1. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-1 Chapter 12 Informal and Formal Groups

2. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-2 GROUP DYNAMICS Types of Groups Formal groups -Organization establishes -Public identity -Goal to achieve Informal groups -Common interests -Proximity -Friendships -Types of formal groups 1. Meeting 2. Team

3. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-3 THE NATURE OF INFORMAL ORGANIZATIONS Comparison of Informal and Formal Organization - Informal power attaches to a person -Formal authority attaches to a position How Does the Informal Organization Emerge? 1.Employees act differently 2.Employees often interact with different people 3.Workers may embrace a set of attitudes, beliefs, and sentiments

4. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-4 THE NATURE OF INFORMAL ORGANIZATIONS Figure 12-2 Formal and informal organizations and their effects

5. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-5 THE NATURE OF INFORMAL ORGANIZATIONS Member Status and Informal Leaders Informal leader Sanctions Identifying and Rewarding Informal Leaders Some Cautions Benefits of Informal Organizations Cohesiveness

6. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-6 THE NATURE OF INFORMAL ORGANIZATIONS Problems Associated with Informal Organizations Norms Reference group Monitoring Informal Organizations Network charts

7. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-7 THE NATURE OF INFORMAL ORGANIZATIONS Figure 12-4 A sample network chart of task interactions at work

8. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-8 THE NATURE OF INFORMAL ORGANIZATIONS Influencing Informal Organizations - Management guidelines 1. Accept and understand 2. Identify 3. Consider 4. Integrate 5. Keep

9. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-9 FORMAL GROUPS - Negative attitudes about time spent in committee meetings Committees Systems Factors to Consider Size Composition Agendas Surface agenda Hidden agendas Leadership Roles Task leader Social leader

10. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-10 FORMAL GROUPS Structured Approaches Brainstorming -Basic guidelines Deferred judgment Electronic brainstorming Nominal Group Technique Delphi Decision Making Dialectic Decision Method (DDM)

11. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-11 FORMAL GROUPS Figure 12-8 Steps in dialectic decision making

12. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-12 FORMAL GROUPS Potential Outcomes of Formal Group Processes Support for Decisions Quality of Decisions Individual Development Social facilitation Consensus: A Key Issue in Decision-Making Groups -Specific ideas for facilitating consensus

13. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-13 FORMAL GROUPS Weaknesses of Committees Slowness and Expensiveness Groupthink Devil's advocate Polarization Risky shift Escalating Commitment Divided Responsibility Overcoming the Weakness Emerging Directions Group decision support system

14. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 12-14 Questions