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GROUP

Two or more individuals, interacting andinterdependent, who come together to achieve

particular objectives.

A group is not a population but a set of two or

more people aware of each other

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IMPORTANCE OF GROUPS

The study of groups is important to the manager for a number of reasons :

1. The group is a key element in the social

order of our culture. Groups serve not onlyas the focal point of social life, but theyprovide an important source of direction toindividuals for understanding social valuesand norms.

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IMPORTANCE OF GROUPS (cont..)

2.Through participation in groups, individualsmay satisfy important economic status,safety, security and friendship needs.

3. The behavior and performance of groupsprovides a major mechanism for the

achievement of organizational goals

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WHY DO PEOPLE JOIN GROUPS?

SecurityStatusSelf-esteemAffiliationPower

Goal Achievement .

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TYPES OF GROUPS

1. FORMAL GROUP : Is formed by theorganization to do its work, is relativelypermanent

2 INFORMAL GROUP : Is established by itsmembers and is relatively temporary.

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1. FORMAL GROUP

.Command groupTask groupAffinity group

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COMMAND GROUP:Is relatively a permanent, formal group with

functional reporting relationships and isusually included in the organizational charts .

TASK GROUP:

Is a relatively a temporary, formal groupestablished to perform a specific task .

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AFFINITY GROUPS:They are the collection of employees form the

same level in the organization who meet onregular basis to share information, captureemerging opportunities and solve

problems.

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2. INFORMAL GROUPS

Interest group : Bowling group, Womensnetwork.

Friendship group: Friends who do many activities together.

( attend the theater, play games, travel)

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STAGES OF GROUPDEVELOPMENT

Groups go through five distinct stages:

1. Forming stage :

The first stage in group development

Characterized by much uncertainty about the groups purpose,structure and leadership.

Members are testing the waters to determine what types of behavior are acceptable .

This stage is complete when members have begun to think of themselves as part of a group.

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3. Norming stage :

This is the third stage in group development,characterized by close relationships and cohesiveness.

This stage is complete when the group structuresolidifies and the group has assimilated a common set of expectations of what defines correct member behavior.

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4. Performing stage :

This is the fourth stage in group development , when thegroup is fully accepted and functional.

Group energy has moved from getting to know andunderstand each other to performing the task at hand.

4.

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5. Adjourning stage :

The final stage in group development for temporary

group

Is characterized by concern with wrapping up activitiesrather than task performance

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GROUP PERFORMANCE FACTORS

Group compositionGroup sizeGroup normsGroup cohesiveness

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GROUP PERFORMANCE FACTORS(cont..)1. GROUP COMPOSITION:

Is the degree of similarity or difference among group members on factors important to thegroups work .

2. GROUP SIZE:

Is the number of members of the group; groupsize affects the number of resourcesavailable to perform the task

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GROUP PERFORMANCE FACTORS(cont)3. GROUP NORM:

Is a standard against which theappropriateness of a behavior is judged

4. GROUP COHESIVENESS:Is the extent to which a group is committed to

staying together

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INTERGROUP DYNAMICS

INTERACTION

GROUPCHARACTERSISTICSIndividual Personalities

and characteristics,Group action

tendencies andDispositions,Group Composition,

Cohesiveness,Size, Norms and

Roles

GROUPCHARACTERSISTICSIndividual Personalities

and characteristics,Group actiontendencies and

Dispositions,Group Composition,

Cohesiveness,Size, Norms and

Roles

ORGANISATIONAL SETTINGRules and procedures, history,Traditions and culture, Goal andReward systems, DecisionMaking process.

BASES FOR INTERACTIONS

LocationResources, time and Goal

InterdependenceTask uncertainty

Task interdependence

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GROUP PROPERTIES

Role (role identity, role perception, role expectations, roleconflict)

Norms- tells members of group what they ought to do andought not to do under certain circumstances.

Status

Size

cohesiveness

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GROUP DECISION MAKING

The belief characterized by juries that twoheads are better than one has long beenaccepted as a basic component of North

American and many other countries legalsystems.

This belief has expanded to the point that,today, many decisions in organizations aremade by groups, teams, or committees.

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GROUP DECISION MAKING IN ANORGANIZATION

GROUP POLARIZATION GROUP THINK PARTICIPATION

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GROUP DECISION MAKING IN ANORGANIZATION (cont..)

Group polarization:Is the tendency for a groups average post

discussion attitudes to be more extreme than its

average pre-discussion attitudes .GROUP THINK:Is a mode of thinking that occurs when members

of a group are deeply involved in a cohesive in-group, and the desire for unanimity offsets their motivation to praise alternative courses of action

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GROUP DECISION MAKING IN ANORGANIZATION (cont..)

PARTICIPATION:

Employee participation in decision making

appropriate depends on the situation

Participation in decision making is also related toorganizational structure for eg. Decentralizationinvolves delegating some decision making authority throught the organizational hierarchy .

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GROUP PROBLEM SOLVING

To improve the generation of alternatives,managers may employ any of the followingthree techniques to stimulate the groups

problem solving capabilities:1. BRAIN STORMING2. NOMINAL GROUP TECHNIQUE

3. DELPHI TECHNIQUE

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BRAIN STORMING

It is meant to overcome pressures for conformity in the interacting group that retardthe development of creative alternatives.

It does this by utilizing an idea-generationprocess that specifically encourages any and

all alternatives while with-holding anycriticism of those alternatives.

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BRAIN STORMING (cont)

In a typical brainstorming session, a half adozen to a dozen people sit around a table.

The group leader states the problem in aclear manner so that it is understood by allparticipants.

Members then free associate as manyalternatives as they can in a given length of time.

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BRAIN STORMING (cont)

No criticism is allowed, and all thealternatives are recorded for later discussionand analysis.

Brainstorming may indeed generate ideas-but not in a very efficient manner

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BRAIN STORMING (cont)

Research consistently shows that individualsworking alone will generate more ideas thana group in brainstorming session.

In other words, when people are generating ideas in a group, many people are talking at once, which blocks the thought process and eventually impedes the sharing of the ideas.

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NOMINAL GROUP TECHNIQUE

Nominal group technique restricts discussionor interpersonal communication during thedecision making process, hence, the term

nominal.

Group members are physically present, as in

a traditional committee meeting, butmembers operate independently.

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NOMINAL GROUP TECHNIQUE(cont)Specifically, a problem is presented and the

following steps take place:

1.Members meet as a group , but before any discussion

takes place each member independently writes downideas about the problem.

2.After this silent period, each member presents oneidea to the group.

3.Each member takes a turn, presenting a single ideauntil all ideas have been presented and recorded.

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NOMINAL GROUP TECHNIQUE(cont)

4.No discussion takes place until all ideas have been recorded.

5. The group then discussed the ideas for clarity and evaluatesthem .

6. Each group member silently and independently ranks theideas in order of value or quality.

7. The idea with the highest aggregate ranking determines thefinal decision.

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Advantage of the nominal grouptechnique

The chief advantage of the nominal grouptechnique is that :

it permits the group meet formally

but does not restrict independent thinking, asdoes the interacting group .

Research generally shows that nominalgroups outperform brainstorming groups.

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Up to 50 people sit around a horseshoe-shaped table, empty except for a series of responses into their computer terminals.

Issues are presented to participants, and theykeyboard their responses into their computers.

Individual comments as well as aggregatevotes, are displayed on a projection screen.

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Advantages of ElectronicMeeting Technique.

1.The proposed advantages of electronicmeetings are anonymity, honesty and speed.

2. Participants can anonymously type anymessage they want, and it flashes on thescreen for all to see at the push of a

participants key.

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3.It also allows people to be brutally honestwithout penalty.

4.And its supposedly fast because : chitchat is eliminated,discussions dont digress, and

many participants can talk at once without stepping on one anothers toes.

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DISADVANTAGES OF ELECTRONIC MEETING

The early evidence, however, indicates thatelectronic meetings dont achieve most of their proposed benefits.

Evaluations of numerous studies found that:

electronic meetings actually led to decreased group effectiveness,

required more time to complete tasks and resulted in reduced member satisfaction whencompared to face-to-face groups .

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DISADVANTAGES OF ELECTRONICMEETING (cont..)

Nevertheless, current enthusiasm for computer-mediated communicationssuggests that this technology is here to stayand is only likely to increase in popularity inthe future.

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THE DELPHI TECHNIQUE

1. The Delphi Technique is a method of systematically gathering judgments of experts for use in developing forecasts

2. It is designed for groups who do not meet face-to-face.

For E.g.. The product manager of a Mahor toy manufacturer might use this technique to probethe views of industry experts to forecast thedevelopments in the dynamic toy market.

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THE DELPHI TECHNIQUE (cont..)

3. The manager who wants the inputs of a groupis the central figure in the process.

4. After recruiting the participants, the manager develops a questionnaire for them to complete

5.The questionnaire is relatively simple in that it

contains straightforward questions that dealwith the issue, trends in the area, newtechnological developments and other factorsthe manager is interested in.

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THE DELPHI TECHNIQUE (cont..)

6. The manger summarizes the responses andreports back to the experts with other questionnaire

7. This cycle may be repeated as many timesas necessary to generate the information themanger needs.

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ADVANTAGES OF THE DELPHI TECHNIQUE

It is useful technique when experts are physicallydispersedAnonymity is desired, or the participants are

known to have trouble communicating with oneanother because of extreme differences of opinion.This method also avoids the intimidation problemsthat may exists in decision-making groups.

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TEAM

Team is a small number of people withcomplementary skills who are committed to acommon purpose, common performance

goals and an approach for which they holdthemselves mutually accountable.

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WORK GROUP

A group that interacts primarily to shareinformation and to make decision to helpeach group member to perform within his or

her area.

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DIFFERENCE BETWEEN A GROUPAND A TEAM

A work group is a group that interacts primarily to shareinformation and to make decisions to help each member performwithin his or her area of responsibility. Work groups have noneed or opportunity to engage in collective work that requires

joint effort. So their performance is merely the summation of

each group members individual contribution . There is nopositive synergy that would create an overall level of performance that is greater then the sum of the inputs.

In contrast, a work team generates positive synergy through

coordinated effort. Their individual efforts result in a level of performance that is greater then the sum of those individualinputs.

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TYPES OF TEAMS

The four most common types of teams are:1. Problem solving teams2. Self managed work teams

3. Cross-functional teams4. Virtual teams

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PROBLEM SOLVING TEAMS(cont..)For instance, Merrill Lynch created a problem-

solving team to specifically figure out ways toreduce the number of days it took to open up

new cash management account.By suggesting in the number of steps in the process from 46 to 36, the team was able to

reduce the average number of days from 15 to 8.

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SELF MANAGED WORK TEAMS

Self managed work teams are groups of employees (typically 10 to 15 in number) whoperform highly related or interdependent jobs

and take on many of the responsibilities of their former supervisors.

.

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SELF MANAGED WORK TEAMS(cont)

Fully self-managed work teams even selecttheir own members and have the membersevaluate each others performance.

As a result, supervisory positions take ondecreased importance and may even be

eliminated

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CROSS FUNCTIONAL TEAMS(cont..)

The Boeing example illustrates the use of cross-functional teams.

The Boeing company created a team made

up of employees from production, planning,quality, tooling, design engineering, and information systems to automate shims onthe companys C-17 program.

The teams suggestions resulted in drastically reduced cycle time, cost and improved quality on the C-17.

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CROSS FUNCTIONAL TEAMS(cont..)

Cross-functional teams are an effectivemeans for allowing people from diverse areaswithin an organization or even between the

organizations) to exchange information,develop new ideas, solve problems, and coordinate complex projects.

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VIRTUAL TEAMS (cont)

Virtual teams can do everything that other teams do other than face to face interaction.

Virtual teams tend to be more task orientedand exchange less social-emotionalinformation.

It allows people to work together who mightotherwise never be able to collaborate.

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Enhanced Performance(cont..)Enhanced performance can come in many

forms including:1. Improved productivity 2. Quality and 3. Customer service

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EMPLOYEE BENEFITS

Teams can provide the -sense of self-control Human dignity

Identification with work,Sense of self-worth and Sense of self fulfillment for which the current workers seems to strive

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EMPLOYEE BENEFITS (cont..)

Team gives the employees The freedom to grow To gain respect and dignity by managing themselves,Making decisions about their work and

Really making a difference in the world around them

As a result, employees have a better work life, face lessstress at work and make less use of employee

assistance programs.

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REDUCED COSTS

When the team members feel that1. they have a stake in the outcomes,2. want to make contributions because they are

valued and 3. Are committed to their team and do not want to

let it down show significant cost reduction

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REDUCED COSTS (cont..)

Empowered teams showing significant costreductions could be by-

1. Reducing scrap,2. make fewer worker compensation claims3. Reduce absenteeism and turn over.

ORGANIZATION ENHANCEMENTS

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ORGANIZATION ENHANCEMENTS

Improvements in organization that resultfrom other cultures to team based culturesincludes

1. Increased innovation2. Creativity and 3. flexibility

Use of teams can eliminate redundantlayers of bureaucracy and flatten thehierarchy in large organizations

T f B fi S ifi b fi O i i l l

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Type of Benefit Specific benefit Organizational examples

Enhanced performance Increased productivity

Improved qualityImproved customer service

Ampex: on-time customer deliveryrose 98%

KShoes: Rejects per million droppedfrom 5,000 50 250Eastman : Productivity rose 70%

Employee benefits Quality of work life

Lower stress

Milwaukee Mutual : Employeeassistance program usage dropped to40% below industry average

Reduced costs Lower turnover,AbsenteeismFewer injuries

Kodak : reduced employee turnover toone-half the industry averageTexas Instruments : reduced costsmore than 50%

Organizationalenhancements

Increased innovation,flexibility

IDS Mutual fund Operations : improvedflexibility to handle fluctuations inmarket activity.Helwet-Packard : Innovative order-processing system.

CREATING EFFECTIVE TEAMS

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CREATING EFFECTIVE TEAMS

The key components making up of effectiveteams can be subsumed into four generalcategories.

First is the resources and the other contextual influences that make teams effective.The second relates to the teams composition.The third category is work design.

Finally, process variables reflect those things that go on in the team that influences effectiveness.

PHASES OF TEAM

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PHASES OF TEAMIMPLEMENTATION

Implementation of teams in organization is a longand arduous processAfter the decision is made to initiate teams, the

steering committed develops the plans for thedesign team, which plans the entire process.The goal is for teams to become self-managing.The time it takes for each stage varies with theorganization

PHASES OF TEAM

PHASE 5:

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IMPLENTATION

Make the Decision

Plan theimplementation

PHASE 1:Start-Up

PHASE 2:Reality & Unrest

PHASE 3:Leader-Centered

Teams

PHASE 4:Tightly Formed Teams

Self-Managing teams