with the group because of the synergy
they provide.
3.7 Implication for performance and satisfaction
Performance
Any predictions about a group’s performance must begin by recognizing that workgroups are part
of a larger organization and those factors such as the organization's strategy, authority structure,
selection procedures, and reward system can provide a favorable or unfavorable climate for the
group to operate within. A number of structural factors show a relationship to performance. Among
the more prominent are role perception, norms, status inequities, and the size of the group, its
demographic makeup, the group's task, and cohesiveness. There is a positive relationship between
role perception and an employee’s performance evaluation. The degree of congruence that exists
between an employee and his or her boss in the perception of the employee's job influences the
degree to which the boss will judge that employee as an effective performer. To the extent the
employee's role, perception fulfills the boss's role expectations; the employee will receive a higher
performance evaluation. Norms control group member behavior by establishing standards of right
and wrong. If managers know the norms of a given group, it can help explain the behaviors of its
members.
Status inequities create frustration and can adversely influence productivity and the willingness to
remain with an organization. Among those individuals who are equity sensitive, incongruence is
likely to lead to reduced motivation and an increased search for ways to bring about fairness (i.e.,
taking another job). The impact of size on a group's performance depends on the type of task in
which the group is engaged. Larger groups are more effective at fact-finding activities. Smaller
groups are more effective at action-taking tasks. Our knowledge of social loafing suggests that if
management uses larger groups, efforts should be made to provide measures of individual
Group decision making- involves solving a problem by a group of two or more individuals. Many
of the decisions in large complex organizations are made by groups - through shared power,
bargaining activities and need for compromise present in most group decisions that further
complicate decision making process.
The increased complexity of the world in which the organization operates makes increasingly
difficult for a single manager to make complex decisions independently. Individuals can handle
most programmed decisions efficiently in their own, in contrast; non-programmed decisions are
often group effort.
A group can make decisions by working together through the basic decision making
process. However, group decisions can be enriched when the group uses techniques that
Nominal group technique is a good technique to use in a situation where group members fear
criticism from others.
It is a group decision making process that anonymously generates ideas or judgments from
physically dispersed experts through questionnaires and feedback.
The group coordinator sends out questionnaires asking about the issue to its members, and then
sends out another round of questionnaires that summarizes the responses from the first
questionnaire and asks for further opinions. The process is repeated until the participants reach a
consensus.
According to a decision-making expert, a consensus “is reached when all members can say they
either agree with the decision or have had their „day in court‟ and were unable to convince
the others of their viewpoint. In the final analysis, everyone agrees to support the outcome.”
This definition indicates that consensus does not require unanimous agreement because group
members may still disagree with the final decision but are willing to work toward its success.
Two by-products of group decision making have received a considerable amount of attention by
researchers in OB. As we'll show, these two phenomena have the potential to affect the group's
ability to appraise alternatives objectively and arrive at quality decision solutions.
Group-think is the tendency of cohesive group members to lose their critical evaluative
capabilities and it is a behavior that support conformity and team harmony at the expense of other
team priorities. Highly cohesive groups demand conformity; their members tend to become
unwilling to criticize one another’s ideas and suggestions. Desires to hold the group together and
to avoid unpleasant disagreements lead to an overemphasis on agreement and an underemphasize
on critical discussion. The possible result is a poor decision.
Group-shift: is a change in decision risk between the group's decision and the individual decision
that members within the group would make; can be either to ward conservatism or greater risk.