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GROUPS

IN

ORGANISATION

Individuals constitute the group and several groups constitute the


organisation. A group is an important unit for sociological and
psychological analysis to understand organisational behaviour. It
affects the behaviour of its members, other roups, and the whole
organisation.

Definitions of Group
G C Homans: "A group is any number of people who share goals,
often communicate with each other over a period of time, and are few
enough so that each individual may communicate with all the others,
person-to person.
A group is collection of two or more people who have common
objectives or interests and interact with each other to accomplish their
objectives, are aware of each other and perceive themselves to be a
part of a group.

CONDITIONS OR FACTORS IN GROUP DYNAMICS

1.Organisation-related Factors

2. Member-related Factors
Key Factors in
Group
Dynamics
3. Group-related Factors

4. Job/Work-related Factors

Characteristics and Reasons


Needs/Reasons/objectives
1.

Nearness and Similarity

2.

Survival

3.

Security

4.

Social Needs

5.

Recognition

6.

Economic Benefits

7.

Information and Development

8.

Solving Work Problems

9.

Group Efficacy (Synergy

10. Interaction

11. Other Reasons

for Group Formation

Characteristics of Group
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Membership
Leadership
Formal Hierarchy or Status
Composition
Specific Task
Interaction
Group Norms
Communication
Group Cohesiveness
Member Satisfaction
Size
Types

FORMAL AND INFORMAL GROUPS


Formal and Informal Groups
Organisation involves two types of groups, formal group and informal group. Formal
groups are deliberately created to achieve organisational objectives while informal groups
come into existence spontaneously. Existence of informal groups can neither be ignored nor
restricted.

Formal Group
Formal group is deliberately and purposefully created. It is created to meet organisations
requirements. It has specific objectives, rules, and defined relationship. Each member in the
formal group has clear-cut authority and responsibility. His position and status are clarified.
Formal group has to functions as per the policies, rules, and procedures of organisation. Such
group may be temporary or permanent in nature.

Informal Groups
Informal group, on the other hand, is created automatically or spontaneously due to
interactions among people in organisation. Informal group doesnt have defined objectives and
specified scope. It comes into existence to satisfy members social and psychological needs
which formal structure cannot satisfy. It is not created for organisations needs; people with
similar nature, likings, and feeling may form an informal group. Friendship groups, membership
groups, reference groups, and interest groups are common
informal groups.

Note: For difference between formal and informal groups, refer Table 18.1,
Ramesh B. Rudani

FUNCTIONS AND PROBLEMS OF INFORMAL GROUPS


Functions of Informal
Groups

Limitations/Problems of
Informal Group

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

1.
2.
3.

Group Integrity
Social Satisfaction
Solving Work Problem
Prescribing Norms and Values
Protection of Members
Collaborating Efforts
Supporting Management
Filling Communication Gap
Emotional Support
Contribution to Organisation
Efficiently

Resistance to Change
Restriction of Output
Source of Role Conflict (conflict
between formal and informal
roles)
4. Source of Rumour
(miscommunication)
5. Inertia (inactivity or lethargy)
6. Aggressive Conformity (i.e.,
forceful conformation)
7. Narrow Vision and Rigidity
8. Source of Rebellion
9. Source of Conspiracy
10. Compulsion on organisation to
accept unjust demand, etc.

SUBCLASSIFICATIONS OF GROUPS

Formal Groups

Command Group

A group composed of
the individuals who
report directly to a
given manager

Task Group

Informal Groups

Those working together


to complete a job or
task in an organization
but not limited by
hierarchical boundaries

Interest Group

Members work together


to attain a specific
objective with which
each is concerned

Friendship Group

Those brought together


because they share
one or more common
characteristics

STAGES OF GROUP FORMATION

STAGES OF GROUP FORMATION

DYNAMICS OF TEAMS
Team and group are, to some extent, similar and are used
interchangeably. However, teams and teamwork are more popular in
todays organisations. Team differs from group mainly in form of
outcomes or performance results. Teams are used for high
performance results. They are revised version of traditional formal
groups. They have collective and synergic effects on final outcomes.
Committee, commission, board, taskforce, Quality Control (QC), etc.,
are popular forms of team.

Definitions of Team
1.

Team is a group of individuals with the ability to do special


tasks, who prefer to work collectively for specific purpose,
have share leadership, and bear individual and collective
accountability.

2.

Team is well planned, well organised, and well-defined small


formal group of eople, each of them tends to be expert in
his respective area, and the team has more specific goals to
achieve.

CHARACTERISTICS OF TEAM
1.

Characteristics of Team

2.

Collective Work-products

3.

Synergic Effects

8.

Emphasis

4.

Improved Version of

9.

Shared Leadership

Formal Group

10.

Accountability

Small Size or Limited

11.

Specific Purpose

12.

Interacting Style

13.

Members Characteristics

5.

Members
6.

Rewarding Pattern

7.

Complementary
Membership Role

(or Expertise):

WHY HAVE TEAMS BECOME SO POPULAR?

Great way to use employee talents

Teams are more flexible and responsive to changes


in the environment

Can quickly assemble, deploy, refocus, and


disband

Facilitate employee involvement

Increase employee participation in decision making

Democratize an organization and increase


motivation

Note: Teams are not ALWAYS effective


10-12

DIFFERENCES BETWEEN GROUPS AND TEAMS


Work

Group

A group that interacts primarily to share information and to


make decisions to help each group member perform within
his or her area of responsibility

No joint effort required

Work

Team

Generates positive synergy through coordinated effort.


The individual efforts result in a performance that is
greater than the sum of the individual inputs

10-13

COMPARING WORK GROUPS AND WORK


TEAMS
10-14

POPULAR FORMS OF TEAM

Crossfunctional
Teams

Virtual
Teams

Self
Managed
Teams

Problemsolving
Teams

TYPES OF TEAMS
Problem-Solving

Groups of 5 to 12 employees from


the same department who meet for a
few hours each week to discuss
ways of improving quality, efficiency,
and the work environment

Self-Managed

Teams

Work Teams

Groups of 10 to 15 people who take


on the responsibilities of their former
supervisors

10-16

TYPES OF TEAMS (CONTINUED)


Cross-Functional

Teams

Employees from about the same hierarchical level, but


from different work areas, who come together to
accomplish a task

Very common

Task forces

Committees

10-17

TYPES OF TEAMS (CONTINUED)


Virtual Teams

Characteristics

Teams that use computer technology to tie together


physically dispersed members in order to achieve a
common goal
Limited socializing
The ability to overcome time and space constraints

To be effective, needs:
Trust among members
Close monitoring
To be publicized

10-18

CREATING EFFECTIVE TEAMS: CONTEXT

Adequate Resources

Need the tools to complete the job

Effective Leadership and Structure


Agreeing to the specifics of work and how the team fits
together to integrate individual skills
Even self-managed teams need leaders
Leadership especially important in multi-team systems

Climate of Trust

Members must trust each other and the leader

Performance and Rewards Systems that Reflect


Team Contributions

Cannot just be based on individual effort


10-19

CREATING EFFECTIVE TEAMS: COMPOSITION

Abilities of Members

Personality of Members

Need technical expertise, problem-solving, decisionmaking, and good interpersonal skills


Conscientiousness, openness to experience, and
agreeableness all relate to team performance

Allocating Roles and Diversity


Many necessary roles must be filled
Diversity can often lead to lower performance

Size of Team

The smaller the better: 5 to 9 is optimal

Members Preference for Teamwork

Do the members want to be on teams?


10-20