OB Module-3.....
OB Module-3.....
Foundations of Group Behavior : The Meaning of Group & Group behavior & Group Dynamics, Types of
Groups, The Five-stage Model of Group Development.
Managing Teams ;- Why work Teams, Work Teams in Organization, Developing Work Teams, Team
Effectiveness & Team Building.
Groups in Organization :-
Introduction:- The behavior of individuals in groups is something more than the sum total of each
acting in his or her own way. We can say that individuals behave differently when they are in
groups as compared to when they are alone.
It was proved that people behave as members of a groups help to shape their work behavior and
attitudes towards the organizations. Management can use the group effectively and successfully for
the accomplishment of organizational objectives. 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.
Definitions :- 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.
E.H. schein prescribes three conditions which any number of person to be called a group should
satisfy the three conditions :
Types of groups :- On the basis of the social behavior of people in the organizations, the psychologists
and the sociologists identify types of groups :-
Formal Groups Informal Group.
Informal Group :- Informal groups are natural formations in the work environment that appear in
response to the common interests of the organization members. The features of these groups are as
follows :-
i. These are formed by the members of such groups by themselves rather than by
management.
ii. These groups arise spontaneously in the organization because of social interaction
between the people.
iii. These are based on common interests, language, taste, caste, religion, background etc.
iv. Since these groups concentrate on the personal contact between the members, they
represent the human side of enterprise as compared to technical side represented by
the formal groups.
A. Interest and Friendship group :- This may affiliate to attain a specific objective with each is
concerned is called a interest group.
A friendship group includes close friends or relation. These social alliances with frequently
extend outside the work situation, can be based on similar age or ethnic heritage or for holding
similar political views or for having the same hobbies etc.
B. Cliques :- these groups consists of colleagues or those who commonly associate with each other
and observe certain social norms and standards, but the number of members tends to be
smaller, and rarely exceeds five or six.
C. Sub-cliques :- These group consists of some members of clique inside the organization forming a
group along with persons outside the organization.
D. Sayle’s Classification of groups :- On the basis of the pressure tactics adopted by the groups,
there are four kinds of groups
i. Apathetic group :- This group is characterized by relatively few grievances and it
hardly ever uses pressure tactics. These groups are composed of relatively low paid and
low skilled assembly line workers who lack unity and power and hardly ever use
pressure tactics.
ii. Erratic Group :- The members in the erratic groups are easily inflamed and easily
pacified. There is lack of consistency in their behavior. These groups are composed of
semi skilled workers who work together I performing jobs that require some interaction.
The display considerable unity, but it is very difficult to predict their behavior.
iii. Strategic Groups :- The members of such groups are able to prepare a strategy for
putting pressure on other groups and the management. These people are highly united
and actively participate in union activity. These people maintain a relatively consistent
antagonism.
iv. Conservative group :- These groups are composed of professionals and highly skilled
employees in the plant. Such groups exercised restrained pressure for highly specified
objectives and display internal unity and self assurance.
Why do people join groups :- There are some very practical reasons for joining and forming a
group. Some important reasons are :-
1. Companionship :- The need for relationship with other people is one of the strongest and most
constant of human drives. Relationship give an individual who earlier felt lonely and miserable,
recognition and his work life pleasant and comfortable.
2. Identity :- It is important to understand self through the behavior of others towards us. Group
provide laugh, praise or admiration by which we are identifying our behavior and self.
3. Information :- The informal group to which a member belongs is a source of communication or
information to him. A piece of information available to one member will nearly reach all the
members in short span of time.
4. Security :- By joining a group a person can reduce his insecurity. He feels stronger, has lesser
self doubts and is more resistant to threats.
5. Esteem :- Membership in a prestigious group is a source of enhanced self esteem. The member
will feel good about themselves by virtue of the groups power, prestige and social standing.
6. Sense of Belongingness :- It is an emotional need for friendship, love, affection and affiliation.
Most people have strong need for being with others who can understand, support and help
them when they are in need and render them morale and emotional support at the time of
difficulty.
7. Outlet for frustrations :- The social relations provide an important outlet for frustration relating
to a person’s family as well as work life. Informal groups serve as safety valves and help release
frustrations by avoiding mental or physical breakdown of the individual. Those don’t have
informal groups sometimes rely on the expensive systems of employee counseling.
8. Perpetuation of cultural values :- People sharing a common culture are able to maintain their
cultural identity and even propagate their culture even gives psychological satisfaction to
members.
9. Generations of new Ideas :- Informal groups are a breeding ground for new ideas as they
provide a supportive environment in which the members can engage themselves in creative
thinking.
10. Self evaluation :- By employing any yardstick an individual can judge himself against other
members of the group. This will help him in having a realistic self assessment and encourage
him to acquire the plus point of others or inculcate a competitive spirit.
11. Power :- Membership of groups offers power to members in two ways :-
a. Workers enjoy much greater power collectively than they do as individuals e.g. “United we
stand, divided we fall” unity as strength.
b. Leadership enables an individual to exercise power over group members.
Stages of Group Development :- Groups have life cycles similar to people. They are born, grow, develop
and often die. A group effectiveness is influenced by its stages of development and how well its
members have learnt to work together. A group passes through five stages in its life cycle. The stages
are :-
1. Forming :- In the forming stage there is a great deal of uncertainty about group’s purpose,
structure and leadership. At this stage, people get introduced to each other. They share
personal information, begin to accept each other and start turning their attention towards
the tasks of the group. At this stage, interaction among group members is cautious
particularly when they are not familiar with one another.
2. Storming :- While in the first stage group members perceive and assess each other, in this
stage they compete for status and argue for appropriate strategies to be used for achieving
the group goals. Such interaction may create anxiety and tensions due to individual
differences.
3. Norming :- At this stage, group members begin to settle. The group starts moving towards
cooperation. A tentative balance among competing forces is struck. Group norms are
developed to guide the behavior of members.
4. Performing :- With the help of group norms, the members learn to handle complex
problems. Group members perform their functional roles and accomplish their tasks
efficiently.
5. Adjourning :- This is the last stage in the development of a group. Sooner or later a group
has to be adjourned. Groups formed for special purposes. E.g. committee, task force are
adjourned after the purpose is achieved. Other types of groups undergo some changes.
Interaction among members comes to an end after the group is adjourned
There is an alternative theory of group development. According to this, group development proceeds
on the following stages
Group Cohesiveness :- Cohesiveness is the degree to which the group members are attracted to each
other and are motivated to stay in the groups. It defines the degree of closeness that the members feel
with the groups.
It refers to the extent of unity in the group and is reflected in members’ conformity to the norms of the
groups, feeling of attraction for each other and wanting to be co-members of the group.
1. Similarity of attitudes and values :- We enjoy the company of people who had similar opinions,
morals, beliefs and code of conduct.
2. Size of the group :- Small groups are effective than the larger size. The small group of same sex
are better cohesiveness but when the groups were made up of both males and females, the
large groups have better cohesion.
3. Time :- It is quite natural that the more time people spend with one another, the more they will
get to know each other and more tendency there will be to get closer to each other, thus,
strengthening the degree of cohesiveness.
4. Location :- They develop greater cohesiveness because of constant face to face interaction.
5. Status :- A high status group receives greater loyalty from its members which in turn makes the
group more strong.
6. Difficulty in entry :- Due to membership characteristics it is become difficult to entry in to the
group and when it is more difficult, the more cohesive that group become.
7. Inter dependency :- Mutual dependency leads to greater cohesiveness.
8. Management’s behavior :- The behavior of management has a direct influence on the degree of
cohesiveness that exists within a group.
9. Member turnover :- The higher the degree of member turnover, the less cohesive a group
becomes.
10. Threat :- The management threats frequently bring together the group.
11. Previous Successes and shared goals :- When a group achieves a meaningful goal, the
cohesiveness of the group increases.
Consequences of group Cohesiveness in Decision making :- Group cohesiveness has only positive
consequences. These are :-
1. More Participation :- Higher the degree of group cohesiveness, closer will be the interpersonal
relationship among the member s. As a result members will participate actively in group affairs
and activities.
2. More conformity:- Though there is similar in attitudes and values the members perceive
themselves similar. E.g. any member is getting involved in organizational politics for enhancing
his personal goals, the group might put social pressure on him and make him comply with the
group norms.
3. More Success :- The high degree of cohesiveness leads to high degree of communication,
participation and conformity to group norms. Decision making and goal achievement became
easier and goal achievement adds to success.
4. More Communications :- The member of cohesive groups share common ideologies, goals,
backgrounds or attitudes, They are inclined to greater communicativeness.
5. More Personal Satisfaction :- The members of a cohesive groups are more satisfied due to
friendliness, respect, support, achievement, protection and feel satisfied more when his feelings
are considered and opinions are discussed at the time of decision making.
6. High productivity :- Cohesiveness may contribute to increased productivity because
i. People in cohesive groups experience fewer work related anxieties and
tensions.
ii. Tends to lower absenteeism and turnover.
iii. It decreases productivity differences among groups.
Managerial implications:-
Some times high cohesiveness adversely affects the productivity. In such cases managers have to
reduce the cohesiveness of the groups.
Team :- A Team is a small number of people with complementary skills who are, committed to a
common purpose, common performance goals and an approach for which they held themselves
mutually accountable.
Teams include people with mix of skill appropriate to the task to be done, Team members need
technical, problem solving and decision making and inter-personal skills.
Agreeing in a common approach is particularly important for teams, because it is often the approach
that differentiate one team from others. The feature of the teams are :-
Team Building :- The term “Team ”is frequently used for any group, but groups and teams are not the
same thing.
Definition :- “A work groups is number of persons usually reporting to a common superior and having
some face to face interaction, who have some degree of inter dependence in carrying out tasks for the
purpose of achieving organizational goals.”
In other words- Any work group whose individual efforts result in a performance that is greater than the
sum of individual inputs is called a work team.
1. Enhanced performance :- Working Teams enables workers to avoid wasted effort, reduced
errors and respond better to customers. It also increased productivity, improved quality and
improves customers service.
2. Employee benefits :- It helps to reduce stress and improves better quality of work life. Teams
give employees freedom to grow and gain respect and dignity.
3. Reduced costs :- Teams results in reduced scrap, fewer errors, fewer remuneration, claims and
reduced turnover.
4. Result in better quality decisions :- Team work involves the collective effort. People of the team
represent diverse backgrounds, exposure and experiences. As more ideas are produced and
alternatives are considered, the teams is able to make optimal decisions.
5. Result in improved process :- A team is more likely than an individual to setup project check
points and planning systems to enable all team members to contribute to the project. Team
work also permits for distributions of work loads for faster and more efficient handling of large
tasks or problems.
6. Contributes Global Competitiveness :- Diverse teams have skill sets and perspectives that are
superior to what a single individual can do. Diverse skills add to the competitive edge to the
firm.
7. Organizational Enhancement :- It includes increased innovation, creativity and flexibility. It
flatters the hierarchy in large organizations. The team environment constantly challenges teams
to innovate and solve problems creatively.
Forming a team requires the right combination of skilled people and individuals who are willing to work
together with others as a team. To develop the team work we require ;-
1. Planning the change :- It involves a drastic departure from the traditional hierarchy and
authority-and-control orientation. It requires planning, preparations and training. The planning
actually takes places in two phases
a. Decisions to have teams
b. Making the decisions.:- Prior to making the decisions, top management
needs to establish the leadership for the change, develop a steering
committee, conduct a feasibility study and then decide to have the new
structure.
2. Implementing the Decision :- Once the decision is made to change to a team based organization,
much preparatory work needs to be done before implantation can begin. Preparation involves
clarifying the objective, selecting the site for the first work teams, preparing the design team,
planning the delegation of authority and drafting the preliminary plans.
Phase – I-
Here, the management must create performance conditions for the teams and to provide the teams all
the needed materials and equipment to do the job.
Phase – III -
Attempts are made to eliminate team problems, if any, replenish or upgrade material resources and
replace members who leave the team.
Leadership :-
Leadership is the ability to build up confidence and zeal among people and too create an urge in them to
be led. It is a process of influence on a group in a particular situations at a given point of time and in a
specific set of circumstances that stimulates people to strive willingly to attain organizational objectives.
Definitions :-
a. It is the ability of a manager to induce subordinates to work with confidence and zeal
b. It is the ability to secure desirable actions from a group of followers voluntarily without the use
of coercion.
Functions of Leadership :-
a. Setting goals
b. Organizing
c. Initiating action
d. Coordination
e. Direction & Motivation
f. Link between management & Workers
This term refers to the constituent behavior pattern of a leader as perceived by people around him. The
leadership style is the result of the philosophy, personality and experience of the leader. It also depends
upon the types of followers and conditions prevailing in an organization.
According to their attitude and behavior patterns leaders may be classified as follows :-
1. Autocratic or Authoritarian style of leader :- Here the leader expects complete obedience from
his subordinates and all decision making is centralized in the leader. Two types of autocratic
leadership are :-
a. Tough autocrat :- He is a tough and dry leader who believes in only telling and ordering the
subordinates.
b. Benevolent autocrat :- He acts as a fatherly figure and assumes that only he is in the
knowledge of things and is the right person to take decisions.
2. Laissez-fare or Free-rain style leader :- Here maximum freedom is allowed to subordinates.
They are given free hand in deciding their own policies and methods and take their own
decisions.
3. Democratic or Participative style of leader :- It implies compromise between the two extreme of
autocratic and laissez-fare style of leadership. Here the leader acts according to the mutual
consent and the decisions are reached after consulting the subordinates.
4. Bureaucratic or Rules-centered leadership :- It is a type of leadership where every things is
influenced by rules, regulations and procedures. No deviations of set principles is allowed under
all situations. The employees are not encouraged to take initiative.
5. Manipulative Leadership Styles :- Under this styles the leader tries to achieve organizational
goals by exploit ting the weak points of employees. The need and aspirations of employees are
used as tools for achieving organizational objectives
6. Paternalistic Style :- This style of leadership is based upon the sentiments and emotions of
people. A paternalistic leader is like a fatherly figure to the subordinates.
Likert developed four models of management, which he termed system of management. These systems
are :-
1. Exploitative Authoritative :- The things or work done from subordinates by using them orders.
2. Benevolent authoritative :- autocratic in nature, but sometimes gives liberty to subordinates to
carry out their tasks.
3. Consultative :- Under this system the goals are set in consultation with subordinates. All
important decisions are taken at managerial level but work-related decisions are left to the
subordinates. Here there is a two-way communication.
4. Democratic or participative :- Here the subordinates are involved in goal setting and decision
making. The communication systems are open and effective.
While likert studying various systems likert has taken seven variables. These are :-
a. Leadership
b. Motivation
c. Communication
d. Interaction-influence
e. Decision making process
f. Goal setting
g. Control process .
Leadership Theory
Trait theory :-
According to this theory there are certain personal qualities and traits which are essential to be a
successful leader. This theory was very popular between 1930s & 1950s. the study of the lines of
successful leader reveals that the following important trait are possessed by many of them.
a. Intelligence
b. Psychological factors ;- Physical features determine the personality
c. Emotional stability
d. Intense Inner motivational Drive
e. Human Relations Attitude
f. Vision and foresight
g. Empathy
h. Fairness and objectivity
i. Technical skill
j. Open mind & Adaptability
k. Art of communication
l. Social skill.
Behavioural Approach :-
According to this approach, leadership involves an interpersonal relationship between a leader and
subordinates in which the behavior of the leaders towards the subordinates constitute the most critical
element. The good behavior of the leader raises the morale, builds up confidence and spirit among the
team members and lack of good behavior will discard him as a leader.
A. Ohio state University Leadership Studies :- The Bureau of research at Ohio state university
conducted those studies. The main objective of the studies was to identify the major
dimensions of leadership and to investigate the effect of leader’s behavior on employee
behavior and satisfaction. These studies narrowed the description of leader behavior to two
dimensions.
a. Initiating Structure :- it refers to the leader’s behavior in defining and
organizing the relationship between himself and members of the group. The
purpose of initiating structure is to
Establish well defined patterns of organizations
Develop channels of communications
To supervise the activities of employee
b. Consideration :- It refers to the behavior which can be characterized by
Friendliness
Mutual Trust
Respect
Supportiveness
Openness
Concern for the welfare of employees
B. Michigan Studies :- These empirical studies were conducted by the Institute of social research at
the university of Michigan. These studies distinguished between two distinct style of leadership.
a. Production Centered leadership :- It is also known as task oriented leadership. It stressed on
certain points
Rigid work standard procedures & Rules
Close supervision of the subordinates
Technical aspect of the job
Employees were not to be considered as human beings but as tools to
accomplish the goal of the organizations.
b. Employee centred Leadership :- It is known as relation oriented leadership because it
emphasize on human relation. The main approaches are :-
o To treat subordinates as human beings
o To show concern for the employees’ needs, welfare and advancement etc.
o To encourage employee participation in goal setting and in work related
Decisions.
Contingency Model
This theory assumes leaders are predisposed to a particular set of leadership behaviors. Leaders are
either Task Oriented or Relationship Oriented.
Task oriented leaders are directive, structure situations, Set deadlines and make task assignments.
Relationship oriented leaders focus on people, are considerate and are not strongly directives.
Fielder suggested that three major situational variables determine whether a given situation is favorable
to leaders.
The most favorable situation for leaders to influence their groups is one in which they are well liked by
members(Good leader member relations). Have a powerful position(Strong Position Power) and are
directing a well defined job(High task structure).
House’s Path Goal Theory :- Leaders are effective because their impact on follower’s motivation, ability
is to perform effectively and satisfactions. It proposes the following four leader behaviours.
a. Directive
b. Supportive
c. Participative
d. Achievement oriented.
Vroom’s Expectancy Theory :-It emphasizes the needs for organization to relate rewards directly to
performance and to ensure that the rewards provided are those rewards deserved & Wanted by
recipients. It works as a motivational force for the employee. This theory suggests that
M=E xI x V
Where E = Expectancy = Effort = Performance
V = Valence = Rewards.
1. Leader Member Exchange Theory (LMX) :- The leader do not treat all their subordinates in an
equitable manner. Almost all the leaders have some “in groups” and “Out groups”.
2. Charismatic Leadership :- Charisma is a leadership trait that can influence employees to take
early and sustained action.
3. Transformational Leadership :- It emphasizes four behavioural components
a. Charisma
b. Individualized consideration
c. Inspiration
d. Intellectual simulation.
4. Transactional Leadership:- Where the leaders guided and motivates their followers in the
direction of established goals and objective by clarifying the roles and the task requirements.
5. Leading Change Leadership :- Leaders must do some changes for the fulfillment of the job by
seven stages,
a. Establishing a sense of urgency
b. Creating the guiding coalition
c. Developing vision and strategy
d. Communicating the change vision
e. Empowering broad based vision
f. Consolidating gains and producing more change
g. Anchoring new approaches in the culture.
6. Visionary Leadership :- It is the ability of the leader to create an attractive vision of the future,
for the organization which could out perform the present. For this purpose the vision has to be
clear and compelling. So that it can offer new and innovative ways of improvements.
7. Joseph C. Rost’s Leadership :- According to Rost leadership is an influence among leaders and
followers who intend real changes that reflect their mutual purpose. This approach has fair
essential elements.
a. Influence based Relationship
b. Leaders and followers
c. Intention to have real change
d. Development of mutual purpose.
a. Telling Style :- It emphasizes directive behavior. It is the high task and low relationship behavior
stage. Where the subordinates have low maturity.
b. Selling Style :- It is marked by high task and high relationship behavior. Subordinates require
both supportive and directive behavior.
c. Participating Style :- It is effective because it is a high relationship and low task behavior stage.
d. Delegating Style :- It is of low task and low relationship behavior, delegating style of leadership is
suitable. Subordinates in this stage are at a very high level of maturity.
This model is developed by Hersey-blanchard which is simple and appealing. It helps the management
to determine what they should do and in what circumstances.
For effective leadership the leader should adopt a proper mix of consultation, co-operation,
communication, motivation and authority. The techniques are :-
a. The leader should consult the group in framing the policies and lines of action and in imitating
any radical changes.
b. He should attempt to develop voluntary co-operation from his subordinates in realizing common
objectives.
c. He should exercise authority whenever necessary to implement the policies. He should give
clear, complete and intelligence instructions to the subordinates.
d. He should build-up confidence and zeal in his followers
e. He should listen to his subordinates properly and appreciate their feelings.
f. He should communicate effectively.
g. He should follow the principle of motivation.