UNIT-IV

GROUP DYNAMICS

A group can be defined as several individuals who come together to

accomplish a particular task or goal. Group dynamics refers to the attitudinal and
behavioural characteristics of a group. Group dynamics concern how groups form,
their structure and process, and how they function. Group dynamics are relevant in
both formal and informal groups of all types. In an organizational setting, groups are
a very common organizational entity and the study of groups and group dynamics is
an important area of study in organizational behaviour.

DEFINITION:

Group dynamics is defined as “a social process by which people interact face to face
in small groups is group dynamics”.

Group dynamics is relevant to groups of all kinds – both formal and informal.
Thus group dynamics encompasses the dynamics of interaction patterns within the
group, the subtle within the group, the subtle and the non subtle pressures exerted by
group members. The manner in which decisions are made in the group, how work
gets done and how member’s needs are satisfied.

Group: Every organization is a group unto itself. A group refers to two or more
people who share a common meaning and evaluation of themselves and come
together to achieve common goals. In other words, a group is a collection of people
who interact with one another; accept rights and obligations as members and who
share a common identity.

Characteristics of a Group:

(a) 2 or more persons (if it is one person, it is not a group)

(b) Formal social structure (the rules of the game are defined)

(c) Common fate (they will swim together)

(d) Common goals (the destiny is the same and emotionally connected)

(e) Face-to-face interaction (they will talk with each other)

(f) Interdependence (each one is complimentary to the other)

(g) Self-definition as group members (what one is who belongs to the group)

(h) Recognition by others (yes, you belong to the group).

Process/Stages of Group Development/Evolution:

Group Development is a dynamic process. There is a process of five stages

through which groups pass through. The process includes the five stages: forming,
storming, forming, performing, and adjourning.

Forming: The first stage in the life of a group is concerned with forming a group.
This stage is characterized by members seeking either a work assignment (in a formal
group) or other benefit, like status, affiliation, power, etc. (in an informal group).
Members at this stage either engage in busy type of activity or show apathy.

Storming: The next stage in this group is marked by the formation of dyads and
triads. Members seek out familiar or similar individuals and begin a deeper sharing
of self. Continued attention to the subgroup creates a differentiation in the group and
tensions across the dyads / triads may appear. Pairing is a common phenomenon.
There will be conflict about controlling the group.

Norming: The third stage of group development is marked by a more serious

concern about task performance. The dyads/triads begin to open up and seek out
other members in the group. Efforts are made to establish various norms for task
performance.
Performing: This is a stage of a fully functional group where members see
themselves as a group and get involved in the task. Each person makes a contribution
and the authority figure is also seen as a part of the group. Group norms are followed
and collective pressure is exerted to ensure the Process of Group effectiveness of the
group.

Adjourning: In the case of temporary groups, like project team, task force, or any
other such group, which have a limited task at hand, also have a fifth stage, This is
known as adjourning.

The group decides to disband. Some members may feel happy over the
performance, and some may be unhappy over the stoppage of meeting with group
members. Adjourning may also be referred to as mourning, i.e. mourning the
adjournment of the group.

Types of Groups:

One way to classify the groups is by way of formality – formal and informal.
While formal groups are established by an organization to achieve its goals, informal
groups merge spontaneously. Formal groups may take the form of command groups,
task groups, and functional groups.

1. Command Groups: Command groups are specified by the organizational chart

and often consist of a supervisor and the subordinates that report to that supervisor.
An example of a command group is a market research firm CEO and the research
associates under him.

2. Task Groups: Task groups consist of people who work together to achieve a
common task. Members are brought together to accomplish a narrow range of goals
within a specified time period. Task groups are also commonly referred to as task
forces. The organization appoints members and assigns the goals and tasks to be
accomplished.

Examples of assigned tasks are the development of a new product, the improvement
of a production process, or designing the syllabus under semester system.
3. Functional Groups: A functional group is created by the organization to
accomplish specific goals within an unspecified time frame. Functional groups
remain in existence after achievement of current goals and objectives. Examples of
functional groups would be a marketing department, a customer service department,
or an accounting department.

Informal groups can have a strong influence in organizations that can either
be positive or negative. For example, employees who form an informal group can
either discuss how to improve a production process or how to create shortcuts that
jeopardize quality. Informal groups can take the form of interest groups, friendship
groups, or reference groups.

i. Interest Group: Interest groups usually continue over time and may last longer
than general informal groups. Members of interest groups may not be part of the
same organizational department but they are bound together by some other common
interest.

ii. Friendship Groups: Friendship groups are formed by members who enjoy
similar social activities, political beliefs, religious values, or other common bonds.
Members enjoy each other’s company and often meet after work to participate in
these activities. For example, a group of employees who form a friendship group may
have a yoga group, a Rajasthani association in Delhi, or a kitty party lunch once a
month.

iii. Reference Groups:A reference group is a type of group that people use to
evaluate themselves. The main objectives of reference groups are to seek social
validation and social comparison. Social validation allows individuals to justify their
attitudes and values while social comparison helps individuals evaluate their own
actions by comparing themselves to others. Reference groups have a strong influence
on members’ behavior. Such groups are formed voluntarily. Family, friends, and
religious affiliations are strong reference groups for most individuals.

Factors Affecting Group Behaviour:

The success or failure of a group depends upon so many factors. Group

member resources, structure (group size, group roles, group norms, and group
cohesiveness), group processes (the communication, group decision making
processes, power dynamics, conflicting interactions, etc.) and group tasks
(complexity and interdependence).

1. Group Member Resources:

The members’ knowledge, abilities, skills; and personality characteristics

(sociability, self- reliance, and independence) are the resources the group members
bring in with them. The success depends upon these resources as useful to the task.

2. Group Structure:
Group Size: Group size can vary from 2 people to a very large number of people.
Small groups of two to ten are thought to be more effective because each member has
ample opportunity to take part and engage actively in the group. Large groups may
waste time by deciding on processes and trying to decide who should participate
next.

Group Roles: In formal groups, roles are always predetermined and assigned to
members. Each role shall have specific responsibilities and duties. There are,
however, emergent roles that develop naturally to meet the needs of the groups.

Group Norms: Norms define the acceptable standard or boundaries of acceptable

and unacceptable behaviour, shared by group members. They are typically created in
order to facilitate group survival, make behaviour more predictable, avoid
embarrassing situations, and express the values of the group.

Group Cohesiveness: Cohesiveness refers to the bonding of group members or

unity, feelings of attraction for each other and desire to remain part of the group.
Many factors influence the amount of group cohesiveness – agreement on group
goals, frequency of interaction, personal attractiveness, inter-group competition,
favourable evaluation, etc.

3. Group Processes:

Decision-making by a group is superior, because group generates more

information and knowledge, generates diverse alternatives, increases acceptance of a
solution, and increases legitimacy. Decisions take longer time, minority is
dominated, pressure is applied to conform to group decisions, and none is
responsible for the decisions. Group processes also include communication, conflict
management, and leadership etc.

Formal groups vs. Informal groups:

Formal groups are created to achieve specific organisational objectives and are
concerned with the co-ordination of work activities.

formal groups may also be created by management for example, the use of project
teams in a matrix organisation. Formal groups tend to be relatively permanent
although there may be changes in actual membership. However, temporary.

Informal groups are based more on personal relationships and agreement of groups
members than on defined role relationships. They serve to satisfy psychological and
social needs not related necessarily to the tasks to be undertaken. Groups may devise
ways of attempting to satisfy members affiliations and other social motivations.
Informal Group vs. Formal Group:

Benefits of Groups:

1. Shared Experience and Knowledge: Each employee comes to a company

with a certain set of relevant skills and knowledge. Some of those experience
areas overlap while others are distinct to one or two employees. When you group
employees for work projects, everyone gets the advantage of shared knowledge
and experience. That pooled work experience makes it easier to tackle a difficult
project with different facets. If an employee works individually on a project, he
might struggle with some aspects of it because of limited experience. In a group,
he can draw on the expertise of his colleagues and potentially expand his own
knowledge.
2. Increased productivity and performance: groups that work well together
can achieve much more than individuals working on their own. A broader range
of skills can be applied to practical activities and sharing and discussing ideas can
play a pivotal role in deepening your understanding of a particular subject area.
3. Skills development: being part of a team will help you develop your
interpersonal skills such as speaking and listening as well as team working skills
 such as leadership, and working with and motivating others. Some of these skills
will be useful throughout your academic career and all are valued by employers.
4. Knowing more about yourself: collaborating with others will help identify
your own strengths and weaknesses (for example, you may be a better leader
than listener, or you might be good at coming up with the 'big ideas' but not so
good at putting them into action).
5. Support: The sense of security and support a team creates may encourage
employees to take more risks. Where an employee may be conservative when
working on an individual project, she may find encouragement and
inspiration from team members to push herself further. Working individually
sometimes creates a sense of isolation and makes employees feel as if they
have no one else behind them. The support of the team environment helps
some employees increase productivity and become more motivated at work.
Motivation:

The term Motive is derived from the Latin word “Movere”. It means to move
motive is defined as an inner state that energies activates and directs the behaviour
of an individual towards certain goals. Motivation implies that one person induces
another person to engage in action or desired work behaviour by ensuring that a
channel to direct the motive of the person becomes and available accessible to the
person.

Def: Berelson and Steiner:

“A motive is an inner state that energizes, activates, or moves and directs or channels
behaviour goals.”

According to encyclopaedia of management “Motivation refers to the degree

of readiness in organization to pursue some designated goals and implies the
determination of the nature and locus of the forces including the degree of
readiness”.

Nature of Motivation:

Motivation is a psychological phenomenon which generates within an individual. A

person feels the lack of certain needs, to satisfy which he feels working more. The

need satisfying ego motivates a person to do better than he normally does.

From definitions given earlier the following inferences can be derived:

1. Motivation is an inner feeling which energizes a person to work more.
2. The emotions or desires of a person prompt him for doing a particular work.
3. There are unsatisfied needs of a person which disturb his equilibrium.
4. A person moves to fulfil his unsatisfied needs by conditioning his energies.
5. There are dormant energies in a person which are activated by channelizing them
into actions.

Types of Motivation:

When a manager wants to get more work from his subordinates then he will

have to motivate them for improving their performance. They will either be offered

incentive for more work, or may be in the space of rewards, better reports,

recognition etc., or he may instil fear in them or use force for getting desired work.

The following are the types of motivation:

1. Positive Motivation: Positive motivation or incentive motivation is based on

reward. The workers are offered incentives for achieving the desired goals. The
incentives may be in the shape of more pay, promotion, recognition of work, etc. The
employees are offered the incentives and try to improve their performance willingly.

According to Peter Drucker, the real and positive motivators are responsible

for placement, high standard of performance, information adequate for self- control

and the participation of the worker as a responsible citizen in the plant community.

Positive motivation is achieved by the co-operation of employees and they have a

feeling of happiness.

2. Negative Motivation: Negative or fear motivation is based on force or fear.

Fear causes employees to act in a certain way. In case, they do not act accordingly
then they may be punished with demotions or lay-offs. The fear acts as a push
mechanism. The employees do not willingly co-operate, rather they want to avoid the
punishment.

Though employees work up-to a level where punishment is avoided but this

type of motivation causes anger and frustration. This type of motivation generally

becomes a cause of industrial unrest. In spite of the drawbacks of negative

motivation, this method is commonly used to achieve desired results. There may be
hardly any management which has not used negative motivation at one or the other

time.

Significance/Importance of Motivation:

Motivation is an integral part of the process of direction.

1. High Efficiency: A good motivational system releases the immense untapped

reservoirs of physical and mental capabilities. A number of studies have shown that
motivation plays a crucial role in determining the level of performance. “Poorly
motivated people can nullify the soundest organisation.” said Allen.
By satisfying human needs motivation helps in increasing productivity. Better
utilisation of resources lowers cost of operations. Motivation is always goal directed.
Therefore, higher the level of motivation, greater is the degree of goal
accomplishment.
2. Better Image: A firm that provides opportunities for financial and personal
advancement has a better image in the employment market. People prefer to work
for an enterprise because of opportunity for development, and sympathetic outlook.
This helps in attracting qualified personnel and simplifies the staffing function.
3. Facilitates Change: Effective motivation helps to overcome resistance to
change and negative attitude on the part of employees like restriction of output.
Satisfied workers take interest in new organisational goals and are more receptive to
changes that management wants to introduce in order to improve efficiency of
operations.
4. Human Relations: Effective motivation creates job satisfaction which results in
cordial relations between employer and employees. Industrial disputes, labour
absenteeism and turnover are reduced with consequent benefits. Motivation helps to
solve the central problem of management, i.e., effective use of human resources.
Without motivation the workers may not put their best efforts and may seek
satisfaction of their needs outside the organisation.

Maslow’s Need hierarchy theory:

 Abraham Maslow developed the Hierarchy of Needs model in 1940-50s USA,
and the Hierarchy of Needs theory remains valid today for understanding human
motivation, management training, and personal development. Indeed, Maslow's
ideas surrounding the Hierarchy of Needs concerning the responsibility of employers
to provide a workplace environment that encourages and enables employees to fulfill
their own unique potential (self-actualization) are today more relevant than ever.

Maslow's hierarchy of needs is often portrayed in the shape of a pyramid with

the largest, most fundamental levels of needs at the bottom and the need for self-
actualization at the top. He most fundamental and basic four layers of the pyramid
contain what Maslow called "deficiency needs" or "d-needs": esteem, friendship and
love, security, and physical needs.

Physiological Needs

Physiological needs are those required to sustain life, such as:

 Air

 Water

 Nourishment

 Sleep
  Cloth

According to Maslow's theory, if such needs are not satisfied then one's
motivation will arise from the quest to satisfy them. Higher needs such as social
needs and esteem are not felt until one has met the needs basic to one's bodily
functioning.
Safety
Once physiological needs are met, one's attention turns to safety and security in
order to be free from the threat of physical and emotional harm. Such needs might be
fulfilled by:

 Living in a safe area

 Medical insurance

 Job security

 Financial reserves

According to Maslow's hierarchy, if a person feels that he or she is in harm's

way, higher needs will not receive much attention.
Social Needs
Once a person has met the lower level physiological and safety needs, higher level
needs become important, the first of which are social needs. Social needs are those
related to interaction with other people and may include:

 Need for friends

 Need for belonging

 Need to give and receive love

Esteem
Once a person feels a sense of "belonging", the need to feel important arises.
Esteem needs may be classified as internal or external. Internal esteem needs are
those related to self-esteem such as self respect and achievement. External esteem
needs are those such as social status and recognition. Some esteem needs are:
 Self-respect
 Achievement
 Attention
  Recognition
 Reputation
Maslow later refined his model to include a level between esteem needs and
self-actualization: the need for knowledge and aesthetics.

Self-Actualization
Self-actualization is the summit of Maslow's hierarchy of needs. It is the quest
of reaching one's full potential as a person. Unlike lower level needs, this need is
never fully satisfied; as one grows psychologically there are always new opportunities
to continue to grow.

Self-actualized people tend to have needs such as:

 Truth

 Justice

 Wisdom

 Meaning

Self-actualized persons have frequent occurrences of peak experiences, which

are energized moments of profound happiness and harmony. According to Maslow,
only a small percentage of the population reaches the level of self-actualization.

However, not all people are driven by the same needs - at any time different
people may be motivated by entirely different factors. It is important to understand
the needs being pursued by each employee. To motivate an employee, the manager
must be able to recognize the needs level at which the employee is operating, and use
those needs as levers of motivation.

Herz-berg Two factor theory:

The Two Factor Theory is based on a study by Frederick Herzberg (1959). He

wanted to find out if there are universal and consistent factors that affect motivation
at work. The results of his survey turned out to be very consistent, revealing two
distinct groups of factors affecting motivation at work.
 Herzberg called the first group of factors “Hygiene Factors”. If absent or
weak, these factors caused dissatisfaction. However, Hygiene Factors could not
create a feeling of satisfaction and create an above average level of motivation the
second group of factors is called “Motivators”. These factors lead to above-average
motivation and a clear feeling of satisfaction. These factors concern the job itself, like
the importance of the job.
Herzberg argues that Hygiene factors can only prevent dissatisfaction, but not
create satisfaction. He postulates that superiors need to strengthen the “Motivators”
in order to create a positive work culture and motivate the employees.

While the Motivator-Hygiene concept is still well regarded, satisfaction and

dissatisfaction are generally no longer considered to exist on separate scales. The
separation of satisfaction and dissatisfaction has been shown to be an artefact of
the Critical Incident Technique (CIT) used by Herzberg to record
events. Furthermore, it has been noted the theory does not allow for individual
differences, such as particular personality traits, which would affect individuals'
unique responses to motivating or hygiene factors.

Douglas McGregor Theory: He divides leadership is two styles labeled theory “X”
and theory “Y”. The traditional styles of leadership and controls stated in theory ‘X’
by McGregor, is exercised to managers on the basis of his assumptions about human
beings. These assumptions as laid down or observed by McGregor for theory ‘X’ are
Theory “X”:
 1. An average human being does not like to work and he tries to avoid it as far as
possible.
2. He avoids accepting responsible and challenging tasks, has no ambition but
wants security above all.

3. Because of this, the employees are to be forced, concerned and threatened

with punishments to make them put their best efforts.

These people would not work sincerely and honestly under democratic
conditions.
However the above assumptions re not based on research finding. The
autocratic style basically presumes that workers are generally lazy, avoid work and
shrink responsibilities. It is believed that workers are more interested in money and
security based on these assumptions the leadership styles developed, insists on
tighter control and supervision.
Theory of “Y”:
It focuses a totally different set of assumptions about the employees
1. Some employees consider work as natural as play or rest.
2. These employees are capable of directing and controlling performance on
their own
3. They are much committed to the objectives of the organization
4. Higher rewards make these employees more committed to organization.
5. Given an opportunity they not only accept responsibility but also look for
opportunities to outperform others.
6. Most of them highly imaginative, creative and display ingenuity in handling
organizational issues.
POTER & LAWLER THEORY OF MOTIVATION:

All the content theories assume that satisfaction leads to improved

performance however it was later found that there is a very low positive relationship
between satisfaction and performance. Lyman W. Porter and Edward E. Lawler
exploded the complex relationship between motivation, satisfaction and
performance.

According to them performance is a function of three important factors.

1. If an employee wants to perform he must be motivated

2. Motivation does not alone ensure performance and hence a person must have
the necessary abilities and skills as well.
 3. An employee must have an accurate knowledge of the requirements of the job.

1. Effort:
Effort refers to the amount of energy which a person exerts on a job.

2. Value of Reward:
First. This is referred to as valence in Vroom’s theory. A person who is looking for
more money, for example, extra vacation time of all people try to figure out whether
the rewards that are likely to be received from doing a job will be attractive to them

may not be an attractive reward. If the reward to be obtained is attractive or valent

then the individual will put extra efforts to perform the job. otherwise he will lower

his effort.

3. Perceived Effort Reward Probability:

In addition, before people put forth any effort, they will also try to assess the

probability of a certain level of effort leading to a desired level of performance and

the possibility of that performance leading to certain kinds of rewards. Based on the

valence of the reward and the effort reward probability, people can decide to put in

certain level of work effort.

4. Performance:

Effort leads to performance. The expected level of performance will depend upon the

amount of effort, the abilities and traits of the individual and his role perceptions.

Abilities include knowledge, skills and intellectual capacity to perform the job. Traits

which are important for many jobs are endurance, pre-servance, and goal

directedness. Thus, abilities and traits will moderate the effort- performance

relationship.