Acc.

to Marvin Shaw, “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.”

Why people join group

Security

Status

Self esteem

Power

Goal achievement

TYPES OF GROUPS

There are two types of groups which exist in every organization:-

1. FORMAL GROUPS

2. INFORMAL GROUPS
 FORMAL GROUPS

 They are a part of the organizational structure.

 These are created deliberately and consciously by the management to

perform the assigned duties.

 The pattern of communication is also defined and the rules are laid
down to regulate the behaviour of group members.

 These groups may be either permanent in the form of top management

team or these groups may be constituted on temporary basis for
fulfilling certain specified objectives. When such objectives are fulfilled
these disappear.

 Types of FORMAL GROUPS

  INFORMAL GROUPS

These are the alliances that are neither formally structured nor
organizationally determined.

These groups are the natural formation in the work environment that appears
in response to the common interests of the organization such as self-defense,
work assistance and social interaction.

 Features of Informal Groups

a) They are formed by the members of such groups themselves.

b) These groups arise spontaneously in the organization because of social

interaction.

c) These are based on common interests, language, tastes, caste, religion,

background etc..

d) These groups have their own structure, with their own leaders and
followers, group goals etc.

e) They are more flexible than the formal groups.

f) Since these groups concentrate on the personal contact between the

members, they represent the human side of enterprise.

Types of Informal Groups

i. Interest Group:- those working together to attain a specific

objective with which each is concerned.
ii. Friendship Group:- those brought together because they share
one or more common characteristics.
iii. Cliques:- those who commonly associate with each other and
observe certain social norms. Three types of cliques:-
 a) Vertical clique: those working in same department
regardless of ranks.
b) Horizontal clique: those working in same area and with same
rank.
c) Mixed clique: those working for common purpose coming
from different department and with different rank.

Problems of Informal Groups

1. Resistance to change
2. Role conflict
3. Rumours

Practical Reasons for Group Formation

A. From members point of view
1. Companionship – relationship with other people is strongest and
most constant of human drives which help them to work
comfortable.
2. Identity – through the group you join means understand us
through the behavior of others.
3. Information – individual comes to know about what is happening
in an organization through speedy communication.
4. Security – with in a group you may feel more secured
5. Generation of new ideas
6. Self evaluation
7. Job satisfaction
B. From organization point of view
1. Lightening of responsibility
2. Filling the gaps
 3. Restraining the authority
4. Proper and careful planning
5. Information

Group Performance Model / Factors Affecting Group Performance

Group
Structure

External Internal Group Group

Conditions Conditions Process Performance

Group
Resources

A. External conditions – like organization strategy, its rules & regulations,

its culture, its employee selection process.

B. Group structure – involves group size, group composition, group status,

group roles, group norms,
I. Group size – consists of two or more members. Ideal size is 5
to 7 members. Smaller the group larger the chance of
completing task.
II. Group composition – consists of homogenous and
heterogeneous. Homogenous includes similar age,
personality, gender, knowledge. Heterogeneous includes
dissimilar individuals.
III. Group status – socially defined position or rank given to
groups or group members by others
 IV. GROUP ROLES - A set of expected behavior patterns
attributed to someone occupying a given position in a social
unit. A role consists of a pattern of norm; it is a position that
can be acted out by an individual.
V. GROUP NORMS – Group norms are a set of beliefs, feelings,
and attitudes commonly shared by group members. These
are also referred to as rules or standards of behavior that
apply to group members.

Acc. to D.C. Feldman, “Group norms are the informal

guidelines of behavior and a code of conduct that provides
some order and conformity to group activities and
operations.
These rules are expected to be followed by all the group
members.

TYPES OF NORMS
1. PERFORMANCE NORMS – In it, work groups provide their members
with explicit cues on how hard they should work, how to get their job
done, level of output and so on.

2. APPEARANCE NORMS - These norms include things like appropriate

dress, loyalty to the work group or organization etc.

3. ARRANGEMENT NORMS - These norms come from informal work

groups and primarily regulate social interactions within the group. With
whom group members eat lunch, friendship on and off the job, social
games, and the like are influenced by these norms.
 4. ALLOCATION OF RESOURCES NORMS - These norms can originate in the
group or in the organization and include pay, assignment of difficult job
and allocation of new tools and equipments.

5. BEHAVIOUR NORMS - These are rules and guidelines defining day to day
behavior of people at work. These behavior patterns may include
punctuality as a habit, completing any given assignment, not losing
temper, showing respect for other member’s opinions and so on.

How do norms develop?

1. Explicit statements made by supervisor – tea breaks to be kept for
10 minutes only.
2. Critical events in the group’s history – a person were injured due
to standing near to machine so from next time only operator will
stand there no one else.
3. Primacy – if first meeting between supervisors and subordinates is
formal then the group expects future meetings to be conducted in
same way.
4. Past experiences – members bring their past experiences from
other organizations.

Why are norms enforced?

Norms which help in achieving the twin aims of performing successfully and
keeping morale high are considered to be important.

1. If it facilities the group survival.

2. If it increases the predictability of group members behavior.
3. If it reduces embarrassing interpersonal problems.
4. If it allows members to express the central value of the group and clarify
what is distinctive about the group’s identity.
 5. If it reflects the preferences of the supervisor.

C. Group Resources - Resources that an individual member brings to the

group, resources can be:
i. Knowledge, skills, capabilities.
ii. Personality characteristics ( such as openness, honesty)

D. Group Process - The processes that go on within a work group—the

communication patterns used by members for information exchanges,
group decision processes, leader behavior, power dynamics, conflict
interactions, and the like
i. In-group tasks for which each member's contribution is not clearly
visible, there is a tendency for individuals to decrease their effort.
ii. But group processes can also produce positive results. That is,
groups can create outputs greater than the sum of their inputs.
The development of creative alternatives by a diverse group would
be one such instance

E. Group Performance - Been influenced by external conditions,

personality characteristics, requisite skills and group structure

Theories of Group Formation

1. Propinquity Theory – Means that individual affiliate with one another

because of spatial or geographical proximity.
2. Homan’s Theory – Based on activities, interactions and sentiments.
3. Balance Theory – Proposes that there must be balance in the
relationship between the group members for the group to be formed
and for its survival.