Chapter 7
Groups and Teams
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
1
Groups
Groups are two or more people interacting
with each other to accomplish certain goals
 Groups form because of mutual attraction
or because managers assign people to
groups (within an organization)
 Group size (usually between 2 and 20)
influences communication and group
dynamics (more then 2 people offers complexer

interaction, e.g. coalitions)
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
2
Group Size and Task
Interdependence

Group size is affected by the kind of
task interdependence the group is to
perform
– Pooled task interdependence

Overall group performance is sum of
performances of individual group members
(group of sales people in a department store)
Group size determined from the amount of
work to be accomplished
 Group members can be rewarded on individual
performance

Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
3
Group Size and Task
Interdependence
– Sequential task interdependence

Group members have to perform specific tasks
in a predetermined order (assembly lines, mass
production processes)

Group size is dictated by needs of the
production process (e.g. no. of steps necessary to
produce a CD player)

Group members are to be rewarded on group
performance (Individual performance difficult to
identify because it‘s dependence on other‘s
performance [slow worker at start of assembly line
causes all others further down to work slowly])
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
4
Group Size and Task
Interdependence
– Reciprocal task interdependence

Each group members performance is dependent
on other group members work (sharing of
information, interacting with others necessary to
achieve goals [R &D teams, self managed work teams])

Relatively small size because of necessity to
coordinate team members‘ acitivities (e.g.
communication difficulties increase with group size)

Group members are usually to be rewarded on
group performance (as far as individual performance
is difficult to be measured)
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
5
Groups
Groups have common goals and usually
specific time frame (two week project) and
limited resources (budget)
 Many groups are ineffective due to time
constraints, resource scarcity or
underdeveloped social skills
 Teams (as a type of group) achieve goals by
using self-management techniques
 National and corporate cultures affect
groups and teams (e.g. group structure and

processes)
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
6
Group Structure

Group structure is composed of rules,
norms, roles and status (useful elements
to understand groups in all cultures)

Examples:
– all groups develop/ maintain social norms
– Most groups differentiate member status
(few members occupy high-status positions)
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
7
Elements of Group Structure

Rules
– Specify formal behavior
– Can sanction disobedience

Norms
– Are usually informal and unstated (taken for
granted by group members)
– Are often more effective to regulate group
behavior (groups generate ist own norms e.g.
punctuality, making formal rules appear irrelevant)
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
8
7-5
Elements of Group Structure

Roles
– Set of norms, defining expected behavior (in a
position within the group)

Status and Social Power
– Every role has a status (rank of the role in group
hierarchy)
– Status is connected to social power (ability to
have others follow one‘s own opinions/ directives)
– High status position combined with an
approved role behavior establishes power (at
least one form of)
– Group members often occupy multiple roles
(causing role conflicts, e.g. manager as friend/
colleague and supervisor)
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
9
Elements of Group Structure

Leaders and Followers
– Two types of leaders: task leaders and
socio-emotional leaders

Task leaders (initiating leaders) focus on goal
achievement (clarify goal, present or ask for
information, evaluate group‘s progress)

Socio-emotional leaders focus on constructing/
maintaining group cohesion (encourage/ praise
others, resolve conflicts)
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
10
Elements of Group Structure
– Two leader roles are complimentary in
effective groups („balance“ most effective way
to manage a group)
 Without task leader group risks to evolve into a
social club (focus on group‘s sentiments and
interpersonal relationship)

Overemphasizing task leadership (e.g. leader
makes decisions without participation of others)
people might get demotivated (lose their sense of
purpose)
– Emphasis on leadership type varies with
culture (e.g. autocratic leadership vs. group
leaders as facilitators)
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
11
Elements of Group Structure

Leaders and Followers
– Followers differ among cultures in
subordinate participation and leader support
– Low power distance countries are least
supportive on following group leader
– Task and socio-emotional leader roles can
shift in group (e.g. depending on one‘s expertise or
the type of support)
– Again: culture influences leadership shift (e.g.
less in autocratic leadership cultures vs. democratic
leadership cultures)
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
12
Elements of Group Structure

Formal and informal groups
– Formal groups in companies are assigned to
accomplish specific goals (management
appointing a leader, mandatory membership, rule
governed behavior)
– Formal groups reflect the idea: pooling
resources is superior to individual effort
– Informal groups evolve naturally (based on
friendship, common interests, similar experiences),
even within formal groups
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
13
Elements of Group Structure
– Can contribute or undermine achievement
of official goals (e.g. protect member interests
against management demands)
– In any case exert significant social power
(e.g. as supporting group members as „voting
block“)
– Culture contributes to using either formal or
informal groups (high power vs. low power
countries)
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
14
Group Development

The Five-Stage Model
– Forming: members get to know each other (e.g.
personal characteristics, strength/ weaknesses) and reach
common goals.
– Storming: members potentially disagree on goals,
priorities and (leadership) roles to take (Managers need
to be sure conflict stays focused)
– Norming: close ties and consensus (by a set of rules
and roles) begin to develop between members to
coordinate group‘s activities and goal achievement
– Performing: group understands ist goals/ roles and
does its real work
– Adjourning: group is disbanded (after work is done) or
tries to postpone disbandment (delaying decisions etc.)
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
15
7-6
Five Stages of Group Development
STAGE 1
Forming
(Orientation)
Orientation
to Task
Testing of roles
STAGE 2
Storming
(Redefinition)
Emotional Response
to the Demands
of the Task
STAGE 3
Norming
(Coordination)
Open Exchange
of Relevant
Information
Development of
Group Cohesion
STAGE 4
Performing
(Formalization)
Emergence of
a Solution
Functional Roles
Emerge
STAGE 5
Adjourning
(Termination)
Intragroup
Conflict
Dissolution
of Group
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
16
Group Development

Model no rigid process
– Groups move back/ forth among stages as
a result of conflicts
– Unexpected events (e.g. new members of
crisis) can return group to earlier stage
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
17
Group Development

The Punctuated Equilibrium Model
– Two different modes of group functioning
1.
2.
A first meeting to set group climate and
leadership is followed by a period of routine
group functioning (equilibrium stage)
At midpoint of allotted time equilibrium is
disrupted by recognition that task must be
completed („revolutionary“ stage with orientation
toward project completion)
– Fits our image ot people working toward
a deadline (start less intensely, work harder
when approaching dealine)
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
18
Group Development
(Punctuated Equilibrium Model)
PROJECT
STARTS
Perform
Original
Behaviors
0%
TRANSITION
Drop Old
Behaviors
PROJECT
DEADLINE
Perform New, More
Effective Behaviors
50%
100%
TIME EXPENDED
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
19
Group Development

Cultural influences on group
development
– Level of participation (less follower participation
in high power than low power cultures)
– Level of conflict and cooperation (more
collaboration in collective oriented than individual
oriented cultures)
– Level of time pressure (cultures less concerned
with time might not set deadlines, could eliminate
„midpoint change“)
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
20
Group Processes

Behavior in groups is affected by a
variety of social processes
– Communication is central to groups (to
achieve their goals)
– Communication is affected by culture (e.g.
group norms: who is how much permitted to talk,
who can interrupt a conversation)
 Informal communication structure (low powerdistance) vs. formal communication structure (hígh
power-distance)

Rule guided communication in HC-cultures
(affects group interaction)
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
21
Group Processes
– Groups may have a common cultural identity
with shared symbols, rituals and values (e.g.
subgroups with ethnic/ religious background or
common occupational experiences)
– Strong group culture
Can produce a highly cohesive group that works
well together (to achieve company goals)
 Can result in conflict among groups over
organizational resources ( personnel, technology,

finances, prestige)

Some conflict is „healthy“ for an organization
(source of innovation)
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
22
Group Processes

Decision Making: Group decisions could
be useful from a
– Technical perspective (groups pool skills, talents,
experiences of many people)
– Organizational perspective (higher motivation,
better decision implementation)

Group decisions are to find in cultures with
individualistic/ democratic values (e.g.
German co-determination with worker reps. hold
decision making roles on corporate boards)
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
23
Group Processes

“Groupthink”: highly cohesive groups
can be unable to critically evaluate each
other inputs in decision making
(prevalent primarily in Asia)

Social Loafing in groups
– Self interested individuals put forth less
effort in a group than individually
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
24
Group Processes

Reducing social loafing
Making individual
contributions
identifiable
Social
Loafing
REDUCED BY
Emphasizing valuable
individual
contributions
Keeping group size
at an appropriate
level
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
25
Team

Teams are groups, whose members
intensively collaborate (not just interact)
to achieve a specific common goal
(e.g. a project)

All teams are groups, not all groups are
teams
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
27
How Teams Differ from Groups

Shared Leadership roles (groups usually
have one strong focused leader)

Individual and mutual accountability
(groups are based mostly on individual
accountability)

Specific purpose (group‘s purpose usually
identical to organization‘s mission)

Collective work products (groups have
individual work products)
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
28
How Teams Differ from
Groups
More open-ended communication/
active problem solving meetings
 Performance measured by direct
assessment of collective work products

(not individual contribution to group)

Team‘s work style: discuss, decide and
delegate but do work together (groups
discuss, decide and delegate but do work
individually)
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
29
Types of Groups/ Teams

Groups/ Teams can be distinguished
according to the applied perspective
– Internal organization of groups

Traditionally managed groups (have an official
leader/ manager)

Self-managed teams (share responsibility for
managing the work group)
– Time frame for group work

Relatively permanent groups (work for longer
periods [more than a year] on a set of repetitive tasks)

Temporary groups (project work on new, innovative
issues [task forces])
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
30
Types of Groups/ Teams
– Number of different disciplines

Single discipline groups (members from one
department [quality circle])

Multiple discipline groups (members from different
departments [cross-functional work groups})
– Cultural diversity

Homogeneous groups (members have same
background)

Bi- or multicultural groups (members have two or
more ethnic backgrounds)
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
31
Advantages and Disadvantages
of Cultural Group Diversity

Advantages
Permits Increased Creativity

– Mistrust
– Stereotyping
– More within-culture
conversation
– Language problems
– Wide range of perspectives
– More or better ideas
– Less „group think“

Creativity can lead to
–
–
–
–

Better problem definition
More alternatives
Better solutions
Better decisions
Groups can become
– More effective
– More productive
Disadvantages
Causes lack of cohesion

Lack of cohesion can lead to
– Inability to validate ideas
– Inability to gain consensus
of decisions
– Inability to take concerted
action

Groups can become
– Less effective
– Less efficient
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
32
Convergence or Divergence?


Trend toward using
group-oriented
management
techniques in
individualistic
societies
Introduction of
market-based
principles in
collective societies
leading to more
individualism



Continuing tensions
among cultures
Multiculturalism
threatens dominant
groups
Some societies
remain
homogeneous
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
7-1333
Implications for Managers

Managing diverse groups
– Give organizational objectives precedence
over multicultural considerations (avoid
replacing religion or ethnic identity with traits,
skills, talents etc.)
– Emphasize clear vision/ superordinate goal
(to prevent multiple goals with competing
subgroups)
– Create equal power among group
members (more power to one subgroup through
cultural dominance can lead to nonparticipation by
others and destructive conflict)
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
7-1434
Implications for Managers
– Avoid ethnocentrism (viewing one‘s own
culture as superior to other cultures)
– Recognize the limits one‘s own culture
imposes for understanding the nature of
groups in other cultures
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
35
Implications for Managers
(cont.)

New uses of groups and teams
– Groups and teams may replace traditional
organizational structures
– Use of teams may increase in crosscultural negotiations
Copyright 1998 Prentice-Hall Inc., adapted by Prof. Dr. vom Kolke
7-1536