2. Groups, Teams and
Organizational Effectiveness
• Group
– Two or more people
who interact with
each other to
accomplish certain
goals or meet certain
needs.
3. Groups, Teams and
Organizational Effectiveness
• A group may be defined as an organised
system of two or more individuals,
• who are interacting and interdependent,
• who have common motives,
• have a set of role relationships among
its members,
• and have norms that regulate the
behaviour of its members.
5. Groups, Teams and
Organizational Effectiveness
• Team
– A group whose members work intensely
with each other to achieve a specific,
common goal or objective.
– All teams are groups but not all groups are
teams.
• Teams often are difficult to form.
• It takes time for members to learn how to
work together.
6. Groups, Teams and
Organizational Effectiveness
• Two characteristics distinguish teams
from groups
– Intensity with which team members work
together
– Presence of a specific, overriding team goal
or objective
7. Difference between Groups & Teams
Work Groups Teams
Individual accountability Individual and mutual accountability
Come together to share information and
perspectives
Frequently come together for
discussion, decision making, problem
solving, and planning.
Focus on individual goals Focus on team goals
Produce individual work products Produce collective work products
Define individual roles, responsibilities,
and tasks
Define individual roles, responsibilities,
and tasks to help team do its work; often
share and rotate them
Concern with one's own outcome and
challenges
Concern with outcomes of everyone and
challenges the team faces
Purpose, goals, approach to work
shaped by manager
Purpose, goals, approach to work
shaped by team leader with team
members
8. Difference between Groups & Teams
Work Groups Teams
The group meetings of work groups
are run efficiently
The team meetings are open ended
& problem solving, allowing every
member to participate actively
The skills of members are random
and varied
The skills involved are
complementary in nature
9. Reasons for formation of groups
• Certain tasks can be performed only
through the combined efforts of a
number of individuals working together
• Groups may encourage collusion among
members
• Groups may provide companionship and
a source of mutual understanding and
support from colleagues
10. Reasons for formation of groups
• Membership of a group provides the
individual with a sense of belonging
• The group provides guidelines on
generally acceptable behaviour
• The group provides protection for its
members
11. Group formation theories
• 1. Propinquity theory (George Homes):
spatial or geographical proximity
• 2. Balance theory (Theodore Newcomb):
similar attitudes and common interest
relevant to some object or a group goal
• 3. Exchange theory (John W Thibaut
and Harold H Kelley): reward – cost
outcome evaluation
• Other economic, social, psychological
reasons too
12. Propinquity theory
• This is the basic theory of group formation, put
forward by George Homes. Propinquity means
that people form groups because of spatial or
geographical proximity. In an organization,
employees who share their workstations are
more likely to combine as a group.
• However, this theory has been criticized in the
wake of globalization and internet revolution
that facilitate group formation without proximity
or face-to-face interactions.
13. Balance theory
• This theory has been proposed by Theodore
Newcomb who suggests that persons are attracted
to one another on the basis of similar attitudes and
values related to religion, politics, lifestyle, marriage,
work, authority etc. Once the relationship is formed,
the participants strive to maintain a symmetrical
balance between the attraction and the common
attitudes and values.
• If an imbalance occurs, an attempt is made to restore
the balance.
• If the balance cannot be restored, the relationship
dissolves
14. Exchange theory
• this theory has been propounded by
John W Thibaut and Harold H
Kelley who suggest that a minimum
positive level (rewards greater than costs)
of an outcome must exist for the formation
of a group. Rewards from interactions
gratify needs whereas costs incur anxiety,
frustration, embarrassment, or fatigue.
15. Other economic, social, psychological
reasons
• Security
• Status
• Self-esteem
• Satisfaction of social & psychological
needs
• Goal achievement
• Provide knowledge & information
16. Group dynamics (GD)
(Kurt Lewin)
• GD studies the nature, formation, and
reasons why groups are formed. It also
deals with group processes or how
groups affect the behaviour of individual
members and also the organisation, and
the ways and means of enhancing the
effectiveness/ productivity of groups/
organisations.
17. Why study groups ?
• Modern organizations are
characterised by -
• large scale production, extensive
division of labour & use of specialised
skills, focus on efficiency, diversified
work force, knowledge workers
• Where group processes predominate
18. Why study groups ?
• Understanding the group processes in
organisations helps us to assess how
people in organisations work together
and accomplish results
• The study of group development
processes, group cohesiveness, group
conflict, group decision making, group
think process, group dynamics, etc
19. Features of a group
• A social unit consisting of two or more
individuals who perceive themselves as
belonging to the group. This characteristic of
the group helps in distinguishing one group
from the other and gives the group its unique
identity.
• A collection of individuals who have common
motives and goals. Groups function either
working towards a given goal, or away from
certain threats facing the group.
20. Features of a group
• A collection of individuals who are
interdependent, i.e. what one is doing
may have consequences for others.
• Individuals who are trying to satisfy a
need through their joint association also
influence each other.
21. Features of a group
• A gathering of individuals who interact
with one another either directly or
indirectly.
• A collection of individuals whose
interactions are structured by a set of
roles and norms.
23. Groups and Teams as
Performance Enhancers
• Advantage of synergy
– People working in a group are able to
produce more outputs than would have been
produced if each person had worked
separately
24. Groups and Teams as
Performance Enhancers
• Factors that contribute to synergy
– Ability of group members to bounce ideas
off one another
– To correct one another’s mistakes
– To bring a diverse knowledge base to bear
on a problem
– To accomplish work that is too vast for any
one individual to achieve
25. Groups and Teams as
Performance Enhancers
• To take advantage of the potential for
synergy, managers need to make sure
groups are composed of members who
have complementary
skills and knowledge
relevant to the
group’s work
26. Groups and Teams and
Responsiveness to Customers
• Responsiveness to Customers
– Difficult to achieve given the many
constraints.
• Safety issues, regulations, costs.
– Cross-functional teams can provide the wide
variety of skills needed to meet customer
demands.
• Teams consist of members of different
departments.
27. Teams and Innovation
• Innovation
– The creative development of new products,
new technologies, new services, or new
organizational structures
• Individuals rarely possess the wide variety of
skills needed for successful innovation.
• Team members can uncover each other’s flaws
and balance each other’s strengths and
weaknesses
• Managers should empower the team and make it
accountable for the innovation process.
28. Groups and Teams as Motivators
• Members of groups, and particularly
teams, are often better motivated and
satisfied than individuals.
– Team members are more motivated and
satisfied than if they were working alone.
– Team members can see the effect of their
contribution to achieving team and
organizational goals.
– Teams provide needed social interaction and
help employees cope with work-related
stressors.
29. The Stages of Group Development
• American organizational psychologist
Bruce Tuckman (1965)
•
30. Stages of Group Development
• Forming
– Group members get to know each other and
familiarize themeselves
• Storming
– Group members disagree on direction and
leadership. Managers need to be sure the
conflict stays focused.
• Norming
– Close ties and consensus begin to develop
between group members. Norms are laid
down.
31. Stages of Group Development
• Performing
– The group begins to do its real work.
• Adjourning
– Only for task forces that are temporary.
– Note that these steps take time!
34. Phase I According to the model, a framework of behavioral patterns and
assumptions through which a group approaches its project
emerges in its first meeting, and the group stays with that
framework through the first half of its life. Teams may show little
visible progress during this time because members may be unable
to perceive a use for the information they are generating until they
revise the initial framework.
Mid point At their calendar midpoints, groups experience transitions-
paradigmatic shifts in their approaches to their work-enabling them
to capitalize on the gradual learning they have done and make
significant advances. The transition is a powerful opportunity for a
group to alter the course of its life midstream. But the transition
must be used well, for once it is past a team is unlikely to alter its
basic plans again.
Phase 2 A second period of inertial movement, takes its direction from plans
crystallized during the transition. At completion, when a team
makes a final effort to satisfy outside expectations, it experiences
the positive and negative consequences of past choices.
38. Informal Groups
• Friendship groups
• Interest groups
• Reference/consultation groups
Functions of informal groups
friendship, social belongingness, personal
interest, cultural affinity, communication
clarification, etc
39. Virtual Groups
• Virtual Groups
• Groups of people who are based in
different locations, may or may not come
face to face and more often make use of
electronic communication channels
40. Types of groups
• 1. Primary and Secondary groups
• 2. Small and Large groups
41. Structure of Groups
Key factors/features of group structure
1. Leadership
2. Roles
3. Norms
4. Status
5. Size
6. Composition
42. Structure of Groups
1. Leadership
•Leader is appointed to guide, supervise,
evaluate & motivate
•Facilitate achievement of group task/ goal
•Formal leaders will have authority,
legitimate power
•Informal leadership
43. Cntd.
• Leadership can be of different types
- Authoritative or democratic
- Single person or collective
• Leader continuously evaluates, directs
and motivates member behaviour
towards overall goals
44. Structure of Groups
2. Roles
A set of activities expected of a person
occupying a particular position
A pattern of behaviour expected of
members
roles are impersonal
Roles are related to task/ organizational goal
46. Structure of Groups
3. Norms
Norms are shared values/ accepted
ways behaviour
Categories of norms
Performance related processes
Appearance factors
Allocation of resources
47. Structure of Groups
4. Status
•Socially defined position or rank given to
groups/ group members by others
•Formal status (positions/titles)
•Informal status (qualitative factors)
49. Group Cohesiveness
• The degree to which members are
attracted to their group & are committed
to it, and the strength of their desire to
remain in the group
• It can contribute to higher productivity
and functional efficiency of groups
54. Advantages of higher cohesiveness
1. Better achievement of group goals
2. Better achievement of organizational
goals, particularly when group and
organizational goals converge
3. Better relationship among members
4. Higher job satisfaction
5. It can foster friendly competition
6. It makes change management easier
55. Potential disadvantages of group
cohesiveness
• Strong group loyalty can lead to inter
group rivalry
• It can often lead to petty, narrow
mindedness
• It can lead to discrimination against less
vocal/ resourceful groups
All of these can potentially harm the
effectiveness organisations
56. Techniques of Group Decision Making
• Ordinary group interaction (formal
meetings)
• Brainstorming
• Nominal Group Technique
• Electronic Meetings
• Delphi Technique
• Devil’s advocacy
57. Ordinary group interaction
(formal meetings)
• Conventional method
• Chairman convenes the meeting
• Explains the problem
• Controls who speaks when
• Obtains consensus
– Less participative,
– Less productive
– Less effective
58. Ordinary group interaction
(formal meetings)
• Can be made more effective
– By making meetings more participative
– better time management
– Proper procedures
59. Brainstorming
• First proposed by Alex Osborn – an
advertisement executive
• Is more of an informal decision making
tool
• Group of 6 to 10 people
• It is used to generate ideas/alternatives
• Which will be followed by free-wheeling
discussion
60. Brainstorming
Members of the brainstorming groups are
required to follow 4 main rules:
1.Avoid criticising others’ ideas
2.Share even far out ideas
3.Offer as many comments as possible
4.Build on others’ ideas to create your own
61. Brainstorming
Advantages
–Help generate large number of ideas
–Innovative ideas can also develop
–Involves everyone
–Encourages communication
–Focuses the mind
Disadvantages
–Production blocking
–Evaluation apprehension
62. Nominal Group Technique
• First developed by A Delbecq and A H
Van de Ven
• Is more formal and structured decision
making process
• An improvement over Brainstorming
technique
63. Nominal Group Technique
• STEP 1: Each group member writes down individual
ideas on the decision or problem being discussed.
• STEP 2: Each member presents individual ideas
orally. The ideas are usually written on a board for all
other members to see and refer to.
• STEP 3: After all members present their ideas, the
entire group discusses these ideas. Discussion is for
clarity.
• STEP 4: each group member rank orders the ideas.
The idea with the highest ranking determines the final
decision
64. Nominal Group Technique
• Nominal groups outperform the
brainstorming groups as far as
relevance/ effectiveness in decision
making
• It permits a group to meet formally, but
does not restrict independent thinking
65. Delphi method
• First developed by RAND Corporation
for the US Air Force
• Decision making by experts
• A group formed with people outside the
organisation
66. Delphi method
• STEP 1: A problem is presented to the panel of
experts
• STEP 2: Group members are asked to offer solutions
to the problem by providing anonymous responses to
a carefully designed questionnaires.
• STEP 3: Responses of all group members are
compiled and sent out to all group members.
• STEP 4: Individual group members are asked to
generate a new individual solution to the problem after
they have studied the individual responses of all other
group members.
• STEP 5: Step 3 and 4 are repeated until a consensus
problem solutions is reached.
67. Delphi method
Advantages
– Expertise of outsiders can be tapped
– Is used both by business and government
organisations
Disadvantages
– May take longer time
– Lacks the effectiveness of face to face
interaction
69. Effectiveness of different techniques
Type of Groups
Criteria Interacting Brainstorming Nominal Electronic
Number & quality of
ideas
low Moderate High High
Social pressure High Low Moderate Low
Money costs low Low Low High
Speed moderate Moderate Moderate Moderate
Task orientation Low High High High
Potential for inter-
personal conflict
High Low Moderate Low
Commitment to solution high Not applicable Moderate Moderate
Development of group
cohesiveness
high high moderate low
70. Advantages and disadvantage of
group decision making
• Advantages
– More ideas
– Better ideas
– Diversity of views
– Critical evaluation
– More participation
– Ownership of ideas
– Greater acceptability
71. Advantages and disadvantage of
group decision making
• Disadvantages
– Time consuming
– Conformity pressures
– Group think
– Dominance by some/few members
– Production blocking
– Evaluation apprehension
– Unclear responsibility for implementing
decisions
72. Group think
• It is an extreme form of group consensus in which the
group thinks as a unit rather than as a collection of
individuals.
• Group think is associated with groups with extremely
high degree of group cohesiveness
• While it can contribute to unity within groups, in its
extreme form it can reduce the effectiveness of
groups. It can lead to discouraging/suppressing
diversity of ideas and constructive criticism within the
group. It can lead to inter-group conflicts/hatred as
well.
