1. © Prentice Hall, 2005 1 - 1

2. © Prentice Hall, 2005 1 - 2ObjectivesObjectives 1.A definition of the term group as used in the context of management 2.A thorough understanding of the difference between formal and informal groups 3.Knowledge of the types of formal groups that exist in organizations 4.An understanding of how managers can determine which groups exist in an organization 5.An appreciation for what teams are and how to manage them 6.Insights into managing corporate culture to enhance organizational success

3. © Prentice Hall, 2005 1 - 3GroupsGroups Group is any number of people who: (1) interact with one another (2) are psychologically aware of one another (3) perceive themselves to be a group Why managers should study groups: 1. Exist in all kinds of organizations 2. Form in all facets of organizational existence 3. Cause either desirable or undesirable consequences 4. Raise the probability of causing desirable consequences

4. © Prentice Hall, 2005 1 - 4 Kinds of Groups in Organizations Formal Groups Kinds of Formal Groups Command groups Task groups

5. © Prentice Hall, 2005 1 - 5 Kinds of Groups in Organizations

6. © Prentice Hall, 2005 1 - 6 Kinds of Groups in Organizations Formal Groups (continued) Examples of Formal Groups Committees Reasons for establishing committees: 1.Allow organization members to exchange ideas 2.Generate suggestions and recommendations 3.Develop new ideas for solving existing organizational problems 4.Assist in the development of organizational policies Why Managers Should Use Committees Improve quality of decision making Encourage expression of honest opinions Increase members’ participation in decision-making Ensure representation of important groups in decision-making process

7. © Prentice Hall, 2005 1 - 7 Kinds of Groups in Organizations

8. © Prentice Hall, 2005 1 - 8 Kinds of Groups in Organizations Formal Groups (continued) Examples of Formal Groups (continued) Committees (continued) What Makes Committees Successful Procedural Steps Define goals clearly, preferably in writing Specify authority Determine optimum size Select chairperson Appoint permanent secretary Distrubute agenda and support material before meeting Start meetings on time-announce ending time at outset People-Oriented Guidelines. Rephrasing ideas already expressed Bringing all members into active participation Stimulating further thought by members Groupthink

9. © Prentice Hall, 2005 1 - 9 Kinds of Groups in Organizations Formal Groups (continued) Examples of Formal Groups (continued) Work Teams Special-Purpose and Self-Managed Teams 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 are oriented toward a single goal Members have equipment, tools, and skills necessary to attain goals Members exchange suggestions, opinions, and information

10. © Prentice Hall, 2005 1 - 10 Kinds of Groups in Organizations 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 the overall work environment

11. © Prentice Hall, 2005 1 - 11 Kinds of Groups in Organizations

12. © Prentice Hall, 2005 1 - 12 Managing Work Groups Determining Group Existence Sociometric Analysis Applying the Sociogram Model Understanding the Evolution of Informal Groups Homans’ Model Applying the Homans Model

13. © Prentice Hall, 2005 1 - 13 Managing Work Groups

14. © Prentice Hall, 2005 1 - 14 Managing Work Groups

15. © Prentice Hall, 2005 1 - 15TeamsTeams Groups Versus Teams Group consists of any number of people who: Interact with one another Are psychologically aware of one another Think of themselves as a group Team is a group whose members: Influence one another toward the accomplishment of objective(s) Types of Teams in Organizations Problem-Solving Teams Self-Managed Teams Cross-Functional Teams

16. © Prentice Hall, 2005 1 - 16TeamsTeams

17. © Prentice Hall, 2005 1 - 17TeamsTeams Stages of Team Development Forming Storming Norming Performing Adjourning

18. © Prentice Hall, 2005 1 - 18TeamsTeams 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 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

19. © Prentice Hall, 2005 1 - 19TeamsTeams

20. © Prentice Hall, 2005 1 - 20TeamsTeams Team Effectiveness (continued) Organization-related steps: 1.Building a stable overall structure 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 accomplishments 4.Setting stable goals and priorities for the team

21. © Prentice Hall, 2005 1 - 21TeamsTeams Team Effectiveness (continued) 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 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

22. © Prentice Hall, 2005 1 - 22TeamsTeams Trust and Effective Teams Communicate often to team members Show respect for team members Be fair to team members Be predictable Demonstrate competence

23. © Prentice Hall, 2005 1 - 23 Corporate Culture Status Symbols Traditions and History Physical Environment The Significance of Corporate Culture Mechanisms for developing and reinforcing desired 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 employee recruitment, selection, promotion, and retirement

24. © Prentice Hall, 2005 1 - 24 Questions