UNIT-3
Foundations of Group Behavior
• Nature of Groups & Structure
• Types of Groups
• Stages of Group Development
• Group Decision-Making
• Groups vs. Individual
• Groupthink, Group shift
• Group Decision-Making Techniques
Group Behaviour
Group
M.E. Shaw
“As two or more people who interact and influence one another.”
John M. Ivancevich
“Two or more individuals interacting with each other to accomplish a common goal.”
GROUP EFFECTIVENESS
Productivity
Attendance
Job Satisfaction
Attitude
Employee Well-being
Learning
Retention
TYPES OF GROUPS
Informal Groups
Formal Groups
Interest Group
Command Group Membership Group
Task Group Friendship Group
Reference Group
Formal Groups
According to A.L. Stencombe, “a formal group is said to be any social arrangement in which the activities of some persons are
planned by others to achieve a common purpose”.
Formal groups are created as part of organisation structure to accomplish organisational tasks.
A work group in a plant is the example of formal group.
They are bound by hierarchical authority in the organisation.
They have to follow rules, regulation and policy of the organisation.
These groups are required by the system.
The organisation provides a system of rules and regulation for attaining organisational objectives.
Formal groups help in achieving goals without any difficulty.
They create group unity.
INFORMAL GROUPS
Informal groups exist within the formal organisations and arise because of individuals’ social needs and desire to
develop and maintain relations with people.
Keith Davis has defined informal group as, “the network of persons and social relations which is not established or
required for formal organisation.”
These are the groups formed by the employees themselves at the workplace while working together.
The organisation has not taken any active interest in their formation.
Informal groups are very effective and powerful.
Some managers view them harmful and disruptive to the interest of the organisation.
They suspect their integrity and consider as a virtual threat.
Some managers seek their help in getting the task completed quickly.
They do not consider them as threat.
The strength of these informal groups can be utilized for accomplishment of organisational objectives.
Groups Vs. the Individual
“Whose decisions are effective”
• Strengths and Weaknesses
• Effectiveness and Efficiency
• Summary
FORMAL-INFROMAL GROUP
Basis for Comparison Formal Group Informal Group
Groups created by the organization, to Groups created by the employees themselves,
Meaning accomplish a specific task, are known as Formal for their own sake are known as Informal
Groups. Groups.
Formation Deliberately. Voluntarily
Size Large. Comparatively small.
Life It depends on the type of group. It depends on the members.
Structure Well Defined. Not well defined.
The importance is given to Position. Person.
Relationship Professional. Personal.
Communication Moves in a defined direction. Stretches in all the directions.
Stages of Group Development
Five Stage Model:
Stage-1: Uncertainty about the group’s purpose, structure, and leadership.
Stage-2: Hierarchy of leadership.
Stage-3: Group Structure, Members Behavior
Stage-4: Start to function, understand each other to perform the task
Stage-5: Wrapping up activities and preparing to disband to perform
FIVE STAGES
An Alternative Model for Temporary Groups
with Deadlines
• Temporary groups with deadlines
don’t seem to follow five stage model.
• They have their own unique
sequencing of actions.
• Phase-1:
• First Meeting sets group’s direction.
• Frame work of Behavioral
Patterns and assumptions
• Re-examine the group’s direction
Phase-2:
throughout the project period.
• Executes Plans created during
• Stand for a fixed period.
transition period
• Gains new insights (visions) • Groups Last Meeting is
characterized by a final burst of
activity to finish its work.
Group Decision Making
Decision making groups may be widely used in organizations, but the
group decisions preferable to those made by an individual alone? The
answer depends on a number of factors.
Group decision-making commonly known as collaborative decision-
making is a situation faced when individuals collectively make a choice
from the alternatives before them.
Group decision-making is a situation faced when individuals collectively
choose from the alternatives before them.
Strengths of Group Decision Making
Groups generate more complete information and knowledge.
Groups bring more input as well as heterogeneity (quality) into the decision process.
Groups offer increased diversity (variety) of views.
Groups lead to increased acceptance of solution.
Group members support and encourage others to accept it.
Weaknesses of Group Decision Making
Group decisions are time consuming
Groups take more time to reach a solution.
Group discussions may be dominated by one or a few members.
Group’s overall effectiveness will suffer due to low and medium ability members.
Group decisions suffer from ambiguous (vague) responsibility
In a group decision, the responsibility of any single member is diluted (weak).
Effectiveness and Efficiency
Group decisions are generally more accurate than the
individual.
In terms of speed, individuals are superior.
If creativity is important, groups tend to be more effective.
With few exceptions, group decision making consumes more
work hours.
Single decision maker must spend a great deal of time
reviewing files and talking to other people.
INVIDUAL Vs GROUP DECISION MAKING
SUMMARY:
Groups are an excellent vehicle for performing many steps in the decision
making process.
Groups offer both breath and depth of input for information gathering.
If group members have diverse backgrounds, the alternatives generated
should be more extensive and the analysis is more critical.
There are better chances to implement the decisions taken by the group.
GROUP THINK
The fall of mental efficiency, reality testing and moral judgement of the individual members of
a group in the interest of group unity.
The phenomenon that arises when group members become so enamored of seeking concurrence
that the norm for consensus alters the realistic appraisal of substitute courses of action and the
full expression of deviant, minority or unpopular views.
Symptoms of Group Think
Illusion of freedom
All Group Members collectively believe they are invincible.
Feeling of unanimity (unity)
All Group Members support the leader’s decisions.
Members accept consensus (agreement) prematurely without
testing its completeness.
Pressure to conform (follow)
Formal and informal attempts are made to discourage discussion
of divergent views.
Opposing ideas dismissed
Any individual or outside group that criticizes or opposes a decision
receives little or no attention from the group.
Group Shift or Group
Polarization
• The tendency of teams to make more extreme decisions than individuals
working alone.
• Individuals form initial preferences when given several alternatives. Some of
these choices are riskier than others.
• Team members are more likely o favor the risky option.
• Social support, persuasion and shifting responsibility explain why teams
make more extreme decisions.
• Decision makers often have an illusion of control.
Steven L.McShane, Organizational Behaviour, Tata McGraw-Hill, 2 nd Edition
Groupthink, Group shift
• Groups can guard against group think in several ways including …
1. Encourage the group to state objections and doubts
2. Leader should avoid taking sides or (prematurely) endorsing a particular
course of action.
3. Break the group into subgroups to work on the same problem.
4. Invite in outside experts to give feedback on group processes and proposed
solutions.
5. Assign a group member to play devil’s advocate so that important objections
are raised.
Group Decision-Making Techniques
Brainstorming
Nominal group
thinking
Delphi technique
Group Decision Making Techniques
• Brainstorming Groups: An idea-generation process.
• Alex Osborn, Advertising Executive, 1950
• An idea-generation process that specifically encourages any
and all alternatives while withholding any criticism of those
alternatives.
Rules of Brainstorming
1. Don’t criticize ideas
2. Provide as many ideas as possible
3. Say all ideas that come to mind, no matter
how wild.
4. Combine and improve ideas suggested by
others.
Source: Based on information in A.F.Osborn, Applied Imagination, 3rd ed. (New York, Scribner;s 1963)
NOMINAL
GROUP
THINKING
Group Decision Making
Techniques
Delphi Technique:
• Delphi groups do not meet face to face
• Participants are often located in different parts of the world
• Participants may not know each other’s identity.
• Groups members submit possible solutions regarding an
issue to the central convener.
