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Chapter Three
FOUNDATIONS OF GROUP BEHAVIOUR

4.1 WORK GROUPS

A group is defined as two or more individuals, interacting and interdependent, who have come
together to achieve particular objectives. It is may be defined as two or more people who bear an
explicit psychological relationship to one another. The groups are bound by the perceptual periphery of
their members. This idea of a boundary is fundamental to the modem group concept. It is useful to think of a
group as a network of relations within which roles emerge. Groups consist of two or more people who
meet the requirements of inter-dependence & also share an ideology. "Group Dynamics" refers to the
adjustive changes in the group structure as a whole produced by changes in any part of the group.

A comprehensive definition would say that if a group exists in an organisation, its members:

1. Are motivated to join

2. Perceive the group as a unified unit of interacting people
3. Contribute in various amounts to the group processes
4. Reach agreements and have disagreements through various forms of interaction.

TYPES OF GROUPS

Formal Groups

The demands and processes of the organization lead to the formation of different types of groups.
Specifically, at least two types of formal groups exist: command and task.

 Command Group The command group is specified by the organization chart and is
made up of the subordinates who report directly to a given supervisor. The authority
relationship between a department manager and the supervisors, or between a senior nurse
and her subordinates, is an example of a command group.

 Task Group A task group comprises the employees who work together to complete a
particular task or project. For example, the activities of clerks in an insurance company when
an accident claim is filed are required tasks. These activities create a situation in which several
clerks must communicate and coordinate with one another if the claim is to be handled
properly. These required tasks and interactions facilitate the formation of a task group. The
nurses assigned to duty in the emergency room of a hospital usually constitute a task group,
since certain activities are required when a patient is treated.

Informal Groups
A group that is neither formally structured nor organizationally determined; appears in response to the need
for social contact. Informal groups are natural groupings of people in work environments in response
to social needs. In other words, informal groups are not deliberately created; they evolve naturally.
Two specific types of informal groups are interest and friendship.

 Interest Groups Individuals who may not be members of the same command, task group, or
team may come together to achieve some mutual objective. Examples of interest groups
include employees grouping together to present a unified front to management for more
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benefits and waitresses "pooling" their tips. Note that the objectives of such groups are not
related to those of the organization, but are specific to each group.

 Friendship Groups Many groups form because the members have something in common
such as age, political beliefs, or ethnic background. These friendship groups often extend
their interaction and communication to off-the-job activities.

Other classification of Groups:

 Work Group: A group that interacts primarily to share information & make decisions to help members
perform within his area of responsibility.
 Cliques: Small informal groups within work or task groups which the formal groups get splintered into
because of the size, or common interest or common characteristics.
 Coalitions: Clusters of individuals who temporarily come together to achieve a specific purpose.
 Membership Group: A group in which an individual belongs to or is admitted to.
 Aspirant Group: A group, which an individual aspires to belong to.
 Primary group: Primary group comprises all those with whom an individual regularly and intimately
interacts, for example, family, friends, etc.
 Secondary group: A group with which interaction is less intimate and interaction is not very high, for
example, co-workers in an organisation who do not belong to the same command or task group.
 Associative Group: A group with which an individual would like to be associated with, for example,
those belonging to higher income groups, celebrities and other influential persons with which a middle
income group individual or any other person would like to mingle with.
 Dissociative Group: A group with which an individual does not want to be associated with, for example,
lower income groups for the status-conscious groups.

The Dynamics of Group Formation: People join groups for the following reasons:
 Satisfaction
o SECURITY: By joining a group, individuals can reduce the insecurity of "standing
alone." People feel stronger, have fewer self-doubts, and are more resistant to threats when
they are part of a group.
o STATUS: Inclusion in a group that is viewed as important by others provides recognition and
status for its members.
o SELF-ESTEEM: Groups can provide people with feelings of self-worth. That is in addition to
conveying status to those outside the group, membership can also give increased feelings of worth
to the group members themselves.
o AFFILIATION: Groups can fulfil social needs. People enjoy the regular interaction that comes
with group membership. For many people, these on-the-job interactions are their primary source
for fulfilling their needs for affiliation.
 POWER: What cannot be achieved individually often becomes possible through group action. There is
power in numbers.
 PROXIMITY:
 ATTRACTION:
 SIMILARITY:
 GOAL ACHIEVEMENT: There are times when it takes more than one person to accomplish a
particular task - there is a need to pool talents, knowledge, or power in order to complete a job. In such
instances, management will rely on the use of a formal group.

THEORIES OF GROUP FORMATION:

Balance theory of group formation: This theory is based on activities, interactions, and sentiments. These
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three are directly related to one another. The more activities persons share, the more numerous will be their
interactions and stronger will be their sentiments; the more interactions among persons, the more will be their
shared activities and sentiments; and the more sentiments persons have for one another, the more will be their
shared activities and interactions. The theory states that persons are attracted to one another on the basis of similar
attitudes toward commonly relevant objects and goals.

Exchange theory: Exchange theory is based upon reward-cost outcomes of interaction. A minimum positive level
(rewards greater than costs) of an outcome must exist in order for attraction or affiliation to take place. Rewards
from interactions gratify needs, while costs incur anxiety, frustration, embarrassment, or fatigue.

A Model of Group Formation and Development

THE FIVE STAGES GROUP-DEVELOPMENT MODEL

Groups go through five distinct stages of development namely; Forming, Storming, Norming,
Performing, & Adjourning.

1. Forming: It is the first stage of group development. It is called the ‘ice breaking stage’ where
everyone is getting to know one another. Group members get to know one another and learn
about the function of the group. This initial stage is marked by uncertainty and even confusion.
Group members are not sure about the purpose, structure, task, or leadership of the group.

2. Storming: It is the second stage of group development where group roles and hierarchy are
established. This stage of development, as indicated by the term, is characterized by conflict and
confrontation. (In the usually emotionally charged atmosphere, there may be considerable
disagreement and conflict among the members about roles and duties.)
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3. Norming: Finally, in this stage the members begin to settle into cooperation and collaboration.
They have a "we" feeling with high cohesion, group identity, and camaraderie. In this stage, the group
becomes a cohesive unit and members begin to understand their group roles. Also known as the
initial integration stage.

4. Performing: This is the stage where the group is fully functioning and devoted to effectively
accomplishing die tasks agreed upon in die forming stage. (This is the final stage if the group is
permanent, but the group may go through the stages again, starting at the storming stage.) In
this stage, the group focuses on the tasks or project they were formed to complete. Also known
as the total integration stage.

5. Adjourning: This represents the end of the group, which in ongoing, permanent groups will never
be reached. However, for project teams or task forces with a specific objective, once the objective is
accomplished, the group will disband or have a new composition, and the stages will start over again.

GROUP BEHAVIOUR MODEL (EXPLAINING WORK GROUP MODEL)

EXTERNAL CONDITIONS IMPOSED ON THE GROUP

Work groups don't exist in isolation. They're part of a larger organization. So every work group is influenced
by external conditions imposed from outside it. These external conditions include the organization's overall
strategy, its authority structures, formal regulations, resources, employee selection process, performance
evaluation and reward systems, culture, and physical work setting.

GROUP MEMBER RESOURCES: A group's potential level of performance depends, to a large extent,
on the resources that its members individually bring to the group. Knowledge, skills, and abilities: Part of a
group's performance can be predicted by assessing the knowledge, skills, and abilities of its individual
members. A review of the evidence has found that interpersonal skills consistently emerge as important for
high work group performance. These include conflict management and resolution, collaborative problem
solving, and communication.

Personality characteristics: The general conclusion is that attributes that tend to have a positive
connotation in our culture tend to be positively related to group productivity, morale, and cohesiveness. These
include traits such as sociability, initiative, openness, and flexibility. In contrast, negatively evaluated
characteristics such as authoritarianism, dominance, and unconventionality tend to be negatively related to the
dependent variables. These personality traits affect group performance by strongly influencing how the
individual will interact with other group members.
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GROUP STRUCTURE: Work groups have a structure that shapes the behaviour of members and makes it
possible to explain and predict a large portion of individual behaviour within the group as well as the
performance of the group itself. Some of these structural variables include formal leadership, roles, norms,
group status, group size, composition of the group, and the degree of group cohesiveness.
Formal Leadership: Almost every work group has a formal leader. He or she is typically identified by titles
such as unit or department manager, supervisor, foreman, project leader, task force head, or committee chair.
This leader can play an important part in the group's success and effect individual and group performance
variables.

Roles: All group members are actors, each playing a role. A role is a set of expected behaviour patterns
attributed to someone occupying a given position in a social unit. The understanding of role behaviour would be
greatly simplified if each of us chose one role and "played it out" regularly and consistently. We all are
required to play a number of roles, and our behaviour varies with the role we are playing. So different groups
impose different role requirements on individuals. As we shall see, one of the tasks in understanding
behaviour is grasping the role that a person is currently playing.

Role Identity: There are certain attitudes and actual behaviours consistent with a role, and they create the
role identity. People have the ability to shift roles rapidly when they recognize that the situation and its
demands clearly require major changes. For instance, when union stewards were promoted to supervisory
positions, it was found that their attitudes changed from pro-union to pro-management within a few months
of their promotion.

Role Perception: One's view of how one is supposed to act in a given situation is a role perception.
Based on an interpretation of how we believe we are supposed to behave, we engage in certain types of behaviour.

Role Expectations: Role expectations are defined as how others believe you should act in a given situation.
How you behave is determined to a large extent by the role defined in the context in which you are acting.
When role expectations are concentrated into generalized categories, we have role stereotypes. There is an
unwritten agreement that exists between employees and their employer. This psychological contract sets out
mutual expectations-what management expects from workers, and vice versa. In effect, this contract defines
the behavioural expectations that go with every role. Management is expected to treat employees justly,
provide acceptable working conditions, clearly communicate what is a fair days work, and give feedback on
how well the employee is doing. Employees are expected to respond by demonstrating a good attitude,
following directions, and showing loyalty to the organization. The psychological contract should be
recognized as a "powerful determiner of behaviour in organizations. It points out the importance of accurately
communicating role expectations.

Role Conflict: When an individual is confronted by divergent role expectations, the result is role conflict. It
exists when an individual finds that compliance with one role requirement may make more difficult the
compliance with another. Conflicts imposed by divergent expectations within organization impact on
behaviour. Certainly, they increase internal tension and frustration. There are a number of behavioural
responses in which one may engage. For example, one can give a formalized bureaucratic response. The
conflict is then resolved by relying on the rules, regulations, and procedures that govern organizational
activities. Other behavioural responses may include withdrawal, stalling, negotiation, or dissonance
(redefining the facts or the situation make them appear congruent.)

Norms: All groups have established norms, that is, acceptable standards of behaviour that are shared by the
group's members. Norms tell members what they ought and ought not to do under certain circumstances.
From an individual's standpoint, they tell what is expected of you in certain situations. When agreed to and
accepted by the group, norms act as a means of influencing the behaviour of group members with a minimum
of external controls. Norms differ among groups, communities, and societies, but they all have them.
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Common Classes of Norms: Performance norms: Work groups typically provide their members with explicit
cues on how hard they should work, how to get the job done, their level of output, appropriate levels of
tardiness, and the like. These norms are extremely powerful in affecting an individual employee's
performance - they are capable of significantly modifying a performance prediction that was based solely on
the employee's ability and level of personal motivation. Appearance norms: These include things such as
appropriate dress, loyalty to the work group or organization, when to look busy, and when it's acceptable to
goof off. Some organizations have formal dress codes. Similarly, presenting the appearance of loyalty is
important, especially among professional employees and those in the executive ranks. So it's often considered
inappropriate to be openly looking for another job. Social arrangement norms: These norms come from
informal work groups and primarily regulate social interactions within the group. With whom group
members eat lunch, friendships on and off the job, social games, and the like are influenced by these norms.
Allocation of resources norms: These norms can originate in the group or in the organization and cover things
such as pay, assignment of difficult jobs, and allocation of new tools and equipment.
Conformity: As a member of a group, you desire acceptance by the group. Because of your desire for
But what makes a norm important? (1). If it facilitates the group's survival. Groups don't like to fail, so
they look to enforce those norms mat increase their chances for success. This means that they'll try to
protect themselves from interference from other groups or individuals. (2) If it increases the predictability
of group members' behaviours. Norms that increase predictability enable group members to anticipate
each other's actions and to prepare appropriate responses. (3) If it reduces embarrassing interpersonal
problems for group members. Norms are important if they ensure the satisfaction of their members and
prevent as much interpersonal discomfort as possible. (4) If it allows members to express the central values
of the group and clarify what is distinctive about the group's identity. Norms that encourage expression of
the group's values and distinctive identity help to solidify & maintain the group.
acceptance, you are susceptible to conforming to the group's norms. There is considerable evidence that
groups can place strong pressures on individual members to change their attitudes and behaviours to conform
to the group's standard. People conform to the important groups to which they belong or hope to belong. The
important groups have been referred to as reference groups and are characterized as ones in which the person
is aware of the others; the person defines himself or herself as a member, or would like to be a member; and
the person feels that the group members are significant to him or her. The implication, then, is that all groups
do not impose equal conformity pressures on their members. Conformity thus refers to the adjusting of one's
behaviour to align with the norms of the group.

Status: A socially defined position or rank given to groups or group members by others. Status is an
important factor in understanding human behaviour because it is a significant motivator and has major
behavioural consequences when individuals perceive a disparity between what they believe their status to be
and what others perceive it to be.

Status and Norms: Status has been shown to have some interesting effects on the power of norms and
pressures to conform. For instance, high-status members of groups often are given more freedom to deviate
from norms than are other group members. High-status people also are better able to resist conformity
pressures than their lower-status peers.

Status Equity: It is important for group members to believe that the status hierarchy is equitable. When
inequity is perceived, it creates disequilibrium that results in various types of corrective behaviour. People
expect rewards to be proportionate to costs incurred. Employees expect the things an individual has and
receives to be congruent with his or her status.

Status and Culture: The importance of status does vary between cultures. The message here is to make sure
you understand who and what holds status when interacting with people from a culture different than your
own. An American manager who doesn't understand mat office size is no measure of a Japanese executive's
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position or who fails to grasp the importance that the British place on family genealogy and social class is
likely to unintentionally offend his Japanese or British counterpart and, in so doing, lessen his interpersonal
effectiveness.

Size: The size of a group affects the group's overall behaviour. The evidence indicates, for instance, that
smaller groups are faster at completing tasks than are larger ones. However, if the group is engaged in
problem solving, large groups consistently get better marks than their smaller counterparts. Large groups-a
dozen or more member- are good for gaining diverse input. So if the goal of the group is fact-finding, larger
groups should be more effective. On the other hand, smaller groups are better at doing something productive
with that input Groups of approximately seven members tend to be more effective for taking action. One of
the most important findings related to the size of a group has been labelled social loafing. Social loafing is the
tendency for individuals to expend less effort when working collectively than when working individually - it
directly challenges the logic that the productivity of the group as a whole should at least equal the sum of the
productivity of each individual in that group.

Composition: Most group activities require a variety of skills and knowledge. Evidence generally supports
the conclusion that heterogeneous groups perform more effectively than do those that are homogeneous since
the heterogeneous groups would be more likely to have diverse abilities and information. Essentially,
diversity promotes conflict, which stimulates creativity and leads in turn to improved decision making.
Variable group demography: This is the degree to which members of a group share a common demographic
attribute, such as age, sex, race, educational level, or length of service in the organization, and the impact of
this attribute on turnover. The composition of a group may be an important predictor of turnover. Differences
per se may not predict turnover. But large differences within a single group will lead to turnover. If everyone
is moderately dissimilar from everyone else in a group, the feelings of being an outsider are reduced. So, it's
the degree of dispersion on an attribute, rather than the level, that matters most.

Cohesiveness: Groups differ in their cohesiveness, that is, the degree to which members are attracted to
each other and are motivated to stay in the group. Studies consistently show that the relationship of
cohesiveness and productivity depends on the performance-related norms established in that group.

Group processes can produce positive results. Groups can produce synergy, ie., groups can create outputs
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greater than the sum of its parts. Synergy is a term that refers to an action of two or more substances that
results in an effect that is different from the individual summation of the substances. Whereas, social loafing
represents negative synergy. In this case the whole is less than the sum of its parts. The social facilitation
effect helps us to understand group process better. The Social facilitation effect refers to the tendency for
performance to improve or decline in response to the presence of others. The research on social facilitation
tells us that the performance of simple, routine tasks tend to be speeded up and made more accurate by the
presence of others. When the work is more complex, requiring closer attention, the presence of others is likely
to have a negative effect on performance. So process gains will be maximised by training people for simple
tasks in groups, while training people for complex tasks in individual private practice sessions.

GROUP TASKS: Research on group effectiveness tells us that management would be well advised to use a
larger group for the tasks that depend on its facilitation or accomplishment for pooling of varied and diverse
information and perspective. Similarly, more information processing is required for tasks that have higher
uncertainness - those that are complex and interdependent. But when a group's task is coordinating and
implementing a decision the process loss created by each additional member's presence is likely to be greater
than the process gain he or she makes. So the size-performance relationship is moderated by the group's task
requirements. The impact of group processes on the group's performance and member satisfaction is also
moderated by the tasks that the group is doing. The evidence indicates that the complexity and
interdependence of tasks influence the group's effectiveness. Effective communication and minimal levels of
conflict should be more relevant to group performance when tasks are interdependent.

GROUP DECISION MAKING

Strengths of Group Decision Making: Groups generate more complete information and knowledge;
therefore, bring more input into the decision process. They also increased diversity of views thereby
generating higher quality decisions. Moreover, group members who participated in making decisions are
likely to enthusiastically support the decision and encourage others to accept it.

Weaknesses of Group Decision Making: Group decision-making is time consuming. There are conformity
pressures in groups resulting in squashing any overt disagreement. Group discussion can be dominated by
one or a few members possibly affecting the group's overall effectiveness. Group decisions suffer from
ambiguous responsibility.

Effectiveness & Efficiency: Depending upon the criteria used for effectiveness, in terms of accuracy, group
decisions will tend to be more accurate. The evidence indicates that, on the average, groups make better-
quality decisions than individuals. However, in terms of speed, individuals are superior to groups, In terms of
creativity, group tends to be more effective than individuals. In terms of the degree of acceptance of the final
solution, group decision-making is better. But effectiveness cannot be considered "without also assessing
efficiency.” In terms of efficiency, groups are generally less efficient than individuals. Group decision-
making consumes more time than if an individual were to tackle the same problem alone. In deciding
whether to use groups, then, consideration should be given to assessing whether increases in effectiveness are
more than enough to offset the losses in efficiency.

GROUPTHINK AND GROUP SHIFT These are the two by-products of group decision-making and have
the potential to affect the group's ability to appraise alternatives objectively to arrive at quality decision
solutions.
Groupthink is a phenomenon in which the norm for consensus overrides the realistic appraisal of alternative
courses of action. It describes situations in which group pressures for conformity deter the group from
critically appraising unusual, minority, or unpopular views.
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Symptoms of Groupthink
There is the illusion of invulnerability. There is excessive optimism and risk taking.
There are rationalisations by the members of the group to discount warnings.
There is an unquestioned belief in the group's inherent mortality. The group ignores
questionable ethical or moral issues or stances.
Those who oppose the group are stereotyped as evil, weak, or stupid.
There is direct pressure on any member who questions the stereotypes. Loyal members don't
question the direction in which the group seems to be heading.
There is self-censorship of any deviation from the apparent group consensus.
There is the illusion of unanimity. Silence is interpreted as consent.
There are self-appointed mind-guards who protect the group from adverse information.

Groupthink seems to occur most often where there is a clear group identity, where members hold a positive
image of their group that they want to protect, and where the group perceives a collective threat to this
positive image. So groupthink is not a dissenter suppression mechanism as much as it's a means for a group
to protect its positive image. What managers can do to minimize groupthink is encourage group leaders to
play an impartial role. Leaders should actively seek input from all members and avoid expressing their own
opinions, especially in the early stages of deliberation. Another thing is to appoint one group member to play
the role of devil's advocate. This member's role is to overtly challenge the majority position and offer
divergent perspectives. Still another suggestion is to utilize exercises that stimulate active discussion of
diverse alternatives without threatening the group and intensifying identity protection. One such exercise is to
have group members talk about dangers or risks involved in a decision and delaying discussion of any
potential gains. By requiring members to first focus on the negatives of a decision alternative, the group is
less likely to stifle dissenting views and more likely to gain an objective evaluation.

Groupshift refers to a change in decision risk between the group's decision and the individual decision that
members within the group would make; can be either toward conservatism or greater risk. In comparing
group decisions with the individual decisions of members within the group, evidence suggests that there are
differences. In some cases, the group decisions are more conservative than the individual decisions. More
often, the shift is toward greater risk. What appears to happen in groups is that the discussion leads to a
significant shift in the positions of members toward a more extreme position in the direction in which they
were already leaning before the discussion. Findings on groupshift have shown that group decisions
exaggerate the initial position of the individual members, that the shift has been shown more often to be
toward greater risk, and that whether or not a group will shift toward greater risk or caution is a function of
the members' prediscussion inclinations.
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SUMMARY & IMPLICATIONS FOR MANAGERS:

PERFORMANCE Any predictions about a group's performance must begin by recognizing that work
groups are part of a larger organization and that factors such as the organization's strategy, authority structure,
selection procedures, and reward system can provide a favourable or unfavourable climate for the group to
operate within. For example, if an organization is characterized by distrust between management & workers,
it is more likely that work groups in that organization will develop norms to restrict effort & output than will
work groups in an organization in which trust is high. So managers shouldn't took at any group in isolation.
Rather, they should begin by assessing the degree of support external conditions provide the group. It is
obviously a lot easier for any work group to be productive when the overall organization of which it is a part
is growing and it has both top management's support and abundant resources. Similarly, a group is more
likely to be productive when its members have the requisite skills to do the group's tasks and the personality
characteristics that facilitate working well together. A number of structural factors show a relationship to
performance. Among the more prominent are role perception, norms, status inequities, the size of the group,
its demographic makeup, the group's task, and cohesiveness. There is a positive relationship between role
perception and an employee's performance evaluation. The degree of congruence that exists between an
employee and his or her boss in the perception of the employee's job influences the degree to which that
employee will be judged as an effective performer by the boss. To the extent that the employee's role
perception fulfils the boss's role expectations, the employee will receive a higher performance evaluation.
Norms control group member behaviour by establishing standards of right and wrong. If managers know the
norms of a given group, it can help to explain the behaviours of its members. When norms support high
output, managers can expect individual performance to be markedly higher than when group norms aim to
restrict output Similarly, acceptable standards of absenteeism will be dictated by the group norms. Status
inequities create frustration and can adversely influence productivity and the willingness to remain with an
organization. Among those individuals who are equity sensitive, incongruence is likely to lead to reduced
motivation and an increased search for ways to bring about fairness (i.e., taking another job). The impact of
size on a group's performance depends upon the type of task in which the group is engaged. Larger groups
are more effective at fact-finding activities. Smaller groups are more effective at action-taking tasks. Our
knowledge of social loafing suggests that if management uses larger groups, efforts should be made to
provide measures of individual performance within the group. It is found that the group's demographic
composition is a key determinant of individual turnover. Specifically, the evidence indicates that group
members who share a common age or date of entry into the work group are less prone to resign. We also
found that cohesiveness can play an important function in influencing a group's level of productivity.
Whether or not it does depends on the group's performance-related norms. The primary contingency variable
moderating the relationship between group processes and performance is the group's task. The more complex
and interdependent the tasks, the more that inefficient processes will lead to reduced group performance.

SATISFACTION As with the role perception-performance relationship, high congruence between a boss and
employee, as to the perception of the employee's job, shows a significant association with high employee
satisfaction. Similarly, role conflict is associated with job-induced tension and job dissatisfaction. Most
people prefer to communicate with others at their own status level or a higher one rather than with those
below them. As a result, we should expect satisfaction to be greater among employees whose job minimizes
interaction with individuals who are lower in status than themselves. The group size-satisfaction relationship
is what one would intuitively expect: Larger groups are associated with lower satisfaction. As size increases,
opportunities for participation & social interaction decrease, as does the ability of members to identify with
the group's accomplishments. At the same time, having more members also prompts dissension, conflict, and
the formation of sub-groups, which all act to make the group a less pleasant entity of which to be a part.
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4.2 WORK TEAMS

A team is always distinguished by the fact that its members are “people with complementary skills
who are committed to a common purpose, set of performance goals, and approach for which
they hold themselves mutually accountable.” Groups in general need not have such unanimity of
purpose.

Two or more people who are interdependent, who share responsibility for outcomes, who see themselves as
(and who are seen by others as) an intact social entity in a larger social system are also called as “teams”
When teams are formed, its members must have (or quickly develop) the right mix of complementary
competencies to achieve the team’s goals. Also its members need to be able to influence how they will work
together to accomplish those goals.

Similarities and Differences between Work Teams and Work Groups

Work groups & work teams: A work group is a group that interacts primarily to share
information and to make decisions to help each member perform within his or her area of
responsibility. Work groups have no need or opportunity to engage in collective work that requires
joint effort. So their performance is merely the summation of each group member’s individual
contribution devoid of positive synergy that would create an overall level of performance that is
greater than the sum of the inputs.

A work team generates positive synergy through coordinated effort. The extensive use of teams
creates the potential for an organisation to generate greater outputs with no increase in inputs.

Similarities
 Stages of group formation apply to the development of teams.
 Teams start out as groups.
 Teams, like groups, have norms.
 Members of teams, like those of groups, have roles.
 Role ambiguity, role conflict and social loafing are evident in both groups and teams.
 Cohesiveness is important for both groups and teams.

Differences

IMPORTANCE OF TEAMS:
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1. Teams typically outperform individuals when the tasks being done require multiple skills,
judgment and experience.
2. Teams are more flexible and responsive to change events than are traditional departments or
other forms of permanent groupings. Teams have the capability to quickly assemble, deploy,
refocus and disband.
3. Teams are an effective means for management to democratize their organizations and increase
employee motivation.
4. Teams have the potential to create positive synergy in a shorter time than with traditional
organizational structures.
5. Teams encourage individuals to sublimate their individual goals for those of the group. They
also help disband parochialistic attitudes and fragmented views that evolve from functional
departmentalisation.
6. Cross-functional teams are an effective means for allowing people
from diverse areas within an organisation (or even between organisations) to exchange
information, develop new ideas and solve problems, and co-ordinate complex projects.
7. The implementation of teams almost always comes with expanded job training through which
employees build their technical, decision-making, problem-solving and interpersonal skills.
8. Teams focus on processes rather than functions; thus encouraging cross-training and expansion
of skills leading to organisational flexibility. As such, capacity of the organisation to adapt to
changing conditions is enhanced.
9. The shift towards knowledge-based rather than production-based work has necessitated virtual
teamwork that enable employees to complete knowledge-based tasks from a distance through
information technology. Globalisation and the benefits of knowledge sharing and teamwork
have made virtual teams a necessity.

TYPES OF TEAMS: The four most common forms of teams likely to be found in organisations
are:

1. Functional teams: They usually represent individuals who work together daily on a cluster of
ongoing and independent tasks. Functional teams often exist within functional departments -
marketing, production, finance, auditing, human resources and the like.

2. Problem solving teams: They focus on specific issues in their areas of responsibility, develop
potential solutions, and often are empowered to take actions within defined limits. Such teams
frequently address quality or cost problems.

3. Cross-functional teams: They bring together the knowledge and skills of people from various
work areas to identify and solve mutual problems. They draw members from several specialities
or functions and deal with problems that cut across departmental and functional lines to achieve
their goals. They are often more effective in situations that require adaptability, speed and a
focus on responding to customer needs.

4. Self-managed teams: They normally consist of employees who must work together effectively
daily to manufacture an entire product (or major identifiable component) or service. These
teams perform a variety of managerial tasks, such as,
(a) Scheduling work and vacations by members,
(b) Rotating tasks and assignments among members,
(c) Ordering materials,
(d) Deciding on team leadership,
(e) Setting key team goals,
(f) Budgeting,
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(g) Hiring replacements for departing team members, and

(h) Evaluating one another’s performance.

5. Virtual teams: A virtual team is a group of individuals who collaborate through various
information technologies on one or more projects while being at two or more locations. Their
team member may be from one or multiple organisations.

Team Roles and Team Effectiveness: Teams have different needs, and people should be selected for a
team to ensure that there is diversity and that all various roles are filled.
 We can identify nine potential team roles:
 Creator: Initiates creative ideas.
 Promoter: Champions ideas after they are initiated.
 Assessor: Offers insightful analysis of options
 Organizer: Provides structure.
 Producer: Provides direction and follow-through
 Controller: Examines details and enforces rules.
 Maintainer: Fights external battles.
 Adviser: Encourages the search for more information
 Linker: Coordinates and integrates

 Successful work teams have people to fill all these roles and have selected people to play in these
roles based on their skills and preferences. (On many teams, individuals will play multiple roles.)
 Managers need to understand the individual strengths that each person can bring to a team, select members
with their strengths in mind, and allocate work assignments that fit with members' preferred styles. By
matching individual preferences with team role demands, managers increase the likelihood that
the team members will work well together.

Effective teams have been found to have common characteristics.

 The work that members do should provide freedom and autonomy, the opportunity to utilize
different skills and talents, the ability to complete a whole and identifiable task or product, and
doing work that has a substantial impact on others.
 The teams require individuals with technical expertise, as well as problem-solving, decision-making,
and interpersonal skills, and high scores on the personality characteristics of extraversion,
agreeableness, conscientiousness, and emotional stability.
 Effective teams are neither too large nor too small—typically they range in size from 5 to 12
people. They have members who fill role demands, are flexible, and who prefer to be part of a group.
 They also have adequate resources, effective leadership, and a performance evaluation and reward
system that reflects team contributions.
 Finally, effective teams have members committed to a common purpose, specific team goals,
members who believe in the team's capabilities, a manageable level of conflict, and a minimal
degree of social loafing.

Because individualistic organizations and societies attract and reward individual accomplishment, it is
more difficult to create team players in these environments. To make the conversion, management should
try to select individuals with the interpersonal skills to be effective team players, provide training to de-
velop teamwork skills, and reward individuals for cooperative efforts.

Once teams are mature and performing effectively, management's job isn't over. This is because mature
teams can become stagnant and complacent. Managers need to support mature teams with advice,
guidance, and training if these teams are to continue to improve.
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