CONTENTS:

• Nature &
• concepts
• Stages of group formation
• Theories of group development
• Difference of group development

© 2005 Prentice Hall Inc. All rights

8–1
reserved.
 Group(s)
Two or more individuals, interacting and
interdependent, who have come together
to achieve particular objectives.

Formal Group Informal Group

A designated work A group that is neither
group defined by the formally structured nor
organization’s structure. organizationally determined;
appears in response to the
need for social contact.

8–2
Command Group Task Group
A group composed of Those working together
the individuals who to complete a job or task.
report directly to a
given manager.

Interest Group Friendship Group

Those working together Those brought together
to attain a specific because they share one
objective with which or more common
each is concerned. characteristics.
8–3
 Why People Join Groups
• Security
• Status
• Self-esteem
• Affiliation
• Power
• Goal Achievement

8–4
Practical reasons
for
group formation
 There will be two types of
practical reason’s for forming
a group ??

1-From member’s point of view

2-From organization point of

view.
 (A) From members point of
view -
 Identity- we try to understand
ourselves through the behaviour of
others towards us ?

 Information – The informal groups to

which a member belongs is a source of
information to him ?

Security- The strongest reason for

group formation is the people’s need for
security ?

Esteem- Self respect and confidence ?

Sense of belongingness -Emotional need for
friendship, love , affection and affiliation ?

Outlet for frustrations -individual may faced

with several problems relating to his family
and work life ?

Generation of new ideas –informal groups are

breeding grounds for new ideas. E.g -quality
circles in japan ?

Job satisfaction -Working as a group often

results in higher motivation to workers ?
 FROM ORGANISATION
POINT OF VIEW
Lightening of responsibility –By division
of work to superior,the mental burden on
manager reduced to some extent ?
Filling the gap’s – that mean if the sub.
Has the knowledge in the area he can
help the superior ?
Restraining the authority –Groups can
check and balance on the manager’s
excessive use of authority ?
Information – Group’s can act as a
medium of info. For the management ?
 FACTOR’S AFFECTING
GROUP PERFORMANCE

GROUP STRUCTURE

EXTERNAL CONDITION GROUP PROCESS GROUP PERFORMANCE

GROUP RESOURCES
Stages
Stages of
of Group
Group Development
Development

The
The Five
Five Stage
Stage Model
Model
Forming : Members get to know each other and
reach common goals.

Stroming : Members disagree or direction and

leadership.

 Members need to be sure conflict stays focused.

Norming : Close ties and consensus
begin to develop between members.

Performing : Group does it real work.

Adjouring : Only for task forces that

are temporarily.

Note that these steps take time!

 Theories of Group Formation

Propinquity theory:
The most basic theory explaining affiliation is propinquity .
This interesting word simply means that individuals
affiliate with on another because of spatial or
geographical proximity. In an organization employees who
work in the same area of the plant with officers close to
one another would more probably form into groups than
would those who are not physically located together.
 Homan’s Theory
• It is a very comprehensive theory given by
George c Homan’s based on activities,
interactions and sentiments. These three
elements are directly related to each other.
The members of a group share activities and
interact with one another not just because of
physical proximity but also to accomplish
group goals . The key element is interaction
because of which they develop common
sentiments for one another.
© 2005 Prentice Hall Inc. All rights
8–17
reserved.
 Balance Theory
• Another very comprehensive theory is a
Balance theory of group formation. It states
that persons are attracted to one another on
the basis of similar attitudes towards
commonly relevant objects and goals. Once a
relationship is formed, it strives to maintain a
symmetrical balance between the attraction
and common attitudes.;

© 2005 Prentice Hall Inc. All rights

8–18
reserved.
 Exchange theory
• This theory is based on reward cost outcomes
of interactions. To be attracted towards a
group a person thinks in terms of what he will
get in exchange of interactions with group
members. A minimum possible levels of an
outcome must exist in order for attraction or
affiliation to take place.

© 2005 Prentice Hall Inc. All rights

8–19
reserved.
Differences Between Groups and Teams

Group Team
• Has a designated, strong • Shares or rotates leadership
leader roles
• Individual accountability • Mutual/ind. accountability
• Identical purpose for group and • Specific team vision or purpose
organization • Performance goals set by team
• Performance goals set by • Not inhibited by organizational
others boundaries
• Works within organizational • Collective work products
boundaries • Mutual feedback, open-ended
• Individual work products discussion, active problem-
• Organized meetings; solving
delegation