1. DEFINING GROUPS
Broadly, a group is any collection of individuals who have mutually dependent relationships.
A group may be defined as two or more individuals, interacting and interdependent, who have come together to achieve particular objectives.

2. A GROUP IS AN ASSOCIATION OF TWO OR MORE INDIVIDUALS WHO INTERACT WITH EACH OTHER FOR A COMMON PURPOSE.
WHY GROUPS?
SECURITY
SOURCE OF INFO.
MONOTONY
IN JOB
GROUP
GOAL
ACHIEVEMENT
SOCIAL NEED

3. The Types of Groups Based on structure: Formal Group Informal Group
Amity Business School
The Types of Groups
Based on structure:
Formal Group
A group that managers establish to achieve organization goals. (Standing task group/command group and task groups)
Informal Group
A group that managers or nonmanagerial employees form to help achieve their own goals or to meet their own needs.( friendship groups, interest groups, reference groups)

4. Types of Groups Formal Group
Command group: Command group which is determined by the organizational chart depicting the approved formal connections between individuals in an organization.
Task groups: are often not restricted to the organizational hierarchy and can be cross-functional in nature.
Standing committee: is a permanent committee in an organization to deal with some specific types of problems that may arise more or less on a regular basis.

5. II) Informal Groups
Interest groups: are formed when a group of employees band together to seek some common objectives, like joining the union to achieve a higher amount of bonus.
Friendship groups: It satisfy affiliation need of members.
Reference group: are the groups, with which individuals identify and compare themselves. These could be within the organization when a middle level executive compares himself with the higher-level executive. It might exist outside the organization as well when an individual compares himself with his batch mates working in other organizations

6. Other types of groups Based on change of membership:
Open : constant state of change, changing membership, time perspective and equilibrium.
Closed : quite stable, fixed membership, long-term.
Based on beliefs, values and preferences:
In-group: a group to which we belong, it is best. Caste, religion, community, etc.
Out- group: a group to which we do not belong. Rival groups( neighbourhood gangs, warring nations).

7. Contributions of Groups to the Organization
Synergy = the creation of a whole that is greater than the sum of its parts
Superior performance (i.e., better than lone individuals) when:
No clear expert to assign decision to
Problem-solving can be handled by dividing work and sharing information
Need for creativity and innovation (groups more willing to take risks than are individuals)

8. Contributions of Groups to the Organization (cont’d)
Forum to learn and share information
Satisfying needs for:
Social interaction
Security
Emotional support
Ego involvement in activities

9. Groups’ Contributions to Organizational Effectiveness
Figure 14.1

10. GROUP DECISION-MAKING
Advantages
More information
More alternatives considered
Better understanding and acceptance of decision
Greater commitment to decision
Disadvantages
Social pressure to conform
Minority domination
Time demands

11. Group Dynamics/ Determinants of group behaviour
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Group Dynamics/ Determinants of group behaviour
1.Group Norms
Shared guidelines or rules that most group members follow.
Groups may set their working hours, behavior rules, and output quotas.

12. Group Cohesiveness 2.Group Cohesiveness
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Group Cohesiveness
2.Group Cohesiveness
The degree to which members are attracted or loyal to the group.
Increases in group cohesiveness causes:
Participation in the group to increase which helps get members actively involved, but too much involvement can waste the group’s time.
Conformity to group norms to increase, although with too much conformity, group performance can suffer.
Group goal accomplishment to increase in importance which can result in the group becoming more focused on itself than the organization.

13. Groups with high cohesiveness
demonstrate lower tension & anxiety
demonstrate less variation in productivity
demonstrate better member satisfaction, commitment, & communication

14. Group Dynamics 3.Group size affects how a group performs.
Amity Business School
Group Dynamics
3.Group size affects how a group performs.
Normally, small groups (2 to 9 members) interact better and tend to be more motivated.
Larger groups can be used when more resources are needed and division of labor is possible.
4.Group tasks impact how a group interacts.
Task interdependence shows how the work of one member impacts another; as interdependence rises, members must work more closely together.

15. 5.Group Leadership :Effective leadership is a key ingredient in high performing groups, teams, and organizations.
Formal groups created by an organization have a leader appointed by the organization.
Groups that evolve independently in an organization have an informal leader recognized by the group.

16. 6. Task Interdependence-Higher the level of exchange of resources among groups, higher would be degree of interdependence.

17. Group Development
Groups generally pass through a standardized sequence of their evolution. This sequence is known as the five – stage model of group development.
These stages are-
Forming
Storming
Norming
Performing
Adjourning

18. The Stages of Group Development
Figure 14.4

19. STAGES OF GROUP DEVELOPMENT

20. Forming : It is the first stage in group development, characterized by much uncertainty (about group’s purpose, structure, and leadership).
Storming: It is characterized by intra-group conflict. Members accept the existence of group but there is resistance to the constraints that the group imposes on individuality.
Members often show hostility towards each other and resist the leader’s control. If these conflicts are not adequately resolved, the group may even be disbanded.

21. Norming: This stage is characterized by close relationships and cohesiveness i.e., in this stage close relationships develop and people start having strong sense of identity.
Performing: Structure at this point is fully functional and accepted. Group energy has moved from getting to know and understand each other to performing the task at hand.
Adjourning: It is the final stage when the group, after achieving the objectives for which it was created, starts to gradually dissolve itself.

22. GROUP PROBLEMS
1. Social loafing = when people work less hard in groups than they would by themselves
Why?
Individual contributions less noticeable
Prefer others to carry the workload
To deal with social loafing
Define members’ roles and tasks to maximize individual interests
Make individual rewards dependent on contributions to group
Enhance responsibility by identifying individual contributions to the group

23. Problem with Groups GROUPTHINK
Groupthink = tendency of group members of cohesive groups to lose their ability to evaluate critically
Groups affected by groupthink ignore alternatives and tend to take irrational actions that dehumanize other groups.  A group is especially vulnerable to groupthink when its members are similar in background, when the group is insulated from outside opinions, and when there are no clear rules for decision making.

24. Contd..
Groupthink occurs when groups are highly cohesive and when they are under considerable pressure to make a quality decision.
Some ways to avoid groupthink:
Assign role of “devil’s advocate” at meeting
Impartial leader
Subgroups work on same problem
“second-chance” meetings
Members discuss issues with outsiders and report back

25. GROUP SHIFT/RISKY SHIFT PHENOMENON:
It is a tendency where group members take irrational or very higher degree of risk which would not have been taken if working in isolation/individually. It occurs as the risk is divided among members and if loss occurs that is also spread among all. Leads to unnecessary wastage of company resources.