UNIT - 4

GROUP
BEHAVIOUR
Group Behaviour: Determinants of Group Behaviour,
Nature and Concept of Group Formation, Stages of
Group Formation, Types of Groups: Formal and Informal,
Group Norms, Group Cohesiveness; Leadership: Styles
of Leadership, Theories of Leadership; Motivation:
Concept and Early Theories of Motivation, Applications
of Motivation; Decision-Making: Importance, Types,
Steps and Approaches, Decision Making in Various
Conditions, Decision Tree.
Introduction

A group consists of a number of individuals working

together for a common objective. Group have a
significant influence on an organization and are
inseparable from an organization.

The study of group behaviour is essential for an

organization to achieve its goals. Individual group
behaviour varies from each other. Elton mayo and his
associates conducted the Hawthorne experiments and
came to know that the group behaviour has great
 Meaning of Group
 A group can be defined as two or more interacting and
interdependent individual who came together to achieve
particular objective. Each persons are influenced and is
influenced by each other.

 From a common point of , a number of people together at a

given place and at a given time can be considered as a group.
However, from an organizational point of view the word group
has a different meaning and definition.

 In the broad sense in a work setting a group is any collection of

individuals who have mutually dependent relationships.
Depending on the perspective that is taken the term group can
be defined in a number of ways.
Definition of group
A group is a two or more individual who interact regularly
with each other to accomplish a common purpose or goal.

According to Marvin Shaw “A group comprises of a two

or more persons who interact with one another in such a
manner that is person influences and is influenced by each
other person”.

According to Stephen Robbins , ”a group is defined as

two or more individuals , interacting and interdependent,
who have come together to achieve particulars objective”.
Characteristic of group

 Strong desire of association

 Development of leadership qualities.
 Awareness among members
 Qualities of individuals
 Cohesiveness
 Perceptions of themselves as a group
Determinants of group behaviour
Group behaviour is reflected when the members know their
objectives, contribute responsibly towards the tack allotted to
them and support each other.

The determinants of group behaviour are;

 A supportive environment.
 Association of skills and role requirements.
 Applications of goals.
 Applications through team rewards.
Concept of Group formation

Forming a group is just like maintaining relationship.

It takes time, patience, requires efforts and member
often go through recognizable stages as they
change from being in collection of strangers to
United group with a common goals. Two or more
individual interacting with each other to achieve
common objectives.
 Nature of group formation
•Two or more persons
•Interaction
•Reasonable size
•Shared goal interest
•Stability
•Collective identity
Concept of Group Dynamics

•Warmth and support

•Power
•Affiliation
•Security
•Recognition
•Proximity
•Goal Accomplishment
Stages of group formation
 Forming stages
It is initial stages. Initial entry of members. Members concerns
include:
 Getting to know each other.
 Determine group rules
 Defining group rules.
 Individual roles are unclear
 High degree of guidance needed from manager.
Storming stages
It is struggle stage. A period of high emotionally
and tension among group members.
Understanding how team decision are made.
Purpose is clear, but teams relationships are
unclear.
Members concerns include :
 Dealing with outside demands.
 Clarifying members expectations.
 Dealing with obstacles to group goals.
 Understanding members interpersonal style.
Norming stages
It is A operation stage or integration stage.
Relationships are well under stable in the
team. A Point at which group really begins
to come together as a coordinated unit.
Members concerns include :
 Holding group together.
 Committed to team goals.
 Begins to work to optimize team process.
Performing stages
Team is committed to performing well.
Members deal with complex tasks&handle
internal disagreements in creative ways.
Primary challenges is to continue to
improve relationship and performance.
Adjourning stages
This is the closure stage. The group
terminates because the task has been
achieved. Reached when task is completed.
Well being of team.
A well integrated group is :
 Able to disband when it’s work is finished.
 Willing to work together in the future.
TYPES OF GROUPS
On the basis of
the social
behavior of the
people in the
organization
following are the
type group have
been identified .
Such groups
can be found in
any large
organization
Formal Groups

Command Group: 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.

Task Group: Task group consists 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 group 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 the semester system. Another
common task group is ad hoc committees, project group, and
standing committees. Ad hoc committees are a temporary
group created to resolve a specific complaint or develop a
process that is normally disbanded after the group completes
the assigned task.

Functional Group: A functional group is

created by the organization to
accomplish specific goals within an
unspecified time frame. The functional
group remains in existence after the
achievement of current goals and
objectives.
Informal Group
The informal group can have a strong
influence on 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. The informal group
can take the form of interest groups,
friendship group, or reference group.
Interest Group:
They usually continue over time and may last longer than
general informal groups. Members of the interest group may
not be part of the same organizational department but they are
bound together by some other common interest. The goals and
objectives of group interests are specific to each group and
may not be related to organizational goals and objectives. An
example of an interest group would be students who come
together to form a study group for a specific class

Friendship Group:
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.
example, a group of employees who form a friendship
group may have a yoga group, Cricket player group,
Fans associations. Reference Group:
A reference group is a type of
group that people use to
evaluate themselves. The main
objective of the reference group
is 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.
The reference group has a strong influence on
members’ behavior. Such groups are formed
voluntarily. Family, friends, and religious affiliations
are strong reference group for most individuals.
LEADERSHIP
 Leadership is the art of motivating a group of people to act
toward achieving a common goal. In a business setting, this can
mean directing workers and colleagues with a strategy to meet
the company's needs.

 Leadership captures the essentials of being able and prepared

to inspire others. Effective leadership is based upon ideas—both
original and borrowed—that are effectively communicated to
others in a way that engages them enough to act as the leader
wants them to act.

 A leader inspires others to act while simultaneously directing the

way that they act. They must be personable enough for others to
follow their orders, and they must have the critical thinking skills
to know the best way to use the resources at an organization's
TYPES OF LEADERSHIP
STYLES
 DEMOCRATIC LEADERSHIP
• In this styles the leader makes decisions based on the input
of each team member.

• The Leader take decision at his own level but employee

participate in the decision making.

DEMOCRATI
• Democratic Leadership is one of the most effective

C
leadership styles because it allows lower-level employees
to participate in the decision making

• For example – a board meeting where everyone vote before

the final decision is taken
 AUTOCRATIC LEADERSHIP
• Autocratic leadership is the inverse of democratic
leadership

• In this leadership style, the leader makes decisions without

taking input from anyone who reports to them.

• Employees are neither considered nor consulted prior to

any decision, and they are expected to follow to the
decision.

• An example of this could be when a manager changes the

Hours of work shifts for multiple employees without
Consulting anyone –especially the effected employees.
 LAISSEZ-FAIRE LEADERSHIP
• The french term “laissez faire literally translates to “let them do,”
And leaders who embrace it afford nearly all authority to their
Employees.

• laissez -faire leadership believe in empowering employees by

trusting them to work.

• It can limit their development and overlook critical company

growth opportunities.

• Therefore, it’s important that this leadership style is kept

some monitoring and checking

• In startup , you might see a laissez- faire where they might fully
trust their employees.
 TRANSFORMATIONAL
• LEADERSHIP
In this leadership style, employees might have to start basic set
of tasks and goals that they complete every week or month.

• The role of the leader is to constantly push employees outside

of their comfort zone.

• When starting a job with this type of leader, all employees might get a
list of goals to reach, as well as deadlines for reaching them.

• While the goals might seem simple at first, this manager give you
more and more challenging goals as you grow with the company

• This is a highly encouraged form of leadership among growth minded

companies because it motivates employees to see what they’re
capable of.
 TRANSACTIONAL LEADERSHIP
• Transactional leaders are fairly common today. These managers
Reward their employees for precisely the work they do

• When starting a job with a transactional boss, one might design

an incentive plan that motivates you to quickly master your
regular job duties.

• Transactional leadership helps establish roles and

responsibilities for each employee and ensures standard
output .

• Full freedom to employees and only intervene the standards

are not achieved.
THEORIES OF
LEADERSHIP
Traditional theory
 Great Man Theory
 Trait Theory
 Behavioral theory
 Ohio state university leadership style
 Michigan university leadership style
 Managerial Gird
 Lickert’s Four System of Management
 Situational theory
 Fiedler’s Contingency Theory
 Path Goal Theory
 Life Cycle Theory
 Leader- Member Exchange Theory
 New Theories of Leadership
 Charismatic leadership Theory
 Transformal leadership Theory
 CHARISMATIC LEADERSHIP THEORY

• Also known as great man theory

• It suggest that a leader is born and is not made.
• A leader has some charisma which acts as an
influence
• Charismatic leaders are those who inspire the
followers through their personal vision and energy.
TRAIT THEORY
 Trait refers to the quality of an individual
 This theory believes that persons having certain traits could become
successful leaders
Certain traits identified in a successful leader are:
 physical features
 intelligence
 Emotional stability
 Human relations
 Empathy
 • objectivity
• motivating skills
• technical skills
• communication skills
• social skills

BEHAVIOURAL THEORY:
 It says that leadership is shown by a persons acts
more than by his traits.
 it explains what leaders should do rather than what
leaders are
 leader should perform 2 major functions
• Task related functions:
provide solution to the problems
faced by the groups in performing jobs.
 Group maintenance function:
• Actions of meditating disputes and ensuring that
individuals feel valued.
• Individuals who perform both roles successfully
would be on effective leader.

SITUATIONAL THEORY:
 Here the attention is given to the situation in which the leadership is
exercised.
 The factors effecting leadership affectiveness are
• Leaders behaviour:
personality, attitude , interest , position in the organisation
• Situational factor :
Organisational climate, organisational culture , group norms , group
relationships.
TRANSACTIONAL LEADERSHIP THEORY:

Transactional leadership theory is based

on the idea that managers give employees
something they want in exchange for
getting they want. It posits that workers are
not self motivated and require structure ,
instruction and monitoring in order to
complete tasks correctly and on time.
TRANSFORMATIONAL LEADERSHIP THEORY:

Transformational leadership is a theory of

leadership where a leader works with teams or
followers beyond their immediate self interests
to identify needed change , creating a vision to
guide the change through influence , inspiration
and executing the change in tandem with
committed members of a group . This change in
self interests elevates the followers levels of
maturity and ideals , as well as their concerns
for the achievement .
 CONTINGENCY LEADERSHIP THEORY:

The contingency theory of leadership supposes that

a leaders effectiveness is contingent on whether or
not their leadership style suits a particular situation.
According to this theory , an individual can be an
effective leader in one circumstance and an
ineffective leader in another one. To maximize your
likelihood of being a productive leader, this theory
posits that you should be able to examine each
situation and decide if your leadership style is going
to be effective or not. In most cases , this requires
you to be self aware, objective and adaptable.
 MOTIVATION
INTRODUCTION
Motivation involves the biological, emotional, social,
and cognitive forces that activate behavior. In everyday
usage, the term "motivation" is frequently used to
describe why a person does something. It is the driving
force behind human actions.

Motivation doesn't just refer to the factors that

activate behaviours; it also involves the factors that direct
and maintain these goal-directed actions (though such
motives are rarely directly observable). As a result, we
often have to infer the reasons why people do the things
that they do based on observable behaviours.
MEANING;
Motivation is a process of stimulating people to
action to accomplish desired goals.

It is a type of work a manager performs to

inspire, encourage and impel people to take required
action.

Types of Motivation
1. Extrinsic motivations
2. Intrinsic motivations
Theories of Motivation
1. Maslow’s Hierarchy of Needs Theory
2. Alderfer’s ERG model
3. Herzberg’s two factor Theory
4. McGregor’s Theory-X & Theory-Y
5. Theory Z
6. The Porter & Lawler’s Model of
Motivation
Uses of Motivation
There are many different uses for motivation. It
serves as a guiding force for all human behaviour, but
understanding how it works and the factors that may
impact it can be important in a number of ways.

Understanding motivation can:

•Help improve the efficiency of people as they work toward
goals
•Help people take action
•Encourage people to engage in health-oriented behaviours
•Help people avoid unhealthy or maladaptive behaviours such
as risk-taking and addiction
•Help people feel more in control of their lives
•Improve overall well-being and happiness
Impact of Motivation
Anyone who has ever had a goal (like wanting to lose 20 pounds or run
a marathon) probably immediately realizes that simply having the desire to
accomplish something is not enough. Achieving such a goal requires the ability to
persist through obstacles and endurance to keep going in spite of difficulties.
There are three major components of motivation: activation, persistence, and
intensity.

•Activation involves the decision to initiate a behaviour, such as enrolling in a

psychology class.

•Persistence is the continued effort toward a goal even though obstacles may
exist. An example of persistence would be taking more psychology courses in
order to earn a degree although it requires a significant investment of time,
energy, and resources.

•Intensity can be seen in the concentration and vigour that goes into pursuing a
goal. For example, one student might coast by without much effort, while another
student will study regularly, participate in discussions, and take advantage of
research opportunities outside of class. The first student lacks intensity, while the
second pursues their educational goals with greater intensity.
CHARACTERISTICS:
Motivation is an internal feeling
Motivation produces Goal-directed behaviour
Motivation is different from performance
Motivation can be either Positive and Negative
Motivation means bargaining
A Simple Model of Motivation;
• Creates
NEED desire to full
fill needs

Tension • Results in
Reduction
BEHAVIOUR actions to full
fill needs

• Satisfy needs;
GOAL
intrinsic or
extrinsic
rewards
How to Motivate Employees;

1) Recognise individual difference

2) Match people to Jobs
3) Use Goals
4) Individualise Rewards
5) Link Rewards to Performance
6) Check the system for Equity
7) Don’t ignore money
IMPORTANCE OF MOTIVATION;
Productive use of resources
Increased efficiency and output
Achievement of Goals
Development of friendly relationship
Stability in workforce

Theories of Motivation:
1.Content Theories
2.Process Theories
3.Reinforcement theories
 FEW THEORIES:
1.Maslow’s Hierarchy of Needs Theory
2.Alderfer’s ERG model
3.Herzberg’s two factor Theory
4.McGregor’s Theory-X & Theory-Y
5.The Porter & Lawler’s Model of Motivation
Maslow’s Hierarchy of Needs Theory;
Self
Actualisation
Needs

Esteem Needs

Social Needs

Safety Needs

Physiological Needs
Alderfer’s ERG Model;
1) Physiological & safety Needs
2) Social Needs
3) Esteem & Self-actualisation Needs
Hygiene Factors Motivators
1 Company policy & Administration Achievement
2 Relationship with Supervisor Recognition
3 Work Conditions Work Itself
4 Salary Responsibility
5 Relationship with peers Advancement
6 Personal life Growth
7 Relationship with Subordinates
8 Status
9 Security
10 Supervision
 The Porter & Lawler’s Model of Motivation:
Value of Reward(1) Perceived Reward Probability(2)

Effort(3)

Abilities & Traits(4) Role perceptions(5)

Performance
(Accomplishment)(6)

Intrinsic Rewards(7a)
Extrinsic Reward(7b)

Perceived Equitable Rewards(8)

Satisfaction(9)
 MOTIVATION - APPLICATION
Introduction
In this concept, we can have knowledge about the
 Rational for motivational selectivity.
 Different types incentives offered to employees to motivate them.
 Various approaches is used for motivating employees at work.
 Types of motivational patterns used to motivate employees.

Motivational Selectivity
Motives are cognitive variables. They prompt people to action. They arise on
continuous basis and influence what people notice,how they see and think,
and they learn from their environment. Such influence motivation on
cognitive process is called Motivational Selectivity.
People actively resist certain aspects or objects while accepting the desirable
ones. This is called Perceptual defence.
MOTIVATION -
APPLICATION
 INCENTIVES
Financial Incentives
Non – financial Incentives
 JOB DESIGN
 MANAGEMENT BY OBJECTIVES (MBO)
 MANAGEMENT BY EXCEPTION (MBE)
INCENTIVES
The term incentive means an inducement which stimulates one action in a
desired direction. An incentive has a motivational power. A large number of
incentives the modern organisations use to motivate their employees. They
are classified into
1. Financial Incentives
2. Non – financial Incentives.

Financial Incentives
Money is an important motivator. Common uses of money as incentives are
the form of wages and salaries, bonus, retirement benefits, medical
reimbursement etc. Management needs to increase these financial
incentives making wages and salaries competitive between various
organizations so as to attract and hold force.

Non – Financial Incentives

Man is a wanting animal. Once money satisfies his/her psychological and
security needs, it ceases to be a motivating force. Then, higher order needs
for status recognition and ego in the society, emerge. The following non-
financial incentives help management satisfy its employees’ these needs:
 Appreciation of work done
 Competition
 Group incentives
 Knowledge of the results
 Workers’ participation in management
 Opportunity for growth
 Suggestion system
 Job enrichment

JOB DESIGN
Work is philosophized and treated as “worship”. People who work for
living spend a significant period of their lives at work. Hence, job
needs to provide them satisfaction to sustain their interest in jobs. This
is done through job design.
APPROACHES TO JOB DESIGN
1
Job
Enlargem
ent
6 2
Goal Job
setting Enrichm
ent
JOB
DESIGN

5 3
Quality Job
of Simplific
Work life ation
4
Job
Rotation
MANAGEMENT BY OBJECTIVES
(MBO)

1. Specificity
2. Participative
3. Explicit Time
4. Performance Feedback
Overall
organizatio
n
objectives
Divisional
objectives

Departmen
tal
objectives

Individual
objectives
DECISION MAKING CONCEPTS :

• Introduction
• Meaning
• Definition
• Importance
• Types
INTRODUCTIO
N:be viewed as an integral part of
Decision making can
planning in that key decision have to taken
THROUGHOUT THE PLANNING PROCESS.
DECISION MAKING IS A FUNDAMENTAL
ELEMENT OF THE ENTIRE MANAGEMENT
PROCESS. DECISION MAKING IS AT THE HEART
OF PLANNING ; FOR PLANS TO BE FORMULATED
AND IMPLEMENTED, DECISION ON CERTAIN
COURSES OF ACTION HAVE TO BE TAKEN.
MEANING
:
• A CHOICE MADE BETWEEN ALTERNATIVE COURSE OF
ACTION IN A SITUATION OF UNCERTAINITY IS KNOWN
AS DECISION MAKING
 A DECISIONS INVOLVES A CHOICE I.E CHOOSE THE
BEST ONE FROM DIFFERENT OPTIONS /
ALTERNATIVES / CHOICES.
 IT IS GOAL-ORIENTED.
DEFINITION:
 ACCORDING TO GEORGE R.TERRY, “DECISION
MAKING IS THE SELECTION BASED ON SOME
CRITERIA FROM TWO OR MORE POSSIBLE
ALTERNATIVES”.
 ACCORDING TO KOONTZ AND O’DONNEL, “
DECISION MAKING IS ACTUAL SELECTION
FROM AMONG VARIOUS ALTERNATIVES OF
ACOURSE OF ACTION, IT IS AT THE CORE OF
PLANNING
 IMPORTANCE OF DECISION
MAKING
1. INPLEMENTATION OF MANAGERIAL FUNCTION:
WITHOUT DECISION MAKING DIFFERENT
MANAGERIAL FUNCTION SUCH AS PLANNING,
ORGANIZING, DIRECTING CONTROLLING CANNOT
BE CONDUCTED.
2. PERVASIVENESS OF DECISION MAKING: THE
DECISION IS MADE IN ALL MANAGERIAL ACTIVITIES
AND IN ALL FUNCTIONS OF THE ORGANIZATION. IT
MUST BE TAKEN BY ALL STAFF.
3. EVALUATION OF MANAGERIAL PERFORMANCE :
WHEN DECISION IS CURRECT IT IS UNDERSTOOD THAT
THE MANAGER IS QUALIFIED, ABLE AND EFFICIENT.
WHEN DECISION IS WRONG, IT IS UNDERSTOOD THAT
MANAGER IS DISQUALIFIED.
4. HELPFUL IN PLANNING AND POLICIES:
ANY POLICY OR PLAN IS ESTABLISHED
THROUGH DECISION MAKING, WITHOUT
DECISION MAKING, NO PLAN AND
POLICIES ARE PERFORMED. IN THE
PROCESS IF MAKING PLAN,
APPROPRIATE DECISION MUST BE MADE
FROM SO MANY ALTERNATIVES.
5. SELECTING THE BEST ALTERNATIVES:
DECISION MAKER EVALUATE VARIOUS
ADVANTAGES AND DISADVANTAGES OF
EVERY ALTERNATIVES AND SELECT THE
BEST ALTERNATIVES IN THE
ORGANIZATION.
TYPES OF DECISION MAKING
1. PROGRAMMED AND NON
PROGRAMMED DECISION
2. ROUTINE AND STRATEGIC DECISION
3. TACTICAL (POLICY) AND OPERATIVE
DECISION
4. ORGANIZATIONAL AND PERSONAL
DECISIONS
5. MAJOR AND MINOR DECISION
6. INDIVIDUAL AND GROUP DECISION
Steps in Decision Making
 Identification of a problem
 Diagnosing the problem
 Collect and analyze the relevant information
 Discovery of alternatives
 Analyzing the alternatives
 Selecting of best alternative
 Conversion of decision into action
 Verifying the decision
Decision making condition
Every decision situation can be organised on a scale according to
the availability of information
and the possibility of failure. The four position on the scale are

● Certainly
● Risk
● Uncertainty
● Ambiguity

Whereas programmed decision can be arrived at in situations

involving certainly many
situations that managers deal with every day involve at least some
degree of uncertainty and
require non-programmed decision making.
1. Certainty: When the decision-maker knows with
reasonable certainty what the
alternatives are and what conditions are associated
with each alternative, a state of
certainty exists.

2. Risk: Risk means that a decision has clear cut

goals and that good information
(incomplete but reliable, factual information) is
available, but the future outcomes
associated with each alternative are subject to
chance.
3. Uncertainty:
Under conditions of uncertainty, the decision
maker does not know all the
alternatives, the risks, associated with each or the likely
consequences of each
alternative. This uncertainty basically comes from the
complex and dynamic nature of
modern organisations and their environments.

4. Ambiguity:
Ambiguity means that the goals to be achieved or
the problem to be solved
is unclear, alternatives are difficult to define, and information
about outcomes is not
available. It is like a teacher asking his students to complete
an assignment without
giving any topic, direction or guidelines.
Decision Tree
 A decision tree is a decision support tool that
uses a tree-like model of decisions and their
possible consequences, including chance
event outcomes, resource costs, and utility. It
is one way to display an algorithm that only
contains conditional control statements.
 Decision trees are commonly used in
operations research, specifically in
decision analysis, to help identify a strategy
most likely to reach a goal, but are also a
popular tool in machine learning.