1. © Prentice Hall, 2002 17 - 1 Modern Management 9 th edition.

2. © Prentice Hall, 2002 17 - 2  Objectives A definition of the term group as used in the context of management A thorough understanding of the difference between formal and informal groups Knowledge of the types of formal groups that exist in organizations An understanding of how managers can determine which groups exist in an organization An appreciation for what teams are and how to manage them Insights into managing corporate culture to enhance organizational success.

3. © Prentice Hall, 2002 17 - 3 G ROUPS (1) Interact with one another (2) Psychologically aware of one another (3) Perceive themselves to be a group In addition, Cartwright’s and Lippitt’s reasons 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 organization 4.Understanding raises probability that groups will cause desirable consequences within organization.

4. © Prentice Hall, 2002 17 - 4 K INDS O F G ROUPS I N O RGANIZATIONS Formal Groups Kinds of Formal Groups Command groups Task groups.

5. © Prentice Hall, 2002 17 - 5 K INDS O F G ROUPS I N O RGANIZATIONS Figure 17.1 A formal group.

6. © Prentice Hall, 2002 17 - 6 K INDS O F G ROUPS I N O RGANIZATIONS Formal Groups (con’t) Examples of Formal Groups Committees Major reasons for establishing committees: 1. To allow organization members to exchange ideas 2. Generate suggestions and recommendations to offer to other units 3. To develop new ideas for solving existing organizational problems 4. To assist in the development of organizational policies Why Managers should Use Committees Improve quality of decision making Encourage expression of honest opinions Increase participation in decision-making Ensure representation of important groups.

7. © Prentice Hall, 2002 17 - 7 K INDS O F G ROUPS I N O RGANIZATIONS Figure 17.2 Percent of companies that have committees, by size of company.

8. © Prentice Hall, 2002 17 - 8 K INDS O F G ROUPS I N O RGANIZATIONS Formal Groups (con’t) Examples of Formal Groups (con’t) Committees (con’t) What Makes Committees Successful Procedural Steps Clearly define committee’s goals in writing Specify committee’s authority Determine optimum size of committee Select chairperson on basis of ability to run efficient meeting Appoint permanent secretary to handle communications Distribute agenda and all supporting material before meeting Start meetings on time and announce ending time at outset.

9. © Prentice Hall, 2002 17 - 9 K INDS O F G ROUPS I N O RGANIZATIONS Formal Groups (con’t) Examples of Formal Groups (con’t) Committees (con’t) People-Oriented Guidelines Rephrasing ideas already expressed Bringing all members into active participation Stimulating further thought by members Groupthink Work Teams Special-Purpose and Self-Managed Teams.

10. © Prentice Hall, 2002 17 - 10 K INDS O F G ROUPS I N O RGANIZATIONS Formal Groups (con’t) Stages of Formal Group Development The Acceptance Stage The Communication and Decision-Making Stage The Group Solidarity Stage The Group Control Stage Members function as a unit Members participate effectively in group effort Members oriented toward single goal Members have equipment, tools, and skills necessary to attain group’s goals Members ask and receive suggestions, opinions, and information from one another.

11. © Prentice Hall, 2002 17 - 11 K INDS O F G ROUPS I N O RGANIZATIONS Informal Groups Kinds of Informal Groups Interest groups Friendship groups Benefits of Informal Group Membership 1. Perpetuation of social and cultural values 2. Status and social satisfaction 3. Increased ease of communication 4. Increased desirability of overall environment.

12. © Prentice Hall, 2002 17 - 12 K INDS O F G ROUPS I N O RGANIZATIONS Figure 17.3 Three informal groups that deviate significantly from formal groups within the organization.

13. © Prentice Hall, 2002 17 - 13 M ANAGING W ORK G ROUPS Determining Group Existence Sociometric Analysis Applying the Sociogram Model Understanding the Evolution of Informal Groups Homans’ Model Applying the Homans’ Model.

14. © Prentice Hall, 2002 17 - 14 M ANAGING W ORK G ROUPS Figure 17.4 Sample sociograms.

15. © Prentice Hall, 2002 17 - 15 M ANAGING W ORK G ROUPS Figure 17.5 Homans’ ideas on how informal groups develop.

16. © Prentice Hall, 2002 17 - 16 T EAMS Groups Versus Teams Not all groups are teams but all teams are groups Types of Teams in Organizations Problem-Solving Teams Self-Managed Teams Cross-functional Teams.

17. © Prentice Hall, 2002 17 - 17 T EAMS Figure 17.6 Possible team types based on various combinations of self-directed, problem-solving, and cross-functional teams.

18. © Prentice Hall, 2002 17 - 18 T EAMS Stages of Team Development Forming Storming Norming Performing Adjourning.

19. © Prentice Hall, 2002 17 - 19 T EAMS Figure 17.7 Factors contributing to team effectiveness.

20. © Prentice Hall, 2002 17 - 20 T EAMS Team Effectiveness People-related steps: 1.Trying to make the team’s work satisfying 2.Developing mutual trust among team members and between the team and management 3.Building good communication—from management to the team as well as within the team 4.Minimizing unresolved conflicts and power struggles within the team 5.Dealing effectively with threats toward and within the team 6.Building the perception that the jobs of team members are secure.

21. © Prentice Hall, 2002 17 - 21 T EAMS Team Effectiveness (con’t) Organization-related steps: 1.Building a stable overall organization or company structure that team members view as secure 2.Becoming involved in team events and demonstrating interest in team progress and functioning 3.Properly rewarding and recognizing teams for their accomplishments 4.Setting stable goals and priorities for the team.

22. © Prentice Hall, 2002 17 - 22 T EAMS Team Effectiveness (con’t) Task-related steps: 1.Developing clear objectives, directions, and project plans for the team 2.Providing proper technical direction and leadership for the team 3.Establishing autonomy for the team and challenging work within the team 4.Appointing experienced and qualified team personnel 5.Encouraging team involvement 6.Building visibility within the organization for the team’s work.

23. © Prentice Hall, 2002 17 - 23 T EAMS Trust and Effective Teams Communicate often to team members Show respect for team members Be fair to team members Be predictable Demonstrate competence.

24. © Prentice Hall, 2002 17 - 24 C ORPORATE C ULTURE Status Symbols Traditions and History Physical Environment The Significance of Corporate Culture What leaders pay attention to, measure, and control Leaders’ reactions to critical incidents and organizational crises Deliberate role modeling, teaching, and coaching Criteria for allocation of rewards and status Criteria for recruitment, selection, promotion, and retirement of employees.

25. © Prentice Hall, 2002 17 - 25 Chapter Seventeen Questions