Fundamentals of Management Groups and Teams

Chapter 18
Groups and Teams
By
Dr. Doaa Saleh
Fundamentals of Management Groups and Teams

Overview

Introduction Theories of Business

Management Ethics
(Ch. 1)
(Ch. 2) (Ch. 3)
Fundamentals of Management Groups and Teams

Objectives
1. A definition of the term group as used in the context of management

2. A thorough understanding of the difference between formal and informal

groups

3. Knowledge of the types of formal groups that exist in organizations

4. An understanding of how managers can determine which groups exist in

an organization

5. An appreciation for what teams are and how they evolve

Fundamentals of Management Groups and Teams

Definitions
• Group:
Is simply a gathering of people.

It is any number of people who:

1. Interact with one another.
2. Are psychologically aware of one another.
3. Perceive themselves to be a group.
Fundamentals of Management Groups and Teams

Why managers should study groups?

1. Groups exist in all kinds of organizations.
2. Groups inevitably form in all facets of organizational existence.
3. Groups can cause either desirable or undesirable consequences
within the organization.
4. An understanding of groups can help managers raise the probability
that the groups with which they work will cause desirable
consequences within the organization.
Fundamentals of Management Groups and Teams

Organizations Groups Kinds

• Formal Groups:
Is a group that exists within an organization by virtue of management
decree to perform tasks that enhance the attainment of organizational
objectives.
• Informal Groups:
Is a collection of individuals whose common work experiences result in
the development of a system of interpersonal relations that extend
beyond those established by management.
Fundamentals of Management Groups and Teams

Formal Groups
Fundamentals of Management Groups and Teams

Informal Groups
Fundamentals of Management Groups and Teams

Formal Groups Kinds

• Command Group:
Is a formal group that is outlined in the chain of command on an
organization chart.
• Task Group:
Is a formal group of organization members who interact with one
another to accomplish most of the organization’s nonroutine tasks.
Fundamentals of Management Groups and Teams

Committees
• Committee:
Is a group of individuals charged with performing some type of specific
activity and is usually classified as a task group.
• Committees are established for four major reasons:
1. To allow organization members to exchange ideas.
2. To generate suggestions and recommendations that can be offered to other
organizational units.
3. To develop new ideas for solving existing organizational problems.
4. To assist in the development of organizational policies.
Fundamentals of Management Groups and Teams

Committees
Fundamentals of Management Groups and Teams

Why Managers Should Use Committees

• Committees can improve the quality of decision making.
• Committees encourage the expression of honest opinions.
• Committees also tend to increase organization members’
participation in decision making.
• Committees ensure the representation of important groups in the
decision-making process.
Fundamentals of Management Groups and Teams

What Makes Committees Successful?

• Procedural Steps.
• People-Oriented Guidelines.
• Avoid groupthink.
Fundamentals of Management Groups and Teams
What Makes Committees Successful?
Procedural Steps.
• The committee’s goals should be clearly defined, preferably in writing.
• The committee’s authority should be specified.
• The optimum size of the committee should be determined.
• Select a chairperson on the basis of ability to run an efficient meeting.
• Appoint a permanent secretary.
• Distribute agenda and support material before meeting.
• Start meetings on time, and announce ending time at outset.
Fundamentals of Management Groups and Teams
What Makes Committees Successful?
People-Oriented Guidelines.
• Rephrasing ideas already expressed.
• Bringing all members into active participation.
• Stimulating further thought by members.
Fundamentals of Management Groups and Teams
What Makes Committees Successful?
Avoid Groupthink.
• Groupthink:
Is the mode of thinking that group members engage in when the desire for
agreement so dominates the group that it overrides the need to realistically
appraise alternative problem solutions.
1. A group member agrees with the entire group’s position, even when the
group member might privately oppose the entire group’s position.
2. Group members feel pressure to conform and censor their own ideas.
3. Group members fail to make effective decisions.
4. Poor decision outcomes occurs when the group performs poorly.
Fundamentals of Management Groups and Teams
What Makes Committees Successful?
Avoid Groupthink.
• Groupthink Example:
A board of directors of an international air freight service must decide
whether the company should enter a cost-cutting war with their
competitors. The board begins its decision-making meeting with the
chairperson’s loaded questions:
“Should we enter into this foolish price war or just keep rates the way
they are?”
Fundamentals of Management Groups and Teams

Definitions
• Team:
Is a group whose members influence one another toward the
accomplishment of an organizational objective.

Are all groups in organizations are teams?

Are all teams in organizations are groups?

Good managers constantly try to help groups become teams.

Fundamentals of Management Groups and Teams

Groups Vs Teams
Groups Teams
Goal Share information. Collective performance.

Synergy Neutral. Positive.

Skills Random and varied Complementary
Accountability Individual Individual and mutual
Not always explicitly defined or
Roles and Responsibilities Clearly developed and discussed.
developed

Rules and operating Not formally developed and evolve Clearly discussed and developed to help team work
procedures according the group’s needs together.

Group members interact, and Team members collaborate and coordinate efforts.
Methods
work is usually divided. Team members work together interdependently.
Fundamentals of Management Groups and Teams

Team Development Stages

Before 1. Forming 2. Storming

3. Norming 4. Performing 5. Adjourning

Fundamentals of Management Groups and Teams

Informal Groups Kinds

• Interest Group:
Is an informal group that gains and maintains membership primarily
because of a common concern members have about a specific issue.
• Friendship Group:
Is an informal group that forms in organizations because of the
personal affiliation members have with one another.
Fundamentals of Management Groups and Teams

Benefits of Informal Group Membership

• Perpetuation of social and cultural values that group members
consider important.
• Status and social satisfaction that people might not enjoy without
group membership.
• Increased ease of communication among group members.
• Increased desirability of the overall work environment.
Fundamentals of Management Groups and Teams

Roll Up Command Group

Why? Formal Task Group

Definition

Team
Committee
Team
Group Vs
When?
Group
Successful -
How?
Development Why?
Informal
Stages
Avoid
Procedural groupthink
Interest Why? Steps People-
Oriented
Friendship
Guidelines
Fundamentals of Management Groups and Teams

Overview

Introduction Theories of Business

Management Ethics
(Ch. 1)
(Ch. 2) (Ch. 3)