UNIT-3

Groups in Organisation
In any organisation, the work of an individual is influenced by
that of another. The employees, therefore, have to work together in a co-
ordinated manner to complete any task. In other words, it t is teamwork
that makes goal attainment possible.
There are a number of groups that one can find in a workplace.
These groups contribute either directly or indirectly to the success of the
organisation. The behaviours of an individual is significantly influenced by
the group to which he belongs. It is, therefore, more appropriate to
discuss group behaviour in the context of organisational behaviour.
This Chapter deals with the role of groups in influencing
organisational behaviour.

Meaning of Group:

Groups in Organisation: A group is a cluster of persons who have

come together to pursue activities of common interest. A group may
consist of any number of people. But group members s must have
continued interaction with and must be psychologically aware of one
another.

Definition:
According to Edgar Schein "A group is an aggregation of
people who interact with each other, are aware of one another, have a
common objective, and perceive them to be a group".

The following are the basic characteristics of a

group:

 The members know and interact with one another.

 The members come together to pursue certain activities of common
Interest.
 Each member perceives that he is part of the group.

Why are Groups formed?

People come together to join and form groups for a variety of
reasons Important among these are:
1. Nearness and Interaction: In the workplace, the employees
work close to each other. During the course of their work, they may have
to interact with one another. Such an environment may induce them to
form groups.
2. Capacity to influence: The capacity of each individual in the
organisation to influence another by reason of work or work related issues
is another factor that results in formation of groups.
3. Need for security: One of the main reasons for the formation of
group’s organisations is the need for security. If the employer creates
environments in which employees feel insecure they have to come
together as a group, namely the union to safeguard their interest.
4. Common interests: People with common interests, likes and
dislikes often come together. This happens in an organisation too. The
subject matter of interest may be something connected with their work or
it can be anything like politics, sports, hobbies etc.
5. Recognition: The recognition that is not normally available to a
person, when he is alone becomes available to him once he becomes a
member of a certain group. A person who feels that all his endeavours
must be recognised and appreciated will identify himself with some group
in the organisation.
6. Power: Employees derive much greater power collectively, i.e., as
members of union, than as individuals. In an organisation where trade
unions are absent or are not powerful, belonging to a small informal group
gives an individual a feeling that the group will not let him down when he
faces a crisis. Further, a person who has no formal authority in the
organisation may be in a position to influence the members of an informal
group by becoming its leader.
7. To get rid of delay: Formal organisation promotes delay in view
of hierarchy and longer channels of communication. To get rid of the delay
in the completion of certain specific tasks, executives, sometimes, may
have to meet and interact with employees casually and informally. An
informal group of subordinates and superiors, thus, exists within a formal
organisation.
Types of Groups:
Groups may be classified into the following types:
 Formal Groups
 Informal Groups
 Membership Groups
 Reference Groups
 In-Groups
 Out - Groups
 Open Groups
 Closed Groups
Let us discuss these now.
Formal Groups: A group that is officially, deliberately and
consciously created to perform certain tasks is known as a formal group.
Such a group has a hierarchical structure. The members of a formal group
are allotted definite tasks. They have to adhere to certain rules and
regulations. A formal group is also known as a command group. Every
superior has subordinates to whom he delegates authority to tasks by the
subordinates; the superior is answerable to his own superior. Groups and
permanent committees are examples of permanent formal Formal groups
can be permanent as well as temporary, Command groups. A task force
created for a specific purpose is an example of temporary formal group.
Informal Groups: An informal group is one that is unofficially
created. It arises owing to personal relationships between the individuals
in an organisation. Factors such as friendship, language, religion, hobbies,
personal likes and dislikes influence the formation of informal groups.
Membership Groups: A membership group is one to which an
individual actually belongs whether or not he is satisfied with the norms,
values, beliefs and practices of such a group.
Reference Groups: A reference group is one with which the
individual actually identifies himself. In other words, he would like to be
associated with such a group always. The reference group consists of
members who all possess similar tastes, preferences, attitudes and so on.
In – Groups: An in group is one to which we belong. The members of
an in- group have certain values, beliefs, ideals and norms that act as a
binding force.
Out – Groups: The out-group is one to which we do not belong. It
consists of members who hold values, beliefs, ideals and norms that are
quite opposed to those of the members of the in-group.
Open Groups: An open group is one that is in a constant state of
change. Its membership keeps fluctuating, i.e., existing members may
leave and new members may join. The group accepts the ideas of the new
members and may slowly give up certain old practices. In view of such a
trend, the open group can have plans and proposals only for a shorter
period of time Due to its peculiar characteristics; the open group faces
conditions of imbalance and instability.
Closed Groups: A closed group is one that is quite stable. It
maintains stable membership and does not shed established practices. It,
therefore, can have proposals for a fairly longer period of time.

Different Stages of Group Development:

The process of group development involves the following
different
Stages:
 Forming Stage
 Storming Stage
 Norming Stage
 Performing Stage
 Adjourning Stage
What happens in each stage has been explained below.

Forming Stage: The forming stage is marked by a great deal of

uncertainty over the purpose, structure and leadership of the group. At
the end of this stage, inter-personal relationships are established and
members begin to identify themselves with the group.
Storming Stage: This stage is characterised by conflicts and
confrontations among the group members. Such conflicts may arise due
to differences in perception a condition like this may sometimes lead to
group split.
Norming Stage: At this stage, one person emerges as a development
paves way for what is called group cohesion. A strong sense of group
identity and comradeship also develops.
Performing Stage: This stage is characterised by teamwork, role
clarity and task accomplishment. It exhibits the highest level of group
maturity. Conflicts among the members are resolved through group
discussion.
Adjourning Stage: This stage is relevant for work teams, task forces
and such similar groups that have only a limited task to perform. As soon
as the task is completed, the activities of the group are wrapped up.
Group Norms: Group norms' are the rules and regulations
prescribed for the group members. In other words, these are the dos and
don'ts. These reflect the feelings, beliefs, values and attitudes commonly
shared by the group members.

Characteristics of Group Norms:

The characteristics of group norms may be stated as follows:
 Norms explain the characteristics of a group.
 These relate to the behaviour of the members that is considered
Desirable.
 Norms provide the standard or basis against which the behaviour of
the group members is assessed.
 Norms are applied to all the members of the group.

Group Cohesiveness: Group cohesiveness refers to the

extent to which the members of a group are attached to each other and
willing to remain within the group.

The following factors influence group cohesion:

Interaction: The extent to which the members of the group interact

with each other determines group cohesion. Differences of opinion are
bound to arise in any workplace. Such differences have to be sorted out
through discussions and deliberations. The greater the interaction among
the group members the better will be cohesiveness.
Threat: The kind of threat the members face both from the internal and
external environments can influence group cohesion. The greater the
threat the better will be group cohesiveness. This is so because, the
members know very well that they have to stand united failing which they
cannot survive.
Leadership: The quality of leadership can be an important
determinant. If the lead is capable, he will be able to secure cohesion
easily among members.
Conviction: If there is always a sense of conviction among the group
members on the decisions reached, it is an indication that cohesion is
absolute. If few members try to thrust their ideas on the group, such a
conviction may not exist.
Values: The extent to which the group members share values and
attitudes is another determinant. If every member starts acting as per his
value system, securing group cohesiveness will become difficult.
Size of Group: The size of the group can be yet another important
determining factor. When the size of the group increases, securing
cohesion among members becomes difficult. This happens because there
may not be consensus among members on certain issues owing to the
large size of the group.

Process of Decision-Making:
The different stages involved in the process of decision-making have
been explained below:

 Identifying and Understanding the Problem:

The first step in the process of decision-making is to
identify and understand the actual problem. If only the actual problem is
identified, it will be possible to provide a remedy by evolving a suitable
decision. Sometimes, the symptom is misunderstood as the actual
problem and an attempt is made to find a solution to it.
 Making an analysis of the problem:
O nce the actual problem is identified, the next step is to
make a details Analysis of the problem requires data that may be
obtained from both internal and external sources Analysis of the same.
 Identifying alternative solutions.
After the problem has been analysed in detail, the next
step is to develop alternative solutions. Any organisational problem has
many solutions. It is, therefore, necessary, that the decision-maker
identifies the alternative solutions.
 Evaluating the alternative solutions:
After the alternative solutions have been identified, the
next step is to make an evaluation of the same. Evaluation of alternatives
is done by seeing the pros and cons of each.
 Selecting the best solution:
At this stage, the solution considered the best and the
most viable one, under the circumstances, is selected. In addition to the
merits of each alternative solution, the following factors too influence the
selection of the best alternative.
 Resources available.
  The values and beliefs of the decision-maker.
 Opinions of the staff.
 Past experience, etc.

 Implementing the decision:

After the final decision has been made, the next step is to
implement the same, Implementing the decision is done by
communicating the same to all concerned. The responsibility for carrying
out the decision must be fixed on individuals. Necessary procedures
should be laid down for executing the decision. Suitable provision must be
made to watch the progress of the decision.
 Review:
Periodic review of the decision, during the period of its
implementation, is necessary. This is done by comparing the actual
results with the expected results. Deviations, if any, must be noticed and
corrective action taken then and there. Certain modifications or
alterations in the decision may be made if necessary.
Individual and Group Decisions:
In an organisation certain decisions are made by individuals
while others are made by groups.

Individual Decisions: These are decisions made by individuals over an

organisational is enjoying such a decision-making authority. For example,
when there is a dispute between the workers and the management, the
matter may be referred to a mediator who may conduct an enquiry and
announce his decision.
Group Decisions: workers and the management. When there is any
dispute between the there may exist a committee consisting of the
representatives of both the workers and the management, the matter will
be referred to the committed. The committee may conduct an enquiry and
announce its decision which is binding on both the workers and the
management.

Merits of Group Decisions:

Group decisions are generally considered better than individual
decisions in view of the following advantages:
 Every member of the group will come out with his views on the
problem considered. The problem, therefore, can be thoroughly
discussed and the best solution can be found out. Such an
advantage is not available in case of individual decisions.
 The decision of a group, usually, will not be a biased one. This is
because; every member of the group has his own ideals and values.
 No member can thrust his views on others. There is always chance
for the bias element entering individual decisions.
 The group usually consists of members who represent different
segments of an organisation. Therefore, each member will ensure
that injustice is not done to the segment he represents.
 The process of group decision-making also provides scope for
proper co- ordination and co-operation among the members. Every
member has to take the other members into confidence when he
discusses any issue.
 Group decisions enjoy a greater sense of acceptability than
individual decisions.

Demerits of Group Decisions:

Group decisions; however suffer from the following drawbacks:
 There may be delay in arriving at a decision as the group members
may take longer time to discuss the issue.
 There is no fixed responsibility on any member of the group for the
quality of the decision made. It is, therefore, possible that a casual
approach may be adopted throughout the decision-making process.
 Group decisions are often found to be compromise decisions. This
happens because the members may give divergent views on the
issue and a consensus has to be reached somehow at the end. The
decision is finally made so as not to hurt anybody's sentiments.
Such a decision can only be a compromise decision and not the
best.
 It is also possible that a few influential members of the group may
try to put pressures on others and get their consent.
 Group decisions are always expensive compared to individual
decisions in terms of time, money and efforts required.
 Conflicts may also arise between the members of the group. As a
result, a decision may not be evolved at all and the entire process
may be deferred indefinitely.

Organisational Conflicts:
Conflicts-Meaning: In simple terms, conflict means disagreement
between the persons employed in the opinion of employees of an
organisation over any issue. Such a difference in an organisation. It may
also mean clash of interests. It is the result of difference of opinion arises
mainly because of differences in perceptions.
If, for example, a decision has to be made on whether to revise the
working hours or to continue the existing timings, the employer is sure to
get different views from different persons. Before making the final
decision, the employer to secure consensus among the employees. Only
then the proposal will get the support of everyone in the organisation.

Conflicts are not the same as disputes. In the case of conflicts the solution
can be found out at the organisational level itself through discussions.
Conflicts take the form of disputes when a solution cannot be found out at
the organisational level and the matter has to be referred to an impartial
mediator.
Definitions:
The following are some of the definitions of the term "conflict' given
by human resource management experts:
 "Conflict is any situation in which two or more parties feel
themselves in opposition. It is an interpersonal process that arises
from disagreements over the goals or the methods to accomplish
those goals" - John W. Newsroom and Keith Davis.
 "Conflict is a process in which an effort is purposefully made by one
person or unit to block another that results in frustrating the
attainment of the other's goals or the furthering of his or her
interests" – Stephen Robbins.

WHY DO CONFLICTS ARISE?

(CAUSES OF CONFLICTS)
Conflicts arise in the workplace due to any of the following
reasons:
 Changes in work patterns: When the employees are asked
to adopt a different pattern of work, conflicts may arise between
them on whether or not to accept such a proposal and update
themselves to be able to discharge their responsibilities as per the
new pattern of work. Such a problem arose in the past in most
organisations when the employees were asked to learn computer
operation.
 Differences in perceptions - The perception of any issue by
different individuals will not be identical. One of the main reasons
why conflicts arise in the workplace is that the perception of
employees of any organisational matter differs. If one person
favours the management proposal to revise timings another person
may oppose it.
 Differences in values - Difference in the value system of
individuals is yet another factor contributing to conflicts. For
example, an employee, who has certain grievances, may want to
show his protest to the management by striking work. On the other
 hand, another employee, who also has grievances, may show his
protest by fasting in the workplace. It is mainly because of the
differences in the value systems of different individuals we find lack
of participation in strike by certain employees when a strike call is
given.

 Availability of options : Another reason why conflicts take

place in the workplace is that often the employees have options,
e.g., day shift or night shift, time-wage or piece-wage or both, salary
or commission or both, whether to take part in the strike or not in
response to a strike call given by the trade union and so on. If there
is only one option conflicts probably may not arise.
 Allocation of limited resources: Resources are always
scarce in relation to demand. For example, when the funds available
are limited, the management may find it difficult to meet the
demands of different departments. In such a situation, if the
production department wants new machinery and the marketing
department wants a delivery van, the management may ask the two
departments to sort out the issue amongst them as the demand of
one of them alone can be met. This may result in conflicts between
the staff of the two departments.
 Inter-dependence: Conflicts arise due to the problem of inter-
dependence on production; production depends on purchase of raw-
materials and between individuals and departments. For example,
marketing depends availability of labour which in turn depends on
the availability of finance, when the production department has not
adhered to its schedule, the sales people will not be able to meet
their commitments. This provides scope for conflicts.
 Unequal work-load: When there is disparity in the work-load of
employees operating at the same level, conflicts are bound to arise.
This might have been done deliberately or inadvertently.
 Biased assessment of subordinates: Some superiors
show favouritism while appraising the performance of their
subordinates. Favouritism is shown based on caste, religion, sex etc.
As a result, an employee who deserves a higher rating would have
been given a very low rating and vice versa.
 Unattainable target: Some superiors set targets for their
subordinates that are unattainable. It might have been done
intentionally or unintentionally. In any case it provides scope for
conflicts in the workplace.
 Lack of trust and confidence: Lack of trust and confidence
is yet another cause of conflicts. Some superiors have a feeling that
 their subordinates always shirk duties and are inefficient and
incapable. As a result, they are always harsh in their approach.
Similarly, some subordinates also have a feeling that their superiors
are unreasonable. Such an atmosphere provides scope for conflicts
to take place.

Levels of Conflict:
Conflicts may arise at different levels in an organisation as
indicated below:
 Within an Individual
 Between Individuals
 Within a Group
 Between an Individual and a Group and
 Between Groups
These have been explained below.

Conflicts within an Individual: Conflicts within an individual arise

when a person is unable to decide precisely what he wants. For example,
an employee may not be able to decide whether to accept straight salary
or commission when asked to choose one. Similarly, an employee may not
be able to take a firm decision on whether to take part in the strike or not
in response to a strike call given by the trade union. Such persons
normally seek the advice of their friends or relatives on the matter.
Conflicts between Individuals: Such conflicts arise between two
or more persons working in an organisation two factory workers or two
salesmen. Likewise, conflicts may also arise between either in the same or
different level. For example, there may be a conflict between a worker
and a foreman, a sales representative and the sales manager and so on.
Conflicts Within a Group (Intra-Group Conflicts: Conflicts
may arise between the members of a particular group. Such a situation
may arise, say, when the members of the employee union meet to discuss
the course of action to be adopted in response to a certain anti-labour
policy of the management. Some members may favour a demonstration
programme in the company premises, some may prefer mass casual leave
and still some others may insist on a strike plan. As a result the members
may not be able to arrive at a consensus at once.
Conflicts between an Individual and a Group: Such a
conflict may arise between, say, an employee, who is not a member of the
trade union, and the union members. When the union gives a strike call,
its members may persuade the non-member also to extend his support.
Conflicts Between Groups (Inter-Group Conflicts): It refers
to conflicts between, say, rival employee unions where there exists more
than one union or between the employees of two departments, say,
production and marketing and so on.

Conflicts and Performance: Where in an organisation the level of

conflicts is found to be low, performance will also be very low in view of
the following reasons:
 Indifferent attitude of the employees
 Lack of creative ideas
 Stagnation
If, on the other hand, the level of conflicts is found to be high then also
performance will be low in view of such reasons as:
 Lack of teamwork and co-operation
 Low morale
 Mental stress
Resolution of Conflicts: Five different strategies are available to
resolve conflicts in any workplace.
These are:
 Avoidance
 Smoothing
 Forcing
 Compromising and
 Confronting
These have been explained briefly hereunder.
Avoidance: Here the parties concerned may withdraw from the
conflict physically or mentally. Both the parties show no interest I pursing
the issues after raising it. Avoidance, however, cannot solve the problem.
It results in a 'lose-lose' outcome.
Smoothing: In this approach, one party to the conflict tries to
accommodate the other party's interests. It places emphasis on concern
for others. The accommodating may suffer detriment. It results in a 'lose-
win' outcome.
Forcing: In this case, one party tries to be aggressive so that he can
achieve his goal. He has no concern for the other party. It may result in a
'win-lose' situation.
Compromising: It is a strategy in which one party is willing to give up
something in exchange for gaining something else. By doing so the party
is able to take care of himself and also the other party. Such a strategy
may not produce any definite outcome.
Confronting: In this case both the parties are determined to work to
find a solution by a mutually acceptable plan. It is a problem solving
approach. It seeks to maximise the attainment of both the party's goals. It
may take the parties to a 'win-win' situation.