Chapter 8 How Groups Work Synergy is the goal Chapter 8 Study Questions • What is the nature of groups in organizations? • What are the stages of group development? • What are the foundations of group performance? • How do groups make decisions? Copyright © 2008 John Wiley & Sons, Inc. 8-2 What is the nature of groups in organizations? • Group – a collection of two or more people who work with one another regularly to achieve common goals • Members are mutually dependent on one another to achieve common goals • Members interact with one another to pursue those goals Copyright © 2008 John Wiley & Sons, Inc. 8-3 What is the nature of groups in organizations? • Effective group – one that achieves high levels of task performance, member satisfaction, and team viability Copyright © 2008 John Wiley & Sons, Inc. 8-4 What is the nature of groups in organizations? • Effective groups achieve high levels of: – Task performance • Members attain performance goals regarding quantity, quality, and timeliness of work results – Members satisfaction • Members believe that their participation and experiences are positive and meet important personal needs – Team viability • Members are sufficiently satisfied to continue working together on an ongoing basis Copyright © 2008 John Wiley & Sons, Inc. 8-5 What is the nature of groups in organizations? • Synergy – the creation of a whole that is greater than the sum of its parts • Group synergy is the goal Copyright © 2008 John Wiley & Sons, Inc. 8-6 What is the nature of groups in organizations? • Why groups are good for organizations – Groups are good for people – Groups can improve creativity – Groups can make better decisions – Groups can increase commitments to action – Groups help control their members – Groups help offset large organization size Copyright © 2008 John Wiley & Sons, Inc. 8-7 What is the nature of groups in organizations? • Situations in which groups are superior to individuals – When there is no clear expert in a particular problem or task – When problem solving can be handled by a division of labor and the sharing of information – When creativity and innovation are needed Copyright © 2008 John Wiley & Sons, Inc. 8-8 What is the nature of groups in organizations? • Potential benefits for group members – People learn from each other and share job skills and knowledge – Groups are important sources of need satisfaction for their members Copyright © 2008 John Wiley & Sons, Inc. 8-9 What is the nature of groups in organizations? • Social loafing – The tendency of people to work less hard in a group than they would individually. – Reasons for social loafing • Individual contributions are less noticeable in the group context • Some prefer to see others carry the workload Copyright © 2008 John Wiley & Sons, Inc. 8-10 What is the nature of groups in organizations? • Ways of preventing social loafing – Define roles and tasks to maximize individual interests – Raise accountability by making individuals’ performance expectations clear and identifiable – Tie individual rewards to performance contributions to the group Copyright © 2008 John Wiley & Sons, Inc. 8-11 What is the nature of groups in organizations? • Social facilitation – The tendency for a person’s behavior to be influenced by the presence of others Copyright © 2008 John Wiley & Sons, Inc. 8-12 What is the nature of groups in organizations? • Social facilitation theory – indicates that working in the presence of others creates an emotional arousal or excitement that stimulates behavior and therefore affects performance Copyright © 2008 John Wiley & Sons, Inc. 8-13 What is the nature of groups in organizations? • Formal groups – Officially designated to serve a specific organizational purpose – May be permanent or temporary • Permanent work groups are command groups • Temporary work groups are task groups Copyright © 2008 John Wiley & Sons, Inc. 8-14 What is the nature of groups in organizations? • Types of formal groups – Cross-functional teams or task forces • Engage in special problem-solving efforts drawing on input of the functional areas – Project teams • Formed to complete a specific task with a welldefined end point – Virtual group • Members work together via computers Copyright © 2008 John Wiley & Sons, Inc. 8-15 What is the nature of groups in organizations? • Informal groups – Emerge without being officially designated by the organization – Types of informal groups • Friendship groups • Interest groups Copyright © 2008 John Wiley & Sons, Inc. 8-16 Figure 8.1 Copyright © 2008 John Wiley & Sons, Inc. 8-17 What are the stages of group development? • Forming stage – Initial entry of members to a group – Member challenges • • • • Getting to know each other Discovering what is considered acceptable behavior Determining the group’s real task Defining group rules Copyright © 2008 John Wiley & Sons, Inc. 8-18 What are the stages of group development? • Storming stage – A period of high emotionality and tension among group members – Member challenges • Hostility and infighting • Formation of coalitions and cliques • Clarification of members’ expectations Copyright © 2008 John Wiley & Sons, Inc. 8-19 What are the stages of group development? • Norming stage – Sometimes called initial integration – The point at which the group really begins to come together as a coordinated unit Copyright © 2008 John Wiley & Sons, Inc. 8-20 What are the stages of group development? • Performing stage – Marks the emergence of a mature, organized, and well-functioning group – Structure is stable – Members are motivated by group goals Copyright © 2008 John Wiley & Sons, Inc. 8-21 Figure 8.2 Copyright © 2008 John Wiley & Sons, Inc. 8-22 What are the stages of group development? • Adjourning stage – A well-integrated group is: • Able to disband when its work is finished • Willing to work together in the future – Particularly important for temporary groups Copyright © 2008 John Wiley & Sons, Inc. 8-23 Figure 8.3 Copyright © 2008 John Wiley & Sons, Inc. 8-24 What are the foundations of group performance? • Tasks – Technical demands of a task • Routineness, difficulty, and information requirements Copyright © 2008 John Wiley & Sons, Inc. 8-25 What are the foundations of group performance? • Tasks – Social demands of a task • Relations, ego involvement, and controversies over ends and means Copyright © 2008 John Wiley & Sons, Inc. 8-26 What are the foundations of group performance? • Goals, rewards, and resources – Long-term performance relies on: • Appropriate goals • Well-designed reward systems • Adequate resources Copyright © 2008 John Wiley & Sons, Inc. 8-27 What are the foundations of group performance? • Technology – Provides the means to get work accomplished – The right technology must be available for the task at hand – Workflow technology can affect the way group members interact Copyright © 2008 John Wiley & Sons, Inc. 8-28 What are the foundations of group performance? • Membership characteristics – A group must have the right skills and competencies available for task performance and problem solving – In homogeneous groups, members are very similar to one another – In heterogeneous groups, members vary in age, gender, race, and ethnicity Copyright © 2008 John Wiley & Sons, Inc. 8-29 What are the foundations of group performance? • Diversity-consensus dilemma – The tendency for increasing diversity among group members to make it harder for group members to work together, even though the diversity itself expands the skills and perspectives available for problem solving. Copyright © 2008 John Wiley & Sons, Inc. 8-30 What are the foundations of group performance? • FIRO-B theory – Identifies individual differences in how people relate to one another in groups – Based on needs to express and receive feelings of inclusion, control, and affection Copyright © 2008 John Wiley & Sons, Inc. 8-31 What are the foundations of group performance? • Status – A person’s relative rank, prestige, or standing in a group • Status congruence – Occurs when a person’s position within the group is equivalent in status to positions held outside the group – When status incongruence is present, problems will likely occur Copyright © 2008 John Wiley & Sons, Inc. 8-32 What are the foundations of group performance? • Group size – Can make a difference in a group’s effectiveness – As group size increases, performance and member satisfaction increase up to a point – Problem-solving groups should have 5 to 7 members Copyright © 2008 John Wiley & Sons, Inc. 8-33 What are the foundations of group performance? • Workgroup behaviors – Required behaviors — those that are formally defined and expected by the organization – Emergent behaviors — those that group members display in addition to what the organization asks of them Copyright © 2008 John Wiley & Sons, Inc. 8-34 What are the foundations of group performance? Member relationships • Activities – the things people do or the actions they take • Interactions – interpersonal communications and contacts • Sentiments – the feelings, attitudes, beliefs, or values held by group members Copyright © 2008 John Wiley & Sons, Inc. 8-35 What are the foundations of group performance? • Intergroup dynamics – The dynamics that take place between two or more groups Copyright © 2008 John Wiley & Sons, Inc. 8-36 What are the foundations of group performance? Ways to achieve positive intergroup dynamics • • • • Refocusing members on a common enemy or goal Negotiating directly Training members to work more cooperatively Refocusing rewards on contributions to the total organization and how much groups help each other Copyright © 2008 John Wiley & Sons, Inc. 8-37 Figure 8.4 Copyright © 2008 John Wiley & Sons, Inc. 8-38 What are the foundations of group performance? • Decentralized communication network – all group members communicate directly and share information with each other Copyright © 2008 John Wiley & Sons, Inc. 8-39 What are the foundations of group performance? • Centralized communication network – One person acts as a central control point – Information flows among group members through the person in charge – Control person collects and redistributes information and task contributions Copyright © 2008 John Wiley & Sons, Inc. 8-40 What are the foundations of group performance? • Restricted communication network – polarized subgroups contest each other’s positions – sometimes maintain antagonistic relations with one another Copyright © 2008 John Wiley & Sons, Inc. 8-41 How do groups make decisions? • Decision by lack of response – One idea after another is suggested without any discussion-taking place • Decision by authority rule – The chairperson, manager, or leader makes a decision for the group • Decision by minority rule – Two or three people are able to dominate or “railroad” the group into making a decision to which they agree Copyright © 2008 John Wiley & Sons, Inc. 8-42 How do groups make decisions? • Decision by majority rule – Formal voting may take place, or members may be polled to find the majority viewpoint • Decision by consensus – Discussion leads to one alternative being favored by most members and the other members agree to support it • Decision by unanimity – All group members agree totally on the course of action to be taken Copyright © 2008 John Wiley & Sons, Inc. 8-43 How do groups make decisions? • Potential advantages of group decision making – More knowledge and expertise is applied to solve the problem – A greater number of alternatives are examined – The final decision is better understood and accepted by all group members – More commitment among all group members to make the final decision work Copyright © 2008 John Wiley & Sons, Inc. 8-44 How do groups make decisions? • Potential disadvantages of group decision making – Individuals may feel compelled to conform to the apparent wishes of the group – The group’s decision may be dominated by one individual or a small coalition – Group decisions usually take longer to make Copyright © 2008 John Wiley & Sons, Inc. 8-45 How do groups make decisions? • Groupthink – the tendency of members in highly cohesive groups to lose their critical evaluative capabilities Copyright © 2008 John Wiley & Sons, Inc. 8-46 How do groups make decisions? • Ways to avoid groupthink – Assign the role of critical evaluator to each group member – Have the leader avoid seeming partial to one course of action – Create subgroups that each work on the same problem – Have group members discuss issues with outsiders and report back Copyright © 2008 John Wiley & Sons, Inc. 8-47 How do groups make decisions? • Ways to avoid groupthink – Invite outside experts to observe and react to group processes – Assign someone to be a “devil’s advocate” at each meeting – Write alternative scenarios for the intentions of competing groups – Hold “second-chance” meetings after consensus is apparently achieved Copyright © 2008 John Wiley & Sons, Inc. 8-48 How do groups make decisions? • Brainstorming – Group members actively generate as many ideas and alternatives as possible • • • • All criticism is ruled out “Freewheeling” is welcomed Quantity is wanted “Piggy-backing” is welcomed Copyright © 2008 John Wiley & Sons, Inc. 8-49 How do groups make decisions? • Nominal group technique – Puts people in small groups of six to seven members and asks everyone to respond individually and in writing to a “nominal” question Copyright © 2008 John Wiley & Sons, Inc. 8-50 How do groups make decisions? • Delphi technique – Involves generating decision-making alternatives through a series of survey questionnaires • Computer-mediated decision making – Group decision making takes place across great distances with the aid of group decision support systems Copyright © 2008 John Wiley & Sons, Inc. 8-51