Chapter 7

UNDERSTANDING
GROUPS AND
TEAMS

© 2003 Pearson Education Canada Inc. 15.1

 LEARNING OBJECTIVES
• You should be able to:
– Differentiate between formal and informal
groups
– Describe the five stages of group development
– Identify how roles and norms influence an
employee’s behaviour
– Describe the key components in the group
behaviour model
– Identify the advantages and disadvantages of
group decision making

15.2
 LEARNING OBJECTIVES (continued)
• You should be able to:
– Explain the increased popularity of teams in
organizations
– Describe the four most common types of teams in
organizations
– List the characteristics of effective teams

– Identify how managers can build trust

15.3
 UNDERSTANDING GROUP
BEHAVIOUR
• Group
– Two or more interacting and
interdependent individuals who come
together to achieve particular goals
• formal groups - established by the
organization
• informal groups - occur naturally in the
workplace in response to the need for social
contact

15.4
 UNDERSTANDING GROUP
BEHAVIOUR (continued)
• Stages of Group Development
– Forming - people join the group either because of a
work assignment or for some other benefit
• begin to define the group’s purpose, structure, and
leadership
• stage marked by much uncertainty
– Storming - acceptance of the group’s existence
• conflict over who will control the group
– Norming - relationships and a sense of group identity
develop
• group assimilates a common set of expectations of
what defines correct member behaviour
15.5
 UNDERSTANDING GROUP
BEHAVIOUR (continued)
• Stages of Group Development (continued)
– Performing - group structure is functional and
accepted
• group energy has moved to task performance
– Adjourning - group prepares to disband
• attention devoted to wrapping up activities
– Group does not necessarily become more
effective as it moves through the first four
stages

15.6
 STAGES OF GROUP
DEVELOPMENT (Exhibit 15.2)

Stage II
Prestage Stage I Storming
Forming

Stage III
Norming Stage V
Stage IV
Adjourning
Performing
© 2003 Pearson Education Canada Inc. 15.7
 UNDERSTANDING GROUP
BEHAVIOUR (continued)
• Basic Group Concepts
– Role - set of expected behavior patterns
attributed to someone who occupies a given
position in a social unit
• group members have particular roles
• individuals play multiple roles
– role conflict - individual confronted by
different role expectations

15.8
 UNDERSTANDING GROUP
BEHAVIOUR (continued)
• Basic Group Concepts (continued)
– Norms - acceptable standards or expectations
that are shared by the group’s members
– Conformity - acceptance by group makes some
members susceptible to conformity pressures
– Status - a prestige grading, position, or rank in
a group

15.9
 UNDERSTANDING GROUP
BEHAVIOUR (continued)
• Basic Group Concepts (continued)
– Group Size - effect on behaviour of group depends
upon the type of outcome
• Free rider tendency - group phenomenon in
which individual members reduce their individual
efforts as the size increases
– Group Cohesiveness - degree to which members are
attracted to a group and share the group’s goals

15.10
 UNDERSTANDING GROUP
BEHAVIOUR (continued)
• Basic Group Concepts (continued)
– Group Size - effect on behaviour of group depends
upon the type of outcome
• Free rider tendency - group phenomenon in
which individual members reduce their individual
efforts as the size increases
– Group Cohesiveness - degree to which members are
attracted to a group and share the group’s goals

15.10
 RELATIONSHIP BETWEEN COHESIVENESS
AND PRODUCTIVITY (Exhibit 15.4)
Cohesiveness
High Low
Alignment of Group and
Organizational Goals
High

Strong Increase Moderate Increase

in Productivity in Productivity

Decrease in No Significant Effect

Low

Productivity on Productivity

© 2003 Pearson Education Canada Inc. 15.12

 UNDERSTANDING GROUP
BEHAVIOUR (continued)
• Basic Group Concepts (continued)
– Conflict Management
• conflict - perceived incompatible differences
resulting in some form of interference or
opposition
• traditional view - conflict must be avoided
• human relations view - conflict is a natural and
inevitable outcome in any group

15.13
 UNDERSTANDING GROUP
BEHAVIOUR (continued)
• Basic Group Concepts (continued)
– Conflict Management (continued)
• interactionist view - some conflict is absolutely
necessary
• functional conflict - supports the goals of the
work group and improves its performance
• dysfunctional conflict - prevents group from
achieving its goals

15.14
 UNDERSTANDING GROUP
BEHAVIOUR (continued)
• Basic Group Concepts (continued)
– Conflict Management (continued)
• type of conflict
– task conflict - content and goals of the work

– relationship conflict - interpersonal

relationships
– process conflict - how work gets done

• conflict may be resolved in five ways

15.15
 CONFLICT AND GROUP
PERFORMANCE (Exhibit 15.5)

15.16
 CONFLICT-RESOLUTION
TECHNIQUES (Exhibit 15.6)
Assertive Forcing Collaborating
Rewarding conflict by
Resolving conflicts by seeking an advantageous
satisfying one’s solution for all parties
Assertiveness

own needs at the

expense of another’s
Resolving conflicts by
each party giving up
Compromising something of value
Unassertive

Resolving conflicts by Resolving conflicts by

withdrawing from or placing another’s needs
suppressing them and concerns above your
own
Avoiding Accommodatin
g
Uncooperative Cooperative
Cooperativeness 15.17
© 2003 Pearson Education Canada Inc.
 UNDERSTANDING GROUP
BEHAVIOUR (continued)
• Group Decision Making
– Advantages
• Provide more complete information
• Generate more alternatives
• Increase acceptance of solution
• Increase legitimacy
– Disadvantages
• Time consuming
• Minority domination
• Pressures to conform
• Ambiguous responsibility

15.18
 UNDERSTANDING GROUP
BEHAVIOUR (continued)
• Group Decision Making (continued)
– Effectiveness and Efficiency of Group Decisions

• effectiveness depends on criteria of success

• size of group affects effectiveness
– Techniques for Improving Group Decision Making
• steps must be taken to avoid groupthink - conformity
marked by withholding different or unpopular views
in order to give the appearance of agreement

15.19
TECHNIQUES FOR MAKING MORE CREATIVE
GROUP DECISIONS (Exhibit 15.8)

15.20
 UNDERSTANDING GROUP
BEHAVIOUR (continued)
• Understanding Work Group Behaviour
– External Conditions Imposed on the Group
• formal group is a subsystem of a larger system
• group affected by the overall strategy, authority
structures, formal regulations, resources, performance
management system, and organization culture
• Group Member Resources - task-relevant and intellectual abilities
of individual members
• abilities set parameters on effectiveness of performance
in a group
• positive attributes - sociability and self-reliance
• negative attributes - dominance and unconventionality

15.21
 UNDERSTANDING ORUP
BEHAVIOUR (continued)
• Understanding Work Group Behaviour (continued)
– Group Structure - structural variables include roles,
norms, status, and group size
– Group Processes - include communication, decision
making, leadership, and conflict
• process factors created in the group may have a
positive or negative effect on group performance
– Group Tasks
• complexity - simple tasks are routine and standardized
– complex tasks are novel and non-routine

15.22
 GROUP BEHAVIOUR MODEL
(Exhibit 15.9)
Group
Tasks
Group
Member
Resources
External
Conditions Group Performance
Imposed on Processes and Satisfaction
the Group
Group
Structure

© 2003 Pearson Education Canada Inc. 15.23

TURNING GROUPS INTO EFFECTIVE
TEAMS
• What Is a Team?
– work team - formal group made up of
interdependent individuals who are
responsible for the attainment of a goal
– work teams are popular in organizations

15.24
 WHY ARE WORK TEAMS
POPULAR? (Exhibit 15.10)
Creates
esprit de corps

Allows managers
Increases to do more strategic
performance Management
WHY USE
TEAMS?

Takes advantage
Increases
of workforce
flexibility
diversity

© 2003 Pearson Education Canada Inc. 15.25

 TURNING GROUPS INTO
EFFECTIVE TEAMS (continued)
• Types of Teams
– Teams differ in terms of membership
• functional teams - composed of a manager and
her or his employees from one functional area
• cross-functional teams - members come
different from functional areas

15.26
 TURNING GROUPS INTO
EFFECTIVE TEAMS (continued)
• Types of Teams (continued)
– Teams differ in terms of structure

• supervised - under the direction of a manager

• self-managed - operate without a manager
– responsible for a complete work process or
segment
– assumes the responsibilities of managing itself

– organizations plan to expand their use in the

future

15.27
 CATEGORIES OF TEAMS
(Exhibit 15.11)
Purpose Structure
• Product development • Supervised
• Problem solving • Self-managed
• Reengineering
• Any other organizational
purposes desired

Membership Duration
• Functional • Permanent
• Cross-functional • Temporary

© 2003 Pearson Education Canada Inc. 15.28

 TURNING GROUPS INTO
EFFECTIVE TEAMS (continued)
• Types of Teams (continued)
– Virtual team - physically dispersed
members are linked by computer
technology
• miss the normal give-and-take of face-to-face
discussions
• tend to be task oriented

15.29
 DEVELOPING AND MANAGING
EFFECTIVE TEAMS
• Characteristics of Effective Teams
– Clear Goals - members understand and support
the goals to be achieved
– Relevant Skills - members have the necessary
technical and interpersonal skills
– Mutual Trust - members are confident in each
others’ ability, character, and integrity
– Unified Commitment - loyalty and dedication to
the team

15.30
 DEVELOPING AND MANAGING
EFFECTIVE TEAMS (continued)
• Characteristics of Effective Teams (continued)
– Good Communication - messages are readily
understood
– Negotiating Skills - flexibility requires members to
possess these skills
– Appropriate Leadership - provide help in difficult
situations
– Internal and External Support - team requires a
sound infrastructure

15.31
 CHARACTERISTICS OF EFFECTIVE
TEAMS (Exhibit 15.12)

© 2003 Pearson Education Canada Inc. 15.32

 DEVELOPING AND MANAGING
EFFECTIVE TEAMS (continued)
• Managing Teams
– Planning - goal determination
• members understand and accept the team’s
goals
– Organizing - clarify authority and
structural issues
• support in the organization’s culture for
employee involvement and autonomy
• must resolve issues of leadership, tasks to
be performed, and assignment of tasks
15.33
 DEVELOPING AND MANAGING
EFFECTIVE TEAMS (continued)
• Managing Teams (continued)
– Leading - determine the role that leader will play
– Controlling - performance criteria must reflect
teamwork behaviors
• reward system must reflect team efforts and
performance
– gainsharing - incentive program that
shares the gains of the efforts of
employees with those employees

15.34