1.
Chapter 8
UNDERSTANDING GROUPS AND MANAGING WORK TEAMS

2.
TABLE OF CONTENTS
• Summary
• What Is A Group And What Stages Of Development Do Groups
Go Through?
• Five Major Concepts Of Group Behavior?
• How Are Groups Turned Into Effective Teams?
• What Current Issues Do Managers Face In Managing Teams?

3.
SUMMARY

4.
SUMMARY
• Define a group and describe the stages of group
development. A group is two or more interacting and
interdependent individuals who come together to achieve
specific goals. Formal groups are work groups that are defined
by the organization’s structure and have designated work
assignments and specific tasks directed at accomplishing
organizational goals. Informal groups are social groups.
• The forming stage consists of two phases: joining the group
and defining the group’s purpose, structure, and leadership.
The storming stage is one of intragroup conflict over who will
control the group and what the group will be doing. The
norming stage is when close relationships and cohesiveness
develop as norms are determined. The performing stage is
when group members began to work on the group’s task. The
adjourning stage is when the group prepares to disband.

5.
SUMMARY
• Describe the major concepts of group behavior. A role refers to a
set of behavior patterns expected of someone occupying a given
position in a social unit. At any given time, employees adjust their
role behaviors to the group of which they are a part. Norms are
standards shared by group members. They informally convey to
employees which behaviors are acceptable and which are
unacceptable. Status is another factor to know since status can be a
significant motivator and it needs to be congruent. Also, group size
affects group behavior in a number of ways. Smaller groups are
generally faster at completing tasks than are larger ones. However,
larger groups are frequently better at fact finding because of their
diversified input. As a result, larger groups are generally better at
problem solving. Finally, group cohesiveness is important because of
its impact on a group’s effectiveness at achieving its goals.

6.
SUMMARY
• Discuss how groups are turned into effective teams. Effective teams
have common characteristics. They have adequate resources,
effective leadership, a climate of trust, and a performance
evaluation and reward system that reflects team contributions.
These teams have individuals with technical expertise as well as
problem-solving, decision-making, and interpersonal skills and the
right traits, especially conscientiousness and openness to new
experiences. Effective teams also tend to be small, preferably of
diverse backgrounds. They have members who fill role demands and
who prefer to be part of a team. And the work that members do
provides freedom and autonomy, the opportunity to use different
skills and talents, the ability to complete a whole and identifiable
task or product, and work that has a substantial impact on others.
Finally, effective teams have members who believe in the team’s
capabilities and are committed to a common plan and purpose,
specific team goals, a manageable level of conflict, and a minimal
degree of social loafing.

7.
SUMMARY
• Discuss contemporary issues in managing teams. The
challenges of managing global teams can be seen in the team
composition factors, especially the diverse cultural
characteristics; in team structure, especially conformity,
status, social loafing, and cohesiveness; and in team
processes, especially with communication and managing
conflict; and the manager’s role in making it all work.
• Managers also need to know when teams are not the answer.
They can do this by assessing whether the work can be done
better by more than one person; by whether the work creates
a common purpose or set of goals for the members of the
team; and by the amount of interdependence among team
members.

8.
LEARNING OBJECTIVES
In this chapter we will address the following questions:
• Define group and describe the stages of group development.
• Describe the major concepts of group behavior.
• Discuss how groups are turned into effective teams.
• Discuss contemporary issues in managing teams.

9.
WHAT IS A GROUP AND WHAT STAGES OF DEVELOPMENT DO GROUPS GO
THROUGH?
Section 1

10.
WHAT IS A GROUP?
• A group is of two or more interacting
and interdependent individuals who
come together to achieve specific
goals.
• Formal groups are work groups that
are defined by the organization’s
structure and have designated work
assignments and specific tasks
directed at accomplishing
organizational goals.
• Informal groups are social groups
that occur naturally in the workplace
and tend to form around friendships
and common interests
Formal
Informal
Group

11.
WHAT IS A GROUP?

12.
STAGES OF GROUP DEVELOPMENT

13.
STAGES OF GROUP DEVELOPMENT
• The forming stage has two
phases.
• The first phase is when people
first join the group and the
second phase is when they
define the group’s purpose,
structure, and leadership.
• The latter phase involves a great
deal of uncertainty as members
“test the waters” to determine
acceptable behaviors and is
complete when members begin
to think of themselves as part of
a group.
Forming
Storming
NormingPerforming
Adjourning

14.
STAGES OF GROUP DEVELOPMENT
• The storming stage is named
because it is the period of
intragroup conflict about who
will control the group and what
the group needs to be doing.
• This stage is complete when a
relatively clear hierarchy of
leadership and agreement on the
group’s direction is evident.
Forming
Storming
NormingPerforming
Adjourning

15.
STAGES OF GROUP DEVELOPMENT
• The norming stage is one in
which close relationships develop
and the group becomes cohesive
and demonstrates a strong sense
of group identity and
camaraderie.
• This stage is complete when the
group structure solidifies and the
group has assimilated a common
set of expectations regarding
member behavior.
Forming
Storming
NormingPerforming
Adjourning

16.
STAGES OF GROUP DEVELOPMENT
• The fourth stage is the
performing stage.
• The group structure is in place
and accepted by group
members.
• Their energies have moved from
getting to know and understand
each other to working on the
group’s task.
• This is the last stage of
development for permanent
work groups.
Forming
Storming
NormingPerforming
Adjourning

17.
STAGES OF GROUP DEVELOPMENT
• However, for temporary groups—
such as project teams, task
forces, or similar groups that
have a limited task to do—the
final stage is the adjourning
stage in which the group
prepares to disband.
• Attention is focused on wrapping
up activities instead of task
performance.
Forming
Storming
NormingPerforming
Adjourning

18.
GROUP EFFECTIVENESS
• Does a group become more
effective as it progresses through
the first four stages?
• The assumption that a group
becomes more effective as it
progresses through the first four
stages may be generally true, but
what makes a group effective is
complex
• Under some conditions, high
levels of conflict are conducive to
high levels of group performance.
• There might be situations in
which groups in the storming
stage outperform those in the
norming or performing stages.
A group effective is
complex
High levels of conflict
arises due to high level
of group performance
Storming stage
outperform might
happen in norming and
performing stages

19.
GROUP EFFECTIVENESS
• Groups don’t always proceed
sequentially from one stage to
the next.
• Sometimes groups are storming
and performing at the same time.
• Groups even occasionally regress
to previous stages.
• Don’t assume that all groups
precisely follow this process or
that performing is always the
most preferable stage
• Managers need to know the
stage a group is in so they can
understand the problems and
issues that are most likely to
surface.
Stages don’t always
proceed sequentially
Groups regress stages
Managers need to
understand the group
problem and issues

20.
FIVE MAJOR CONCEPTS OF GROUP BEHAVIOR?
Section 2

21.
FIVE MAJOR CONCEPTS OF GROUP BEHAVIOR
• To understand group behavior,
the concepts of roles, norms and
conformity, status systems, group
size, and group cohesiveness will
be explored
Roles
Norms and
conformity
Status
systems
Group size
Group
cohesiveness

22.
GROUPBEHAVIOR- ROLES
• A role refers to behavior patterns
expected of someone who
occupies a given position in a
social unit.
• Individuals play multiple roles
and adjust their roles to the
group to which they belong at
the time.
• In an organization, employees
attempt to determine what
behaviors are expected of them.
• They read their job descriptions,
get suggestions from their
bosses, and watch what their
coworkers do.
• Role conflict occurs when an
employee has conflicting role
expectations.
• Behavior patterns
expected with a given
position
Role
• Determine what
behavior are expected
• Read job description
• Watch coworkers
• Suggestion from bosses
Employees
• Employee has conflict
role
Role
conflict

23.
GROUP BEHAVIOR – NORMS AND CONFORMITY
• Norms are acceptable standards
shared by the group’s members.
• Although each group has its own
unique set of norms, common classes
of norms appear in most
organizations. These norms focus on:
Effort and performance. This is probably
the most widespread norm and it can be
extremely powerful in affecting an
individual employee’s performance.
• Dress codes dictate what’s
acceptable to wear to work.
• Conformity – Adjusting one’s
behavior to align with a group’s
norms

24.
GROUP BEHAVIOR - STATUS SYSTEMS
• Status is a prestige grading,
position, or rank within a group.
• Human groupings have always
had status hierarchies.
• Status is a significant motivator
that has behavioral
consequences when individuals
see a disparity between what
they perceive their status to be
and what others perceive it to
be.
• Members of groups often place
people into status categories,
and they usually agree about
who’s high, low, and in the
middle
Status is a prestige grading,
position, or rank within a
group
Status is a significant
motivator that has
behavioral
consequences
Often place people into
status categories

25.
GROUP BEHAVIOR - STATUS SYSTEMS
• The size of a group affects that
group’s behavior, depending on
what criteria you’re looking at.
• Small groups (5-7 members)
complete tasks more quickly
than larger ones do
• However, if a group is engaged in
problem solving, large groups (12
or more) consistently score
better than their smaller
counterparts
• Individual productivity of each
group member declines as the
group expands, which is known
as social loafing—reducing effort
because dispersion of
responsibility encourages
individuals to slack off

26.
GROUP BEHAVIOR - GROUP COHESIVENESS
• Group cohesiveness is the
degree to which members are
attracted to one another and
share the group’s goals.
• However, the relationship
between cohesiveness and
effectiveness is complex.
• A key moderating variable is the
degree to which the group’s
attitude aligns with its formal
goals or the goals of the larger
organization.
• The more cohesive a group, the
more its members will follow its
goals.

27.
GROUP BEHAVIOR - GROUP COHESIVENESS
• The next slide summarizes the
relationship between
cohesiveness and productivity.
• If the goals are favorable, a
cohesive group is more
productive than a less cohesive
group.
• However, if cohesiveness is high
and attitudes are unfavorable,
productivity decreases.
• If cohesiveness is low and goals
are supported, productivity
increases, but not as much as
when both cohesiveness and
support are high.
• When cohesiveness is low and
goals are not supported,
cohesiveness has no significant
effect on productivity.

28.
GROUP BEHAVIOR - GROUP COHESIVENESS

29.
FIVEMAJORCONCEPTSOFGROUPBEHAVIOR?
VideoTime–“Howtoturnagroupofstrangersintoateam”
 “Amy Edmondson studies "teaming,"
where people come together quickly
(and often temporarily) to solve new,
urgent or unusual problems.”
 Amy Edmondson, the Novartis Professor
of Leadership and Management at the
Harvard Business School, studies people
and teams seeking to make a positive
difference through the work they do.
 https://www.youtube.com/watch?v=3b
oKz0Exros

30.
HOW ARE GROUPS TURNED INTO EFFECTIVE TEAMS?
Section 3

31.
GROUPS VERSUS TEAMS
• Turning groups into effective
teams may be critical for an
organization’s survival
• The next slide indicates the
difference between a work
group and work team
• Work groups share information
and make decisions to help each
member do his or her job more
efficiently and effectively. They
do not engage in collective work
that requires joint effort.
• Work teams work intensely on a
specific, common goal using their
positive synergy, individual and
mutual accountability, and
complementary skills.

32.
GROUPS VERSUS TEAMS

33.
TYPES OF WORK TEAMS
• Teams can do a variety of things,
from designing products and
providing services to negotiating
deals and making decisions.
• The four most common types of
work teams are:
• Problem solving teams
• Self-managed work teams
• Cross-functional teams
• Virtual teams
Problem solving
teams
Self-managed
work teams
Cross-functional
teams
Virtual teams

34.
TYPES OF WORK TEAMS
• Problem-solving teams are
teams from the same
department or functional area
involved in efforts to improve
work activities or to solve specific
problems.
• Members share ideas or offer
suggestions on how work
processes and methods can be
improved, but they’re rarely
given the authority to implement
any of their suggested actions

35.
TYPES OF WORK TEAMS
• The need to get employees
involved in work-related
decisions and processes led to
the development of the self-
managed work team, which is a
formal group of employees who
operate without a manager and
are responsible for a complete
work process or segment.
• A self-managed team is
responsible for getting the work
done and for managing itself,
which usually includes planning
and scheduling work, assigning
tasks to members, collective
control over the pace of work,
making operating decisions, and
taking action on problems.

36.
TYPES OF WORK TEAMS
• The third type of team is the
cross-functional team, defined as
a work team composed of
individuals from various
specialties.
• For example, ArcelorMittal, the
world’s largest steel company,
uses cross-functional teams of
scientists, plant managers, and
salespeople to review and
monitor product innovations.

37.
TYPES OF WORK TEAMS
• The final type of team is the
virtual team.
• In a virtual team, members
collaborate online with tools
such as wide-area networks,
videoconferencing, fax, email, or
websites where the team can
hold online conferences.
• Virtual teams can do all the
things that other teams can—
share information, make
decisions, and complete tasks.
• However, they lack the normal
give-and-take of face-to-face
discussions.
• That’s why virtual teams tend to
be more task-oriented, especially
if the team members have never
personally met.

38.
TYPES OF WORK TEAMS
The next slide shows the four key
components of effective teams:
• Context
• Team’s composition
• Work design, and
• Process variables.
Effective
teams
Context
Work design
Team’s
composition
Process
variables

39.
EFFECTIVE TEAMS

40.
TEAM COMPOSITION
Several team composition factors
are important to a team’s
effectiveness. They include:
• Team member abilities
• Personality
• Role allocation
• Diversity
• Size of teams
• Member flexibility, and
• Member preferences.

41.
TEAM COMPOSITION
• Part of a team’s performance
depends on its members’
knowledge, skills, and abilities.
Research shows a team needs three
different types of skills.
• Technical expertise.
• Problem-solving and decision-
making skills.
• Interpersonal skills.
Technical
expertise
Problem-solving
and decision-
making skills
Interpersonal
skills

42.
TEAM COMPOSITION
• Nine potential team roles have been identified, as seen here in the next
slide.
• On many teams, individuals may play multiple roles.
• It’s important for managers to understand the individual strengths a person
brings to a team and to select team members with those strengths to
ensure that these roles are filled.

43.
TEAM MEMBER ROLES

44.
WORK DESIGN
• Effective teams need to work
together and take collective
responsibility for completing
tasks.
• Important work design elements
that enhance team member
motivation and increase team
effectiveness include:
• Autonomy
• Using a variety of skills
• Being able to complete a
whole and identifiable task
or product, and
• Working on a task or project
that has a significant impact
on others.

45.
TEAM PROCESSES
• Team process variables related to
team effectiveness:
• Common plan/purpose
• Specific goals
• Team efficacy
• Task conflict
• Minimal social loafing

46.
TEAM PROCESSES
• An effective team has a common
plan and purpose that provides
direction, momentum, and
commitment for team members.
• Members of successful teams put
a lot of time and effort into
discussing, shaping, and
agreeing on a purpose that
belongs to them both individually
and as a team.
• Teams also need specific goals
that facilitate clear
communication and help teams
maintain their focus on getting
results

47.
TEAM PROCESSES
• Team efficacy emerges when
teams believe in themselves and
in their members and believe
that they can succeed
• Effective teams also need some
of the right kind of conflict,
which actually improves team
effectiveness.
• Task conflicts—those based on
disagreements about task
content—can be beneficial
because they may stimulate
discussion, promote critical
assessment of problems and
options, and lead to better team
decisions.
• Note that relationship conflicts
are almost always dysfunctional.

48.
TEAM PROCESSES
• Finally, effective teams work to minimize the tendency for social loafing,
which can be avoided by making members individually and jointly
accountable for the team’s purpose, goals, and approach.

49.
SHAPING TEAM BEHAVIOR
Member selection is key.
• When hiring team members, managers
should check whether applicants have
the technical skills required to
successfully perform the job and
whether they have the interpersonal
skills to fulfill team roles.
Teamwork training
• Performing well in a team involves a set
of behaviors that can be learned from
training specialists who conduct
workshops that can cover such topics as
team problem solving, communications,
negotiations, conflict resolution, and
coaching skills.
• They also remind employees that it
takes teams take longer to do some
things—such as making decisions—than
employees acting alone would.

50.
REWARDS
• An organization’s reward system
needs to encourage cooperative
efforts rather than competitive ones.
External rewards:
• Promotions
• Pay raises
Other forms of recognition
• Inherent rewards:
• Camaraderie
• Personal development
• Helping teammates

51.
HOW ARE GROUPS TURNED INTO EFFECTIVE TEAMS?
Types Of Work Teams- Questions
• Contrast (a) self-managed and cross-functional teams and (b)
virtual and face-to-face teams.

52.
HOW ARE GROUPS TURNED INTO EFFECTIVE TEAMS?
Types Of Work Teams- Answers
Contrast (a) self-managed and cross-functional teams and (b) virtual
and face-to-face teams.
• A self-managed work team is a formal group of employees that
operates without a manager and is responsible for a complete work
process or segment that delivers a product or service to an external
or internal customer. This kind of team has control over its work
pace, determination of work assignments, etc. Fully self-managed
work teams even select their own members and evaluate
performance. As a result, supervisory positions take on decreased
importance and may even be eliminated.
• This type of team consists of employees from about the same
hierarchical level but from different work areas in the organization.
They are brought together to accomplish a particular task. Cross-
functional teams are also an effective way to allow employees from
diverse areas within an organization to exchange information,
develop new ideas, solve problems, and coordinate complex tasks.

53.
HOW ARE GROUPS TURNED INTO EFFECTIVE TEAMS?
Types Of Work Teams- Answers
Contrast (a) self-managed and cross-functional teams and (b)
virtual and face-to-face teams.
• A virtual team allows groups to meet without concern for
space or time and enables organizations to link workers
together that in the past couldn’t have been done. Team
members use technology advances to solve problems, even
though they may be geographically dispersed or a dozen time
zones away.

54.
WHAT CURRENT ISSUES DO MANAGERS FACE IN MANAGING TEAMS?
Section 4

55.
CONTEMPORARY ISSUES
• Managing global teams
• Understanding when teams aren’t the answer.

56.
GLOBAL TEAMS

57.
GLOBALTEAMS: TEAM STRUCTURE
• Some areas of team structure—
such as conformity, status, social
loafing, and cohesiveness—
require different strategies for
managing global teams

58.
GLOBAL TEAMS: TEAM PROCESSES
• The processes that global teams
use to do their work can be
particularly challenging for
managers.
• Communication issues often
arise because not all team
members may be fluent in the
team’s working language.
• Additionally, managing conflict in
global teams isn’t easy, especially
when those teams are virtual
teams

59.
WHEN TEAMS ARE NOT THE ANSWER
• Managers need to carefully
evaluate whether the work
requires or will benefit from a
collective effort.
• Three “tests” have been
suggested for making this
determination:
• Can the work be done better by
more than one person?
• Task complexity would be a good
indicator of a need for different
perspectives.
• In contrast, simple tasks that
don’t require diverse input are
probably better done by
individuals.

60.
WHEN TEAMS ARE NOT THE ANSWER
• Does the work create a common
purpose or set of goals for the people
in the group that’s more than the
sum of individual goals?
• For instance, many car dealerships
use teams to link customer-service
personnel, mechanics, parts
specialists, and sales representatives
to better meet the goal of
outstanding customer satisfaction.
• Is there interdependence between
tasks?
• A team approach is the answer when
the success of everyone depends on
the success of each person and the
success of each person depends on
the others.

61.
WHATCURRENTISSUESDOMANAGERSFACEINMANAGINGTEAMS?
VideoTime–“Crossculturalcommunication”
 “Pellegrino, is sharing with his personal
and professional experience about how
do very different cultures can
successfully coexist next to each other”.
 Rock musician, teacher, communications
consultant, cross cultural expert and
motivational speaker, Pellegrino
Riccardi has spent the last 30 years
travelling the globe as an international
keynote speaker.
 https://www.youtube.com/watch?v=YM
yofREc5Jk