CHAPTER 3

Group and Team Dynamics

MEANING OF GROUP
 Group is defined as a collection of two or
more interacting individual with stable
pattern relationship between them, who
share common goals and who perceive
themselves as being a group.
GROUP BEHAVIOUR
 Several variables influences group
performance and satisfaction. External
condition, resources of group members
and group structure are important input
in group behaviour.
GROUP PERFORMANCE
FACTOR
 1.Group composition
 2Group size
 3.Group norms
 4.Group Cohesiveness
GROUP PERFORMANCE
FACTOR
 1.Group composition
 Group composition is understood in
terms of group’s heterogeneity or
group’s homogeneity.
 In Projects co operation require among
group members
 Group member share common goal and
also understanding
 Homogenous groups in terms of age,
culture, technical experience and work
experience become important.
GROUP PERFORMANCE
FACTOR
 Heterogeneous groups are group varied
in terms of age, size, technical
experience, culture, background,
religion, work orientation
 Different company have different
languages, work style, thought process
and methods of working example when
Tata company collaborated with
company in Mexico. so they had change
their lunch timing and make it two to
three hours to suit Mexican culture.
GROUP PERFORMANCE
FACTOR
 2)Group Size
 A group size have more than two
members interact and influence one
another.
 It is brought that large groups tends to
concentrate on greater social interaction
and when group is large ,task
orientation and work distribution get
affected is called Social Loafing
 Social loafing assume that if some of
members do not work hard then other
members in group would pick slack
GROUP PERFORMANCE
FACTOR
 Hence ideal group size is determined by
group members’ ability to interact and
influence each other
 3) Group Norms:
 A norm is measure or a standard against
appropriateness of behaviour is judged
 Group norms help to predict behaviour
and enable people of group for better
performance.
 Group norms express central values of
group
and identify the group to other.
GROUP PERFORMANCE
FACTOR
 Certain clothes, mannerism or
behaviours in particular situations may
signify to other
about membership of group.
 4)Group Cohesiveness
Group cohesiveness is the extent to
which group dynamics like maturity,
size, homogeneity and frequency of
interaction. Example Group think occurs
when group’s overriding concern is
getting a majority or consensus on issue
having an objective and analytical
GROUP DYNAMICS
 The term Group Dynamics refers to
complex of forces that determine group
formation,
its size and structure, conflict ,change
and
cohesiveness, interaction and
behaviour.
According to fred Luthans, Group
dynamic
is the interaction of forces between
group members in social situation.
TYPES OF GROUP
 1) Formal groups and Informal Groups
 2) Open groups and Closed groups
 3)In groups and out groups
 4)Friendship group and reference group
TYPES OF GROUP
 1)Formal Group : A formal group is one
that is deliberately created to perform a
specific
task. Members are appointed by the
organization, but it may not be the case.
A number of people assigned to specific
task form a formal group. example
group of committee and work unit such
as small department, a research and
development laboratory, a management
team or small assembly line.
TYPES OF GROUP
 A) Command group : It is permanently specified
in the organizational structure
and consists of a supervisor who exercises
formal authority over subordinates.
B) Task Group is temporary formal group that
is created to solve specific problems.
The group comprises employees who work
together to complete a particular task but who
do not necessarily report to same
supervisor .The employees belong to different
departments. They stay together till task is
completed and once work is completed task
groups.
TYPES OF GROUP
 2)Informal Group
It is also called clique .The groups are natural
Formations in the work environment which
appear in response to need for social contact.
a)Interest group: It is made up of individual who
affiliate to achieve an objective of mutual
interest that may have to do nothing with
their formal task group memberships.
Working
Mothers who lobby together to get their
organization to facilitate their multiple roles
by providing day care facilities on premises
and shared job assignment.
TYPES OF GROUP
 B) Friendship group develops
characteristics such as marital status,
political views, college affiliation and
sports. Friendship groups are important
because they satisfy affiliation needs of
their members. Managers maintain good
relations with friendship group because
these group have tremendous influence
on their members that managers would
prefer to have directed towards
organizational goals.
TYPES OF GROUP
 C) Reference group: It is group which an
individual identifiers for the purpose of
forming opinion. Reference group are
based on such factors as race, gender,
politics, religion, social class, education
level, profession. Reference group
provide values for individuals on which
to base personal decisions and norms
that justify social behaviour may or may
not congruent with organizational
preferences.
TYPES OF GROUP
 3)Open and closed group
 Open group is constant state of change.
Open group has relatively short time
perspective. The instability and constant
change of an open group make it difficult
for group activities are oriented towards
present or near future.
 Closed group: It enables it to maintain a
much longer time and able to recollect
the history of group and their expectation
for continued long association enabled
them to use long term planning
IN GROUPS AND OUT
GROUPS
 A distinction is made between in groups and out
groups. The groups to which we do not
belong are out group concept is applicable to
friendly rivalries between schools, clubs and
associations, but is applicable to much more
hostile groups. On small scale it is descriptive of
violent neighborhood gangs on larger scale it is
descriptive of wars between nations. The in-
group versus out-group concept is intimately
linked to ethnocenticism, which means that
one’s own group is the best and other is to be
judged on its terms. Ethnocentric attitudes are
mentioned most frequently in relation to
national rivalries, but ethnocentric attitudes are
IN GROUPS AND OUT
GROUPS
 Mentioned most frequently in relation
to national rivalries but ethnocentricism
has
many applications. One can be
ethnocentric about one’s community,
state, social class.
MODEL OF GROUP
DEVELOPMENT
FORMING
Awareness
Acceptance
STROMING
Conflict,
clarification
NORMING
Cooperation
Support
PERFORMING
Productivity
Achievement
ADJOURING
Separation
Satisfaction
MODEL OF GROUP
DEVELOPMENT
 Group passes through five stages in its life cycle.
Different group various stages of development for
different time and given stage permanently.
 1)Forming :there is great deal of uncertainty about
group’s purpose structure and leadership. Members are
concerned about
 Exploring friendship and task potentials.
 They do not have strategy for addressing group’s task.
They are not sure about satisfaction for acceptance and
personal goal satisfaction. As awareness increases this
stage of group development is completed when
members accept themselves as a group and commit
group goals.
 2)Storming: At this stage of group development
conflict arises because of need to clarify roles and
behavioural expectation. Disagreement is inevitable
MODEL OF GROUP
DEVELOPMENT
 As members attempt to decide on task
procedure, role assignment ways of
relating and power allocations. One
objective at this stage is to resolve the
conflict about power
allocation .1)objective is to resolve the
conflict about power and task structure.
 2)Work through accompanying hostility
and
Sense of acceptance and
belongingness is necessary. failure to
realize These objective
MODEL OF GROUP
DEVELOPMENT
 3) Norming: At this stage leader
emerges and bring about group
cohesion There is a strong sense a
group identity. New group standard roles
and behaviour expectation are formed
for member. Desired outcomes for this
sage of group development are
increased member involvement and
mental support as group harmony
emerges. If group become too
contended they can get stalled at this
stage they do not want to create conflict
or challenge established ways.
MODEL OF GROUP
DEVELOPMENT
 4)Performing: This stage is marked by
team work, role ,clarity and task
accomplishment. Group energy moves
from conflict to task accomplishment.
Productivity is at is peak.
Desire outcomes are achievement and
pride and major concern include
preventing loss of enthusiasm and
sustaining momentum. Performing
happens to be last stage in permanent
work groups.
MODEL OF GROUP
DEVELOPMENT
 At this stage of development, a group is
made up of members who
 1) Continue to work well together
 2) Understand their individual and
collective responsibilities to other group
and to the larger organization
 Able to adapt successfully as
opportunities and demands change over
time.
MODEL OF GROUP
DEVELOPMENT
 5) Adjourning: for temporary task forces an
similar group which have specific tasks to
perform, adjourning happens task forces and
similar other groups which have specific task
to perform , adjourning happens to be the
last stage. The groups task has been
accomplished. Feeling about disbanding
range from sadness and depression at the
loss of friendship to happiness and
rewarding group performance. Ceremonial
events bring closure to desired emotional
outcome a sense of satisfaction and
accomplishment.
TEAM EFFECTINESS
 Team effectiveness signifies the system
of getting people in company or
institution to work together effectively.
 Strategies for building winning and
effective team
 1) Goal Setting
 2) Leadership
 3)Structural changes like reporting
relationship ,required relationships,
required interaction
TEAM EFFECTINESS
 4) Allow group Decision making and
problem solving.
 5)In performance management in area of
reward or behaviour link
 6) Formal Training in deficient Area
 7) Team member coaching by Team leaders
or Peers.
 8) Behaviour Modification through shaping.
 9) Constructive feedback.
 10) Changing Membership (Transfers,
Infusion of new members etc.)
LEADERSHIP VERSUS
MANAGEMENT
Leader v/s Manager:
Point of Leader Manager
Difference
a) Origin: A person becomes A person becomes
a leader on the a manager by
basis of his virtue of his
personal qualities. position.
b) Formal Rights: Rights are not Manager has got
available to a formal rights in an
leader. organization
because of his
status
c) Stability: Leadership is It is more stable.
temporary
d) Mutual All leaders are not All managers are
Relationship: managers. leaders.
LEADERSHIP VERSUS
MANAGEMENT
Leader v/s Manager:
Point of Leader Manager
Difference
e) Functions: Leader influences A manager
people to work performs all five
willingly for group functions of
objectives. management.
f) Followers: The group of The subordinates
employees whom are the followers
the leader leads of managers.
are his followers.
g) Necessity: A leader is A manager is very
required to create essential to the
cordial relation concern.
between person
working in and for
organization
LEADERSHIP VERSUS
MANAGEMENT
Leader v/s Manager:
Point of Leader Manager
Difference
h) Accountability: Leaders have no Manager is
well defined accountable for
accountability. self and
subordinates
behaviour and
performance.
i) Approach: Sets Direction. Plan details.
j) Style: Transformational Transactional
k) Attribute: Foresightedness Mind
l) Decision: Facilitates Makes decision
decision
m) Focus: People Process &
procedure
LEADERSHIP VERSUS
MANAGEMENT
Leader v/s Manager:
Point of Leader Manager
Difference
o) Aim: Growth and Attainment of the
development. required result.
p) People: Aligns people. Organises people.
q) Conflict: Uses conflict as an Avoid conflict.
asset.
r) Strives: For effectiveness. For efficiency.
s) Dependence: Depends on Depends on
goodwill. authority.
t) Outcomes: Produces positive Produces order,
and sometimes consistency and
dramatic change. predictability.
TYPES OF LEADERSHIP
Following are the common types of leadership
styles.
A. Change Oriented Leadership:
. Today organizations should be thriving and
must be led by individuals, who have a
strong commitment to change. As such,
leaders must have a clear vision about
what the future holds.
. According to a survey of CEO’s of 20
different countries, having a strong sense
of vision was identified as the single most
important characteristics for a CEO to
have.
TYPES OF LEADERSHIP
• Hence, it is not a surprise that companies
with the most visionary leaders tend to
outperform the most.
B. Charismatic Leadership:
• There are various examples to
demonstrate how charismatic leaders show
their outstanding qualities through their
words and action.
• Examples of the same are Nelson Mandela,
Mahatma Gandhi and Steve Jobs. They
have changed entire societies and have
had powmrful effects on the subordinates.
TYPES OF LEADERSHIP
1. Self Confidence:
• Charismatic leaders are highly confident of
themselves and their technical expertise and
abilities. Ratan Tata, Ex Chairman of Tata
group of Companies, is an appropriate
example of a charismatic leader.
2. Vision:
• He or she must have a vision that clearly
challenges the status quo and helps to
realise a dream. For example, Steve Jobs
had a vision for Apple and the popularity
and the transformation of apple is attributed
to him.
TYPES OF LEADERSHIP
3. Extraordinary Behaviour.
• Charismatic leaders show extraordinary
behaviour in terms of ethics, earning respect
or technical expertise. Narayan Murthy of
Infosys shows extraordinary behaviour in
dealing with challenges and projects.
4. Recognized as Change Agents:
• Charismatic leaders are treated as Change
Agents and they are constantly looking for
change. Like Azim Premjee initiated cloud
computing as a measure of reducing costs,
and this was a change, which other
companies followed.
TYPES OF LEADERSHIP
3) Laissez-faire Leadership:
• Laissez-faire leader lacks direct supervision
of employees and fails to provide regular
feedback to those under his supervision.
• Highly experienced and trained employees
require little supervision, which comes
under the laissez-faire leadership style.
However, not all employees possess those
characteristics.
• This leadership style hinders the production
of employees needing supervision. The
TYPES OF LEADERSHIP
laissez-faire style produces no leadership
or supervision efforts from managers
which can lead to poor production, lack
of control and increasing costs.

4) Autocratic Leadership:
• The autocratic leadership style allows
managers to make decisions alone
without the input of others. Managers
possess total authority and impose their
Will on employees.
TYPES OF LEADERSHIP
. No one challenges the decisions of
autocratic leaders. Countries such as
Cuba and North Korea operate under the
autocratic leadership style.
. This leadership Style benefits employees
who require close supervision. Creative
employees who thrive in-group functions
detest this leadership style.
TYPES OF LEADERSHIP
5. Participative Leadership:
. Often called e democratic leadership
style or participative leadership, it
values the input of team members and
peers, but the responsibility of making
the final decision rests with the
participative leader.
. Participative leadership boosts employee
morale because employees make
contributions to the decision-making
process. It causes them to feel as if their
opinions are taken into consideration.
TYPES OF LEADERSHIP
. When a company needs to make changes
within the organization, the participative
leadership style helps employees to accept
changes easily because they play a role in the
process.
. This style meets challenges, when companies
need to make a decision in a short period.

6. Transactional Leadership:
. Managers using the transactional leadership
style receive certain tasks to perform and
provide rewards or punishments to team
members based on performance results.
TYPES OF LEADERSHIP
. Managers and team members set
predetermined goals together, and
employees agree to follow the direction
and leadership of the manager to
accomplish those goals.
. The manager possesses power to review
results and train or correct employees,
when team members fail to meet goals.
Employees receive rewards, such as
bonuses, when they accomplish goals.
TYPES OF LEADERSHIP
7. Transformational Leadership:
. The transformational leadership style
depends on high levels of communication
from management to meet goals.
. Leaders motivate employees and enhance
productivity and efficiency through
communication and high visibility. This
style of leadership requires the
involvement management to meet goals.
. Leaders focus on the big picture within an
organization and delegate smaller tasks to
the team members.
TYPES OF LEADERSHIP
. According to Bass and Avolio.
transformational leadership is
characterized by the following: idealized
influence, inspirational motivation,
intellectual stimulation, individualized
consideration and servant leadership.
. Transformational leadership is that stage
where leaders and followers raise one
another to such high levels of values and
motivation that it has a transforming effect
in both of them. Transformational leaders
are very relevant in today's work place.
TYPES OF LEADERSHIP
. They can bring the organization into
futures not yet imagined. They fit the
present organizational focus of
revitalizing and transforming
organizations to meet competitive
challenges.
. Moreover the model of transformational
leadership places considerable
emphasis on the importance of the
direct reports, perceptions of leader
effectiveness and the impact of the
leader's behaviour on the direct reports.
TYPES OF LEADERSHIP
. This means that in order to a manager to
be aware of how effective he or she is in
adopting a transformational approach, he
must obtain feedback from direct reports.
. Clearly, it is also important that the
manager obtains feedback from other
work colleagues, including their line
managers and their peers.
. Servant leadership has roots in both
eastern and western thought, whereas
the Taoist sages encouraged leaders to be
humble. The
TYPES OF LEADERSHIP
basic premise of servant leadership is
simple yet profound.
. Leaders should put the needs of
followers before them. The followers
judge leaders.

8. Situational Leadership:
• While the Transformation Leadership
approach is often highly effective, there
is no one right way to lead or manage
that suits all situations.
TYPES OF LEADERSHIP
• To choose the most effective approach a
leader consider:
a) The skil levels and experience of the
members of his team.
b) The work involved (routine or new and
creative).
c) The organizational environment (stable
or radically changing, conservative or
adventurous).
d) His own preferred or natural style.
TYPES OF LEADERSHIP
• A good leader will find he/she switching
instinctively between various styles
according to the people and work, they
are dealing with. This is often referred to
as "situational leadership".
• for example, the manager of a small
factory trains new machine operatives
using a bureaucratic style to ensure
operatives should know the procedures
that achieve the right standards of
product quality and workplace safety.
TYPES OF LEADERSHIP
• The same manager may adopt a more
participative style of leadership, when
working on production line improvement
with his or her team of supervisors.