ORGANISAION BEHAVIOUR

UNIT – III

GROUP DYNAMICS:

Group dynamics refers to a system of behaviors and psychological processes occurring within a
social group (intragroup dynamics), or between social groups (intergroup dynamics). The study of
group dynamics can be useful in understanding decision-making behavior, tracking the spread of
diseases in society, creating effective therapy techniques, and following the emergence and
popularity of new ideas and technologies.

Group dynamics are at the core of understanding racism, sexism, and other forms of social
prejudice and discrimination. These applications of the field are studied in psychology, sociology,
anthropology, political science, epidemiology, education, social work, business, and communication
studies.

TYPES OF GROUPS:

(I) FORMAL AND INFORMAL GROUPS: A designated work group defined by the organization’s
structure. A distinctive stature of formal groups is that a hierarchy of authority exists with specified
member rules & regulations. These are two main types:

i) COMMAND GROUPS: The manager and his or her immediate subordinates.

ii) TASK GROUPS: Those working together to complete a job task AN INFORMAL GROUP, also called
a clique, relates to natural formations in the work environment which appear in response to the
need for social contract.

(II) INTERACTING, COACTING AND COUNTER ACTING GROUPS : In an interacting group

the work of one group member is contingent upon that of the others. Ex: ASSEMBLY LINE
WORKERS In co-acting groups, the work of individual group members is independent, such as job-
shop operations. Counter-acting groups are those that interact to reconcile mutual differences such
as labour-management negotiating techniques.

(III) OPEN AND CLOSED GROUPS: These are two extreme points at one end is open group,
which is in a constant state of change while in closed group, it is quite stable.

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(IV) MEMBERSHIP AND REFERENCE GROUPS : Membership groups are those to which the
individual actually belongs, while Reference groups are the one with which one identifies or would
like to belong.

(V) IN-GROUPS AND OUT-GROUPS: The groups to which one belongs are in groups, and groups
to which they do not are out- groups, especially if they look upon them with certain amount of
antagonism.

Implications of Group Dynamics on Organizational Behavior and Management:

The Forming – Storming – Norming – Performing model of group development was first proposed by
Bruce Tuckman in 1965, who maintained that these phases are all necessary and inevitable in order
for the team to grow, to face up to challenges, to tackle problems, to find solutions, to plan work, and
to deliver results. This model has become
the basis for subsequent models.

Forming

This is the initial stage of putting the team together where individuals learn about each other and
the team requirements as well as the challenges, expectations, and the organizational structure of
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the team. This is also the information gathering and exploratory stage. If you have ever been put
into a team or have been asked to form one then you are most definitely familiar with this phase
and should be able to relate to it.

Storming

This is probably the more tumultuous phase during which the members of the team all have their
own ideas and directions that they want to go in. Oftentimes team members debate, critique, and
confront each other to decide on the best course of action. I’m sure my business partner can attest
to the fact that we have definitely gone through our storming phase (or a few of them!). Bruce
explains that this phase can be a bit uncomfortable and/or unpleasant but it’s still quite
necessarily for the growth and development of the team. Usually companies go through serious
problems when they cannot leave this phase thus making the entire relationship very tense and
difficult for everyone.

Norming

This is the phase where the team really starts to function and work together as a team. Individuals
start to understand each others work habits and ethic and everything seems much more
natural. Responsibility and roles are much more clearly defined, expectations are set, and
collaboration is in full swing. Most people are familiar with this and oftentimes we refer to this as
being in the “zone.”

Performing

According to Bruce not all teams will reach this phase but those that too are the high-performing
teams which have grown to become both knowledgeable and efficient at what they do. Supervision
goes down as individuals are now capable of making appropriate decisions. This is essentially
where your team really starts shining and delivering superior results.

Adjourning and Transforming

These are two additional phases that Bruce later added to his team development. Adjourning refers
to the team breaking up after the task has been completed. Transforming involves the team not
breaking up but instead moving onto other tasks and objectives.

TRANSACTIONAL ANALYSIS:

➢ TA, a model for personality and dynamics of self and its relationship to others that makes
possible a clear and meaningful discussion of behavior.
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 ➢ TA refers to a method of analyzing and understanding interpersonal behavior.

➢ The study of transactions between people is called Transactional Analysis.

TRANSACTIONS:

COMPLEMENTARY TRANSACTION: ADULT – ADULT TRANSACTION

S- STIMULUS

P P R- RESPONSE

S
A A
R

C C
_______________________________________________________________________________________--

PARENT – CHILD
TRANSACTION
P P

A A
S

R
C C

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NON – COMPLEMENTARY TRANSACTION: CROSSED TRANSACTION

P P

S
A A
R

C C

-------------------------------------------------------------------------------------------------------------

ULTERIOR TRANSACTION:

P P

A A

C 5
C
Typically, according to TA, there are three ego-states that people consistently use:

Parent ("exteropsyche"): a state in which people behave, feel, and think in response to
an unconscious mimicking of how their parents (or other parental figures) acted, or how
they interpreted their parent's actions. For example, a person may shout at someone out of
frustration because they learned from an influential figure in childhood the lesson that this
seemed to be a way of relating that worked.

Adult ("neopsyche"): a state of the ego which is most like a computer processing
information and making predictions absent of major emotions that could affect its
operation. Learning to strengthen the Adult is a goal of TA. While a person is in the Adult
ego state, he/she is directed towards an objective appraisal of reality.

Child ("archaeopsyche"): a state in which people behave, feel and think similarly to how
they did in childhood. For example, a person who receives a poor evaluation at work may
respond by looking at the floor, and crying or pouting, as they used to when scolded as a
child. Conversely, a person who receives a good evaluation may respond with a broad smile
and a joyful gesture of thanks. The Child is the source of emotions, creation, recreation,
spontaneity and intimacy.

Within ego states there are three different types of transaction: complementary,
crossed, and ulterior.

Complementary Transactions:

A complementary transaction occurs when the sender of the message gets the intended
response from the receiver. For example, an employee makes a mistake and, wanting some
sympathy, apologizes to the boss.

Crossed Transactions:

Crossed transactions occur when the sender of the message does not get the expected
response from the receiver.

Ulterior Transactions:

Ulterior, or hidden, transactions occur when the words seem to be coming from one ago
state, but in reality the words or behaviors are coming from another.

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 Importance of Informal Groups in Organization

Informal groups are quite significant because these affect the working of an organization
and its members. However, these effects produce both functional and dysfunctional
consequences. On the other hand, informal groups benefit both their members and
organization as a whole. Some other significance or the functions of informal group are as
follows:

1. To fulfill the communication gaps

Informal group acts to fill up the communication gaps of its members, in order to meet the
communication needs of its members. It develops systems and channels of communication.
Such systems and channels cut across the hierarchical and departmental boundaries and
transmit information much quickly.

2. To preserve group integrity

The informal group perpetuates cultural values which the group holds as importance. This
function helps to preserve the group integrity. People who work together naturally adopt
common points of view that everyone is expected to share. The individuals become wedded
to the group as a result of constant association and socializing process. In fact, the basic
reason in the creation of informal organization is the group value which every member
pursues.

3. To provide social satisfaction

Informal group provides social satisfaction by providing status, recognition and further
opportunity to relate to others. Many jobs which appear superficially dull and routine are
made more interesting by the individual ingenuity. Management defines a rigid series of job
requirements but work-groups provide a setting which spurs an individual to modify the
job situation more to his own liking. Thus, the job becomes more interesting and satisfying.

4. To solve the work problems

Informal group helps in solving the work problems of members. They carry out their tasks
effectively through the help of other members, group-decisions and sharing job knowledge.
The group’s solution to problems may differ from what management expects and it may be
even more effective because red-tape is eliminated; short – cuts are evolved; informal

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channel of communication is evolved to cut across departmental boundaries. In fact, where
the technology imposes extreme interdependence and precise and instant coordination is
required, the organization depends on the group to control and specify the individual’s
contribution to the total effort. All this contributes to the effective performance of work.

5. To establish and maintain norms of behavior

Informal groups establish and maintain norms of behavior which differentiate between good
and bad conduct, between legitimate and illegitimate activities and between moral and
immoral acts. Abstract concepts, such as honesty, loyalty, co-operation, self – sacrifice etc.
do not convey an immediate meaning except as they are used in operative situations
involving informal groups. Larger groups particularly in professional pursuits, often
maintain ethical standards designed to further the goals of the overall membership.
However, all group standards are not consistent with the objectives of the larger
organizations. Many times, groups do urge their members to produce less than they might
otherwise accomplish or do try to reject new assignment, or do show their resistance to a
change.

6. To protect members from outside pressure

Groups help protect their members from outside pressure. Probably the most important
group standards are those that protect the groups against real or imagined outside
dangers, particularly from upper management. Dynamic organizations have a tendency to
introduce change in work methods and routines at a faster rate that individuals can adjust
to them. The place at which these changes are introduced can be materially altered by a
determined work group.

Not only is the formal group important in effective performance of the job. But equally
important of informal group in organization because of the following reasons:

1. Compensation for the low capacity manager’s ability

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Manager may not be capable in all the fields. In same, he may snag the ability. Especially,
in planning and other decision making his snags i.e. low capacity can be compensated by
his subordinates informally, if he has the good relationship with the informal group.

2. Useful channel of communication

Communication through informal group is faster than formal. Any information through the
channel of informal groups spreads quickly. Thus, the informal group proves to be very
useful channel for effective communication.

3. Compel managers to plan and act cautiously

Informal groups induce the manager to plan and act cautiously because of weak plan and
action is always undermined by the groups.

4. Provides sense of belongingness and security

Informal group provides satisfaction and stability of work team to attain a sense of
belongingness and security. A new employee will remain an isolate until the group accepts
him as a member. When the new comer will be accepted as a group member, he attains a
sense of belongingness and security.

5. Greater performance and supervision

Informal groups help get the jobs done or control performance. If the manager feels that his
work team is cooperating him, he has less need for checking frequently and confidently
delegate and decentralize the work. The informal group support leads in general
supervision instead of close supervision, which enhances the productivity of the employees
later on.

6. Reduced frustration and allied employee

Informal groups are the safety value for the frustration and allied employee because if any
employee feels irritation with his superior’s behavior, he can talk it to his group members
and can dissipate his unpleasant feelings.

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