COS105 Organisation Behaviour

MODULE III: Inter-personal and Group Processes:

Group Dynamics –Reasons for Formation of Group, Determinants of Group Behaviour, Stages of
Team/Group Development, Types of Groups, Formal and Informal Groups, Problems of Informal
Organisations, Dealing with Informal Organisations; Group Norms, Group Cohesiveness, Social
Loafing, Group Decision-Making; Concept of Team, Types of Teams, Quality Circle;
Communication - Purpose of Communication, Communication Networks, Rumour, Direction of
Communication, Barriers to effective Communication, Building Effective Communication,
Communication Skills;
Leadership – Importance, Characteristics, Leadership Vs. Managership, Types of Leadership,
Theories of Leadership, Emerging Approaches to Leadership

Pushpa Prajapati
Assistant Professor
Group Dynamics
 The social process by which people interact face-to-face in
small groups is called Group Dynamics.
 Interaction of individuals in a group.
 A group is a set of two or more individuals who are jointly
characterized by a network of relevant communications, a
shared sense of collective identity and one or more shared
dispositions with associated normative strength.
Reasons for Formation of Group
 Companionship
 Sense of Identification
 Source of Information
 Job Satisfaction
 Protection of Members
 Outlet for Frustration
 Perpetuation of Cultural Values
 Generation of New Ideas
 Determinants of Group Behaviour
Abilities
Group Personalities Group
Member Task
Resources

Group Performance
External and
Processes Satisfaction
Factors
Communication Pattern
Decision Making
Leadership Leadership
Strategy Group Goals Power Dynamics
Structure Structure Communication Conflicts
Rules Role Relationships
Environment Group Norms
Ergonomics Group Status
Culture Group Size
Group Composition
Stages of Group/Team Development
ADJOURNING

PERFORMING

NORMING

STORMING

FORMING
 Types of Group

Formal Groups Informal Groups

Command Tasks Interest Friendship

Groups Groups Groups Groups
Problems of Informal Organisations (Groups)

 Resistance to Change
 Role Conflict
 Rumour
 Conformity
Dealing with Informal Organisations (Groups)

 Ignoring Informal Organisation

 Making Use of Informal Organisation
 Influencing Organisation
Group Norms

 Norms are rules of behavior or proper ways of action which are

accepted as legitimate by group members.
 Cause people to behave in a similar pattern
 Provide a reference point to an individual for his/her own
behavior.
 Group members tend to form and conform norms.
 Two functions:
1. Help the group to accomplish its goals.
2. Help the group to maintain itself as a group.
Five Characteristics of Group Norms

1. Summarise and simplify group influence processes which are

important to control.
2. Apply only to behaviors in the group, and not to private
thoughts and feelings.
3. Generally developed for behaviours considered to be
important for most group members.
4. Develop gradually
5. Not all norms apply to everyone in the group in the same
manner.
Enforcing Group Norms

1. Education
2. Surveillance
3. Warning
4. Sanctions
 Group Cohesiveness
 It means the degree of attachment of the members to their group.
 High Cohesiveness – High Interaction – Higher Degree of Agreement
 Common goals, norms, interests and backgrounds.
 Small group size
 Frequent interaction and effective interpersonal communication
 Unity
 Glued to group as needs be accomplished by the group
 History of past success.
Factors Affecting Group Cohesiveness

 Degree of Dependency on the group

 Size
 Homogeneity and Stable Membership
 Location of the Group
 Group Status
 Group Leadership
 Outside Pressures
 Competition
Group Cohesiveness and Productivity

Performance Norms
High High Productivity Moderate Productivity

Moderate to Low
Low Low Productivity
Productivity

High Low

Cohesiveness
Social Loafing
 Social Loafing is antithesis of synergy in group work which
suggests that people working together on a common task may
actually decrease their individual efforts.
 Group work does not necessarily spurt group efforts.
 Causes:
1. Uneven division of work, hard to determine individual efforts,
group efforts tend to loosen.
2. When the group is not cohesive with high output norms, individual
members do not contribute to the fullest extent.
Group Decision Making
Situations of Individual and Group Decision Making

• Nature of Problem
• Acceptance of Decision
• Quality of Decision
• Climate of Decision Making
• Time Availability
• Legal Requirement
Group Decision Making
Positive Aspects of Group Decision Making

• Pooling of knowledge and information

• Satisfaction and Commitment
• Personnel Development
• More Risk-taking
Group Decision Making
Negative Aspects of Group Decision Making

• Time-consuming and Costly

• Individual Domination
• Problem of Responsibility
• Groupthink
Group Decision Making
Techniques of Improving Group Decision Making

• Brainstorming
• Nominal Group Techniques
• Delphi Technique
• Consensus Mapping Technique
Teams
A team is a cooperative group whose members interact
with each other towards the accomplishment of specific
objectives.

A team is a small number of people with complementary

skills who are committed to a common purpose,
performance goals and approach for which they hold
themselves mutually accountable.
Teamwork
• A kind of spirit existing in a team to accomplish goals.
• Efforts for the success of the whole rather than
personal.
• Collective orientation
• Collective rewards
• Neither direct others or be directed by others
• A glue that holds the team members together
• Credit of success and responsibility goes to the entire
members of the team.
Types of Teams

• Problem-solving Teams
• Cross-functional Teams
• Self-managing Teams
• Virtual Teams
Quality Circles (A Team Model)

• Emerged from Quality Control

• Japanese Management System integrated quality control with
manufacturing department giving rise to quality control circle
or simply quality circle(QC).
• Comprehensive quality control – an effort to develop, design,
manufacture, inspect, market and service products that will
satisfy the customers at the time of purchase and give them
satisfaction for a long time after purchase.
Quality Circles - Concept

• Quality Circle is a group of employees that meets regularly to

solve problems affecting its work area.
• Six to twelve volunteers from the same work area make up the
circle.
• Members receive training in problem solving, statistical quality
control and group processes.
• QC generally recommends solutions for quality and production
problems which may be implemented by the management.
Quality Circles - Concept

• Quality Circle is a group of employees that meets regularly to

solve problems affecting its work area.
• Six to twelve volunteers from the same work area make up the
circle.
• Members receive training in problem solving, statistical quality
control and group processes.
• QC generally recommends solutions for quality and production
problems which may be implemented by the management.
Communication
Communication

 “Conveying of information from one person to another.” –

Hudson
 “Communication is the sum of all the things one person does
when he wants to create understanding in the mind of
another. It is a bridge of meaning. It involves a systematic and
continuous process of telling, listening and understanding.” -
Allen
Communication
Purpose of Communication

 Keep employees informed

 Provide employees with orders and instructions
 Solicit information from employees
 Employee engagement and involvement
 Reduce turnover
 Better coordination
Communication Networks – Formal Channels

Chain Network

Circle Network

Wheel/Star Network
Free Flow/All Channel Network
Y Network
Communication Networks –
Informal Channels or Grapevine
 People carry on social, non-programmed activities within the
formal boundaries of the system.
 Exists outside the official network, though interacting with it.
 More active during:
❖ High organizational excitement, such as policy change like
automation, computerization, personnel change, etc.
❖ The information is new rather stale
❖ Employees are working in proximity
❖ Trust among the cliques/groups
Communication Networks –
Merits of Informal Channels or Grapevine
 Achieving better human relations
 Links even those people who do fall in the official chain of
command.
 Very fast and free from all barriers
 Serves to fill the possible gaps in the formal communication
networks.
Communication Networks –
Demerits of Informal Channels or Grapevine
 Is not authentic, the message may be distorted.
 Lead to generation of rumours in the organization
 May not always be active so not dependable.
 May lead to leakage of confidential information.
Rumour

 Rumour is the most undesirable feature of grapevine

 Information without authentic standards of evidence – not reliable
 It can correct by chance but generally it is incorrect
 It tends to change as it passes, themes may be maintained but details
distorted.
 Causes:
❖ Plain maliciousness
❖ Anxiety and insecurity due to poor communication in the organization
❖ Means of wish fulfilment or apply pressure upon the management
Dealing with Rumours
 Reduction of Causes: Get at the causes rather than try to kill the
rumour, Stop the causes when known
 Listening to Rumours: Find the ambiguity and clarify
 Providing Facts: Pass on the correct message on time, Get the facts
known to all before misconceptions are formed, Avoid opinions, Do not
exaggerate the facts or message, Confirm messages in written and
circulate quickly, Openly discuss worst-case scenarios to avoid anxiety
and insecurity
 Use of Reliable Sources
 Use of Trade Unions
Direction of Communications

Upward Downward Horizontal (or) Lateral

Information Directions Coordination

Instructions
Barriers to Communication
 Due to Organisation Structure
 Due to Position and Status
 Filtering of Information
 Semantic Barriers
 Lack of Ability to Communicate
 Selective Perception
 Heightened Emotions
 Inattention
 Unclarified Assumptions
 Closed Minds
 Resistance to Change
Building Effective Communication
 Two-Way Channel
 Clarity of Message
 Credibility of Message
 Appropriate Language and supporting words
 Speed of Transmission
 Positive Attitude
 Open Mind
 Effective Listening
 Mutual Understanding
 Flexibility
 Effective Feedback
Communication Skills

 Speaking Skills
 Listening Skills
 Feedback Skills
Leadership
Leadership

 Leadership is the quality of behavior of individuals whereby

they guide people or their activities in organizing efforts.
-Chester Bernard
 A leader is one who guides and directs other people.
- Louis A. Allen
Importance of a Leader

 Determination of Goals
 Organisation of Activities
 Achieving Coordination
 Representation of Workers
 Providing Guidance
 Inspiration to Employees
 Building Employee’s Morale
 Facilitating Change
Characteristics of Leadership

 Leadership is a process of influence.

 Leadership is related to a situation.
 Leadership is the function of stimulation
 Leadership gives an experience of helping attain the common
objectives
 Employees must be satisfied with the type of leadership
provided.
 Leadership Vs. Managership
Leader Manager (The Boss)
Coaches and advises, prioritise growth and Drives and orders, dictates tasks and
development demands compliance
Depends on his Confidence and Goodwill Depends on his authority
“Let’s achieve this together.” “I’m in-charge here.”
Collaborates and Inspires enthusiasm and Engenders fear or compliance
teamwork Focuses on results on any costs
Solves problems, takes responsibility for failure Fixes blames and finds faults for failure
Consults and seeks advice Knows all the answers
Empowers and trust team members
Makes the work a Game Makes the work drudgery
Fosters a positive work environment Controls and micromanages
Believes in “We” and “You” Believes in “I”
Shares credit with team Takes credit for successes
Types of Leadership A – Denotes the Leader

 Autocratic Leadership
(Authoritarian, Directive)
1. Strict Autocrat
2. Benevolent Autocrat
3. Incompetent Autocrat
4. Manipulative Autocrat
 Participative Leadership
(Democratic, Consultative)
 Free Rein or Laissez-Faire
Theories of Leadership

1. Great Man Theory of Leadership

2. Likert’s Management Systems and Leadership
3. Managerial Grid
4. Hersey and Blanchard’s Situational Theory
Great Man Theory
of Leadership

“Leaders are born,

not made”
Great Man Theory of Leadership
 Emphasis on “Charismatic Leadership”
 Leadership calls for certain qualities like commanding personality, charm,
courage, intelligence, persuasiveness and aggressiveness.
 These qualities are natural and cannot be taught or learnt in formal sense.
 Implications of this approach:
o Leaders in general and great leaders in particular are born and not made.
o They have inborn leadership qualities bestowed on them by the divine power.
o The inborn leadership qualities alone are necessary and sufficient
o Ordinary persons cannot become leaders or attain leadership qualities.
o These qualities cannot be attained through formal education.
o Leadership and effectiveness are independent of each other.
(Situational factors like nature, needs of followers and general socio-economic
environment have little influence on a leader’s effectiveness)
Likert’s Management Systems and Leadership
4 Systems of Management

System 1 – Exploitative Authoritative

System 2 – Benevolent Authoritative
System 3 – Consultative
System 4 – Participative (Democratic)
Likert’s Management Systems and Leadership
4 Systems of Management
System 1 – Exploitative Authoritative
❖ Managers make all work-related decisions
❖ Order their subordinates to follow his decisions
❖ Managers set standards and methods of performance
❖ Highly formal downward communication
❖ Subordinates have absolutely no say in any matter
❖ Managers are autocratic, believes in threats and
punishments to get work done
❖ Follow strict supervision over their subordinates
 Likert’s Management Systems and Leadership

4 Systems of Management
System 2 – Benevolent Authoritative
❖ Managers are autocratic but not fully
❖ At times they give some flexibility
❖ Subordinates rewarded for achieving or exceeding goals
❖ Managers adopt patronizing or paternalistic attitude
towards faithful and obedient subordinates
❖ Harsh with low performers
❖ ‘Carrot-and-stick’ approach of motivation
Likert’s Management Systems and Leadership
4 Systems of Management
System 3 – Consultative
❖ Managers set goals and issue general orders after discussing with
subordinates
❖ They take major decisions and leave the routine decisions for the
subordinates to be taken.
❖ Subordinates are free to discuss work-related matters with
superiors.
❖ Two-way communication exists
❖ Flexible control system and goal-oriented.
❖ Emphasis is on rewards than punishments to motivate
❖ Subordinates can be trusted to some extent.
Likert’s Management Systems and Leadership
4 Systems of Management
System 4 – Participative
❖ Cordial and friendly relations between the superior and
subordinate.
❖ Open communication system
❖ Performance goals are mutually set and work-related decisions are
taken by subordinates
❖ Group approach adopted for supervision and control
❖ Rewards and recognitions to motivate
Managerial Grid
by Blake and Mouton
Hersey and Blanchard’s Situational Theory
❖ Also known as “Life cycle theory of leadership”
❖ There is no one best style of leadership universally applicable
to all situations.
❖ A leadership style may be effective in one situation and
ineffective under the other.
 Mature Immature
(Relationship Behaviour)

(Task Behaviour)
Emerging Approaches to Leadership
❖ Charismatic Leadership
o Interpersonal attraction of a leader, visionary in narure, dynamic risk-
takers, followers are motivated to work extra, more likely in politics,
religion, war time.
❖ Transactional Leadership
o Leaders direction is based on set goals by clarifying tasks and roles,
contingent reward, Management by Exception, Laissez-faire
❖ Transformational Leadership
o Has charisma, a leader who inspires organizational success,
encourages new ways of handling problems, promotes learning,
receiving more attention as they can handle dramatic changes,
individual consideration