Chapter 15

UNDERSTANDING
GROUPS AND
TEAMS
© Prentice Hall, 2002 15-1
 Learning Objectives
• You should learn to:
– Differentiate between formal and informal groups
– Describe the five stages of group development
– Identify how roles and norms influence an
employee’s behavior
– Describe the key components in the group
behavior model
– Identify the advantages and disadvantages of
group decision making

© Prentice Hall, 2002 15-2

 Learning Objectives (cont.)
• You should learn to:
– Explain the increased popularity of teams in
organizations
– Describe the four most common types of
teams in organizations
– List the characteristics of effective teams
– Identify how managers can build trust

© Prentice Hall, 2002 15-3

 Understanding Group Behavior
• Group
– two or more interacting and interdependent
individuals who come together to achieve
particular goals
• formal groups - established by the organization
–have designated work assignments and
specific tasks
–different types exist
• informal groups - occur naturally in the
workplace in response to the need for social
contact
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 Examples of Formal Groups

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 Understanding Group Behavior (cont.)
• Stages of Group Development
– forming - people join the group either because of a work
assignment or for some other benefit
• begin to define the group’s purpose, structure, and leadership
• stage marked by much uncertainty
– storming - acceptance of the group’s existence
• conflict over who will control the group
– norming - relationships and a sense of group identity
develop
• group assimilates a common set of expectations of what
defines correct member behavior

© Prentice Hall, 2002 15-6

 Understanding Group Behavior (cont.)
• Stages of Group Development (cont.)
– performing - group structure is functional and
accepted
• group energy has moved to task performance
– adjourning - group prepares to disband
• attention devoted to wrapping up activities
– group does not necessarily become more
effective as it moves through the first four stages
• group effectiveness is a complex issue that is
affected by factors other than developmental
stage
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 Stages Of Group Development

Prestage Stage I Stage II

Forming Storming

Stage III Stage IV Stage V

Norming Performing Adjourning

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 Understanding Group Behavior (cont.)
• Basic Group Concepts
– Role - set of expected behavior patterns attributed
to someone who occupies a given position in a social
unit
• group members have particular roles
– roles oriented towards task accomplishment
or maintaining group member satisfaction
• individuals play multiple roles
– role conflict - individual confronted by
different role expectations
© Prentice Hall, 2002 15-9
 Understanding Group Behavior (cont.)
• Basic Group Concepts (cont.)
– Norms - acceptable standards or expectations that are
shared by the group’s members
• each group has:
– its own unique set of norms
– common norms related to levels of effort and performance
» exert powerful influence on performance
– Conformity - acceptance by group makes some members
susceptible to conformity pressures
• group norms push members toward conformity
• results in alignment of opinions

© Prentice Hall, 2002 15-10

 Understanding Group Behavior (cont.)
• Basic Group Concepts (cont.)
– Status - a prestige grading, position, or rank in a group
• may be conferred informally based on personal
characteristics
• may be formally conferred
– Group Size - effect on behavior of group depends
upon the type of outcome
• large groups - good for getting diverse input
• small groups - good at making use of information
• dispersion of responsibility in large groups leads to free
rider tendency

© Prentice Hall, 2002 15-11

 Understanding Group Behavior (cont.)
• Basic Group Concepts (cont.)
– Group Cohesiveness - degree to which
members are attracted to a group and share
the group’s goals
• relationship between cohesiveness and
group effectiveness depends upon the
alignment of group and organizational
goals

© Prentice Hall, 2002 15-12

 Relationship Between Cohesiveness
And Productivity

Cohesiveness
High Low
Alignment of Group and
Organizational Goals

Strong Increase Moderate Increase

High

in Productivity in Productivity

Decrease in No Significant Effect

Low

Productivity on Productivity

© Prentice Hall, 2002 15-13

 Understanding Group Behavior (cont.)
• Basic Group Concepts (cont.)
– Conflict Management
• conflict - perceived incompatible differences resulting
in some form of interference or opposition
– differences may be real or not
• traditional view - conflict must be avoided
• human relations view - conflict is a natural and
inevitable outcome in any group
– conflict need not be negative
– conflict has the potential to be a positive force for
performance

© Prentice Hall, 2002 15-14

 Understanding Group Behavior (cont.)
• Basic Group Concepts (cont.)
– Conflict Management (cont.)
• interactionist view - some conflict is
absolutely necessary
–functional conflict - supports the goals
of the work group and improves its
performance
–dysfunctional conflict - prevents group
from achieving its goals
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 Understanding Group Behavior (cont.)
• Basic Group Concepts (cont.)
– Conflict Management (cont.)
• type of conflict
– task conflict - content and goals of the work
» low-to-moderate levels are functional
– relationship conflict - interpersonal relationships
» almost always dysfunctional
– process conflict - how work gets done
» low levels are functional
• conflict may be resolved in five ways
– no technique is ideal for every situation

© Prentice Hall, 2002 15-16

 Conflict and Group Performance

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 Conflict-Resolution Techniques
Assertive Forcing Collaborating
Resolving conflicts by Rewarding conflict by seeking
satisfying one’s own needs an advantageous solution for
at the expense of another’s all parties
Assertiveness

Resolving conflict by each

party giving up something
of value
Compromising

Resolving conflicts by
Unassertive

Resolving conflicts by placing another’s needs

withdrawing from or and concerns above your
suppressing them own
Avoiding Accommodating

Uncooperative Cooperative
Cooperativeness
© Prentice Hall, 2002 15-18
 Group Decision Making

Advantages of Groups Disadvantages of Groups

in Comparison with Individuals in Comparison with Individuals
• Provide more complete • Time consuming
information
• Minority domination
• Generate more alternatives
• Pressures to conform
• Increase acceptance of a
solution • Ambiguous responsibility

• Increase legitimacy

© Prentice Hall, 2002 15-19

 Understanding Group Behavior (cont.)
• Basic Group Concepts (cont.)
– Effectiveness and Efficiency of Group Decisions
• effectiveness depends on criteria of success
• size of group affects effectiveness
– groups of 5-7 are the most effective
– odd number of members helps avoid deadlocks
– Techniques for Improving Group Decision Making
• steps must be taken to avoid groupthink
– groupthink - conformity marked by withholding different or
unpopular views in order to give the appearance of
agreement

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 Group Versus Individual Decision Making

Criteria of Effectiveness Groups Individuals

Accuracy x

Speed x

Creativity x

Degree of acceptance x

Efficiency x

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 Techniques for Making More Creative Group
Decisions

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 Understanding Group Behavior (cont.)
• Understanding Work Group Behavior
– External Conditions Imposed on the Group
• formal group is a subsystem of a larger system
• group affected by the overall strategy, authority structures,
formal regulations, resources, performance management
system, and organization culture
– Group Member Resources - task-relevant and
intellectual abilities of individual members
• abilities set parameters on effectiveness of performance in a
group
• positive attributes - sociability and self-reliance
• negative attributes - dominance and unconventionality

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 Understanding Group Behavior (cont.)
• Understanding Work Group Behavior (cont.)
– Group Structure - structural variables include roles,
norms, status, and group size
– Group Processes - include communication, decision
making, leadership, and conflict
• process factors created in the group may have a positive or
negative effect on group performance
– Group Tasks
• complexity - simple tasks are routine and standardized
– complex tasks are novel and nonroutine
» important to have effective communication and controlled conflict
when task is complex

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 Group Behavior Model
Group
Tasks
Group
Member
Resources
External
Conditions Group Performance
Imposed on Processes and Satisfaction
the Group
Group
Structure

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 Turning Groups Into Effective Teams
• What Is a Team?
– work team - formal group made up of
interdependent individuals who are
responsible for the attainment of a goal
– work teams are popular in organizations

© Prentice Hall, 2002 15-26

 Why Are Work Teams Popular?
Creates
esprit de corps

Allows managers
Increases to do more strategic
performance Management
Why Use
Teams?

Takes advantage
Increases
of workforce
flexibility
diversity

© Prentice Hall, 2002 15-27

 Turning Groups Into Effective Teams (cont.)
• Types of Teams
– teams differ in terms of membership
• functional teams - composed of a manager and her/his
employees from one functional area
– issues of authority, decision making, and leadership are relatively
simple and clear
– attempt to solve problems in specific functional area
• cross-functional teams - members come different from
functional areas
– hybrid grouping of individuals who are experts in various specialties

© Prentice Hall, 2002 15-28

 Turning Groups Into Effective Teams (cont.)
• Types of Teams (cont.)
– teams differ in terms of structure
• supervised - under the direction of a manager
• self-managed - operate without a manager
– responsible for a complete work process or segment
– assumes the responsibilities of managing itself
» have authority to make and implement decisions, finish projects,
and address problems
– organizations plan to expand their use in the future

© Prentice Hall, 2002 15-29

 Categories Of Teams
Purpose Structure
• Product development • Supervised
• Problem solving • Self-managed
• Reengineering
• Any other organizational
purposes desired

Membership Duration
• Functional • Permanent
• Cross-functional • Temporary

© Prentice Hall, 2002 15-30

 Turning Groups Into Effective Teams (cont.)

• Types of Teams (cont.)

– Virtual team - physically dispersed
members are linked by computer
technology
• miss the normal give-and-take of face-to-
face discussions
• tend to be task oriented

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 Developing And
• Characteristics Managing
of Effective Effective Teams
Teams
– Clear Goals - members understand and support the
goals to be achieved
– Relevant Skills - members have the necessary technical
and interpersonal skills
– Mutual Trust - members are confident in each others’
ability, character, and integrity
• strongly influenced by the organization’s culture
– Unified Commitment - loyalty and dedication to the
team
• membership in the team an important aspect of the self
– Good Communication - messages are readily understood
• healthy dose of feedback from team members

© Prentice Hall, 2002 15-32

 Developing/Managing Effective Teams
(cont.)
• Characteristics of Effective Teams (cont.)
– Negotiating Skills - flexibility requires members to possess
these skills
• must be able to confront and reconcile differences arising from
changing problems
– Appropriate Leadership - provide help in difficult
situations
• plays role of coach or facilitator
– Internal and External Support - team requires a sound
infrastructure
• team should have external resources required to perform its
work
© Prentice Hall, 2002 15-33
 Characteristics of Effective Teams

© Prentice Hall, 2002 15-34

 Developing/Managing Effective Teams
(cont.)
• Managing Teams
– Planning - goal determination
• members understand and accept the team’s
goals
– Organizing - clarify authority and structural issues
• support in the organization’s culture for
employee involvement and autonomy
• must resolve issues of leadership, tasks to be
performed, and assignment of tasks

© Prentice Hall, 2002 15-35

 Developing/Managing Effective Teams
(cont.)
• Managing Teams (cont.)
– Leading - determine the role that leader will play
• deal with human dynamics of the team
– Controlling - performance criteria must reflect
teamwork behaviors
• reward system must reflect team efforts and
performance
– gainsharing - incentive program that shares the gains of the
efforts of employees with those employees
» rewards directly related to performance

© Prentice Hall, 2002 15-36

 Types of Interpersonal Skills Used in Managing
Teams

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