MANAGING GROUPS & TEAMS o Finding themselves more cohesive

and cooperative, participants find it

GROUPS easy to establish their own ground
- collection of individuals who interact with rules (or norms) and define their
each other such that one person’s actions operating procedures and goals.
have an impact on the others o group tends to make big decisions,
while subgroups or individuals handle
TYPES OF GROUPS the smaller decisions
(1) Formal: made up of managers, o may even begin to form friendships
subordinates, or both with close and share more personal information
associations among group members that with each other
influence the behavior of individuals in the o leader should become more of a
group. facilitator by stepping back and letting
(2) Informal: made up of two or more the group assume more responsibility
individuals who are associated with one for its goal.
another in ways not prescribed by the
formal organization. (4) Performing
o participants are not only getting the
STAGES OF GROUP DEVELOPMENT work done, but they also pay greater
(1) Forming (starting) attention to how they are doing it
o the group comes together for the first o By now, the group has matured,
time becoming more competent,
o The members may already know each autonomous, and insightful
other, or they may be total strangers. o Group leaders can finally move into
o Members tend to be formal, polite, coaching roles and help members
conflict avoidant, and observant grow in skill and leadership.

(2) Storming (chaotic stage) (5) Adjourning (ending)

o Participants focus less on keeping o groups form, so do they end
their guard up as they shed social o working group may dissolve due to an
facades, becoming more authentic organizational restructuring
and more argumentative o Group leaders and members alike
o Group members begin to explore their should be sensitive to handling these
power and influence, and they often endings respectfully and
stake out their territory by compassionately.
diIerentiating themselves from the
other group members rather than COHESION
seeking common ground - can be thought of as a kind of social glue
o Discussions can become heated as - refers to the degree of camaraderie within
participants raise contending points the group
of view and values, or argue over how - those in which members are attached to
tasks should be done and who is each other and act as one unit
assigned to them. - the more cohesive a group is, the more
productive it will be and the more
(3) Norming rewarding the experience will be for the
o Group members often feel elated at group’s members
this point, more committed to each - Characteristics:
other and the group’s goal o collective identity
o they can handle the “tough stuI,” o experience a moral bond and a desire
group members are now ready to get to remain part of the group
to work o share a sense of purpose
o working together on a meaningful task
or cause
 o establish a structured pattern of TEAM TASKS
communication (1) Production tasks include actually making
something, such as a building, product, or
FACTORS AFFECTING GROUP COHESION a marketing plan.
(1) Similarity: The more similar group (2) Idea-generation tasks deal with creative
members are in terms of age, sex, tasks, such as brainstorming a new
education, skills, attitudes, values, and direction or creating a new
beliefs, the more likely the group will bond. process.
(2) Stability: The longer a group stays (3) Problem-solving tasks refer to coming up
together, the more cohesive it becomes. with plans for actions and making
(3) Size: Smaller groups tend to have higher decisions.
levels of cohesion.
(4) Support: When group members receive TEAM ROLES
coaching and are encouraged to support 1. Task Roles
their fellow team members, group identity a. Contractor: organize the team’s work,
strengthens. including creating team timelines,
(5) Satisfaction: Cohesion is correlated with production schedules, and task
how pleased group sequencing.
b. Creator: deals more with changes in
SOCIAL LOAFING the team’s task process structure.
- tendency of individuals to put in less eIort c. Contributor: brings information and
when working in a group context expertise to the team. sharing
- also known as the Ringelmann eIect (Max knowledge and training with those
Ringelmann) who have less expertise
d. Completer: transforms ideas into
COLLECTIVE EFFICACY action. following up on tasks, such as
- group’s perception of its ability to gathering needed background
successfully perform well information or summarizing the
- influenced by: watching others, verbal team’s ideas into reports.
persuasion, how a person feels. e. Critic: “devil’s advocate” behaviors
that go against the assumptions being
GROUPS VS TEAMS made by the team.
Group:
- A group is simply a collection of 2. Social Roles
individuals. a. Cooperator: supporting those with
- They may work in the same organization, expertise toward the team’s goals.
division, or department, but they are not This is a proactive role.
necessarily working together toward b. Communicator: behaviors that are
shared goals. targeted at collaboration, such as
- Performance depends on individual practicing good listening skills
contributions minus any ineIiciencies and appropriately using humor to
(process losses). diIuse tense situations.
c. Calibrator: serves to keep the team on
Team: track in terms of suggesting any
- A team is a cohesive coalition of people. needed changes to the team’s
- They work together and are united by process. initiating discussions about
mutual goals. potential team problems such as
- Team members collaborate, share power struggles or other tensions.
responsibilities, and align their eIorts to
achieve a common objective. 3. Boundary-Spanning Roles
- While personal agendas may exist, team a. Consul: gathering information from
members prioritize the shared vision. the larger organization and informing
those within the organization about
 team activities, goals, and are part of an organization’s culture,
successes. they also must learn the norms of their
b. Coordinator: interfacing with others immediate team.
within the organization so that
the team’s eIorts are in line with other (2) Team Contracts
individuals and teams within o Having a team contract does not
the organization. necessarily mean that the team will be
successful, but it can serve as a road
TYPES OF TEAMS map when the team veers oI course.
(1) Task force: asked to address a specific
issue or problem until it is resolved. (3) Team Meetings (before, during, and after)
(2) Other teams: temporary or ongoing, such o Before Meetings
as product development teams. § Is a meeting needed?
(3) Cross-functional teams: individuals from § Create and distribute an agenda.
diIerent parts of the organization staI the § Send a reminder prior to the
team, which may be temporary or long- meeting.
standing in nature. o During Meetings
(4) Virtual teams: members are not located § Start the meeting on time.
in the same physical place. Some virtual § Follow the meeting agenda.
teams are formed by necessity, such as to § Manage group dynamics for full
take advantage of lower labor costs in participation.
diIerent countries § Summarize the meeting with
(5) Top management teams: appointed by action items. Be sure to clarify
the chief executive oIicer (CEO) and team member roles moving
ideally, reflect the skills and areas that the forward
CEO considers vital for the company. The § End the meeting on time
top team often includes representatives o After Meeting:
from functional areas, such as finance, § Follow up er on action items.
human resources, and marketing, or key
geographic areas. CONFLICT AND NEGOTIATIONS
TEAM LEADERSHIP & AUTONOMY CONFLICT
• Traditionally managed teams - process that involves people disagreeing.
o Leader resides outside the team It can range from minor disagreements to
o Potential for low autonomy workplace violence
• Self-managed teams
o The team manages itself but still has a TYPES OF CONFLICT
team leader (1) Intrapersonal: conflict that arises within a
o Potential for low, medium, or high person. It can arise because of diIerences
autonomy in roles. There are two types:
• Self-directed teams a. Role conflict - having two
o The team makes all decisions internally diIerent job descriptions that
about leadership and how work is done seem mutually exclusive
o Potential for high autonomy (contradictory) can arise if you’re
the head of one team but also a
MANAGEMENT OF TEAMS member of another team.
(1) Establishing Team Norms b. Role Ambiguity - occurs when
o Norms are shared expectations about you’re unsure about what’s
how things operate within a group or expected of you in a specific role
team. Just as new employees learn to or task.
understand and share the
assumptions, norms, and values that
 (2) Interpersonal: arises because of 2. Surfacing of assumptions that may be
competition or because of personality or inaccurate
values diIerences 3. Increased participation and creativity
(3) Intergroup: conflict that takes place 4. Clarification of individual views that
among diIerent groups (diIerent build learning
departments or divisions, employee union
and management, or competing • Negative:
companies). 1. Increased stress and anxiety among
individuals, which decreases
Conflict can be dysfunctional if: productivity and satisfaction
1. it paralyzes an organization 2. Feelings of being defeated and
2. leads to less-than-optimal performance, demeaned, which lowers individuals’
3. in the worst case, leads to workplace morale and may increase turnover
violence 3. A climate of mistrust, which hinders
the teamwork and cooperation
CAUSES OF CONFLICT necessary to get work done
(1) Organizational Structure: In a matrix
structure, employees report to two CONFLICT MANAGEMENT
bosses, creating built-in decisional (1) Change the Structure
conflict. (2) Change the Composition of the Team
(3) Create a Common Opposing Force
(2) Limited Resources: Scarcity of resources (4) Consider Majority Rule
like laptops or smartphones can cause (5) Problem Solve
conflict when some employees get them
while others don’t, especially if both CONFLICT HANDLING STYLES
groups see the tools as critical to their • Avoidance: uncooperative and
roles. unassertive. People seek to avoid conflict
altogether by denying that it is there. prone
(3) Task Independence: When to postponing any decisions in which a
accomplishment of your goal requires conflict may arise
reliance on others to perform their tasks • Accommodation: cooperative and
unassertive. person gives in to what the
(4) Incompatible Goals: when two parties other side wants, even if it means giving up
think that their goals are mutually one’s personal goals. People may fear
exclusive – meaning both cannot exist, be speaking up for themselves or they may
true or happen at the same time. place a higher value on the relationship,
believing that disagreeing with an idea
(5) Personality DiYerences: By might be hurtful to the other person.
understanding some fundamental • Compromise: a middle-ground style, in
diIerences among the way people think which individuals have some desire to
and act, we can better understand how express their own concerns and get their
others see the world. way but still respect the other person’s
goals. In a compromise, each person
(6) Communication Problems: Sometimes sacrifices something valuable to them.
conflict arises simply out of a small, • Competing: People want to reach their
unintentional communication problem, goal or get their solution adopted
such as lost e-mails or dealing with people regardless of what others say or how they
who don’t return phone calls. feel. They are more interested in getting
the outcome they want as opposed to
OUTCOMES OF CONFLICT keeping the other party happy, and they
• Positive: push for the deal they are interested in
1. Consideration of a broader range of making.
ideas, resulting in a better, stronger idea
 • Collaboration: high on both assertiveness
and cooperation. This is a strategy to use WHEN ALL ELSE FAILS: THIRD-PARTY
for achieving the best outcome from NEGOTIATIONS
conflict—both sides argue for their (1) Mediation: an outside third party (the
position, supporting it with facts and mediator) enters the situation with the goal
rationale while listening attentively to the of assisting the parties in reaching an
other side. agreement. can facilitate, suggest, and
recommend. The mediator works with both
NEGOTIATION parties to reach a solution but does not
- a process whereby two or more parties represent either side.
work toward an agreement (2) Arbitration: parties work with the mediator
to arrive at a solution, in arbitration the
FIVE PHASES OF NEGOTIATION parties submit the dispute to the third-party
(1) Investigation: information gathering stage arbitrator. It is the arbitrator who makes the
final decision. The arbitrator is a neutral
(2) Determining BATNA (best alternative to a third party, but the decision made by the
negotiated agreement): helps in deciding arbitrator is final (the decision is called the
whether to accept an oIer received during “award”). Awards are made in writing and
the negotiation. are binding to the parties involved in the
case
(3) Presentation: assemble the information
gathered in a way that supports the MANAGING STRESS AND EMOTIONS
position. In a job hiring or salary
negotiation situation, for instance, you can STRESS
present facts that show what you’ve - a fact of nature—forces from the outside
contributed to the organization in the past world aIecting the individual (Peter
(or in a previous position), which in turn Panzarino).
demonstrates your value. - the body’s reaction to a change that
requires a physical, mental, or emotional
(4) Bargaining: each party discusses their adjustment or response (Psychologists)
goals and seeks to get an agreement. A - unmanaged stress could create physical
natural part of this process is making diseases such as ulcers and high blood
concessions, namely, giving up one thing pressure, and psychological illnesses
to get something else in return. such as depression (Hans Selye)

(5) Closure: important part of negotiations. At PHASES OF STRESS:

the close of a negotiation, you and the (1) Alarm Phase: outside stressor jolts the
other party have either come to an individual, insisting that something must
agreement on the terms, or one party has be done. It may help to think of this as the
decided that the final oIer is fight-or-flight moment in the individual’s
unacceptable and therefore must be experience.
walked away from.
(2) Resistance Phase: body begins to release
AVOIDING COMMON MISTAKES IN cortisol and draws on reserves of fats and
NEGOTIATIONS sugars to find a way to adjust to the
1. Failing to Negotiate/Accepting the First demands of stress. This reaction works
OIer well for short periods of time, but it is only
2. Letting Your Ego Get in the Way a temporary fix. Individuals forced to
3. Having Unrealistic Expectations endure the stress of cold and hunger may
4. Getting Overly Emotional find a way to adjust to lower temperatures
5. Letting Past Negative Outcomes AIect the and less food.
Present Ones
 (3) Exhaustion Phase: body has depleted its unchecked stress, which are as dangerous
stores of sugars and fats, and the to our mental health and welfare as
prolonged release of cortisol has caused heart disease, high blood pressure, and
the stressor to significantly weaken the strokes.
individual. Disease results from the body’s
weakened state, leading to death in the (3) Work Outcomes: Stress is related to
most extreme cases. worse job attitudes, higher turnover, and
decreases in job performance in terms of
WORK STRESSORS both in-role performance and
organizational citizenship behaviors.
Stressors - events or contexts that cause a stress
reaction by elevating levels of adrenaline and INDIVIDUAL DIFFERENCES IN EXPERIENCED
forcing a physical or mental response STRESS
• Type A Personalities
A. Role Demands o Jenkins Activity Survey
o Role ambiguity: vagueness in relation o display high levels of
to what our responsibilities are. speed/impatience, job involvement,
o Role conflict: facing contradictory and hard-driving competitiveness
demands at work • Type B Personalities
o Role overload: having insuIicient time o calmer by nature. They think through
and resources to complete a job situations as opposed to reacting
emotionally. Their fight-or-flight and
B. Information overload: occurring when stress levels are lower as a result.
the information processing demands on
an individual’s time to perform INDIVIDUAL APPROACHES TO MANAGING
interactions and internal calculations STRESS
exceed the supply or capacity of time (1) The Corporate Athlete
available for such processing (Schick, o Jack Groppel
Gordon, & Haka) o eating better, exercising more, and
developing a positive attitude turn
C. Work-Family Conflict: occurs when the distress into eustress
demands from work and family are o If professionals trained their minds
negatively aIecting one another and bodies to perform at peak levels
through better nutrition, focused
D. Life Changes: Stress can result from training, and positive action, Groppel
positive and negative life changes. said, they could become “corporate
Holmes-Rahe scale ascribes diIerent athletes” working at optimal physical,
stress values to life events ranging from emotional, and mental levels.
the death of one’s spouse to receiving a o Discipline
ticket for a minor traIic violation.
(2) Flow
E. Downsizing: downsizing and job o Mihaly Csikszentmihalyi
insecurity (worrying about downsizing) is o a state of consciousness in which a
related to greater stress, alcohol use, and person is totally absorbed in an
lower performance and creativity activity.
o Another way to transform stress is by
OUTCOMES OF STRESS breaking challenges into smaller parts
(1) Physiological: Stress manifests itself and embracing the ones that give us
internally as nervousness, tension, joy
headaches, anger, irritability, and fatigue

(2) Psychological: Depression and anxiety

are two psychological outcomes of
(3) Diet TAKING ON THE PEPSI CHALLENGE: THE CASE
o Greasy foods often make a person feel OF INDRA NOOYI
tired (it takes the body longer to digest
fats) What makes Indra Nooyi one of the top leaders in
(4) Exercise the business world today?
o exercise gives us more energy. How - has a clear vision for PepsiCo
energetic we feel depends on our - has the track record to show that she
maximum oxygen capacity. The more means what she says
oxygen we absorb in each breath, the - striving for a net zero impact on the
more energy and stamina we will have. environment
- Her vision is long term and could be risky
(5) Sleep for short-term earnings, but it is also timely
o It is a vicious cycle. Stress can make it and important
hard to sleep. Not sleeping makes it - She is not afraid to give people negative
harder to focus on work in general, as feedback
well as on specific tasks. - pushes people until they come up with a
solution to a problem and does not take “I
(6) Create a Social Support Network don’t know” for an answer
o consistent finding is that those - she listens to those around her, even when
individuals who have a strong social they disagree with her
support network are less stressed - she seeks help and information when she
than those who do not needs it
- expecting people to have good intentions
(7) Time Management helps her prevent misunderstandings and
o development of tools or techniques show empathy for them
that help to make us more productive
when we work THE TRAITS THAT SHOW RELATIVELY STRONG
o it decreases much of the pressure we RELATIONS WITH LEADERSHIP
feel 1. Intelligence
o General mental ability: which
psychologists refer to as “g” and which
is often called “IQ” in everyday
language, has been related to a
LEADING PEOPLE WITHIN person’s emerging as a leader within a
ORGANIZATIONS group
o Emotional Intelligence (by Daniel
LEADERSHIP Goleman): high level of self-
- the act of influencing others to work awareness, motivation, empathy, and
toward a goal social skills
- Formal Leaders: hold a position of
authority and may utilize the power that 2. Big 5 Personality Traits: Openness to
comes from their position, as well as their Experience, Conscientiousness, and
personal power to influence others Extraversion
- Informal Leaders: without a formal
position of authority within the 3. Self-Esteem
organization but demonstrate leadership
by influencing others through personal 4. Integrity
forms of power.
 BEHAVIORAL APPROACHES TO LEADERSHIP CONTINGENCY APPROACHES TO LEADERSHIP
(1) Task-oriented behaviors (initiating 1. Contingency Theory (Frederick Fiedler):
structure): structuring the roles of diIerent people can be eIective in
subordinates, providing them with diIerent situations.
instructions, and behaving in ways that
will increase the performance of the group 2. Situational Leadership (Kenneth
Blanchard and Paul Hersey): leaders must
(2) People-oriented behaviors use diIerent leadership styles depending
(consideration): showing concern for on their followers’ development level.
employee feelings and treating employees employee readiness is the key factor
with respect 3. Path-goal theory (Robert House): based
on the expectancy theory of motivation.
LEADER DECISION MAKING The expectancy theory of motivation
1. Authoritarian decision making: leaders suggests that employees are motivated
make the decision alone without when they believe—or expect—that:
necessarily involving employees in the (a) their eIort will lead to high
decision-making process. performance,
2. Democratic decision making: (b) their high performance will be
employees participate in the making of the rewarded, and
decision. (c) the rewards they will receive are
3. Laissez-faire decision-making: leaves valuable to them.
employees alone to make the decision.
The leader provides minimum guidance FOUR LEADERSHIP STYLES UNDER PATH-GOAL
and involvement in the decision. THEORY
1. Directive leaders: provide specific
LEADERSHIP ASSUMPTIONS ABOUT HUMAN directions to their employees. making sure
NATURE that employees know what to do on a given
work day.
Theory X and Theory Y. (The Human Side of 2. Supportive leaders: provide emotional
Enterprise) support to employees.
- Douglas McGregor 3. Participative leaders: they make sure
that employees are involved in the making
Theory X: of important decisions.
- employees are lazy, do not enjoy working, 4. Achievement-oriented leaders: set goals
and will avoid expending energy on work for employees and encourage them to
whenever possible. reach their goals.
- For a manager, this theory suggests
employees need to be forced to work CONTEMPORARY APPROACHES TO
through any number of control LEADERSHIP
mechanisms ranging from threats to 1. Transformational Leadership: lead
actual punishments employees by aligning employee goals
with the leader’s goals. Thus, employees
Theory Y: working for transformational leaders start
- employees are not lazy, can enjoy work, focusing on the company’s well-being
and will put eIort into furthering rather than on what is best for them as
organizational goals individual employees.
- managers allow employees autonomy and
help them become committed to Characteristics:
particular goals o Charismatic - behaviors leaders
demonstrate that create confidence
in, commitment to, and admiration for
the
 o Use inspirational motivation - come goals. Servant leaders put their employees
up with a vision that is inspiring to first, understand their personal need and
others desires, empower them, and help them
o Use of intellectual stimulation - develop in their careers.
encourage employees to think
creatively and work harder 5. Authentic Leadership: Its key advice is
o Use individualized consideration - “be yourself.” they are self-aware, not
show personal care and concern for afraid to act the way they are, they remain
the well-being of their followers true to themselves.

2. Transactional leaders use three

diYerent methods.
o Contingent rewards: rewarding
employees for their
accomplishments.
o Active management by exception:
leaving employees to do their jobs
without interference, but at the same
time proactively predicting potential
problems and preventing them from
occurring.
o Passive management by exception:
is similar in that it involves leaving
employees alone, but in this method
the manager waits until something
goes wrong before coming to the
rescue.

3. Leader-Member Exchange (LMX) Theory:

the type of relationship leaders have with
their followers is the key to understanding
how leaders influence employees.
• high-quality LMX relationships: the
leader forms a trust-based
relationship with the member. The
leader and member like each other,
help each other when needed, and
respect each other.
• low-quality LMX relationships: the
leader and the member have lower
levels of trust, liking, and respect
toward each other. These
relationships do not have to involve
actively disliking each other, but the
leader and member do not go beyond
their formal job descriptions in their
exchanges.

4. Servant leadership: defines the leader’s

role as serving the needs of others. the
primary mission of the leader is to develop
employees and help them reach their