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    101. MANAGEMENT & ORGANISATIONAL THEORY

    Reference Notes for Executive MBA - Academy of Management Studies 80

    GROUP DYNAMISM

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    Reference Notes for Executive MBA - Academy ofManagement Studies 81

    After studying this chapter,you should be able to:

    1. Differentiate between formal and informalgroups.

    2. Compare two models of group development.3. Explain how role requirements change indifferent situations.4. Describe how norms exert influence on an

    individuals behavior.5. Explain what determines status6. Define social loafing and its effect on group

    performance.

    R N I N G O B J E C T I V E S

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    Reference Notes for Executive MBA - Academy ofManagement Studies 82

    After studying this chapter,you should be able to:

    1. Identify the benefits and disadvantages ofcohesive groups.

    2. List the strengths and weaknesses of group

    decision making.

    3. Contrast the effectiveness of interacting,brainstorming, nominal and electronic meetinggroups.

    G O B J E C T I V E S (contd)

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    Reference Notes for Executive MBA - Academy ofManagement Studies 83

    Defining and Classifying Groups

    Group(s)Two or more individuals interacting andinterdependent, who have come togetherto achieve particular objectives.

    Formal GroupA designated work groupdefined by the

    organizations structure.

    Informal GroupA group that is neither formallystructured now

    organizationally determined;appears in response to theneed for social contact.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 84

    Defining and Classifying Groups (contd)

    Command GroupA group composed ofthe individuals whoreport directly to a givenmanager.

    Task GroupThose working together tocomplete a job or task.

    Interest GroupThose working togetherto attain a specificobjective with whicheach is concerned.

    Friendship GroupThose brought togetherbecause they share oneor more commoncharacteristics.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 85

    Why People Join Groups

    Security Status Self-esteem Affiliation Power Goal Achievement

    E X H I B I T 81

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    Reference Notes for Executive MBA - Academy ofManagement Studies 86

    The Five-Stage Model of Group Development

    Forming StageThe first stage in group development, characterizedby much uncertainty.

    Storming StageThe second stage in group development,characterized by intragroup conflict.

    Norming Stage

    The third stage in groupdevelopment, characterizedby close relationships andcohesiveness.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 87

    Group Development (contd)

    Performing StageThe fourth stage in group development, when thegroup is fully functional.

    Adjourning StageThe final stage in groupdevelopment for temporarygroups, characterized by

    concern with wrapping upactivities rather thanperformance.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 88

    Stages of Group Development

    E X H I B I T 82

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    Reference Notes for Executive MBA - Academy ofManagement Studies 89

    An Alternative Model: Temporary Groups withDeadlines

    Sequence of actions:1. Setting group direction2. First phase of inertia3. Half-way point transition4. Major changes5. Second phase of inertia6. Accelerated activity

    Punctuated-Equilibrium ModelTemporary groups gothrough transitionsbetween inertia andactivity.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 810

    The Punctuated-Equilibrium Model

    E X H I B I T 83

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    Reference Notes for Executive MBA - Academy ofManagement Studies 811

    Group Structure - Roles (contd)

    Role(s)A set of expected behavior patterns attributed tosomeone occupying a given position in a social unit.

    Role IdentityCertain attitudes and behaviorsconsistent with a role.

    Role PerceptionAn individuals view of how he or sheis supposed to act in a given situation.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 812

    Group Structure - Roles (contd)

    Role Expectations

    How others believe a personshould act in a given situation.

    Role ConflictA situation in which an individual is confronted bydivergent role expectations.

    Psychological Contract

    An unwritten agreement that setsout what management expects fromthe employee and vice versa.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 813

    Group Structure - Norms

    Classes of Norms: Performance norms Appearance norms Social arrangement norms Allocation of resources

    norms

    Norms

    Acceptable standards of behavior within a groupthat are shared by the groups members.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 814

    The Hawthorne Studies

    A series of studies undertaken by Elton Mayo atWestern Electric Companys Hawthorne Works inChicago between 1924 and 1932.

    Research Conclusions:o Worker behavior and sentiments were closely related.o

    Group influences (norms) were significant in affectingindividual behavior.o Group standards (norms) were highly effective in

    establishing individual worker output.o Money was less a factor in determining worker output

    than were group standards, sentiments, and security.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 815

    Group Structure - Norms (contd)

    ConformityAdjusting ones behavior to alignwith the norms of the group.

    Reference GroupsImportant groups to whichindividuals belong or hopeto belong and with whosenorms individuals are likelyto conform.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 816

    Examples of Cards Used in Aschs Study

    E X H I B I T 84

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    Reference Notes for Executive MBA - Academy ofManagement Studies 817

    Group Structure - Norms (contd)

    Deviant Workplace Behavior

    Antisocial actions by organizational membersthat intentionally violate established norms andresult in negative consequences for theorganization, its members, or both.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 818

    Typology of Deviant Workplace Behavior

    E X H I B I T 85

    Category Examples

    Production Leaving earlyIntentionally working slowlyWasting resourcesProperty Sabotage

    Lying about hours workedStealing from the organizationPolitical Showing favoritismGossiping and spreading rumorsBlaming coworkersPersonal Aggression Sexual harassment

    Verbal abuseStealing from coworkers

    Source:Adapted from S.L. Robinson, and R.J. Bennett. A Typology of Deviant Workplace Behaviors: AMultidimensional Scaling Study, Academy of Management Journal, April 1995, p. 565.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 819

    Group Structure - Status

    Group Norms

    Status Equity

    Culture

    Group MemberStatus

    StatusA socially defined position or rank given to groups orgroup members by others.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 820

    Group Structure - Size

    Group Size

    Performance

    Expected

    Actual (due to loafing)

    Other conclusions: Odd number groups do

    better than even. Groups of 7 or 9 performbetter overall than larger

    or smaller groups.

    Social LoafingThe tendency for individuals to expend less effort whenworking collectively than when working individually.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 821

    Group Structure - Composition

    Group Demography

    The degree to which members of a group share acommon demographic attribute, such as age, sex,race, educational level, or length of service in theorganization, and the impact of this attribute on

    turnover.

    CohortsIndividuals who, as part of agroup, hold a commonattribute.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 822

    Group Structure - Cohesiveness

    Increasing group cohesiveness:1. Make the group smaller.2. Encourage agreement with group goals.3. Increase time members spend together.4. Increase group status and admission difficultly.5. Stimulate competition with other groups.6. Give rewards to the group, not individuals.7. Physically isolate the group.

    CohesivenessDegree to which group members are attracted toeach other and are motivated to stay in the group.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 823

    Relationship Between Group Cohesiveness,Performance Norms, and Productivity

    E X H I B I T 86

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    Reference Notes for Executive MBA - Academy ofManagement Studies 824

    E X H I B I T 87S. Adams, Build a Better Life by Stealing Office Supplies(Kansas City MO: Andrews & McMeal,1991), p. 31. Dilbert reprinted with permission of United Features Syndicate, Inc.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 825

    Group Tasks

    Decision-makingo Large groups facilitate the pooling of information about

    complex tasks.o Smaller groups are better suited to coordinating and

    facilitating the implementation of complex tasks.o Simple, routine standardized tasks reduce the

    requirement that group processes be effective in orderfor the group to perform well.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 826

    Group Decision Making

    Strengthso More complete

    informationo Increased diversity of

    viewso

    Higher quality ofdecisions (moreaccuracy)

    o Increasedacceptance of

    solutions

    Weaknesseso More time consuming

    (slower)o Increased pressure

    to conformo

    Domination by one ora few memberso Ambiguous

    responsibility

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    Reference Notes for Executive MBA - Academy ofManagement Studies 827

    Group Decision Making (contd)

    Groupthink

    Phenomenon in which the norm for consensusoverrides the realistic appraisal of alternative courseof action.

    GroupshiftA change in decision risk between the groupsdecision and the individual decision that memberwithin the group would make; can be either toward

    conservatism or greater risk.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 828

    Symptoms Of The Groupthink Phenomenon

    Group members rationalize any resistance to the

    assumptions they have made. Members apply direct pressures on those who

    express doubts about shared views or whoquestion the alternative favored by the majority.

    Members who have doubts or differing points ofview keep silent about misgivings. There appears to be an illusion of unanimity.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 829

    Group Decision-Making Techniques

    Interacting GroupsTypical groups, in which the members interact witheach other face-to-face.

    Nominal Group TechniqueA group decision-making method in which individualmembers meet face-to-face to pool their judgmentsin a systematic but independent fashion.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 830

    Group Decision-Making Techniques

    Electronic MeetingA meeting in which membersinteract on computers, allowing

    for anonymity of comments andaggregation of votes.

    Brainstorming

    An idea-generation process that specificallyencourages any and all alternatives, whilewithholding any criticism of those alternatives.

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    Reference Notes for Executive MBA - Academy ofManagement Studies 831

    Evaluating Group Effectiveness

    E X H I B I T 88

    TYPE OF GROUP

    Effectiveness Criteria Interacting Brainstorming Nominal ElectronicNumber and quality of ideas Low Moderate High HighSocial pressure High Low Moderate LowMoney costs Low Low Low HighSpeed Moderate Moderate Moderate ModerateTask orientation Low High High HighPotential for interpersonal conflict High Low Moderate LowCommitment to solution High Not applicable Moderate ModerateDevelopment of High High Moderate Lowgroup cohesiveness