BBA 202 – ORGANIZATION THEORY

TOPIC 4: GROUP DYNAMICS

Group Dynamics
The word dynamics means “force.” The term group dynamics refers to the forces
operating within a group(s). A study of group dynamics consists of a study of these
forces and the conditions or factors influencing them.

GROUP

A group is any number of people who;-

a. Interact with one another.

b. Are psychologically aware of one another.

c. Perceive themselves as belonging together.

This definition helps to distinguish groups from mere collection of individuals, be

they a crowd, or some random gathering who have no real interaction between
them and who consider themselves more as individuals – within - a – group rather
than as members of a group.

FORMAL AND INFORMAL GROUPS:

FORMAL GROUPS

Formal groups are units established by the management as part of an organization

structure. They are defined in terms of their purpose and roles. They are official in
the sense that they have appropriate authority and they are provided with financial
and physical resources.

The principal function or purpose of formal groups is to further the interests and
objectives of the organization as laid down in its mission statements, units or
departmental objectives and policy statements.

Formal groups tend to be relatively permanent although there may be changes in

the actual membership.

Benefits of Formal Groups

1. It clearly defines objectives of the organization and authority-responsibility

relationships amongst people for attainment of those objectives.

2. It results in optimum utilization of scare organizational resources.

3. Clear division of work and relationships amongst people develops effective

system of communication in the organization.

4. The organizational hierarchy avoids overlapping of activities between two

individuals or two departments. Two individuals are not assigned the same task.
5. Career advancement and promotional avenues are clearly defined in a formal
structure of organization.

6. The rate at which people join and leave the organization is reduced (because of
clear objectives, policies, strategies etc.) The rate of labor turnover and
absenteeism. Thus, remains low.

7. Formal groups attempts to integrate formal goals of the organization with goals
of individuals working in the organization. There are, thus, syntheses of individual
group and organizational goals.

Limitations of Formal Groups

1. Limited Flexibility: As this type of organization is very specific in every activates

there is very little margin of flexibility and spontaneous decision making in the
company. Such practice in the company can be demotivating to the employees.

2. The slowness of processing: Performing a task needs many formal procedures.

Such formalities often slow down the implementations of decision making.

3. Communication Barrier: A task needs the coordination of different departments

so the communication needs to be very clear in this process. Any kind of
miscommunication may lead to ultimate inefficiency.

4. Quality of decision: Sometimes the quality of the decision made in the top
management may not be most compatible with the company but the chance of
correction is very scarce.

5. Slowness in problem detection and processing: As every procedure goes through

a lot of formalities, any problem detected in the operation level can’t be instantly
corrected. The right process will take some time to detect the problem and have it
corrected. In such a process the organization may suffer financial loss.

INFORMAL GROUPS

Informal groups are those which are created by individual members for the purpose
of sharing a common interest and or serving their common needs. These groups
often emerge from the interactions within formal groups and sometimes having all
the same members.

The influence of informal groups in the workplace was first identified in the
Hawthorne Experiments. The characteristics are;-

a. They draw their (rules) of behaviour from amongst themselves.

b. Their first loyalty tends to be towards their fellow group members rather than to
the organization as a whole.
c. Their goals are decided more by what they feel is right for them rather than by
what is laid down for them by the management.

d. Their behaviour is derived more from interpersonal relationships rather than from
any role allocated to them by the management.

e. Group leadership is likely to be exercised on a charismatic basis rather than by

legitimate authority.

f. Informal groups are less likely to be permanent than formal groups.

Benefits of Informal groups

1. Promotes social and cultural values:

Members of informal groups share common thoughts, social and cultural beliefs.
Their interests are promoted which adds to the strength of the organization and a
commitment to accomplish its formal goals.

2. Relief to top managers:

Social interactions lead to cooperation and coordination amongst people of different

groups. It helps top managers achieve their formal goals efficiently. They are
relieved of the botheration of inspiring workers to work.

3. Supplement to managers’ capacities:

Sometimes managers are unable to awake official decisions without the support of
others. People of informal groups help managers by providing them the help and
support that cuts across official chain of command.

4. Social satisfaction and security:

Members satisfy their social needs of interaction, recognition and acceptance by

others in informal groups. Their needs of friendship, love and support are satisfied in
these groups.

5. Communication:

Communication travels much faster in informal transitions than formal organization.

People discuss their work and non-work reacted problems with each other and find
solutions without the support of superiors.

6. Better relationships:

If managers of formal groups develop and maintain cordial relationship with

managers of informal groups, it promotes an environment of understanding. This
helps to achieve formal goals of the organization efficiently.

7. Solve work-related problems:

People of different departments discuss their work-related problems and solve them
on their own without waiting for instruction of superiors of their departments. A
worker of sales department, for example, can know details about production from
his friend in the production department rather than his seniors in the sales
department.

8. Promotes creativity:

People get a chance to exploit their creativity and work according to their judgment
and skills without waiting for superiors’ instruction. They think of new ideas and
apply them in practice without the fear of rejection by their superiors.

9. Quick feedback to managers:

Managers can get quick feedback on their official decisions from member through
informal channels of communication. This helps in knowing how well their policies
are being accepted and implemented by organization members.

Limitations of Informal Organization

Though informal organization provides a useful means for achieving foal goals of the
organization, it also suffers from the following limitations:

1. Conformity:

Being part of informal organization, member’s form groups know as informal

groups. These groups make their own norms and standards of performance which
are followed by all group members, whether or not they like them. If these norms
are against the interests of formal organization, members still accept them,
otherwise they lose group acceptance. For example, if the group decides not to
work overtime, all members agree to it even if they want to work overtime, Informal
organization, therefore, result in excessive conformity to group norms which are
bad.

2. Attitude of leaders:

If attitude of leaders is negative, that is, he wants his personal interests to be

satisfied at the cost of group interests, informal organization will work against the
formal organizational goals. This is harmful for all in the origination.

3. Role conflict:

As members of foal and informal organization, people face the problem of role
conflict. If group goals are different from formal goals, members conform to group
goals. If the organs tin allows lunch break of 30 minutes but groups extend it to 45
minutes to socialize with each other, members face conflict in their formal and
informal roles.

4. Rumors:
“Rumors are grapevine information that is communicated without secure standards
of evidence being present. “It means spreading false information. Information flows
virtually in all directions, to every individual at every level of the transition. False
information (rumor) speeds in informal organization at a very fast speed. If, for
example, managers decide to declare Monday a holiday and a worker overhears
them, the message that Monday is a holiday will pass throughout the transition in
no time even if it has not been officially announced by managers.

5. Resistance to change:

Informal groups become over protective about their group goals and values. They
oppose any change in their way of working. Lack of desire to deviate from existing
norms or to acquire new knowledge works against implementation of and sound
policies in the transition. An organs ton where warder are used to working five days
a week will not easily accept a six-day week even if working hours each day are
reduced.

6. Conflicting goals:

If group are different from organizational goals. Members generally pursue group
goals even if they are against the interests of formal transitional goals. This is
against the interests of the company and its members.

FUNCTIONS OF GROUPS IN ORGANIZATION

Distribution and control of work

This is bringing together and controlling teams of people with certain talents and
abilities.

Delegation of work

Organization authority need to be delegated to leaders of work groups

Spread of information

Groups disseminate information better than individuals

Uniting the organization in pursuit of its goals

Organizations can use work groups as a means of gaining the support of workers for
organization goals.

Analyzing and solving problems

In order to solve problems and make policy, the organization can use high level
work groups made up of people with a wide range of talents.

Conflict and resolution

The organization cannot resolve conflicts of its employees at an individual level,
because in large organizations, there may be too many conflicts hence its better
done in groups.

STAGES OF GROUP DEVELOPMENT

I ORIENTATION/ FORMING PHASE

Members learn about the nature and purpose of the group and constraints that limit
its activities. Group structures, status hierarchies and patterns of interaction among
members are determined. Rules of behaviour are also established.

II STORMING PHASE

Disputes and power struggles arise. There is internal group conflict, criticism and
questioning of the groups goals. This is the confrontation stage or storming stage.

III NORMING PHASE

Conflicts are resolved at this stage and a division of work and responsibilities among
members is tentatively implemented. Special liaisons develop, individual differences
are recognized and “who-does-what- disputes” disappear. Group norms appear i.e.
shared perceptions emerge of how things should be done or common attitudes,
feelings or beliefs.

IV PERFORMING PHASE

Eventually group productivity increases. There is much collaboration among

members and commitment to the group. Individuals value the contributions of their
colleagues and accept idiosyncrasies/ peculiarities. A decision-making system
acceptable to all members is established.

V ADJOURNING PHASE

This stage underlines the fact that a group’s life will eventually come to an end as
people move on elsewhere in the organization or as original purpose is attained and
the job is completed.

KEY ISSUES IN GROUP BEHAVIOUR

In examining the behaviour of people in groups, whether formal or informal, there

are a number of key issues that have to be considered as show.
FIG: KEY ISSUES IN GROUP BEHAVIOUR

Group Size

The size of a group determines the behaviour of members. Large groups, for
example, require a higher degree of formalization than smaller groups. Smaller
groups pay more attention to the needs of individuals.

Purpose of Group

Many groups are usually assigned a definite purpose within the organization.
Structures are created and tasks are allocated a specific time limit.

Nature of Tasks

These will be decided in broad terms by the groups purpose and objectives. Types
of tasks include attaining a target which requires deploying the right employees and
important negotiations with customers which requires allocation of roles to specific
employees.

Group Leadership

A group leader faces certain key variables e.g. nature and composition of the group,
the requirements of task and the organizational environment (policies, procedures
etc).
Nature and Motivation of Group Members

The behaviour of any group is determined to a considerable extent by the

composition of its membership and by their level of commitment to the group’s
goals.

Group Cohesiveness

This refers to the closeness of a group’s members. A cohesive group has strong
bonds that bind the members in loyalty and support for each other. A cohesive
group develops clear standards of behaviour (norms).

Group Norms

Norms are the rules, patterns or standards adopted by a group. Most of these
standards will be formal and may be contained in written policies, operating
procedures, blue prints, official programmes etc.

Roles within Groups

Roles are the particular parts played by individual members of a group. The parts
are determined partly by the expectations of the management e.g. through job
descriptions.

External Environment

The context in which a group operates can be described from the perspective of

i. The physical environment

ii. Social context.

Most of the issues described earlier refer to the group’s internal environment - its
organization, personnel, role requirements etc. However, the group life that springs
from that internal environment influences, is also influenced by what goes on in the
external environment.

Physical Environment

If a team is working in close proximity, there will be ample opportunity to develop

an understanding of each other’s and experience collaboration. If problems arise,
they can be dealt with quickly and everyone can be consulted. Where a team is a
scattered then it is more difficult to build up team spirit, assess each other’s
strengths and weaknesses and confront problems speedily. Hence pressure is on
team managers to call for regular team-meetings and to maintain close contact by
telephone, fax etc. Regular information bulletins are sometimes used by sales
managers to help keep everyone in the team aware of what is happening elsewhere
in the company. Occasionally, a managing director gathers all key staff at a suitable
off-site location in order to spend a day or two reviewing strategy or dealing with
difficult problems.

Social Context

Social context is extremely important in the life of a group. The organizational

environment is a reflection of people and their needs and intentions. Outsiders, such
as customers can make an impact on the social environment by insisting on certain
standards of employee behavior or particular arrangements for structuring
relationships between themselves and the employees they have to deal with.

SOURCES OF GROUP COHESIVENESS

a. MEMBERSHIP

i. Size of Group

Large groups are less cohesive in comparison to small groups. As groups increase in
size, problems arise with communication and co-ordination.

ii. Compatibility of the members

The more homogenous the group in terms of such features as shared backgrounds,
interest, attitudes and values of its members, the easier it is to promote
cohesiveness.

iii. Performance of Group Members

Group spirit and relationships take time to develop. Cohesiveness is more likely
when members of a group are together for a long-period of time.

b. WORK ENVIRONMENT

i. The Nature of the task

Where workers are involved in similar work, share a common task or face the same
problems, this may assist cohesiveness.

ii. Physical Setting

Where members of the group work in same location or in close physical proximity to
each other, this will generally help cohesiveness.

iii. Communications

The more easily members can communicate freely with each other, the greater the
likelihood of group cohesiveness.

c. ORGANISATIONAL FACTORS
i. Management and Leadership

The activities of groups cannot be separated from the management and the process
of leadership. The form of management and the style of leadership adopted will
influence the relationship between the group and the organization and this
determines group cohesiveness.

ii. Personnel Policies and Procedures.

Harmony and cohesiveness among the group are more likely to be achieved if
personnel policies and procedures are well developed and perceived equitable with
fair treatment of all members.

iii. Success

The more successful the group, the more cohesive it is likely to be and cohesive
groups are more likely to be successful.

iv. External Threat

Cohesiveness may be enhanced by members co-operating with one another when

faced with a common extended threat, such as changes in their methods of work or
the appointment of a new manager.