Module 6

Work Groups
 Work groups defined as two or more employees who interact and
perceive each other to share common interests/goals which put
together to accomplish a meaningful organisational activity.
 Types of Groups in Organisations:
a) Formal Group: A formal assignment mechanism allocates
employees to various work groups.
b) Informal Group:
 Group of employees who come together voluntarily for a common
purpose, which may or may not be work-related.
 Managers do not always encourage and approve on informal groups,
as they believe the group may develop goals which may be not work
related.
 Informal groups can function as ‘whistle-blowers’ about
organisational work systems that may be unsafe.
 As the organisational systems allows regular satisfaction for
employee needs, informal groups’ goals will often parallel/reinforce
the goals of the organisation and the members of the informal
groups must experience procedural and distributive justice in
organisational systems.

*Project Teamwork system:

 Several organisations have adopted cultures of project teamwork
system.
 General characteristics of this system:
1. Life span of project team is short.
2. Membership is always voluntary.
3. Team is pulled together quickly without formal selection process.
4. Support staff is not assigned.
5. Communication and project documentation are informal.

 Why Individuals are attracted to join groups?

 Central aspect is the individual’s belief that membership in a group
creates a pathway to the satisfaction of personal needs.
 Main Factors are:
a) Interpersonal attraction includes:
1. Proximity
2. Physical attraction.
3. Attitude similarity.
4. Economic and social similarity
5. Race and gender similarity
6. Perceived ability of others.
b) Activities of the group.
c) Goals of the group.
Factor Workplace example
Proximity Clerks in a mailroom form an informal TGIF club
Physical attraction meeting attractive people from the opposite sex.
Attitude similarity Students who believe the university should have more sports form a protest group.

Economic and social CEOs of banks asked to sit on board of the other banks
similarity
Race and gender Female Indian engineers form an interest group to discuss employment problems
similarity experienced by minorities.

Perceived ability of Employees with athletic ability organise a corporate sailing team.
others
Activities of the group Employees organise a dart club to compete in tournaments
Goals of the group Employees organise a fund raise for AIDS research

*Work Group Cohesiveness:

1. Defined as a multi-faceted concept composed of:
a. Attraction to the group
b. High morale exhibited by members
c. Strong co-ordination of member effort.
2. Managers can raise cohesiveness by controlling work group
composition. I.e. employee characteristics, group size and also
influence the clarity of group goals/activities.
3. Cohesiveness/performance can also be influenced by:
a) managers who create the perception of a common enemy.
b) Strong well-timed positive feedback.

Category Cohesive work group Incohesive work group

Performance Perform well when goals matched Perform poorly regardless the
with organisational goals organisational goals
Members 1. Energetic members who are Members are indifferent to:
nature motivated by group goal’s a) Group efforts and goals.
2. They celebrate the group’s b) Successes and failures.
success c) Group membership
3. They value the group
membership.
Absenteeism Less High lateness and absenteeism
Transfer Resist Seek
Work group Homogenous Remain unchanged
characteristi
cs over time

 Relationship between cohesiveness/performance:

 Three conditions influence whether or not work groups will be high
performers or not in organisations:
1. Level of work group cohesiveness.
2. Performance goals set by work group.
3. Degree of agreement between work group performance goals
and organisational performance goals.

*Work Group Norms (Principals of Work groups):

 Work groups have norms (principals) for controlling members’
behaviour which are the group standards for individual behaviour.
 Norms exhibit several common traits:
1. summarise the influence process.
2. apply to member behaviour and not their thoughts.
3. develops over time and become resistant to change.
4. Some members have more right to deviate from work group norms
than others.
*Managerial principles for controlling work group norms:
1. Create a desire to remain in the group, Cohesiveness is an important
benefit valued by members, so acknowledge employee expressions of
esprit de corps.
2. Show high standards for group achievement and trigger rewards at the
group level.
3. Specify the importance of paying attention to group success rather
than individual gains.
4. Carefully define importance of members’ contributions which help the
group to achieve its goals.
5. Give members a say in creating norms about effort levels and
performance standards.
6. Make it clear that there are serious negative consequences for non-
compliance with core performance norms.
*Group Think
 When groupthink is present, members are much more concerned with
solidarity and fellowship which affects the quality of decisions.
 Some symptoms of group think are:
1. illusion of invulnerability
2. collective rationalism
3. mind guards
4. belief in the inherent morality of the group
5. negative stereotyping of the competition
6. direct pressure applied to dissenters
7. self-censorship
8. illusion of unanimity.
 Safeguards to minimise impact of groupthink (Managers doing to
minimize Group think symptoms):
1. must assign the role of critical evaluator to members on a rotating
basis.
2. Influential members should not pre-specify solutions or the methods
for reaching solutions.
3. establish subgroups which take their own decisions separately.
4. Hiring external experts may provide guidance to the group.
 A ‘second chance’ meeting should be held after the group has selected
its official position or made its decision.

*Significant aspects of work group structure:

 Common structural properties include: positional status, group size and
participation, group size and internal conflict, and group size and
performance.
Guidelines for management of work-group size:
1. Very small groups can create anxiety among members, due to
their high-performance visibility (2 to 3 members).
2. Small size groups are better able to reach consensus on a
particular decision (2 to 5 members).
3. Middle size groups tend to make more accurate decisions (5 to 11
members).
4. Large size groups generate more ideas (11 or more members).
5. Groups of 4-5 members foster greater member satisfaction

*Work-group Development and Decision-making:

 Stages of Development:
1. Forming: members move from a personal focus to a group focus.
This stage may have leadership turbulence, as several members may
aspire to be the leader.
2. Storming: Interpersonal conflict emerges. These disagreements
are necessary to create a basis for trust and collaboration.
3. Norming: Work groups’ normative structure emerges. Members are
fully aware of their involvement and commitment to the group.
4. Performing: Process losses are minimised, and actual performance
nears potential performance.

 Work groups may slip from stage 4 due to turnover, changes in

group goals, new technologies, rising competitive pressures,
and changes in leadership.

STAGE 1 STAGE 2 STAGE 3 STAGE 4

TEST AND CONFLICT AND COHESION AND INTERDEPENDENCE
ORIENTATION ORGANISATION INFORMATION AND PROBLEM-
EXCHANGE SOLVING
FORMING STORMING NORMING PERFORMING

MAJOR ISSUES FOR EACH STAGE

FORMING: Composition of the group, smoothing entry into the group for all members
STORMING: Development of rules for the conflicts, filling the leadership position (may
be empty)
NORMING: Preventing groupthink and other process losses, managing high
cohesiveness, sustaining a task force
PERFORMING: Expanding the task force, maintaining norms as membership changes

*Work Group Risk-taking and Creativity

Catego Work group is risk oriented if Work group is conservative if
ry
Memb Value risk Don’t value risk
ers
Decisio Has little to do with Involves human resources
n
sLeade Risk oriented Averse to risk
r
Group Has history of tolerating deviance Has norm that value status quo
 from group norms (performing (group thinking)
stage)

*Factors which lead to low creativity of the work group:

1. Group has no common goal or core focus.
2. No standard method followed for making decisions
3. Idea generation and idea evaluation are not separated.
4. Some members do not feel at ease to participate.
5. No access to higher management to review/approve work group output
quickly.

*Tools to encourage creativity in the work groups:

I. Brainstorming:
 The separation of idea generation from idea evaluation (the principle of
deferred judgement).
 Brainstorming is a supplement for individual thinking, not a
replacement
 Rules of Brainstorming:
1. Complex problems must be broken down into specific problems.
2. Ideas can be proposed at any time but must be generated as quickly
as possible.
3. Ideas already suggested should be used to spawn others.
4. Criticisms or evaluation is NOT allowed during brainstorming.
5. Lengthy explanations/discussions are to be postponed

II.Nominal Group Technique (NGT):

 Forms the work group creative process to minimise verbal interaction
altogether.
 Steps of NGT:
1. Question is posted and members silently generate ideas in writing.
2. Leader goes around the table and asks each member to read one idea
from his/her notes, this continues until all ideas are read.
3. Each idea is discussed in the order it was received.
4. Each member records the idea on 3x5 cards and rates the order from 1 to
10 and the average rankings are used for the group decisions.
5. Voting patterns can be analysed.
6. A final vote is taken the same way as in step 4 (Performing stage).
 Advantages:
1. Idea generation is separate from evaluation
2. Balanced participation occurs and the effects of dominant individuals on
group decision making is lessened.
 Disadvantages:
1. Highly formalised and repeated use can lead to member perception of
ritualistic decision-making.
2. Group leader must develop a norm which encourages group creativity and
not to suppress participation.

III. Delphi Technique:

 Used to make decisions when members cannot attend a meeting.
 Developed by the Rand Corporation as a way of forecasting future events.
 The steps:
 1. Each group member independently and anonymously records comments,
suggestions, and solutions to the problem facing the group.
2. All data is sent to a centrally located individual who is responsible for idea
compilation/reproduction.
3. Each member receives a written copy of responses from other members.
4. Feedback is generated and sent to the centrally located individual.
5. Steps 3 and 4 are repeated until consensus is reached.
 Advantages:
 Average performance is higher in a Delphi group than in undisciplined
groups.
 Eliminates effects of perceived member status or group decision making.
 Eliminates effects of dominant individuals in group discussions.
 Disadvantages:
 Time consuming.

Nominal groups Delphi groups

- Composed of members who know - Composed of members who are unaware
each other. of other group members.
- Designed to make members meet - Made up of members who have never met
face to face. face to face.
- Designed to reach a decision more - Rely on central processing unit which
quickly. responsible for collection, compilation and
- More likely to have status and reproduction of the ideas submitted.
dominance effects.

*Practical Guidelines for Managing Groups:

 Managers must continuously shift their emphasis between tasks which
influence the effectiveness of group decision-making.
A) Task activities: Group activities which channel member efforts to
achieve the purposes of the group.
B) Maintenance activities: Group functions which nurture/sustain the
emotional qualities of the group.
 Stage 4 groups (performing) have members who willingly confront
task/maintenance activities.
 In earlier stages the leader usually carries the burden.
Task activities are occurring when Maintenance activities are occurring
when
The group is getting started and introducing The group is creating a supporting
ideas cohesiveness
The group is diagnosing problems and The group encourages agreement and
suggesting problem effects praises group members
Members sum up group progress on ideas, Members are discussing ways to attract new
activities, goals , and solutions members and ensure their inclusion in group
work
Members co-ordinate their activities to The leader advocates the groups position to
ensure steady progress to the groups goals higher managers
The leader reports the groups progress to All group members discuss levels of status to
higher managers ensure member commitment to its goals

Guidelines to minimise process loss:

1. Define workgroup tasks/problems carefully
2. Do not jump to idea evaluation before numerous
ideas have been generated
3. Avoid groupthink
 4. Manage group norms by making valued rewards contingent on high-quality
group performance
5. Make group-level rewards contingent on group contribution to work-unit
success.

Managing Inter-group Behaviour/Performance

 Steers and Black argue that there are three prevailing group interaction
requirements:
1. Interdependence
2. Information Flow
3. Integration
 These are major obstacles to creating an effective delayered, team-driven
company.
 Steers and Black suggest several pathways to effective inter-group
relations, which are based on the level of complexity/task uncertainty: (ways
to improve decision making in inter-group networks).
1. Rules and procedures
2. Member exchange
3. Linking roles – formal creation of a role which oversees 2 or more groups
4. Task forces
5. Decoupling – separation of groups either physically or administratively
*Laggards in Groups
 Social Loafing: Causes average member effort and performance to decline as
group size increases.
 Some theoretical explanations for social loafing:
1. Equity/Effort – “everyone is goofing off, why shouldn’t I?”
2. Lose of personal responsibility – large group
3. Reduced effort caused by reward sharing
4. Co-ordination complexities in large groups
 Suggestions for reducing social loafing:
1. Focus on the interesting/important aspects of a task to increase involvement of
members
2. Assure group members that their individual contributions are identifiable and
significant
3. Tell group members they should not tolerate inadequate effort or performance
from peers
4. Tell them they should expect to have their performance evaluated
5. Ensure that some portion of reward is based on individual performance

*Decision-making in Teams – Deciding on extent of participation

 Yale university researchers have tried to address the problem of not knowing when
to have employees participate in decision-making.
 The model they developed (Vroom-Yetton-Jago normative decision model)
describes five forms of decision-making
1. AI form: Manager makes decision alone, using information currently available.
2. AII form: Manager gathers information from subordinates, then makes a
decision.
3. CI form: Manager explains the problem to subordinates in a one-on-one
format.
4. CII form: Manager explains the problem in a group format and makes decision
on his own.
5. GII form: Manager explains the problem in a group format and the group
makes a decision.

*Work Groups in Conflict/Competition

 Organisations fall into two categories when managing conflict in and between
workgroups.
1. Traditional view:
 Conflict is always dysfunctional and unhealthy for the organisation.
  It encourages the suppression of conflict.
 Solutions under this view are often similar.
 Conflict is usually experienced as destructive.
2. The contemporary view:
 Conflict is a by-product of organisational life and is unavoidable but
manageable.
 It takes a position that conflict in and between groups can be a useful
deviation from the status quo. The idea being that if conflict can be managed
a positive by-product can be achieved.
 Conflict is experienced as both destructive and constructive. Conflict benefits
the firm if it centers on goals and processes; not personalities

*Managing conflict within and between work groups:

 There are many methods for dealing with conflict:
I. Avoiding:
 Ignoring the conflict and refusing to deal with any information or behaviour
associated with it.
 This should be adopted when:
a) Issue is trivial and there is more important ones at hand.
b) When decision maker believes there is no chances of satisfying his
concerns.
c) Cost of distribution outweighs the benefit of a solution.
d) When people need to calm down and gain perspective.
e) When information gathering is more important.

II. Accommodating:
 Letting others have their way.
 This should be adopted when:
a) A manager decides he is wrong and shows his reasonableness.
b) Issue is more important to others, than to the decision maker.
c) Decision-maker is losing/out matched and decided to cut his losses.
d) Goals of harmony and stability are necessary due to possible public
damage created by conflict.
e) Employee development can be achieved by letting them learn from their
mistakes.

III. Forcing – Using power, cohersion, or pressure to impose a solution

through intimidation.
This should be adopted when:
a) Emergency conditions exist and decisive action is vital,
b) Issue is extremely important and unpopular action must by implemented
(I.e. Downsizing ,restructuring)

IV. Compromising – Negotiating to a mutually acceptable solution. This is the

standard approach for solving labour-management disputes
This should be adopted when:
a) The opponent has equal power and is committed to mutually exclusive
goals.
b) Temporary solution is sought for a complex issue.
c) Time pressure.
d) A back-up when collaboration is unsuccessful.

V. Collaboration – Needs of both parties are integrated to solve a problem

permanently, through mutual commitment to the solution.
Usually follows the appended steps:
a) Define the problem and share the facts
b) State the problem in specific terms before solution searching
c) Focus on facts rather than disagreement
d) Conduct non-judgemental discussion of facts/Problem
e) Collaborate on alternatives which lead to the best mutual solution
f) Develop criteria for measuring the quality/acceptability of proposed
solutions
g) Define all agreements as tentative until all facts of the conflict have been
addressed.