5

GROUPS AND ORGANISATIONS

Objective of the unit
After the completion of the unit the student will be able to:
1. Understand the concept of Group Dynamics operating within the
social system.
2. Know the types of groups and their importance.
3. Understand the Concept of Team and Five Stages of Team
Development.
4. Understand the determinants of group Behavior and
interpersonal relationships.

INTRODUCTION :
Group dynamics is concerned with the interactions and forces
between group members in a social situation. When the concept is
applied to the study of organizational behavior, the focus is on the
dynamics of members of formal or informal groups in the
organization, i.e. it is concerned with gaining knowledge of groups,
how they develop, and their effect on individual members and the
organizations in which they function.
Group Dynamics describes how a group should be organized and
conducted. Another view of group dynamics is that it consists of a
set of techniques. Third view of Lewin is that group dynamics is
viewed form the perspective of the internal nature of groups, how
they from, their and structure and processes and how they function
and affect individual members, other group and the organization.
Group dynamics is a social process by which people interact face-
to face in small groups. It encompasses the dynamic of interaction
patterns within the group, the subtle and the non-subtle pressures
exerted by group members the manner in which decisions are
made in the group. How work gets and how member needs are
satisfied.
The importance of group dynamics to a manager lies in the fact that
many people tend to act differently as individuals than as members
of a group. According to Likert, “An organization will function best
when its personnel function not as individuals but as members of
highly effective work groups with high performance goals”, A
manager is simultaneously the leader of his own group and a
participating member of the group.

PRINCIPLES OF GROUP DYNAMICS

A group can work effectively only if its members stick to certain

desired norms, which Cartwright has termed ‘principles of group
dynamics’. These principles are:
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i) If a group is to be used effectively as a medium of change, those

who are to be changed and those who are to wield an influence for
change must have a strong sense of belonging to the sane group, i.
e., the barriers between the leaders and the led should be broken
down.
ii) The more attractive a group is to its members, the greater the
influence it would exercise on its members. If attitudes, values or
behavior are relevant as a basis of attraction to the group, the
group will wield a tremendous influence over them. If a man joins a
union mainly to keep his job and to improve his working conditions,
he may be largely uninfluenced by the unions attempt to modify his
attitudes towards national affairs.
iii) The greater the prestige of a group member in the eyes of other
members, the greater the influences he will exercise on them.
iv) Successful efforts to change individuals or sub-parts of a group
would result in making them conform to norms of the group.
v) Strong pressure for changes in a group can be established by
creating a shared perception by members for the need for change,
thus making the source of pressure for change, thus making the
source of pressure for change lie within the group itself.
vi) Information relating to the need for change, plans for change
and the consequence of change must be shared by all the
members of a group.
Vii)Changes in one part of a group produce a strain in other related
parts which can be reduced only by eliminating the change or by
bringing about readjustment in the related parts.

MEANING AND DEFINITION OF GROUP

A group may be defined as the aggregation of small number of

persons who work for common goals, may develop a shared
attitude, and are aware that they are part of a group and perceive
themselves as such. Thus causal aggregations of people do not
qualify as a group because they ordinarily are not aware of one
another, or if aware, do not interact with other individual in a
meaningful way.
1. According to Marvin Shaw, “ A group is two or more persons
who are interacting with one another in such a manner that each
person influences and is influenced by each other person”.
2. According to Homans, a group is “ a number of persons who
communicate with one another, often over a span of time, and who
are few enough so that each person is able to communicate with all
the others, not at a secondhand, through other people, but face to
face”.

Nature and Features of a Group

The following are the salient features of group:
1) Two or More Persons : To form a group, there should be at
least two persons because a single individual cannot interact.
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There can not be any specific limit on the maximum number of

persons in a group but the size of the group will be determined
by rules and regulation of the organization in this context. There
should be meaningful interaction among the members even in
the case of informal groups.
2) Collective Identity : Members of the group must be aware
about their membership of the group. Each member of the
group must believe that he is member of, is a participant in,
some specific group. It is the case of aggregation of individual,
they are ordinarily not aware of one another or, if aware, do not
interact with each other in a meaningful way.
3) Interaction : Members of the group interact among themselves.
Interaction means that each member shares his ideas with
others through communication and this communication can take
place face, Face to Face in writing, over the telephone, across a
computer network, or in any other manner which allows
communication among group members. However, it is not
necessary for all members of the group to interact
simultaneously, but each member must interact atleast
occasionally with one or more members of the group
4) Shared Goal Interest : Members of the group should subscribe
to the attainment of some common objectives. However, It is not
necessary that each member subscribes to or agrees with the
objectives of the group. If a group has a variety of objectives or
interest, each member of the group must share atleast one of
the group’s concerns. The shared goal interest binds the group
member together.

TYPES OF GROUPS

Groups may be classified into different types. The basis

of differentiation may be purpose, extent of structuring, process of
formation, and size of the group membership.
i) Primary and Secondary Groups : Primary Groups are those
characterized by intimate, face-to-face association and co-
operation. For example – family and peer group.
Secondary group are characterised by large size and
individuals identification with values and ethnic group.

ii) Membership Groups and Reference Group : Membership

group are ones to which the individual actually belongs. For
example–Co-operative societies, Workers union, etc. Reference
group are the ones with which an individual identifies or to which he
would like to belong.

iii) Ingroup and Outgroup : Ingroup represents a clustering of

individuals holding prevailing values in a society or atleast having a
dominant place in social functioning. For example – Members of a
team, family members, etc.
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Out group are the masses or conglomerate viewed as

subordinate or marginal in the culture. For example – Street
performers, or an office worker, a hawker or a surgeon.

iv) Interest Vs Friendship Group : Interest group involves people

who may come together to accomplish a particular goal with which
they are concerned.
Friendship group are formed by people who have one or more
common features. People coming from a particular region or
holding a particular viewpoint or speaking a particular language
tend to form Friendship groups.

v) Formal and Informal Groups: 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. Basically formal
groups assist in
i. The accomplishment of goals
ii. Facilitate the co-ordination of activities or functions
iii. Aid in establishing logical relationships among people and
positions
iv. Assist in the application of specialization and division of labour
v. Create group cohesiveness
Formal groups are created with structural associations and are
formed to accomplish specific goals and carry specific tasks.
Informal groups exist within the confines of the formal authority
structure. Informal organisation consists of a group of people who
relate to each other spontaneously for the purpose of mutual
benefit and achievement. The interactions that occur informally are
neither prescribed by the formal structure, nor can they be
completely controlled by formal authority.
There are several informal groups in an organisation, namely,
i. Interest group : They come into being for the purpose of
achieving some common objective.
ii. Friendship group : These are socially oriented groups which
frequently extent outside a work place. These are based on
same age, views, interests.
iii. Membership Groups : a membership group is one to which a
person consciously belong but which he has no more than a
minimal relationship.
iv. Reference Group : These are groups to which one may belong
and allow oneself to be influenced by its members behavior

Distinguish between Formal and Informal groups

1) Formal groups are deliberately designed, structured and
managed in preplanned manner, while informal groups emerge
spontaneously and naturally out of formal structure.
2) The main purpose of formal group is to seek achievement of
pre-determined common goals, but informal groups are aimed
at satisfying social and personal needs of members.
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3) Leadership in a formal group is backed by formal authority and

power position held by individual member, but in informal group
it is based on competition, personality, abilities, and acceptance
by group members.
4) Formal groups are invariably larger in size as against informal
groups which tend to be smaller in size.
5) Pattern of relationship in a formal group is strictly based on
rationality , legality and contract but personal, social and
emotional elements govern the pattern of relationship in informal
groups.
6) Since formal groups are created in a planned manner they last
long and enjoy high degree of stability and certainty as
compared to informal groups which are prone to uncertainty and
instability.
7) Members in a formal group communicate through chain of
command while an informal channel is based on personal and
social relations are used by members in informal group to
communicate with each other.
8) Formal groups tend to be well structured and meticulously
planned in every respect but informal group remain loosely
structured and even disappear at slightest pretex.

REASONS RESPONSIBLE FOR FORMATION OF

GROUPS
1. Companionship and friendship : A group gives a person a
feeling of belonging and makes it possible for him to socialize with
his friends. It enables him to give a let to his feelings, get advice
and eliminate the monotony of work.
2. Security and protection : A group can be a source of security
and protection against management, especially if a member of the
group has made mistakes and needs to keep the foreman from
discovering them.
3. Advance their own interest : A group may try to secure
benefits such as better and higher piece rate, or in the case of
office workers, larger desks, longer lunch hours or other symbols of
status, including favourable working conditions.
4. Need for Assistance : A group may want assistance or advice
on one’s job.
5. Group as Means of Communication : Group serves as the
means of communicating information about the company or
organisation which does not come through official channels or
comes faster on the grapevine.

TEAM DEVELOPMENT
Team is a small group with members in regular contact. When
groups do operating tasks they do as a team and try to develop a
cooperative circumstance known as team work. A work team
generates positive synergy through coordinated effort. Their
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individual efforts results in a level of performance that is greater

than the sum of those individual inputs.

According to Katzenbach and Smith, team is defined as, “a small

number of people with complementary skills who are committed to
a common purpose, performance goals, and approach for which
they hold themselves mutually accountable.”

Reasons for the Popularity of Teams

i) Teams typically out perform individuals when the tasks being
done require multiple skills, judgment, and experience.
ii) To compete more effectively and efficiently organizations have
turned to teams as a way to better utilize employee talents.
iii) Management has found that teams are more flexible and
responsive to changing events.
iv) Teams have the capability to quickly assemble, deploy, refocus
and disband.
v) Teams facilitate employee participation in operating decisions.
vi) Teams are an effective means for management to democratize
their organizations and increase employee motivation.

Five Stages of Team Development or Life Cycle of a Team

When a number of individuals begin to work at interdependent jobs,
they often pass through several stages as they learn to work
together as a team. These stages are:
1)Forming: At the first stage of the life cycle team members get
introduced to each other if they have not interacted earlier. They
share personal information, start to accept others, and begin to turn
their attention towards the group tasks. At this stage, interaction
among team members is often cautious especially when they are
new to one another.
2)Storming: After the forming stage which is mostly related to
perceiving and assessing each other, members start interaction
among themselves in the form of competing for status, jokeying for
relative control, and arguing for appropriate strategies to be
adopted for achieving team’s goals. Because of individual
differences, different members may experience varying degree of
tension and anxiety out of this interaction pattern.
3)Norming: After storming stage team members start settling. The
team begins to moving in a co-operative fashion, and a tentative
balance among competing forces is struck. At this stage, group
norms emerge to guide individual behavior which form the basis for
co-operative feelings and behavior among members.
4)Performing: When team members interact among themselves
on the basis of norms that have emerges in the team, they learn to
handle complex problems that come before the team. Functional
roles are performed and exchanged as needed, and tasks are
accomplished efficiently.
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5)Adjourning: Adjourning is the end phase of life cycle of a team.

Sooner or later, each team has to be adjourned, even the most
successful teams as they have completed their mission. The
adjournment phase takes place in the case of those teams which
are created for some special purposes like task force, committee,
etc. Other types of team like a department is an organization run on
the basis of some permanency though there may be changes in
team members. After the adjournment of the team, intense social
relationship among members comes to an end.
It is not necessary that all teams follow the rigid pattern prescribed
hare and the similar problems they fact at each stage because
each team is different in some respect based on the type of
members, problems and functions assigned. However, concept of
stages is significant in the context of the nature of problem which
team members are likely to face in a team work.

DETERMINANTS OF GROUP BEHAVIOR

Team work or group behavior is reflected when the members

know their objectives, contribute responsibly towards the tack
allotted to them and support each other. The determinants of group
behavior. are :-
1. A supportive environment
2. Association of skills and role requirements
3. Application of goals
4. Application through team rewards.
There is a model of work group behavior, which contains the “why”,
“How”, and “when”, questions related to the groups. The figure
below shows the reasons for group formation, the types of groups,
the characteristics of group membership, and the end results. It
also shows the feed-back cycle. It all shows the groups that
achieve or are moving towards success (goal attainment) have the
greatest attraction (cohesiveness) within the group.
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Fig. 1. A Model of Work Group Behavior

TYPICAL TEAMS IN ORGANIZATIONS

The figure below explains the determinants of group behaviour

Self- Actualisation Esteem- Social Economic Physical Contributing

Needs Needs Motive Proximity factors to
Group
Membership
Appeal
Mutual
Decision Acceptance Development
Making stages of Group
Control Motivation Growth

Command Types of Work

Friendship Task Interest Force Groups
Emergent
Status Some
Hierarchy Leadership Characteristics
Control of Groups
Communication Norms
Network
Cohesive Qualities
Membership Satisfaction
A. Participation One of many
B. Goal Attainment end results
C. Status Consensus
Each informal group characteristically establishes group behavior
standards or norms, beliefs, traditions and attitudes to which it
expects its members to conform. According to Luthens, “norms are
the ought’s of behavior. They are prescriptions for acceptable
behavior determined by a group, institution or society”. The goals of
an industry may be to provide a pleasant, enjoyable work place for
its members, the group may establish maximum and minimum
production standards- these may take the form of units produced,
sales quotas achieved, time required to do a certain job, etc. In
order to remain a member in good standing every worker must
adhere to the production guidelines. Groups have typical behavior
but have norms for absenteeism, promptness or tardiness at work.
Though distinct in qualities, teams form set of norms which are
accepted by its members. This brings about cohesiveness in the
group.
Three specific social processes bring about compliance with the
group norms, namely, group pressure, group review and
enforcement and the personalization of norms. Team building
encourages team members to examine how they work together
identify their weaknesses and develop more effective ways of
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Co-operating. The goal of team building is to make teams more

effective. An effective team accomplishes its task, solves problems
and have satisfying interpersonal relationships

SUMMARY

A group consists of persons being together so that they have

common goal with mutual interaction and each person in the group
influences and is influenced by each other person. Groups form
because people have a basic need for love, affection, respect and
affiliation. Also group has more power to achieve individual goals
for its members than the individual by himself.
There are two types of groups. Formal groups are formed
purposely via formal authority in order to accomplish an
organizational objective or task. Informal groups are formed
naturally in response to some common interests of organizational
members. Team members establish some degree of closeness
resulting into cohesiveness despite there are typical team
behaviors among members.

ADDITIONAL READINGS
1. Shaw, Marvin E, Group Dynamics : The Psychology of
small Group Behavior, McGraw Hill, !981.
2. Robbins, P. Stephen, Organizational Behavior :
Concepts, Controversies, Applications, 8th Ed. Prentice
Hall of India Private Limited, New Delhi, Revised
Edition 2007.
3. Luthans, F, Organisational Behavior, 10th Revised
Edition, McGraw Hill, 2005.
4. Aswathappa, K, Organizational Behavior : Texts, Cases
& Games, Himalaya Publishing House, 2005.
5. Greenberg, J and Baron R. A. Behavior in
Organizations 6th Ed. Prentice-Hall International Inc,
1997.

QUESTIONS
1. Define Group Dynamics and explain the Principles of Group
Dynamics of Indian Organizations ? Give Examples.
2. Do you think Group dynamics work in organizations ? How are
the group goals integrated with the organizational goals ?
3 What are the types of Groups? How do formal groups differ
from informal groups?
4 What are the determinants of group behavior? Explain them
in brief

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