Chapter 8: Groups and Teams in Organization

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Concept of Group
In organizational behavior, a group is two or more individuals, interacting and interdependent,
who have come together to achieve particular objectives. Groups can be either formal or
informal. A formal group is defined by the organization’s structure, with designated work
assignments and established tasks. In formal groups, the behaviors team members should engage
in are stipulated by and directed toward organizational goals. The six members of an airline
flight crew are a formal group, for example. In contrast, an informal group is neither formally
structured nor organizationally determined. Informal groups in the work environment meet the
need for social contact.

Types of Groups
There are two types of groups an individual forms. They are formal groups and informal groups.
Let us know about these two groups.
Formal Groups
These are the type of work groups created by the organization and have designated work
assignments and rooted tasks. The behavior of such groups is directed toward achieving
organizational goals.
These can be further classified into two sub-groups
Command group:
It is a group consisting of individuals who report directly to the manager.
Interest group
It is a group formed by individuals working together to achieve a specific objective. Example −
A group of workers working on a project and reporting to the same manager is considered as a
command group. A group of friends chilling out together is considered as interest group or say
members of a club.

Informal Groups
These groups are formed with friendships and common interests. These can be further classified
into two sub-groups
Task group
Those working together to finish a job or task is known as task group.
Friendship group
Those brought together because of their shared interests or common characteristics is known as
friendship group.

Group Dynamics
The social process by which people interact and behave in a group environment is called group
dynamics. Group dynamics involves the influence of personality, power, and behaviour on the
group process. Is the relationship between individuals conducive to achieving the groups goals?
Is the structure and size of the group an asset in pursuing both the task and maintenance
functions of the group? How is formal and informal power used to build consensus or reach
decisions? Does the combination of individuals produce the right culture? How these individuals,
cultures, and internal forces interact allows us to analyze and better understand group
effectiveness.

Stages of Group Development

The group development has the following five stages – Forming Storming Norming Performing
Adjourning
1. Forming
This is the first stage of group forming. In this stage, members get to know each other and have
excitement, nervousness, and anxiety. This stage group required strong direction and guidance.
2. Storming
This is the second stage of a group called storming. In this stage, members engage in conflict and
power struggles.
3. Norming
This is the third stage of the group called norms. In this stage member show cooperation, unity
and integration.
4. Performing
This is the fourth stage of group performance. This stage is characterized by overall synergy,
focus on the goal, high productivity, and efficient performance.
5. Adjourning
This is the last stage of group adjourning. In this stage, groups adjourn only upon the completion
of the task or the achievement of the goal.
Meaning of Group Behaviour:
Individuals form groups. They live in groups. They move in groups. They work in groups.
Groups are important. They influence work and work behaviour. They cannot be ignored. They
exert significant influence on the organisation. They are inseparable from organisation. They are
useful for the organisation. They form foundation of human resources. The study of group
behaviour is important. Individual and group behaviour differs from each other. Group behaviour
affects productivity.
The importance of group behaviour has been realized from time to time. Elton Mayo and his
associates way back in 1920 conducted the famous Hawthorne experiments and came to know
that the group behaviour have major impact on productivity.
Human resources comprise individuals and individuals move in groups. Every manager must
possess the knowledge of group behaviour along with individual behaviour. He must understand
group psychology. He should understand individual behaviour in the context of group behaviour.
Individual behaviour is influenced by the group behaviour.

Importance of Group Improve

Mutual understanding: group improve mutual understanding of the employees. because when
they work together it helps them to understand the process and goal of the organisation.
Improve performance: it improves the performance of the group member. When all group
member works together they learn from each other.
Brings new ideas: Creating new groups bring new ideas and innovation in the organisation.
Developing Future Executives: Informal groups recognise talented workers. which helps the
company to identify the future leader.

What is Team?
We certainly once are a team member anywhere. In school/college when there was an annual
program, we participated and performed as team members in games like volleyball, football,
hockey, etc.
A team can be defined as a group of people who interact and influence each other for the
achievement of a common purpose. Team members are mutually accountable for achieving
common objectives. The best definition of a team may be, when, members are the backbone to
each other, members are sure they will get the same response as they provide, builds synergy,
everyone is optimistic, and no one left the ground until the goal is achieved.
One of the most essential functions of an excellent leader is to create team spirit among the
group members. Mostly we see the use of team words in sports games like cricket, football,
volleyball, and hockey.

Characteristics of Team
An effective work team is characterized by its following attributes.
Diverse Expertise
A team comprises a small group of individuals who possess different skills that complement one
another, allowing them to tackle various aspects of a project or problem effectively.

Shared Objectives
All team members must align and work towards common goals, ensuring everyone is on the
same page and focused on achieving the desired outcomes.
Empowered Autonomy
Teams are self-directed, autonomous, and self-managing entities, empowered to make decisions
and take responsibility for their actions without constant supervision.
Individual and Collective Responsibility
Each team member is accountable for their own contributions and actions, while also embracing
mutual accountability to foster a sense of ownership and ensure collective success.
Unified Commitment
A team demonstrates tireless dedication and unity toward the accomplishment of shared
objectives, fostering a collaborative environment where everyone is committed to achieving
success.
Effective Communication
Two-way communication channels are established within the team, facilitating open dialogue,
active listening, and understanding among members, leading to better collaboration and problem-
solving.
Synergy and Coordination
Through coordinated efforts, a team generates synergy by leveraging the collective strengths and
skills of its members, creating a harmonious and amplified effect that enhances overall
productivity and outcomes.
Leadership Roles
Within the team, specific individuals take on leadership roles, guiding and directing the team
toward goal achievement, providing guidance, and support, and fostering a positive team
dynamic.
Difference Between a Team and a Group
There are differences between teams and groups. They are not the same thing. All teams are
groups because they consist of people within a unifying relationship. But not all groups are
teams, some groups are just people assembled.

Types of Teams
There are several types of teams that can be found in the workplace. Work teams are
responsible for a specific set of the task, the most common types of teams include the following
four:
Problem-Solving Team
As the name implies, teams are formed to solve organizational problems. Problem-solving
teams are composed of 5 to 12 employees from the same department to improve quality,
efficiency, and work environment. In problem-solving teams, members share ideas or offer
suggestions on how work processes and methods can be improved. Members are not fully
independent, they can offer suggestions but can not force implementation.
Self-Managed Team
 A self-managed team is a formal group of employees that operates without a manager. These
are the small group of employees, typically 10 to 15 number, who perform highly related or
independent jobs and bear the responsibilities of their supervisors. Self-managed team
member’s jobs include planning and scheduling of work, assigning tasks to members, collective
control over the pace of work making operating decisions, and taking action on problems.
Cross-Functional Teams
Cross-functional teams consist of employees from about the same hierarchal level but different
work areas in an organization. This is an effective means for employees from diverse areas
within an organization to exchange information, develop new ideas, solve problems, and
coordinate complex tasks.
Virtual Teams
A virtual team uses computer technology to tie together physically dispersed members to
achieve a common goal. It allows groups to meet without concern for space and enables
organizations to link workers together in a way that would have been impossible in the past.

Building Effective Work Teams

Team Work Design
Effective teams need to work together and take collective responsibility to complete significant
tasks. They must be more than a “team-in-name-only. The work design category includes
variables like freedom and autonomy, the opportunity to use different skills and talents, the
ability to complete a whole and identifiable task or product, and working on a task that
substantially impacts others. The evidence indicates that these characteristics enhance member
motivation and increase their effectiveness. These work design characteristics motivate because
they increase members’ sense of responsibility and ownership over the work and make it more
interesting to perform.

Team Composition
This category includes variables related to how teams should be staffed. In this section, we will
address the ability and personality of team members, allocating roles and diversity, the size of
the team, member flexibility, and members’ preference for teamwork.
- Abilities of members
- Personality
- Allocating roles and diversity
- Size of teams
- Member flexibility
- Members’ preferences
Abilities of members
To perform effectively, a team requires three different types of skills. First, it needs people with
technical expertise. Second, it needs people with problem-solving and decision-making skills are
able to identify problems, generate alternatives, evaluate those alternatives, and make
competent choices and other interpersonal skills.
Personality
Personality has a significant influence on individual employee behavior. This can also be
extended to team behavior. Many of the dimensions identified in the Big Five personality model,
specifically teams that rate higher in means levels of extroversion, agreeableness,
consciousness, and emotional stability, tend to receive higher managerial ratings for team
performance.
Allocating roles and diversity
Teams have different needs, and people should be selected for a team to ensure diversity and
that all various roles are filled. Successful work teams have people to fill all these roles and
select people to play them based on their skills and preferences.
Size of teams
A president of a certain technology company says the secret to a great team is: ‘Think small.
Ideally, your team should have seven to nine people”. His advice is supported by evidence.
Generally speaking, the most effective teams have fewer than ten members. And experts
suggest using the smallest number of people who can do the task.
Member flexibility
Teams made up of flexible individuals have members who can complete each others’ tasks. This
is an obvious plus to a team because it greatly improves its adaptability and makes it less reliant
on any single member. So selecting members who themselves value flexibility, then cross-
training them to be able to do each other’s jobs should lead to higher team performance over
time.
Members’ preferences
Not every employee is a team player. Given the option, many employees will select themselves
out of team participation. When people who would prefer to work alone are required to team
up, there is a direct threat to the team’s morale and to individual member satisfaction. This
suggests that, when selecting team members, individual preferences should be considered as
well as abilities, personalities, and skills. High-performing teams are likely to be composed of
people who prefer working as part of a group.
Team Context
The four contextual factors that appear to be most significantly related to team performance
are the presence of adequate resources, effective leadership, a climate of trust, and a
performance evaluation and reward system that reflects team contributions.
- Adequate Resources
- Leadership and Structure
- Climate of Trust
- Performance Evaluation and Reward Systems
Adequate Resources: All work teams rely on resources outside the group to sustain them. And
the scarcity of resources directly reduces the ability of the team to perform its job effectively. As
one set of researchers concluded, after looking at many factors potentially related to group
performance, “perhaps one of the most important characteristics of an effective workgroup is
the support the group receives from the organization.” This is support from management and
the larger organization if they will succeed in achieving their goals.
Leadership and Structure Team members must agree on who is to do what and ensure that all
members contribute equally to sharing the workload. In addition, the team needs to determine
how schedules will be set, what Skills need to be developed, how the group will resolve conflict,
and how the group will make and modify decisions. Agreeing on the specifics of work and how
they fit together to integrate individual skills requires team leadership and structure.
Climate of Trust
Members of effective teams trust each other. And they also exhibit trust in their leader.
Interpersonal trust among team members facilitates cooperation, reduces the need to monitor
each others’ behavior, and bonds members around the belief that others on the team won’t
take advantage of them.
Performance Evaluation and Reward Systems
How do you get team members to be both individually and jointly accountable? The traditional,
individually oriented evaluation and reward system must be modified to reflect team
performance. Individual performance evaluations, fixed hourly wages, individual incentives, and
the like are inconsistent with developing high-performance teams. So, in addition to evaluating
and rewarding employees for their individual contributions, management should consider
group-based appraisals, profit sharing, gain sharing, small group incentives, and other system
modifications that will reinforce team effort and commitment.

Team Process
The final category related to team effectiveness is processed variables. These include member
commitment to a common purpose, establishing specific team goals, team efficacy, managing
conflict, and minimizing social loafing.
- A common purpose
- Specific goals
- Team efficacy
- Conflict levels
- Social loafing
A common purpose
Effective teams have a common and meaningful purpose that provides members direction,
momentum, and commitment. This purpose is vision. It’s broader than specific goals.
Specific goals
Successful teams translate their common purpose into specific, measurable, and realistic
performance goals. Goals lead individuals to higher performance, and goals also energize
teams. These specific goals facilitate clear communication. They also help teams maintain their
focus on getting results.
Team efficacy
Effective teams have confidence in themselves. They believe they can succeed. We call this
team efficacy. Success breeds success. Teams that have been successful raise their beliefs about
future success, motivating them to work harder.
Conflict levels
Conflict on a team is not necessarily bad. Teams that are completely void of conflict are likely to
become apathetic and stagnant. So conflict can actually improve team effectiveness. But not all
types of conflict.
Social loafing
It is common that individuals can hide inside a group. They can engage in social loafing and
coast on the group’s effort because their individual contributions can’t be identified. Effective
teams undermine this tendency by holding themselves accountable at both individual and team
levels. Successful teams make members individually and jointly accountable for the team’s
purpose, goals, and approach. They are clear on what they are individually responsible for and
what they are jointly responsible for.

What is Group Decision Making?

Group decision-making is the process of coming up with an optimum decision with the
collective discussion made by a group of people in a given situation. In other words, it’s a
process where groups of individuals gather and discuss obstacles, and make a choice.
Committees, task forces, teams, and other formal and informal groups are examples of groups.
Group decision believes that two heads are better than one head. In many organizations today,
important decisions are made by groups instead of by individuals.
The increased complexity of problems requires specialized knowledge in various fields usually
not possessed by one person and necessitates group decision-making. Usually, during a group
decision, groups of individuals discuss a subject and are available to a choice, but sometimes
they need different views from one another.
In such a situation, they are available with a choice with the bulk of voters. Group decisions
would become particularly appropriate for non-programmed decisions. These decisions relate
to the determination of organizational objectives and the formulation of plans, strategies, and
policies. Many large organizations make these decisions through executive committees
consisting of chief executives and departmental heads.

Advantages of Group Decision-Making

The benefits of group decision-making are often studied under the subsequent headings:
Provide Complete Information
There’s truth in saying that “two heads are better than one”. Group members have specialized
knowledge and that they are ready to provide more information and knowledge than
individuals .
Generate More Alternatives
Groups have a greater amount and variety of data. They can identify more alternatives than a
private. this is often possible because group members have specialized knowledge in several
areas.
Increased Acceptance of A Solution
Since the members who implement the choices also participate in the decision-making process,
the implementation part becomes simpler. This also increases the commitment of the members
to ascertain that the implementation is successful.
Increase Legitimacy
The group decision-making process is according to democratic ideals. Decisions made by groups
could also be perceived as more legitimate than decisions made by one person.

Disadvantages of Group Decision Making

The disadvantages of group decision-making are often studied under the subsequent headings:
Time-Consuming
Forming the proper group consumes tons of your time. Similarly, group members take longer to
form decisions than private. Each member may have different perceptions regarding an answer
to a drag. They take longer in discussion to return to mutual consent.
Minority Domination
Members of a gaggle are never perfectly equal. They’ll differ in organizational rank, experience,
knowledge about the matter, influence with other members, verbal skills, assertiveness, and so
on. This inequality creates a chance for one or more members to dominate others. A dominant
and vocal minority frequently can have an excessive influence on the ultimate decision.
Pressures
To Conform Some members may simply accept it as true with others for the sake of agreement.
this is often due to social pressure to evolve and not be the odd man out. There could also be
some personality conflicts that will create interpersonal obstacles which can diminish the
efficiency of the method also because of the quality of the choice.
Ambiguous Responsibility
Group members share responsibility, therefore, nobody member takes the ultimate
responsibility. In group decisions, the responsibility of anyone single member is diluted.

Techniques of Group Decision Making

The followings are the three best techniques for group decision-making. These group decision-
making techniques enable organizations to leverage the collective knowledge and creativity of
diverse individuals, leading to more informed and satisfactory outcomes.

Brainstorming
This technique involves a group of individuals freely discussing and generating ideas without
criticism or judgment. Brainstorming encourages creativity and allows participants to build upon
each other’s ideas. All suggestions are recorded on a visible chart for later analysis and
refinement.
Delphi Technique
In this method, experts in a specific field provide their opinions anonymously through a series of
questionnaires. A central coordinator compiles and analyzes the responses, and if a consensus is
not reached, additional rounds of questionnaires are sent until a final report is prepared.
This technique is effective for complex and long-term issues, as it eliminates bias and allows
independent expert input.
Nominal Group Technique
Similar to brainstorming, this structured technique fosters creative and innovative ideas.
Participants independently generate ideas in writing, which are then presented, discussed, and
clarified in sequence. Each member votes on the ideas, and the highest-ranked alternative is
chosen as the best solution. This method is widely used in various sectors, including healthcare,
education, and government organizations.
Issue Related to Group Decision Making
The major issues related to the group decision making are enlisted as follows:
- Issues of time constraints
- Issue of group polarization
- Issue of group thinking
- Issue of real participation
- Issue of cost vs benefit