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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
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