C H A P T E R
Understanding
Groups and
Teams
E L E V E N
11
In today’s business world, an increasing number of
firms are establishing work teams in order to
increase creativity and innovation. Just as firms in
the United States find that implementation of work
teams contributes to an increase in the quality of
their company’s decisions, the positive impact
experienced by firms in other country where there
is a great deal of diversity in the general population
has made the use of teams very attractive. Your
students will read in “A Manager’s Dilemma” the
Learning Outcomes
11.1 Define group and describe the stages of situation facing Google’s R&D center in
group development.
Hyderdad, India. This facility has a very diverse
11.2 Describe the major components that
membership including employees from a mix of
determine group performance and satisfaction. countries, who practice different religions, and
11.3 Define team and describe best practices who speak of multitude of different languages.
influencing team performance.
While this group atmosphere should serve Google
11.4 Discuss contemporary issues in
well as they work to provide the innovative
managing teams.
solutions which will keep their company on the
cutting edge of a high tech industry, the diversity
present in the team could lead to problems
communicating.
Few trends have influenced how work gets
done in organizations as much as the use of
work teams. Organizations are increasingly
structuring work around teams rather than
individuals. Managers need to understand
what influences team performance and
satisfaction. Focus on the following learning
outcomes as you read and study this chapter.
Today’s managers must understand the nature and
dynamics of groups in order to have the tools
necessary to build effective teams. Your students
are asked to brainstorm ways to maintain your
team’s ability to innovate as new members join the
group. Have students consider how diversity both
helps and aids group performance over time.
Discuss with students some of the problems
employees are likely to experience as new members
attempt to integrate an established team. Have
students “think outside of the box” in order to find a
way to create greater cohesion among such a
diverse work group.
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ANNOTATED OUTLINE
INTRODUCTION
Work groups are a common arrangement within today’s business organizations.
Work is being restructured around groups of all kinds and in all sizes of
organizations. Managers need an understanding of group behavior and the
concept of teams in order to appreciate what groups can and cannot do within
organizations and how groups function.
1.
GROUPS AND GROUP DEVELOPMENT
Groups exhibit different behavior—more than just the sum total of each group
member’s individual behavior. In this section, we’re going to look at various
aspects of group behavior.
A.
What Is a Group?
A group is defined as two or more interacting and interdependent
individuals who come together to achieve particular objectives.
1.
Formal groups are work groups established by the organization
and who have designated work assignments and specific tasks.
(See Exhibit 11-1)
2.
Informal groups are natural social formations that appear in the
work environment.
B.
2.
Stages of Group Development
Evidence suggests that groups pass through five stages as they develop.
(See Exhibit 11-2).
1.
Forming is the first stage in group development during which
people join the group and then define the group’s purpose,
structure, and leadership. Forming is a stage characterized by
much uncertainty. This stage is complete when members begin
to think of themselves as part of a group.
2.
Storming is the second stage of group development
characterized by intragroup conflict. When this stage is
complete, members will agree upon the leadership hierarchy and
group direction.
3.
Norming is the third stage of group development, characterized
by close relationships and cohesiveness.
4.
Performing is the fourth stage in group development when the
group is fully functional.
5.
Adjourning is the final stage in group development for
temporary groups. It’s characterized by concern with wrapping
up activities rather than with task performance.
WORK GROUP PERFORMANCE AND SATISFACTION
We need to look at how groups work. The answer to why some groups
are more successful than others is quite complex. There are five factors
that can affect this relationship. (See Exhibit 11-3)
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A.
B.
External conditions imposed on the group. These factors
include an organization’s strategy, authority relationships, formal
rules and regulations, the availability of resources, employee
selection criteria, the performance management system
and culture, and the general physical layout of the group’s work
space.
Group member resources. These factors include member
abilities and personality characteristics.
Managing Workforce Diversity
The Challenge of
Managing Diverse Teams
Understanding and managing teams composed of people who are similar can be difficult. When a
team is composed of individuals with highly diverse backgrounds and cultural expectations,
managing teams effectively is an even greater challenge. However, as your students are learning in
the study of Chapter Eleven, the benefits to be gained from diverse perspectives, skills, and abilities
usually more than compensates for the added effort. When exploring the management of diverse
work teams, four critical interpersonal behaviors are important: understanding, empathy, tolerance,
and communication.
C.
D.
Group member resources. The relationship between group
performance and member resources is made more challenging in
global organizations where cross-cultural groups are prevalent.
Group structure. There are seven aspects of the internal
structure. Six are covered here and leadership is covered in
Chapter Seventeen.
a.
A role is a set of behavior patterns expected of someone
occupying a given position in a social unit. Role conflict
can occur when an individual is confronted with
different role expectations.
b.
Norms are acceptable standards or expectations
shared by a group’s members. Although each group
has its own unique set of norms, there are common
classes of norms that appear in organizations.
c.
Conformity. Norms focus on effort and performance,
dress, and loyalty. Also, because individuals desire
acceptance by the groups to which they belong, they are
susceptible to conformity pressure.
When an
individual’s opinion of objective data differs
significantly from that of others in the group, he or she
feels extensive pressure to align his or her opinion to
conform to others’ opinions.
This is known as
groupthink.
?
Thinking Critically About Ethics
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Anything Goes
After reading thus far in the chapter, most students have the impression that groups are
a positive force in organization. This critical thinking exercise provides a realistic situation
in terms of group norms and conformity and how they can negatively affect an
individual’s behavior. You might want to try a role-play situation with this exercise. Have
two or three students play the role of “senior” group members. Have one person play the
role of the summer intern. And finally, have one person play the role of supervisor. Let
the role play develop around a discussion between the intern and the supervisor on a
time keeping policy. Then have the role play turn to a discussion between the intern and
the group members on the same topic.
After the role-playing, the entire class should discuss the questions raised in the role-play
incident.
d.
e.
f.
?
Status systems are an important factor in understanding
group behavior. Status is a prestige grading, position, or
rank within a group.
Group size can also affect the group’s overall behavior.
The effect depends on which outcomes are focused on.
An important finding related to group size is social
loafing—the tendency for individuals to expend less
effort when working collectively than when working
individually. .
Group cohesiveness is the degree to which members
are attracted to a group and share the group’s goals.
Research has shown that highly cohesive groups are
more effective than those that are less cohesive.
However, it’s important to look at the degree to which
the group’s attitude aligns with the goals. (See Exhibit
11-5.)
Managing IT
IT and Groups
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Today’s online collaborative tools enable work groups to achieve their goals in more
creative, efficient, and effective ways. Essential to the success of these collaborative
efforts are the communication skills of the employees who use the collaborative tools.
Although employees who collaborate online may be located in widely scattered areas
throughout the world, their need to communicate clearly is a common requirement. To
reinforce the importance of acquiring effective communication skills, lead your students in
the following activity during a class session.
Several weeks prior to the session, enlist the help of your students in beginning to collect
the employment ads from the Sunday edition of different newspapers. After you have
gathered a number of these employment advertising sections, cut them into individual
sections of one page each. In the class session, give one newspaper page to each student.
Ask each student to read his or her employment ads silently, looking for the requirements
listed for the jobs advertised. Ask students to circle every ad they find that lists good
communication skills as a requirement for a job.
In a classroom discussion, ask students to read to the class the titles and descriptions they
found in which strong communication skills are listed as a requirement. Your students will
be impressed by the variety and number of positions in which good communication skills
are listed as an essential requirement.
5.
Group processes include the communication patterns used by
members to exchange information, group decision processes,
leader behavior, power dynamics, conflict interactions, and other
actions.
a.
Group decision making (See Exhibit 11-6)
Groups make many organizational decisions.
Advantages of group decision making include the
following benefits:
1.
Generate more complete information and
knowledge
2.
Generate more diverse alternatives
3.
Increase acceptance of a solution
4.
Increase legitimacy
b.
Disadvantages of group decision making include:
1.
Time consuming
2.
Minority domination
3.
Pressures to conform
4.
Ambiguous responsibility
c.
Conflict management is another group concept that
must be understood. Conflict is perceived when
incompatible differences result in interference or
opposition.
1.
The traditional view of conflict is the view that
all conflict is bad and must be avoided.
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2.
3.
4.
The human relations view of conflict is the
view that conflict is a natural and inevitable
outcome in any group.
The interactionist view of conflict is the view
that some conflict is necessary for a group to
perform effectively.
Functional conflicts are conflicts that support a
group’s goals and improve its performance.
Dysfunctional conflicts are conflicts that
prevent a group from achieving its goals.
d.
Three types of conflict have been identified:
1.
Task conflict is conflict over the content and
goals of the work.
2.
Relationship conflict is conflict based on
interpersonal relationships.
3.
Process conflict is conflict over how work gets
done.
e.
Managers may use a number of different conflict
resolution approaches (see Exhibit 11-8).
6. Group tasks. The complexity and interdependence of tasks influence
the group’s effectiveness.
3.
TURNING GROUPS INTO EFFECTIVE TEAMS
Work teams are groups whose members work intensely on a specific, common
goal using their positive synergy, individual and mutual accountability, and
complementary skills.
A.
What Is a Work Team?
Although most students are familiar with the concept of a “team,” many
may be less familiar with the concept of a “work team.” All work teams
are groups, but only formal groups can be work teams. Exhibit 11-9
highlights the differences between groups and teams.
B.
Types of Teams
Certain characteristics distinguish different types of teams:
1.
A problem-solving team is a type of work team that is
composed of a manager and his or her subordinates from a
particular functional area.
2.
A self-managed team is a type of work team that operates
without a manager and is responsible for a complete work
process or segment.
3.
A cross-functional team is a work team composed of
individuals from various specialties.
4.
A virtual team is a type of work team that uses technology to
link physically dispersed members in order to achieve a common
goal.
C.
Creating Effective Teams
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The establishment of teams in the workplace will not automatically
enhance productivity. Managers must look closely at how they can
successfully develop and manage effective teams.
1.
Research has been conducted on the characteristics associated
with effective teams. The research on this subject indicates that
effective teams have a number of characteristics.
2.
Eight characteristics are associated with effective teams (see
Exhibit 11-10).
a.
Clear goals
b.
Relevant skills
d.
Unified commitment
e.
Good communication
f.
Negotiating skills
g.
Appropriate leadership
h.
Internal and external support
4.
CURRENT CHALLENGES IN MANAGING TEAMS
The introduction of work teams into the world of business has had a major
influence on how work gets done in organizations. The management of teams
presents challenges as well as advantages to managers in today’s workplace.
(See Exhibit 11-11)
A.
Managing Global Teams
1.
Both benefits and drawbacks are associated with the use of
global teams.
2.
Regarding group member resources in global teams, managers
need to know and understand differences in the cultures of
global team members and avoid stereotyping.
3.
Differences in group structure may be significant. Managing
global teams requires skill and sensitivity to different attitudes
concerning conformity, status, social loafing, and cohesiveness.
4.
Managing conflict as part of group processes can be difficult,
especially in virtual global teams.
5.
Managers must focus on developing excellent communication
skills and sensitivity to different cultures in order to lead global
teams successfully.
B.
Understanding Social Networks
1.
Recent studies show that teams with high levels of interpersonal
interconnectedness attain their goals better and are more
committed to sustaining the team.
2.
Organizations are becoming increasingly aware of the
importance of “mapping,” and understanding the social networks
within teams.
Answers to Thinking About Management Issues
1.
Think of a group to which you belong (or have belonged). Trace its
development through the stages of group development shown in Exhibit 15-2.
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How closely did its development parallel the group development model? How
might the group development model been used to improve the group’s
effectiveness?
Student responses to these will vary. However, encourage your students to be
specific in terms of citing examples of each of the stages. You may wish to ask
students to share their insight during a class discussion so that they can identify
with the real-world experiences of their classmates regarding stages of group
development.
2.
How do you think scientific management theorists would react to the
increased reliance on teams in organizations? How would the behavioral
science theorists react?
Scientific management theorists would likely react negatively to the use of teams
in organizations. Scientific management focuses on the “one best way” for an
individual to do his or her job; searching for the “one best way” could inhibit
creativity and ideas for innovation that would likely come through the use of
teams. Behavioral scientists, on the other hand, would be favorable to the
concept of increased reliance on teams and groups. Because teams utilize input
from the diverse background of several individuals and place responsibility on
each team member, behavioralists would be in favor of this approach.
3.
How do you explain the popularity of work teams in the United States, when its
culture places such high value on individualism and individual effort?
Work teams appear to be rapidly increasing in popularity because of the impact
they have on higher productivity, improved quality, and increased employee
motivation and satisfaction. Individuality is still valued in the team concept,
since every team member has unique contributions to make to the team effort.
4.
Why might a manager want to stimulate conflict in a group or team? How could
conflict be stimulated?
A manager might want to stimulate conflict in a group or team in order to help
that group or team generate more creative, innovative solutions to a problem or
challenge. Managers want to stimulate conflict to gain the full benefits of its
functional properties without allowing disagreement to become a disruptive
force. Conflict can be simulated by bringing new members to the group,
restructuring the group, appointing a devil’s advocate, attempting to change the
group’s culture, and using open communication.
5.
A 20-year study done at Stanford University found that one quality fast-track
executives had was the ability to function well as a member of a team. Do you
think that everyone should be expected to be a team player, given the trends
we’re seeing in the use of teams? Discuss.
Students are likely to have different opinions in reaction to this question.
Although the use of work teams in organizations is increasing, some individuals
do not work (perform) best in a team setting. Should managers expect everyone
to be an enthusiastic team player? If the manager’s job is to coordinate and
integrate work activities, then he or she should take into consideration that some
individuals may not perform as well in a team setting as they would on an
individual basis.
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“To have a successful team, first find a great leader.” What do you think of this
statement? Do you agree? Why or why not?
6.
As students will see in future chapters, leadership is an important factor
that contributes to the success of an organization. In the context of this
question, it may be beneficial to think about strong leaders versus weak
leaders.. Students should consider how individual members react when a
leader is too strong and actually dominates group decisions and activities.
In these cases, the output of the team is the result of one or a few group
members, not the entire team. On the other hand, teams benefit when they
possess a clearly articulated mission from a leader. The benefits of strong
leadership occur when leaders are able to facilitate group efforts, not
dictate them.
Your Turn to be a Manager

What traits do you think good team players have? Do some research to answer
this question and write up a report detailing your findings using a bulleted list
format.

Select two of the characteristics of effective teams listed in Exhibit 11–10 and
develop a team-building exercise for each characteristic that will help a group
improve that characteristic. Be creative. Write a report describing your exercises
and be sure to explain how your exercise will help a group improve or develop
that characteristic.

Complete the skill building modules Developing Trust, Creating Effective
Teams, and Running Productive Meetings found on mymanagementlab. Your
professor will tell you what you need to do with this information.

Select one group to which you belong. Write a report describing the following
things about this group: stage of group development, types of roles played by
group members, group norms, group conformity issues, status system, size of
group and how effective/efficient it is, and group cohesiveness.

Using the same group, describe how decisions are made. Is the process effective?
Efficient? Describe what types of conflicts seem to arise most often
(relationship, process, or task) and how those conflicts are handled. Add this
information to your report on the group’s structure.

When working in a group (any group to which you’re assigned or to which you
belong), pay careful attention to what happens in the group as tasks are
completed. How does the group’s structure affect how successful the group is at
completing its task? How about its processes?

Steve’s and Mary’s suggested readings: Tom Rath, Vital Friends (Gallup Press,
2006); Jon R. Katzenbach and Douglas K. Smith, The Wisdom of Teams:
Creating the High Performance Organization (McGraw-Hill, 2005); Patrick
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Lencioni, Overcoming the 5 Dysfunctions of a Team (Jossey-Bass, 2005); Ben
Mezrich, Bringing Down the House: The Inside Story of Six MIT Students Who
Took Vegas for Millions (The Free Press, 2002); Jon R. Katzenbach and
Douglas K. Smith, The Discipline of Teams (Wiley, 2001); and Jean LipmanBlumen and Harold J. Leavitt, Hot Groups (Oxford, 1999).

Research brainstorming and write a report to your professor explaining what it is
and listing suggestions for making it an effective group decision-making tool.

In your own words, write down three things you learned in this chapter about
being a good manager.

Self-knowledge can be a powerful learning tool. Go to mymanagementlab and
complete these self-assessment exercises: Do I Trust Others? Do Others See Me
As Trusting? How Good Am I at Building and Leading a Team? What’s My
Preferred Conflict-HandIing Style? Using the results of your assessments,
identify personal strengths and weaknesses. What will you do to reinforce your
strengths and improve your weaknesses?
WORKING TOGETHER—Team-Based Exercise
Team Puzzle Building (Requires preparation before class period)
Before the class period:
On colored sheets of paper, draw four different puzzles that can be cut into pieces.
Design the puzzles to contain differing numbers of pieces in each puzzle. For example,
some puzzles contain 12 pieces, whereas others contain 16, and still others contain 10.
Before cutting the designed puzzles apart, make four copies (preferably on colored card
stock). (Note: This should result in 16 puzzles—four copies of four designs). Now, cut
apart all puzzle pieces and store them in envelopes. Mark the four envelopes containing
the pieces for one puzzle “A,” mark the four envelopes containing the pieces of another
puzzle “B,” and so forth for “C” and “D” puzzles.
Before class, make copies of the Participants Instruction Sheet and Observers Instruction
Sheet. (Use two different colors of papers so they will not get mixed up.) Before class,
remove the pieces from all of the “A” puzzle envelopes. Mix up these pieces, and then
put an equal number of puzzle pieces back into each envelope. Each “A” envelope will
no longer have the necessary pieces to reassemble an “A” puzzle. However, when all of
the “A” envelope pieces are combined as a group, the result will be four individual
identical “A” puzzles being assembled. Complete the same “jumbling” process for the
four “B,” “C,” and “D” puzzles.
During the class period:
Ask the class for 16 volunteers (Note: This represents four groups of four students).
These students will be the participants. The remaining students will be the observers.
Assign an approximately equal number of observers to observe each group of
participants. Have participants wait out in the hall while you go over the Observation
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Instruction Sheet with the observers. Before you go out to talk with the participants, be
sure that you have cleared four locations for the groups to do their work.
After you have finished discussing the observer’s responsibilities with them, go out to
the participants. Assign each group a letter A through D, and give them their Participant
Instruction Sheets and their envelopes with the “jumbled” puzzle pieces. Have the
participants read the instructions to determine if they have any questions. Then move all
participant groups back into the classroom and assign them a location where they can
work. After the groups are seated and the observers are positioned around the groups,
announce a time to begin.
Have the observers complete their Observation Grid sheets while they watch the
participants work to assemble puzzles. Time the groups as they finish their “task.” The
group that finishes first “wins!”
After all groups have assembled their puzzles, use the group behavior model (Exhibit 153) to explain what happened in the groups. For instance, some of the groups had puzzles
with 16 pieces and others had only 12 pieces. Did this affect the way they did their work
or the amount of time they worked to finish the task? What types of abilities did
participants have in putting puzzles together? Were they good at puzzles or did they
enjoy doing puzzles? This could affect the group’s task. You might have each group’s
participants and observers describe what they experienced or what they saw happening.
As a graded assignment, you could have students describe their experiences on their
sheets (participant or observer).
It will be interesting to see the different types of things that happen in these groups. Most
observers will be amazed at how the groups start off working individually and then once
they’ve figured out what they’re doing, start working together.
PUZZLED? Observer Instruction Sheet
Watch the group that you’ve been assigned to observe. Look for group structure,
processes, roles, etc., by noticing things such as:





Was there a point at which you could “tell” that the group started working
together as a group?
How long did it take for the group to actually start working together as a group
instead of on their own?
Any “sanctions” that the group uses?
Any “communication” that the group uses?
Any other actions, activities, that you observe about this “group” as it “works”
on its task?
Record your answers on your OBSERVATION GRID sheet.
PUZZLED? Participant Instruction Sheet
Your objective (task): Put all four puzzles back together as fast as possible. The first
group finished “wins!”
Rules
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







Absolutely no talking is allowed while your group is working.
No one can take another’s puzzle piece to complete your puzzle. You must wait
until it is offered.
You can refuse or accept a puzzle piece with a nod of your head.
You have each other’s puzzle pieces in your envelopes.
Before beginning, your group must choose a leader who will distribute one small
envelope to each group member.
When the instructor says, “Begin,” the leader should distribute one small
envelope to each group member and you should dump your mixed-up puzzle
pieces in front of yourself and begin working.
When your group has finished assembling all four puzzles, shout, “Finished!”
If you finish your group’s “task,” be quiet until all four groups are finished.
PUZZLED? Observation Grid Sheet
Record any of the following group development stage examples you see in the group you
were assigned to observe.
Forming
Storming
Norming
Performing
Adjourning
Answers to Case Application Questions
Mixing it Up
1.
What benefits did the cross-functional teams bring to General Mills?
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While most cross-functional teams focus on product design and finding
innovative solutions to problems, the teams used in this case were intended to
help employees understand the perspective of others working in different parts of
the organization. Have students think of a incident where they worked in a
group made of people from very different backgrounds. Were there times where
people of another race or gender would share and it helped them better
understand another person’s perspective on a problem?
For General Mills, bringing the diverse groups together, especially during a
merger, helped open the lines of communication between departments. In large
organizations, it is possible for employees to work in the same building but never
have an opportunity to meet one another. The meetings across organizational
boundaries created opportunities for employees to establish relationships and
share information from their department.
2.
What challenges would there be in creating an effective cross-functional team?
How could managers deal with these challenges?
The challenges to establishing teams are discussed in section 11.4. What makes
working with a cross-functional team more difficult is the differences in goals. It
is common that employees from the marketing have one set of goal, while
employees working in accounting have very different goals. This can create
tension as managers work across functional areas to find common ground. Have
students think of ways that they can show employees that they are all working
toward a common purpose. Have students think about specific activities that
might encourage the team building.
3.
Discuss how each component of the group performance/ satisfaction model (see
Exhibit 11–3) might affect these teams.
Have students consider the impact of all five variables in the model. You may
want to break the class into teams and have each team tackle one element of the
model. Then have the team members present what they believe are the most
relevant points to the rest of the class. Encourage students before they start to
consider how the merger might affect the teams at General Mills.
4.
Explain how each of the characteristics of effective teams (see Exhibit 11–10)
would be important for an effective cross-functional team.
It will be important for students to appreciate in their answer the added difficulty
of implementing a cross functional team during a merger. This will undoubtedly
be a difficult time as some employees struggle with doubts and fears about their
jobs. Trust and communication between some members may be at an all time
low as the organization considers how to integrate the two organizations and
some employees may eventually lose their jobs. Employees may also be
confused as to the goals of employees as they work to establish norms.
ADDITIONAL CHAPTER INFORMATION
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You may want to use the following example in class. The Harley-Davidson assembly
plant located in Kansas City has been described as a new model of the American factory
floor. Why? Harley has created an environment in which line workers are not just
encouraged but required to speak up frequently and make decisions about how to build a
better bike. And the entire factory is designed around self-directed work teams. In fact,
the ability to work on a team is so important at the assembly plant that the hiring process
weeds out anyone who didn’t score well on a teamwork assessment.
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