Chanderprabhu Jain College of Higher Studies

&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)

E-Notes

Class : BBA(G) 1st Semester

Paper Code : BBA 101

Subject : Management Process and Organizational Behavior

Faculty Name : Dr. Dipti Jain

Unit-4

GROUP

A Group is basically an assemblage of people. It can be understood as a collection

of individuals (two or more), who come together and interact with each other, so as
to achieve the objectives of the organization. These are the foundation of an
organization.

Characteristics of Groups

(i) Size: To form a group, it must be having at least two members. Practically, the
number of group members ranges from 15 to 20. The more the members in the
group, the more complex it is to manage.

(ii) Goals: Every group has certain goals, that are the reasons for its existence.

(iii) Norms: A group has certain rules, for interacting with the group members.
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 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)

(iv) Structure: It has a structure, based on the roles and positions held by the
members.

(v) Roles: Every member of a group has certain roles and responsibilities, which
are assigned, by the group leader.

(vi) Interaction: The interaction between the group members can occur in several
ways, i.e. face to face, telephonic, in writing or in any other manner.

(vii) Collective Identity: A group is an aggregation of individuals, which are

separately called as members, and collectively called as a group.

Reasons for Group Formation

1. Personal Characteristics: Individuals with similar beliefs, attitudes and

values are more likely to form groups.

2. Opportunity for Interaction: If the employees of an organization, are

given an opportunity to interact with one another, they find that they have
many things similar, which also creates a group.

3. Interest and Goals: When individuals share common interest and goals, it
requires cooperation and coordination for its achievement, which also results
in the formation of groups.

4. Influence and Power: Last but not the least; a group has more influence and
power, as compared to an individual, which also promotes its formation.

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&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)

In general, groups are created out of individual need satisfaction, which can be
personal, social or economical. Meaning that the members need to associate with
the group in order to fulfill their basic needs.

Types of Groups

GROUP DYNAMICS

Group dynamics deals with the attitudes and behavioral patterns of a group. Group
dynamics concern how groups are formed, what is their structure and which
processes are followed in their functioning. Thus, it is concerned with the
interactions and forces operating between groups.

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 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)

Group dynamics is relevant to groups of all kinds – both formal and informal. If
the UPA government has set up Group of Ministers for every governance issue, the
Supreme Court of India has 27 Group of Judges committees overseeing all manner
of non-judicial work in the apex court. In an organizational setting, the term groups
are a very common and the study of groups and group dynamics is an important
area of study.

Theories of Group Formation:

There are four theories which explain why the groups are formed. These include:

1. Propinquity Theory

2. Homans’ Theory

3. Balance Theory

4. Exchange Theory

1. Propinquity Theory

The most basic theory explaining affiliation is propinquity. This interesting word
simply means that individuals affiliate with one another because of spatial or
geographical proximity. In an organization employees who work in the same area

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 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)

of the plant or office or managers with offices close to one another would more
probably form into groups than would those who are not physically located
together. There is some research evidence to support the propinquity theory and on
the surface, it has a great deal of merit for explaining group formation. The
drawback of this theory is that it is not analytical and does not begin to explain
some of the complexities of group formation. Some more theoretical and practical
reasons need to be explored.

2. Homans’ Theory

According to George C. Homans, “The more activities persons share, the more
numerous will be there interactions and the stronger will be their shared activities
and sentiments, and the more sentiments people have for one another, the more
will be their shared activities and interactions.”

It is a very comprehensive theory and based on activities, interactions and

Homan’s theory is based on sentiments. These three elements are directly related to
each other. The members’ activities interactions and of a group share activities and
interact with one another not just because of physical proximity but also to
accomplish group goals.

3. Balance Theory

Another very comprehensive theory is a Balance Theory of group formation. This

theory as proposed by Theodore Newcomb states that “Persons are attracted to one

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 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)

another on the basis of similar attitudes towards commonly relevant objects and
goals. Once a relationship is formed, it strives to maintain a symmetrical balance
between the attraction and the common attitudes. If an imbalance occurs, attempts
are made to restore the balance. If the balance cannot be restored, the relationship
dissolves.”

Thus, the balance theory is additive in nature in the sense, that it introduces the
factor of balance to the propinquity and interaction factors. There must be a
balance in the relationship between the group members for the group to be formed
and for its survival. The following -figure shows the balance theory.

4. Exchange Theory

This theory is based on reward-cost outcomes of interactions. To be attracted

towards a group, a person thinks in terms of what he will get in exchange of
interaction with group members. A minimum positive level (rewards greater than
costs) of an outcome must exist in order for attraction or affiliation to take place.
Rewards from interactions gratify needs while costs incur anxiety, frustrations,
embarrassment or fatigue. Propinquity, interaction and common attitudes all have
roles in the exchange theory.

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 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)

Causes of Formation of Groups:

1) Companionship: The need for relationship with other people is one of the
strongest and most constant of human drives. Many research studies have
indicated that the employees who have no opportunity for close social
contacts find their work unsatisfying and this lack of satisfaction often
reflects itself in low productivity and high rate of absenteeism and turnover.
Elton Mayo observed that the employees in a textile plant who worked on
isolated jobs were highly dissatisfied and consistently failed to meet
production standards and staggered rest period helped a little. But when the
company permitted these workers to take rest period as a group, production
and satisfaction both increased.

2) Sense of Identification: Workers get identity in small groups and so small

groups tend to enjoy high morale. Employees working in large departments
where everybody does the same type of job, find it hard to form stable
social groupings compared to those working in small groups.

3) Source of Information: Informal group is a source of information to its

members. Informal communication is very fast. A piece of information
available to a member will reach nearly all the members of the group
instantly. The group may develop a special code or language for speedy
communication. Psychological barriers to communication are also
overcome by the group.

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&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)

4) Job Satisfaction: The group’s solution to a problem may be different from

what management expects and it may even be more efficient. Shortcuts are
evolved and informal channels of communication are established to cut
across department boundaries. Many jobs which appear superficially dull
and routine are made interesting by the group and spontaneity is encouraged
and protected by the group.

5) Protection of members: Groups help protect their members from outside

pressures. Groups often resist management’s demands for additional output,
increased working hours, and higher quality. Group members often agree on the
level of output that each will put forth so that no member may outperform the
others.

6) Outlet for Frustration: An individual at times, feels tremendous stress in

life and gets frustrated. If he shares his feelings and anxieties with someone, his
tension is released to a great extent. The social relations provide an important
outlet for frustration. An informal group serves as a safety valve which helps
release tension and frustration and checks the mental breakdown of the
individual.

7) Perpetuation of Cultural Values: Sometimes, groups are formed

by individuals belonging to a common cultural background. Such people can
preserve their cultural identify and also feel a sense of security by associating

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 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)

with those pursuing the same cultural values and social norms. Maintenance of
cultural values will also provide them psychological satisfaction.

8) Generation of New Ideas: Informal groups are a breeding ground for new
ides as they provide a supportive environment in which the members can
engage themselves in creative thinking. New product teams, task force, quality
circles, etc. are important examples in this regard.

Importance of Informal Groups for the Organization:

1. Fast Communication:

Informal structure does not follow scalar chain so there can be faster spread of
communication.

2. Fulfills Social Needs:

Informal communication gives due importance to psychological and social need of

employees which motivate the employees.

3. Correct Feedback:

Through informal structure the top level managers can know the real feedback of
employees on various policies and plans.

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 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)

Strategic Use of Informal Organization

Informal organization can be used to get benefits in the formal organization in the
following way:

1. The knowledge of informal group can be used to gather support of employees

and improve their performance.

2. Through grapevine important information can be transmitted quickly.

3. By cooperating with the informal groups the managers can skillfully take the
advantage of both formal and informal organizations.

Disadvantages of Informal Organization:

1. Spread Rumors:

According to a survey 70% of information spread through informal organizational

structure is rumors which may mislead the employees.

2. No Systematic Working:

Informal structure does not form a structure for smooth working of an

organization.

3. May Bring Negative Results:

If informal organization opposes the policies and changes of management, then it

becomes very difficult to implement them in organization.
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 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)

4. More Emphasis to Individual Interest:

Informal structure gives more importance to satisfaction of individual interest as

compared to organizational interest.

Groups Processes and Behavior:

The group processes that go on within a workgroup – the communication

patterns used by members for information exchanges, group decision processes,
leader behavior, power dynamics, conflict interactions, and the like.

Why are processes important to understanding work-group behavior?

One way to answer this question is to return to the topic of social loafing. We
found that 1+1+1 doesn’t necessarily add up to three. In group tasks for which each
member’s contribution is not clearly visible, there is a tendency for individuals to
decrease their effort.

Social loafing, in other words, illustrates a process loss as a result of user groups.
But group processes can also produce positive results. That is, groups can create
outputs greater than the sum of their inputs.

The development of creative alternatives by a diverse group would be one such

instance. The following Figure illustrates how group processes can have an impact
on a group’s actual effectiveness.

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School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)

Synergy

Synergy is a term used in biology that refers to an action of two or more substances
that result in an effect that is different from the individual summation of the
substances.

We can use the concept to better understand group processes. Group synergy refers
to the idea that two heads (or more) are better than one. Groups are often capable
of performing higher quality work and making better decisions than an individual
can make alone. Synergistic relationships are not easy to develop and maintain. As
a result, most people are willing to invest what’s needed only if a significant
positive upside can be gained and/or a negative downside avoided.

Social loafing, for instance, represents negative synergy. The whole is less than the
sum of its parts. On the other hand, research teams are often used in research
laboratories because they can draw on the diverse skills of various individuals to
produce more meaningful research as a group than could be generated by all of the
researchers working independently.

That is they produce positive synergy. Their process gains exceed their process
losses. Another line of research that helps us to better understand group processes
is the social facilitation effect.

The social facilitation effect refers to this tendency for performance to improve or
decline in response to the presence of others. While this effect is not entirely a

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 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)

group phenomenon – people can work in the presence of others and not be
members of a group – the group situation is more likely to provide the conditions
for social facilitation to occur.

The research on social facilitation tells us that the performance of simple, routine
tasks tends to be speeded up and make more accurate by the presence of others.
When the work is more complex, requiring closer attention, the presence of others
is likely to have a negative effect on performance. The synergistic process is
distinguished by four skill sets:

Interacting

Synergistic communication occurs when diverse perspectives, ideas, meanings,

attitudes, feelings, and values are expressed and received openly and honestly in a
supportive environment.

Appreciative Understanding

This is a nurturing atmosphere characterized by people who recognize and value

their distinct frames of reference regarding the task at hand.

Integrating

Only when appreciative understanding is established can individuals seek ways to

merge or combine their separate views into mutually supportive patterns for

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 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)

thinking and acting. It is during this integration phase that individuals invent and
experiment with creative ways to move beyond their current thinking.

Implementing

Merely finding innovative approaches to integrate various viewpoints is not

enough. It is only -through active planning, goal setting, discipline, and consistent
application of various change facilitating methods that a transition can be
successfully achieved.

Without a structured implementation plan, the likelihood is low that a synergistic

advantage will occur.

Development of Teams:

Teams are becoming a key tool for organizing work in today’s corporate world.
Teams have the potential to immediately amass, organize, relocate, and disperse.
But, teams are an effective tool of employee motivation. It is essential to consider
the fact that teams develop and get mature over a period of time.

Team development creates a captivating atmosphere by encouraging co-operation,

teamwork, interdependence and by building trust among team members.

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 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)

The four stages of team development are:

Stage 1: Forming

During this stage, group members may be anxious and adopt wait-and-see attitude.
They will be formal towards each other. There would be no clear idea of goals or
expectations. Besides, they may not be sure why they are there.

This is the stage where the team needs to write its own charter or mission statement
as well as clarify goals. The most important thing here is that goals must have a
personal buy-in.

By doing this the team will be able to establish boundaries as well as determine
what is expected. Team members will get to know each other doing non-conflict
laden task. This builds the commitment towards one larger goal.

Thus, during the forming stage, the team members are in process of knowing each
other and getting at ease with them.

Stage 2: Storming

During this stage, team members are eager to get going. Conflict can arise as
people tend to bring different ideas of how to accomplish goals. At this time, they
notice differences rather than similarities. This leads to some members dropping
out mentally or physically.

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&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)

At this stage, communication is important. Tensions will increase. So recognizing

and publicly acknowledging accomplishments also become important. It becomes
important to participate in meetings and diversity needs to be valued.

Thus, during the storming stage, the team members begin showing their actual
styles. They start getting impatient. They try to probe into each other’s area,
leading to irritation and frustration. Control becomes the key concern during this
stage.

Stage 3: Norming

This stage is when people begin to recognize ways in which they are alike. They
realize that they are in this together. Hence, they tend to get more social and may
forget their focus in favour of having a good time. This is the time to help with
training if applicable. It becomes important to encourage them in order to feel
comfortable with each other and with systems. Also, the group needs to stay
focused on goal.

Thus, during the norming stage, there is conflict resolution. There is greater
involvement of team members. There is a greater “we” feeling rather than “I”
feeling.

Stage 4: Performing

This stage is when team members are trained, competent, as well as able to do their
own problem-solving. At this time, ways need to be looked at in order to challenge

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 Chanderprabhu Jain College of Higher Studies
&
School of Law
An ISO 9001:2015 Certified Quality Institute
(Recognized by Govt. of NCT of Delhi, Affiliated to GGS Indraprastha University, Delhi)

them as well as develop them. The team is mature now. The members understand
their roles and responsibilities. They would require more input in processes. The
members would be self-motivated as well as self-trained. Thus, their efforts need
to be recognized. Growth has to be encouraged. This is done by giving new
challenges to the team.

Thus, teams at the stage of performing are self-controlling, practical, loyal as well
as productive. Focus is there on both performance as well as production.

Forming an Effective Team

This is the general approach to forming a successful work team. But not all will
take the same steps as discussed above. Success is usually hinged on taking all of
the steps just discussed. We have a tendency to want to surround ourselves with
people who are just like us. In case you get to choose a team, instead of organizing
a pre-formed team, then you’ll look for a team of people with a variety of
strengths. In case of a team that is already in place, organizing can be more subtle.
Like all the workgroups can be called together in order to discuss what goals you
want to accomplish and how everybody can help.

You will also find that imposing goals on people doesn’t work nearly as well as
having them tell you as to what goals they will strive for. But setting goals is not
easy work. Too often they end up in being too unrealistic, too vague, impossible to
measure, or just stretching into eternity without any deadline.

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