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FOUNDATION
OF
GROUP
BEHAVIOUR
GROUP DYNAMICS:
 Kurt Lewin is known as the founder of group
dynamics.
 Group dynamics is concerned with the interactions of
forces among group members in a social situation.
 The term ‘group dynamics’ contains two terms: Group
and Dynamics.
MEANING OF GROUP:
 A group consists of two or more persons who interact
with each other and also they are interdependent for
the achievement of certain common objectives.
GROUP DYNAMICS…
 The members of the group are aware that they are part
of a group.
 Group of people watching India vs. Pakistan one day
cricket match will not be called as group because
people do not interact with one another, do not know
one another and also do not share a common purpose.
 Groups exist in every organisation and they affect the
behaviour of their members.
 Groups also have impact on other groups and the
organisation.
GROUP DYNAMICS…
 Groups are created by the organisation as well as by
members of the organisation for their own
satisfaction.
 Thus, groups are essential for organisations’
functioning.
 Managers need groups to co-ordinate individual
behaviour in order to attain organisational goals.
 Groups make a manager’s job easier because by
forming a group, he does not explain the task to each
and every member of the group.
GROUP DYNAMICS…
DEFINITIONS OF GROUP:
 According to Stephen P. Robbins, ‘A group may be
defined as two or more individuals, interacting and
interdependent, who have come together to achieve
particular objectives.’
 According to Marvin Shaw, ‘A group comprises of two
or more persons who interact with one another in such
a manner that each person influences and is
influenced by each other person.’
GROUP DYNAMICS…
DYNAMICS:
 It is the flow of unified activities which will lead the
group towards the establishment of group goals.
GROUP DYNAMICS:
 It refers to the study of human behaviours in a group.
CHARACTERISTICS OF GROUP:
Groups possess the following four characteristics:
1) TWO OR MORE PERSONS:
 To form a group, there should be at least two persons
because a single individual can not interact.
 However, there is no specific limit on the maximum
number of persons in a group but the size of the
group is determined by rules and regulations of the
organisation, or meaningful interaction among the
members in the case of informal groups.
CHARACTERISTICS OF GROUP…
2) COLLECTIVE IDENTITY:
 Members of the group must be aware about their
membership of the group.
 This awareness clearly differentiates a group from an
aggregation of individuals.
 In the case of aggregation of individuals, they are
generally not aware of each other. They do not interact
with each other in a meaningful way.
CHARACTERISTICS OF GROUP…
3) INTERACTION:
 Members of the group interact among themselves.
 Interaction means that each member shares his ideas
with others through communication.
 Communication may take place face to face, in writing,
over the telephone, across a computer network, or in
any other manner among group members.
CHARACTERISTICS OF GROUP…
4) COMMON PURPOSE:
 The members of the group work to achieve some
common purpose.
 In fact, it is the common purpose that binds the group
members together.
---
TYPES OF GROUPS:
 Based on the social behaviour of people, sociologists
and psychologists identify the following types of
groups:
A) FORMAL GROUP and
B) INFORMAL GROUP
TYPES OF GROUPS…
A) FORMAL GROUP:
 A formal group is one that is deliberately created to
perform a specific task.
 Members are usually appointed by the organisation.
 In this group, a hierarchy of authority exists with
specific rules and regulations for members.
 This will guide the behaviour of formal group.
TYPES OF GROUPS…
Example of formal groups:
o a committee (university’s Examination Discipline
Committee)
o work units like a department, Research and
Development Laboratory (A research project assigned
to a professor by the UGC)
o A management team
o Small assembly line
TYPES OF FORMAL GROUP…
i) COMMAND GROUP/ STANDING TASK GROUP:
 This group is permanently specified in the
organisational structure.
 It consists of a supervisor and his subordinates who
directly report to that supervisor.
 The supervisor exercises formal authority over his
subordinates.
 For example, a foreman and his group of subordinates
constitute a command group, the HOD and other
members
TYPES OF FORMAL GROUP…
ii) TASK GROUP:
 A task group is a temporary formal group.
 It is created to solve specific problems.
 This group comprises employees who work together to
complete a particular task.
 These employees do not necessarily report to the same
supervisor earlier.
 They may belong to different departments.
 They stay together till the task is completed and once the
work is completed, the members return to their respective
departments/groups.
B) INFORMAL GROUP/CLIQUE:
 It is an association which is neither formally
structured, nor organisationally determined.
 Informal groups are natural formations in the work
environment.
 These groups appear in response to the need for social
contact.
 The roles of the member are loosely defined which are
based on member’s expectations and the needs of a
group at any particular moment.
INFORMAL GROUPS …
i) INTEREST GROUP:
 An interest group is made up of individuals who may
not be the members of the same organisation but they
are united by their interest in a common issue.
 For example:
o Working mothers lobby together to provide a day care
centre for their babies on the premises and flexi time.
o A group of university professors organising a seminar.
INFORMAL GROUPS …
ii) FRIENDSHIP GROUP:
 Friendship groups are associations, composed of
people who like each other and who like to be together.
 Such groups are formed because members have one or
more common characteristics, such as, age, marital
status, religious value, political beliefs, etc.
 These groups satisfy affiliation (relationship) needs of
their members.
INFORMAL GROUPS …
iii) REFERENCE GROUP:
 A reference group is any group with which an
individual identifies for the purpose of forming
opining or making decisions.
 Reference groups are such groups which an individual
would like to belong.
 Reference groups are the bases for many interests.
 Reference groups are based on factors like Race,
Gender, Politics, Religion, Social class, Education level,
Profession and the like.
 For example, the reference group for a new university
lecturer, may be other lecturers in the same discipline
working in other university.
INFORMAL GROUPS …
iv) OPEN AND CLOSED GROUPS:
 Another basis for classifying informal groups is
whether they are open or closed.
 Open group is in a constant state of change.
 In open group, members keep changing – new
members joining and existing ones leaving.
 A good deal of time is devoted to socialising new
members.
 Open group has relatively a short time perspective.
INFORMAL GROUPS …
 A closed group maintains a relatively stable
membership with few additions and losses in
members over time.
 Power and status relationships are usually well
established and fixed in closed group.
 Generally a closed group does not change its
established perspectives.
 Members, because of their long association with
closed groups, are able to recollect the history of the
group.
 They also have long term planning.
INFORMAL GROUPS …
v) IN GROUPS & OUT GROUPS:
 The groups to which we belong are in-groups and
groups to which we do not belong are out-groups.
 The in-group versus out-group concept is applicable to
friendly rivalries between schools, clubs and
associations.
 In-group and out-group concept is also applicable to
much more hostile groups like wars between nations.
---
WHY DO PEOPLE JOIN GROUPS?
 There is no single reason why individuals join groups.
 Generally people belong to a number of groups.
 Different groups offer different attractions and
benefits to their members.
 The popular reasons for joining a group are described
as follows:
WHY DO PEOPLE JOIN GROUPS…
1) SECURITY:
 Groups provide security.
 Probably, it is the strongest reason for group formation.
 By joining a group, one can reduce insecurity, feel stronger
and is more resistant to threats.
 No employee likes to stay alone.
 He derives reassurance from interacting with others and
being a part of the group.
 If management creates an environment in which
employees feel insecure, they form union in order to
reduce their feeling of insecurity.
WHY DO PEOPLE JOIN GROUPS…
2) ESTEEM NEEDS:
 An individual can increase his self esteem through group
membership.
 First, one may gain esteem by becoming a member of a
high status group.
 A person belonging to high status group is usually given a
high status by outsiders.
 Second, the close relationship provides opportunities for
recognition and praise which are not available outside the
group.
 When one does a good piece of work, gets praise from
others.
WHY DO PEOPLE JOIN GROUPS…
3) POWER:
 Membership of a group offers power to the member in
following two ways.
 First, there are sayings such as, ‘United we stand, divided
we fall’ and ‘There is strength in numbers.’
 These are driving forces behind formation of union in
organisation.
 Workers enjoy greater power collectively than they do as
individuals.
 Second, leadership of an informal group enables an
individual to exercise power over group members, even if
he does not enjoy a formal position of authority in the
organisation.
WHY DO PEOPLE JOIN GROUPS…
4) IDENTITY:
 Group membership contributes to the individual’s
quest for an answer to the question - “Who am I?”.
 We try to understand ourselves through the behaviour
of others towards us.
 If others praise us, we feel we are great, if others enjoy
our jokes, we see ourselves as funny persons, and so
on.
WHY DO PEOPLE JOIN GROUPS…
5) AFFILIATION:
 People enjoy the affiliation of other people having
common interests.
 They like to be with others who have common hobbies
or common backgrounds.
 Groups satisfy a number of social needs.
 Generally, people prefer to remain absent from
workplace where they are not able to belong to groups.
WHY DO PEOPLE JOIN GROUPS…
6) HUDDLING:
 In bureaucracy the informal get-together of executives is
called huddling.
 Through huddling, the executives try to get something
done.
 It enables executives to deal with important matters and
minimise the amount of surprise.
 Huddling reduces red tapism by cutting through
hierarchical channels of communication and minimises
misunderstandings.
 It helps to get the things done quickly.
---
THE FIVE STAGE
MODEL OF
GROUP
DEVELOPMENT
THE FIVE STAGE MODEL OF GROUP DEVELOPMENT:
 Groups are formed and developed through several
stages.
 Once formed, working relationships develop within
the groups.
 Some groups grow and mature, and others become
stagnant.
 Different models of group development have been
suggested but out of these the Five Stage Model of
Group Development suggested by Tuckman is the
prominent one.
THE FIVE STAGE MODEL OF GROUP DEVELOPMENT…
 A group in its evolution has to pass through five
distinct stages.
 Each of these stages is identified with task and
maintenance related issues. These phases are as
follows:
THE FIVE STAGE MODEL OF GROUP DEVELOPMENT…
1. FORMING:
 Forming is the first stage of group development.
 This is the beginning of a group where there is a great
deal of difficulties arise as regards objectives and goals,
framing of rules and regulations, taking the members
into confidence, framing the structure, deciding about
the leadership issue, tackling the differences among
members.
 There is a great deal of uncertainty appears over group
formation.
THE FIVE STAGE MODEL OF GROUP DEVELOPMENT…
 This is the orientation period the group is passing
through.
 This is a chaotic stage.
 The purpose, activities and priorities need to be
defined and redefined during this stage.
 During this stage members of group select their leader
or allow emerging the leader.
 When leadership is decided upon another stage
begins. This stage is known as storming.
THE FIVE STAGE MODEL OF GROUP DEVELOPMENT…
2. STORMING:
 Storming is a stage where conflicts arise.
 It is the testing time for group leader to pacify and
resolve the conflicts between the members of group
which have arisen because of interpersonal behaviour.
 There are chances of split in the group.
 The leader has to accept the challenge and settle the
disputes and get the members to bury the differences.
 Storming is the stage of struggles.
THE FIVE STAGE MODEL OF GROUP DEVELOPMENT…
 There is tension and hostility among members.
 Some have strong resistance to certain opinion or
issue.
 Everything has to be settled out then the development
of group leads to the third stage of norming.
THE FIVE STAGE MODEL OF GROUP DEVELOPMENT…
3. NORMING:
 Leadership gets established under this stage resulting
into group cohesion.
 Group gets organised.
 Members of the group start believing each other and
mutual understanding develops.
 A sense of belonging to the group and togetherness
become stronger.
THE FIVE STAGE MODEL OF GROUP DEVELOPMENT…
 The conflicts and misunderstandings get resolved.
 Consensuses among members over the leadership and
goals emerge and members feel cohesive.
 The members start identifying with the group.
 This is norming stage now leads to performing stage of
group development.
THE FIVE STAGE MODEL OF GROUP DEVELOPMENT…
4. PERFORMING:
 Under performing stage the interpersonal relationship
among members is booming and they establish
intimacy.
 They start opening up their hearts to each other.
 The members try to relieve their fellow members of
their tension arising out of dissatisfaction.
 The group starts working as a team and freely
interacts.
THE FIVE STAGE MODEL OF GROUP DEVELOPMENT…
 People don’t raise minor differences.
 Members think that if they raise minor issues conflict
may erupt.
 They want to set aside all such issues.
 Group members attain maturity.
 They help each other and understand each other
better to have better job performance.
 They understand their limits and nature of their
involvement make decisions rationally.
THE FIVE STAGE MODEL OF GROUP DEVELOPMENT…
5. ADJOURNING:
 For temporary groups, another stage is added called
adjourning.
 For temporary task forces, and similar other groups,
which have specific tasks to perform, adjourning is the
last stage of group development.
 In temporary groups, members have to abandon their
membership in the group, once the tasks have been
completed.
THE FIVE STAGE MODEL OF GROUP DEVELOPMENT…
 Hence, this stage creates a lot of mixed feelings in
terms of excitement for being able to complete the task
effectively and melancholy for terminating the
existence of membership in the group.
THE FIVE STAGE MODEL OF GROUP DEVELOPMENT…
 The following figure is a presentation of Tuckman’s
model of group development.
 Tuckman’s model is a linear model of group formation.
 Time is an important factor in determining the
effectiveness of this mode.
GROUP COHESIVENESS:
 Group cohesiveness is the extent of liking each
member has towards others and how far every one
wants to remain as a member of the group.
 Persons in a highly cohesive group value their
membership and strive to maintain positive
relationship with other group members.
 Cohesiveness binds all group members to work as one
man to attain the set goals.
FACTORS INFLUENCING GROUP COHESIVENESS:
Group cohesiveness can be affected by following factors:
1) INTERACTION:
 Group cohesiveness depends on possibilities of
frequent interaction.
 The group members become more cohesive when
individual members spend more time with each other.
FACTORS INFLUENCING GROUP COHESIVENESS…
2) SIZE:
 It is well known that as group size increases, cohesiveness
tends to decrease.
 This effect comes about in at least three ways:
 First, in large size group possibilities of interactions
among members are less.
 Second, as group size increases, it becomes more difficult
to make the group to agree on common goals and activities
and expression of disagreement and dissatisfaction
increases.
 Third, as group size increases, there is the need for
division of labour, and this places certain restrictions on
inter-group communication and leads to decrease in
common activities.
FACTORS INFLUENCING GROUP COHESIVENESS…
3) SHARED GOALS:
 Groups which share common goals are likely to be
more cohesive than the groups which do not share
common goals.
 If the group agrees on the goals and direction of its
objectives, this will bind the group together.
FACTORS INFLUENCING GROUP COHESIVENESS…
4) THREAT:
 Threat also affects group cohesiveness.
 Threat is a powerful unifier particularly in the
following situations:
o When threat comes from outside the group.
o When there is little or no chance for escape.
o When co-operation can help to over come the threat.
FACTORS INFLUENCING GROUP COHESIVENESS…
5) ATTITUDES AND VALUES:
 One of the strongest sources of group cohesiveness is
shared attitudes and values among group members.
 The following two reasons explain why we are attracted to
people like ourselves.
 First, the person, who has the same opinion as we have,
provides us with a kind of social validation for our beliefs.
He provides us with a feeling that we are right.
 If some one disagrees with us, this suggests us that we are
wrong.
 Second, we make certain negative inference about the
person who disagrees with us on important issues.
 If we disagree with the person on this issue, we feel that we
shall disagree with him on other issues.
---
CONSEQUENCES OF GROUP COHESIVENESS:
1) Cohesiveness affects the productivity of the group
members.
 The productivity of a cohesive group is higher than that of
a less cohesive group.
 Highly cohesive group members have lower absenteeism
and low rate of labour turnover.
2) In a highly cohesive group, there will be a high degree of
acceptance and mutual attraction among the group
members.
 This will result in less friction and less tension among the
members.
 The level of satisfaction of individual members is high in
cohesive group.
CONSEQUENCES OF GROUP COHESIVENESS…
3) Each member of the cohesive group likes the other
member.
 For which conflicts are less and there is better
communication among the members of the cohesive
group.
4) Member of a highly cohesive group like to learn from
each other.
 They share ideologies.
 They communicate with each other.
 They give emphasis on successful accomplishment of
group objectives.
 Members take pride in the success of the group. ---
IMPLICATIONS OF COHESIVENESS FOR MANAGERS:
1) Cohesive group, being united, commands control
over its members.
 Cohesiveness enables the group to have a powerful
bargaining power.
2) If the cohesive groups are not managed and
motivated effectively, its productivity is sure to be
low.
 So, manager has to handle the cohesive group
carefully. ---
STATUS CONGRUENCE:
 Status is defined as a social ranking within a group.
 Status is assigned to an individual on the basis of
position in the group.
 The professor in a university has a better status than a
lecturer.
 A person is given status because of some personal
characteristics such as age, sex, skill, education,
seniority, etc.
 Status congruence is the agreement between group
members on the level of status of individual members.
STATUS CONGRUENCE…
 When there is full agreement on member status levels
(status congruence) the major activity of the group is
directed towards goal accomplishment.
 However, when there is disagreement on member
status level within the group, some group activity is
diverted from goal accomplishment and directed
towards resolving this conflict.
---
DECISION MAKING:
 Decision making is a part of our everyday life.
 For example, some one has taken up a course in B.Tech. or
he is reading a book for a subject, are the products of his
decisions to do these as against other alternatives which
were available to him.
 Whether a person is in meeting or in a play ground he is
making decisions.
 A few of these decisions may be a major decision and a few
may be minor decision.
 Some of these decisions might have proved to be effective
decisions - appropriate, timely and acceptable.
 Some decisions may be wrong. However, indecision is
worse than a few wrong decisions.
DECISION MAKING…
 Decision making is one of the primary responsibilities
of a manager.
 It involves allocation of resources, appointment of
people, investment of capital, or introduction of new
products.
 If resources like man, machine, material, money, time,
and space were abundant, decision making would not
be necessary.
 But, resources are scarce, so there is the need for
decision making.
 Decision making is at the core of all planned activities.
MEANING OF DECISION MAKING:
 Decision making is defined as the process of
selecting the best alternative among the available
alternatives.
DEFINITION:
 George R. Terry, “Decision making is the
selection based on some criteria from two or more
possible alternatives.”
CHRACTERISTICS OF DECISION MAKING:
The characteristics of decision-making are:
1) Decision making is a selection process.
 The best alternative is selected out of many
alternatives.
 If there is only one alternative, there is no decision
making.
2) Decision-making is the end process.
 Decision-making is preceded by detailed discussion
and selection of alternatives.
3) Decision-making is the application of intellectual
abilities to a great extent.
 An intelligent man alone can take a good decision.
CHRACTERISTICS OF DECISION MAKING…
4) Decision gives happiness to an endeavour. The
decision maker takes various steps to collect all the
information which is likely to affect a decision.
5) Decision making is a dynamic process.
 An individual takes a number of decisions each day.
6) Decision-making is situational.
 An individual takes decision according to the
situations prevailing.
 Different decisions may be taken to solve the same
problem.
 The reason is that the situation is changed from time
to time.
CHRACTERISTICS OF DECISION MAKING…
7) Decision is taken to achieve the objectives of an
organisation.
8) Decision-maker has the freedom to take a decision
which involves the use of resources.
9) Decision-making involves the evaluation of available
alternatives through critical appraisal methods.
10) A decision may be both negative or positive.
 A decision may direct others to do or not to do.
---
PROCESS OF DECISION MAKING:
The process of decision making involves the following four
steps:
1) DIAGNOSING THE PROBLEM:
 The first step in decision making is to diagnose the
problems.
 There are large number of symptoms which may not be the
real problem.
 Hence, first step is to recognise and identify the real
problem, not simply the symptoms.
 It is just like a job of physician analysing all the symptoms
before identifying the cause of illness.
 For example, a manager notices a symptom of reduction in
production.
PROCESS OF DECISION MAKING…
 The problem of reduction in production may be due
to
o reduction in the availability of raw material,
o reduction in power,
o labour crisis,
o rising inefficiency in the plant or in employees.
 To solve the difficult problem, it is to be broken in to
different parts for easier diagnosis and solution.
 A variety of causes may be responsible for each part.
 Also it is to be found out whether it is controllable or
not, if so then who will control and how it is to be
controlled.
PROCESS OF DECISION MAKING…
2) DEVELOP THE ALTERNATIVES:
 Generally a problem has more than one alternative
solution and it is very rare that a problem has only one
solution.
 Without alternative solution, there is no decision to be
made.
 To find out possible solutions we must keep our minds
open.
 Ideas comes from experience, suggestions from co-workers,
managers and others.
 Doing nothing and postponing the decision to a later date
is also an alternative solution.
PROCESS OF DECISION MAKING…
3. EVALUATE THE ALTERNATIVES AND SELECT THE
BEST ONE:
 After developing different alternatives next step in decision
making is to evaluate the consequences of each proposed
alternatives.
 Decision depends very much on the skill and care used in
evaluating each alternative.
 After alternatives are identified, they are needed to be
evaluated.
 The factors like Feasibility of an alternative, Probability of
success of the alternative and Consequences of the
alternative on the organisation help to evaluate the
alternatives.
PROCESS OF DECISION MAKING…
 In the process of decision making we have to forecast
what will happen if a certain alternative is adopted.
 While evaluating the impact of alternative we must
keep in mind all the limitations of the concern.
 The best alternative is selected by comparing the
merits and demerits of each alternative.
 Decision maker must also consider Degree of risk,
Availability of resources, Limitations and Time
required for implementation of the alternative.
PROCESS OF DECISION MAKING…
4)IMPLEMENT AND MONITOR THE BEST
ALTERNATIVE:
 It is the last step in the process of decision making.
 Implementing a decision involves more than giving
necessary orders.
 The resources, which are required to implement the best
alternative, must be acquired and allocated.
 Schedules are to be drawn for implementing the best
alternative.
 The decision maker actually makes the decision but he
himself does not apply it.
 Hence, the decision must be communicated to the persons
implementing it in a simple, clear and easily
understandable language.
PROCESS OF DECISION MAKING…
 For better implementation, it is necessary that
subordinates must feel sense of participation for which
they may be associated at some stage in decision
making process.
 In the beginning, the decision maker himself must
take personal interest in implementing the decision.
 Implementation is important because if
implementation is wrong, then a good decision may go
wrong.
 Actions taken to implement the best alternative must
be monitored.
PROCESS OF DECISION MAKING…
 Following questions must be looked out so far as
monitoring is concerned:
o Are things working according to plan?
o What is happening to external and internal
environment as a result of implementing the best
alternative?
o Are subordinates working according to
expectations?
---
GROUP DECISION MAKING:
 When decision is made by a group, it is called
group decision making.
 Group decision making can be either through the
Consensus Mode ‘or’ through Majority Vote.
 If all members of the group agree to the decision
arrived, it is called “Consensus Mode”.
 If majority of the group members agree, it is called
“Majority Vote”.
ADVANTAGES OF GROUP DECISION MAKING:
i) Compared to an individual, the group usually has a
greater knowledge, expertise and skill base to make
better decisions.
ii) Large number of members provide more perspectives
of the problem.
As such, the narrow vision of a single perspective is
avoided in making decisions.
iii) As larger number of members participate in group
decision making process possibility of reaching at a
quality decision also increases.
iv) Following increased group participation,
comprehension of final decision is usually high.
---
DISADVANTAGES OF GROUP DECISION MAKING:
It suffers from the following disadvantages:
i) Group decision making is a time consuming
process.
ii) Influencing a group means manipulating the
group decision in a direction of one’s liking and
interest.
iii) Sometimes decisions made by the group
members are simply a compromise between the
various views and options offered by the group
members. ---
TECHNIQUES OF GROUP DECISION MAKING:
 The following techniques are followed for group
decision making:
1. BRAIN STORMING
2. NOMINAL GROUP TECHNIQUE (NGT)
3. DELPHI TECHNIQUE
4. CONSENSUS MAPPING
5. QUALITY CIRCLES (QCs)
TECHNIQUES OF GROUP DECISION MAKING…
1) BRAIN STORMING:
 This idea was developed by Alex Faickney Osborn in
1938 in an American company for encouraging creative
thinking in groups of six or eight people.
 According to Osborn, brain storming means using the
brain to storm the problem.
 In brain storming, the participants are connected with the
problem closely.
 In a more simple way, brain storming refers to the idea
generating process that encourages an alternative by
withholding the criticism of alternatives.
 It involves people sitting in a room.
 The main stress is on giving new ideas rather than
analysis of ideas.
TECHNIQUES OF GROUP DECISION MAKING…
 After a number of ideas are gathered, the stress is to find
the best and unique solution among them.
 Every idea is presented on projector so that it is visible to
every member and any rectification can be easily made by
the members.
 The leader of the group generally illustrate the problem to
various members.
 Brain storming is based on the following guidelines:
i) Generate as many ideas as possible.
 Every idea is considered.
 There is no restriction of giving the idea.
 Sometimes from all such ideas, a unique solution is
obtained.
TECHNIQUES OF GROUP DECISION MAKING…
ii) Members are encouraged to modify the suggestion given
by other.
 This process can rectify the idea suggested by the
members.
iii) No suggestion can be criticised unless all suggestions
have been obtained.
iv) More suggestions can be gathered by brain storming.
 This technique is quite strong in solving a definite and
simple problem, but when problem becomes complex,
solution can be evaluated by breaking it into parts and
after that each part can be taken one by one.
TECHNIQUES OF GROUP DECISION MAKING…
 The main drawback of brain storming is that it is a
lengthy process.
 But the main benefit is that it has all member
participation, i. e., all levels manager, subordinates and
supervisors.
 So, it motivates all and they feel that they are integral part
of the organisation.
 Effectiveness should not be judged at the beginning stage.
 The quality of a suggestion can only be known at the end.
 The success of brain storming depends on each member’s
capacity and willingness to listen others’ thoughts, and to
use these thoughts to spark new ideas of their own, and
then feel free to express them. Brain storming sessions last
from ten minutes to one hour and do not require much
preparation. ---
TECHNIQUES OF GROUP DECISION MAKING…
2) NOMINAL GROUP TECHNIQUE (NGT):
 This technique is used when a high degree of
innovation and idea generation is required.
 A nominal group exists in the name only as the
members have minimum interaction before
producing a decision.
 This technique is highly structured and contains the
following steps:
i) Around six to ten participants are brought together
and presented with a problem.
ii) They develop solutions independently and write on
cards.
TECHNIQUES OF GROUP DECISION MAKING…
iii) Their ideas are shared with others in a structured
format (e.g. , a round robin process that ensures all
members get the opportunity to present their ideas).
 There is no discussion.
 The ideas are put on a blackboard or flip chart for all to
see.
iv) Brief time is allotted so that questions can be asked
but only for clarification.
v) Group members individually designate their
preferences for the best alternatives by secret ballot.
vi) The group decision is announced.
TECHNIQUES OF GROUP DECISION MAKING…
ADVANTAGE:
o The NGT helps to overcome the negative effects of
power and status differences among group members.
o There is no chance of domination by any member.
o It can be used to explore problems to generate
alternatives, or to evaluate them.
DISADVANTAGE:
o The primary disadvantage of NGT lies in its structured
nature, which may limit creativity.
o The group members may feel frustrated as they do not
get any opportunity to benefit from cross-fertilisation
of ideas. ---
TECHNIQUES OF GROUP DECISION MAKING…
3) DELPHI TECHNIQUE:
 The name “Delphi” indicates a shrine at which the ancient
Greeks used to pray for information about the future.
 It is a modified version of brain storming technique but
the difference is that in brainstorming all persons are
present at one place while in Delphi method, it is not a
necessary condition.
 In Delphi technique, members are scattered over and they
do not have face to face interaction for decision making.
 Members are selected because they are experts in the
relevant field.
 For example, environment experts are asked to put their
suggestion on pollution after fifty years.
TECHNIQUES OF GROUP DECISION MAKING…
 All information is then sent back to these experts.
 After seeing the information, they make suggestions for its
further improvement.
 This process is repeated until consensus is reached.
 Generally, the following steps are followed in Delphi
technique.
i) After considering the problem, some questions are
selected and a questionnaire is prepared.
ii) Questionnaire is sent to the experts and they are given
time to submit their suggestions.
 Then the experts send their suggestions to the organiser.
TECHNIQUES OF GROUP DECISION MAKING…
iii) After receiving the suggestions for the first
questionnaire, another questionnaire is to be derived
from the first questionnaire and then it is sent to all
the experts.
iv) The experts again after giving their suggestion, send
back it to the organiser who then again derive a third
questionnaire which is again sent to the experts who
again after answering, send them back to the organiser
and process of making questionnaire and suggestion
obtained continue till a consensus is made.
TECHNIQUES OF GROUP DECISION MAKING…
 The effectiveness of the Delphi technique depends
on adequate time, participants’ expertise,
communication skill and motivation of members
to immerse themselves in the task.
 This type of technique can not be used for a
definite problem.
 This involves the story of anticipating effects on
society in future of the work done in that area.
---
TECHNIQUES OF GROUP DECISION MAKING…
4) CONSENSUS MAPPING:
 In this technique of group decision making, an
attempt is made to arrive at a decision by pooling the
ideas together generated by several task groups.
 A task group consists of several task sub-groups.
 Consensus Mapping begins with developing ideas by a
task sub-group.
 The facilitators encourage participants to further
develop clusters of ideas.
 The ideas generated by the task-sub-group are
developed and narrowed in smaller number of ideas.
TECHNIQUES OF GROUP DECISION MAKING…
 Then all ideas are consolidated into a representative
structure called “Straw man map”.
 Straw man map is further narrowed down to arrive at a
mutually acceptable solution.
 Consensus mapping is best suited for :
o Problems that are multi-dimensional,
o Problems that have inter connected relationships and
o Problems involve many sequential steps in problem
solving.
 Consensus mapping is a qualitative approach.
 This technique is conducted in small task teams of five to
nine participants. ---
TECHNIQUES OF GROUP DECISION MAKING…
5) QUALITY CIRCLES (QCs):
 Quality circles are small teams of 7 to 10 employees, from
the same department.
 The supervisor of the department serves as the quality
circle leader.
 Among the members one will act as facilitator who guides
the QC through the problem solving process.
 The members of a quality circle meet for a few hours each
week.
 They identify quality and productive problems.
 They propose solutions to management and if necessary
monitor the implementation and consequences of these
solutions in their work area.
TECHNIQUES OF GROUP DECISION MAKING…
 They also consider other issues like cost, safety and
management.
 Management listens to periodic presentations and
recommendations of Quality Circles.
 Monetary rewards are also given to the Quality Circles for
their suggestions but not always.
Advantages of Quality Circles:
o Employees are involved in decision making.
This privilege helps them to acquire communication and
analytical skills and improves efficiency at workplace.
o Because the Quality Circle programme is voluntary,
employees and unions do not view them as another cost-
saving effort.
TECHNIQUES OF GROUP DECISION MAKING…
o Quality Circle members enhance their chances of
promotion to supervisory positions.
Quality Circles were introduced for the first time in Japan
in early 1960s.
 Then Quality Circles have spread all over the world.
 In India too, they are being introduced in several firms like
BHEL, BEL, SKF, Mahindra & Mahindra, etc.
 Experience in Indian industries has been a mixed one.
Mahindra Jeeps Division has 76 QCs. Here the experience
of QCs is favourable.
 The technical problems that had plagued the process since
its inception were solved eight months after the first
Quality Circle was formed in Mahindra.
TECHNIQUES OF GROUP DECISION MAKING…
 Quality Circle members feel confident and gain
satisfaction as they are being recognised.
 On the flip side, the employee representatives may
view Quality Circle as an attempt to wean
employees away from the unions.
---
6TH OB Foundation of Group Behaviour (1).pptx

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6TH OB Foundation of Group Behaviour (1).pptx

  • 2.
  • 3.
  • 4.
  • 5. GROUP DYNAMICS:  Kurt Lewin is known as the founder of group dynamics.  Group dynamics is concerned with the interactions of forces among group members in a social situation.  The term ‘group dynamics’ contains two terms: Group and Dynamics. MEANING OF GROUP:  A group consists of two or more persons who interact with each other and also they are interdependent for the achievement of certain common objectives.
  • 6. GROUP DYNAMICS…  The members of the group are aware that they are part of a group.  Group of people watching India vs. Pakistan one day cricket match will not be called as group because people do not interact with one another, do not know one another and also do not share a common purpose.  Groups exist in every organisation and they affect the behaviour of their members.  Groups also have impact on other groups and the organisation.
  • 7. GROUP DYNAMICS…  Groups are created by the organisation as well as by members of the organisation for their own satisfaction.  Thus, groups are essential for organisations’ functioning.  Managers need groups to co-ordinate individual behaviour in order to attain organisational goals.  Groups make a manager’s job easier because by forming a group, he does not explain the task to each and every member of the group.
  • 8. GROUP DYNAMICS… DEFINITIONS OF GROUP:  According to Stephen P. Robbins, ‘A group may be defined as two or more individuals, interacting and interdependent, who have come together to achieve particular objectives.’  According to Marvin Shaw, ‘A group comprises of two or more persons who interact with one another in such a manner that each person influences and is influenced by each other person.’
  • 9. GROUP DYNAMICS… DYNAMICS:  It is the flow of unified activities which will lead the group towards the establishment of group goals. GROUP DYNAMICS:  It refers to the study of human behaviours in a group.
  • 10. CHARACTERISTICS OF GROUP: Groups possess the following four characteristics: 1) TWO OR MORE PERSONS:  To form a group, there should be at least two persons because a single individual can not interact.  However, there is no specific limit on the maximum number of persons in a group but the size of the group is determined by rules and regulations of the organisation, or meaningful interaction among the members in the case of informal groups.
  • 11. CHARACTERISTICS OF GROUP… 2) COLLECTIVE IDENTITY:  Members of the group must be aware about their membership of the group.  This awareness clearly differentiates a group from an aggregation of individuals.  In the case of aggregation of individuals, they are generally not aware of each other. They do not interact with each other in a meaningful way.
  • 12. CHARACTERISTICS OF GROUP… 3) INTERACTION:  Members of the group interact among themselves.  Interaction means that each member shares his ideas with others through communication.  Communication may take place face to face, in writing, over the telephone, across a computer network, or in any other manner among group members.
  • 13. CHARACTERISTICS OF GROUP… 4) COMMON PURPOSE:  The members of the group work to achieve some common purpose.  In fact, it is the common purpose that binds the group members together. ---
  • 14. TYPES OF GROUPS:  Based on the social behaviour of people, sociologists and psychologists identify the following types of groups: A) FORMAL GROUP and B) INFORMAL GROUP
  • 15. TYPES OF GROUPS… A) FORMAL GROUP:  A formal group is one that is deliberately created to perform a specific task.  Members are usually appointed by the organisation.  In this group, a hierarchy of authority exists with specific rules and regulations for members.  This will guide the behaviour of formal group.
  • 16. TYPES OF GROUPS… Example of formal groups: o a committee (university’s Examination Discipline Committee) o work units like a department, Research and Development Laboratory (A research project assigned to a professor by the UGC) o A management team o Small assembly line
  • 17. TYPES OF FORMAL GROUP… i) COMMAND GROUP/ STANDING TASK GROUP:  This group is permanently specified in the organisational structure.  It consists of a supervisor and his subordinates who directly report to that supervisor.  The supervisor exercises formal authority over his subordinates.  For example, a foreman and his group of subordinates constitute a command group, the HOD and other members
  • 18. TYPES OF FORMAL GROUP… ii) TASK GROUP:  A task group is a temporary formal group.  It is created to solve specific problems.  This group comprises employees who work together to complete a particular task.  These employees do not necessarily report to the same supervisor earlier.  They may belong to different departments.  They stay together till the task is completed and once the work is completed, the members return to their respective departments/groups.
  • 19. B) INFORMAL GROUP/CLIQUE:  It is an association which is neither formally structured, nor organisationally determined.  Informal groups are natural formations in the work environment.  These groups appear in response to the need for social contact.  The roles of the member are loosely defined which are based on member’s expectations and the needs of a group at any particular moment.
  • 20. INFORMAL GROUPS … i) INTEREST GROUP:  An interest group is made up of individuals who may not be the members of the same organisation but they are united by their interest in a common issue.  For example: o Working mothers lobby together to provide a day care centre for their babies on the premises and flexi time. o A group of university professors organising a seminar.
  • 21. INFORMAL GROUPS … ii) FRIENDSHIP GROUP:  Friendship groups are associations, composed of people who like each other and who like to be together.  Such groups are formed because members have one or more common characteristics, such as, age, marital status, religious value, political beliefs, etc.  These groups satisfy affiliation (relationship) needs of their members.
  • 22. INFORMAL GROUPS … iii) REFERENCE GROUP:  A reference group is any group with which an individual identifies for the purpose of forming opining or making decisions.  Reference groups are such groups which an individual would like to belong.  Reference groups are the bases for many interests.  Reference groups are based on factors like Race, Gender, Politics, Religion, Social class, Education level, Profession and the like.  For example, the reference group for a new university lecturer, may be other lecturers in the same discipline working in other university.
  • 23. INFORMAL GROUPS … iv) OPEN AND CLOSED GROUPS:  Another basis for classifying informal groups is whether they are open or closed.  Open group is in a constant state of change.  In open group, members keep changing – new members joining and existing ones leaving.  A good deal of time is devoted to socialising new members.  Open group has relatively a short time perspective.
  • 24. INFORMAL GROUPS …  A closed group maintains a relatively stable membership with few additions and losses in members over time.  Power and status relationships are usually well established and fixed in closed group.  Generally a closed group does not change its established perspectives.  Members, because of their long association with closed groups, are able to recollect the history of the group.  They also have long term planning.
  • 25. INFORMAL GROUPS … v) IN GROUPS & OUT GROUPS:  The groups to which we belong are in-groups and groups to which we do not belong are out-groups.  The in-group versus out-group concept is applicable to friendly rivalries between schools, clubs and associations.  In-group and out-group concept is also applicable to much more hostile groups like wars between nations. ---
  • 26. WHY DO PEOPLE JOIN GROUPS?  There is no single reason why individuals join groups.  Generally people belong to a number of groups.  Different groups offer different attractions and benefits to their members.  The popular reasons for joining a group are described as follows:
  • 27. WHY DO PEOPLE JOIN GROUPS… 1) SECURITY:  Groups provide security.  Probably, it is the strongest reason for group formation.  By joining a group, one can reduce insecurity, feel stronger and is more resistant to threats.  No employee likes to stay alone.  He derives reassurance from interacting with others and being a part of the group.  If management creates an environment in which employees feel insecure, they form union in order to reduce their feeling of insecurity.
  • 28. WHY DO PEOPLE JOIN GROUPS… 2) ESTEEM NEEDS:  An individual can increase his self esteem through group membership.  First, one may gain esteem by becoming a member of a high status group.  A person belonging to high status group is usually given a high status by outsiders.  Second, the close relationship provides opportunities for recognition and praise which are not available outside the group.  When one does a good piece of work, gets praise from others.
  • 29. WHY DO PEOPLE JOIN GROUPS… 3) POWER:  Membership of a group offers power to the member in following two ways.  First, there are sayings such as, ‘United we stand, divided we fall’ and ‘There is strength in numbers.’  These are driving forces behind formation of union in organisation.  Workers enjoy greater power collectively than they do as individuals.  Second, leadership of an informal group enables an individual to exercise power over group members, even if he does not enjoy a formal position of authority in the organisation.
  • 30. WHY DO PEOPLE JOIN GROUPS… 4) IDENTITY:  Group membership contributes to the individual’s quest for an answer to the question - “Who am I?”.  We try to understand ourselves through the behaviour of others towards us.  If others praise us, we feel we are great, if others enjoy our jokes, we see ourselves as funny persons, and so on.
  • 31. WHY DO PEOPLE JOIN GROUPS… 5) AFFILIATION:  People enjoy the affiliation of other people having common interests.  They like to be with others who have common hobbies or common backgrounds.  Groups satisfy a number of social needs.  Generally, people prefer to remain absent from workplace where they are not able to belong to groups.
  • 32. WHY DO PEOPLE JOIN GROUPS… 6) HUDDLING:  In bureaucracy the informal get-together of executives is called huddling.  Through huddling, the executives try to get something done.  It enables executives to deal with important matters and minimise the amount of surprise.  Huddling reduces red tapism by cutting through hierarchical channels of communication and minimises misunderstandings.  It helps to get the things done quickly. ---
  • 33. THE FIVE STAGE MODEL OF GROUP DEVELOPMENT
  • 34.
  • 35. THE FIVE STAGE MODEL OF GROUP DEVELOPMENT:  Groups are formed and developed through several stages.  Once formed, working relationships develop within the groups.  Some groups grow and mature, and others become stagnant.  Different models of group development have been suggested but out of these the Five Stage Model of Group Development suggested by Tuckman is the prominent one.
  • 36. THE FIVE STAGE MODEL OF GROUP DEVELOPMENT…  A group in its evolution has to pass through five distinct stages.  Each of these stages is identified with task and maintenance related issues. These phases are as follows:
  • 37.
  • 38. THE FIVE STAGE MODEL OF GROUP DEVELOPMENT… 1. FORMING:  Forming is the first stage of group development.  This is the beginning of a group where there is a great deal of difficulties arise as regards objectives and goals, framing of rules and regulations, taking the members into confidence, framing the structure, deciding about the leadership issue, tackling the differences among members.  There is a great deal of uncertainty appears over group formation.
  • 39. THE FIVE STAGE MODEL OF GROUP DEVELOPMENT…  This is the orientation period the group is passing through.  This is a chaotic stage.  The purpose, activities and priorities need to be defined and redefined during this stage.  During this stage members of group select their leader or allow emerging the leader.  When leadership is decided upon another stage begins. This stage is known as storming.
  • 40. THE FIVE STAGE MODEL OF GROUP DEVELOPMENT… 2. STORMING:  Storming is a stage where conflicts arise.  It is the testing time for group leader to pacify and resolve the conflicts between the members of group which have arisen because of interpersonal behaviour.  There are chances of split in the group.  The leader has to accept the challenge and settle the disputes and get the members to bury the differences.  Storming is the stage of struggles.
  • 41. THE FIVE STAGE MODEL OF GROUP DEVELOPMENT…  There is tension and hostility among members.  Some have strong resistance to certain opinion or issue.  Everything has to be settled out then the development of group leads to the third stage of norming.
  • 42. THE FIVE STAGE MODEL OF GROUP DEVELOPMENT… 3. NORMING:  Leadership gets established under this stage resulting into group cohesion.  Group gets organised.  Members of the group start believing each other and mutual understanding develops.  A sense of belonging to the group and togetherness become stronger.
  • 43. THE FIVE STAGE MODEL OF GROUP DEVELOPMENT…  The conflicts and misunderstandings get resolved.  Consensuses among members over the leadership and goals emerge and members feel cohesive.  The members start identifying with the group.  This is norming stage now leads to performing stage of group development.
  • 44. THE FIVE STAGE MODEL OF GROUP DEVELOPMENT… 4. PERFORMING:  Under performing stage the interpersonal relationship among members is booming and they establish intimacy.  They start opening up their hearts to each other.  The members try to relieve their fellow members of their tension arising out of dissatisfaction.  The group starts working as a team and freely interacts.
  • 45. THE FIVE STAGE MODEL OF GROUP DEVELOPMENT…  People don’t raise minor differences.  Members think that if they raise minor issues conflict may erupt.  They want to set aside all such issues.  Group members attain maturity.  They help each other and understand each other better to have better job performance.  They understand their limits and nature of their involvement make decisions rationally.
  • 46. THE FIVE STAGE MODEL OF GROUP DEVELOPMENT… 5. ADJOURNING:  For temporary groups, another stage is added called adjourning.  For temporary task forces, and similar other groups, which have specific tasks to perform, adjourning is the last stage of group development.  In temporary groups, members have to abandon their membership in the group, once the tasks have been completed.
  • 47. THE FIVE STAGE MODEL OF GROUP DEVELOPMENT…  Hence, this stage creates a lot of mixed feelings in terms of excitement for being able to complete the task effectively and melancholy for terminating the existence of membership in the group.
  • 48.
  • 49. THE FIVE STAGE MODEL OF GROUP DEVELOPMENT…  The following figure is a presentation of Tuckman’s model of group development.  Tuckman’s model is a linear model of group formation.  Time is an important factor in determining the effectiveness of this mode.
  • 50.
  • 51.
  • 52. GROUP COHESIVENESS:  Group cohesiveness is the extent of liking each member has towards others and how far every one wants to remain as a member of the group.  Persons in a highly cohesive group value their membership and strive to maintain positive relationship with other group members.  Cohesiveness binds all group members to work as one man to attain the set goals.
  • 53. FACTORS INFLUENCING GROUP COHESIVENESS: Group cohesiveness can be affected by following factors: 1) INTERACTION:  Group cohesiveness depends on possibilities of frequent interaction.  The group members become more cohesive when individual members spend more time with each other.
  • 54. FACTORS INFLUENCING GROUP COHESIVENESS… 2) SIZE:  It is well known that as group size increases, cohesiveness tends to decrease.  This effect comes about in at least three ways:  First, in large size group possibilities of interactions among members are less.  Second, as group size increases, it becomes more difficult to make the group to agree on common goals and activities and expression of disagreement and dissatisfaction increases.  Third, as group size increases, there is the need for division of labour, and this places certain restrictions on inter-group communication and leads to decrease in common activities.
  • 55. FACTORS INFLUENCING GROUP COHESIVENESS… 3) SHARED GOALS:  Groups which share common goals are likely to be more cohesive than the groups which do not share common goals.  If the group agrees on the goals and direction of its objectives, this will bind the group together.
  • 56. FACTORS INFLUENCING GROUP COHESIVENESS… 4) THREAT:  Threat also affects group cohesiveness.  Threat is a powerful unifier particularly in the following situations: o When threat comes from outside the group. o When there is little or no chance for escape. o When co-operation can help to over come the threat.
  • 57. FACTORS INFLUENCING GROUP COHESIVENESS… 5) ATTITUDES AND VALUES:  One of the strongest sources of group cohesiveness is shared attitudes and values among group members.  The following two reasons explain why we are attracted to people like ourselves.  First, the person, who has the same opinion as we have, provides us with a kind of social validation for our beliefs. He provides us with a feeling that we are right.  If some one disagrees with us, this suggests us that we are wrong.  Second, we make certain negative inference about the person who disagrees with us on important issues.  If we disagree with the person on this issue, we feel that we shall disagree with him on other issues. ---
  • 58. CONSEQUENCES OF GROUP COHESIVENESS: 1) Cohesiveness affects the productivity of the group members.  The productivity of a cohesive group is higher than that of a less cohesive group.  Highly cohesive group members have lower absenteeism and low rate of labour turnover. 2) In a highly cohesive group, there will be a high degree of acceptance and mutual attraction among the group members.  This will result in less friction and less tension among the members.  The level of satisfaction of individual members is high in cohesive group.
  • 59. CONSEQUENCES OF GROUP COHESIVENESS… 3) Each member of the cohesive group likes the other member.  For which conflicts are less and there is better communication among the members of the cohesive group. 4) Member of a highly cohesive group like to learn from each other.  They share ideologies.  They communicate with each other.  They give emphasis on successful accomplishment of group objectives.  Members take pride in the success of the group. ---
  • 60. IMPLICATIONS OF COHESIVENESS FOR MANAGERS: 1) Cohesive group, being united, commands control over its members.  Cohesiveness enables the group to have a powerful bargaining power. 2) If the cohesive groups are not managed and motivated effectively, its productivity is sure to be low.  So, manager has to handle the cohesive group carefully. ---
  • 61. STATUS CONGRUENCE:  Status is defined as a social ranking within a group.  Status is assigned to an individual on the basis of position in the group.  The professor in a university has a better status than a lecturer.  A person is given status because of some personal characteristics such as age, sex, skill, education, seniority, etc.  Status congruence is the agreement between group members on the level of status of individual members.
  • 62. STATUS CONGRUENCE…  When there is full agreement on member status levels (status congruence) the major activity of the group is directed towards goal accomplishment.  However, when there is disagreement on member status level within the group, some group activity is diverted from goal accomplishment and directed towards resolving this conflict. ---
  • 63. DECISION MAKING:  Decision making is a part of our everyday life.  For example, some one has taken up a course in B.Tech. or he is reading a book for a subject, are the products of his decisions to do these as against other alternatives which were available to him.  Whether a person is in meeting or in a play ground he is making decisions.  A few of these decisions may be a major decision and a few may be minor decision.  Some of these decisions might have proved to be effective decisions - appropriate, timely and acceptable.  Some decisions may be wrong. However, indecision is worse than a few wrong decisions.
  • 64. DECISION MAKING…  Decision making is one of the primary responsibilities of a manager.  It involves allocation of resources, appointment of people, investment of capital, or introduction of new products.  If resources like man, machine, material, money, time, and space were abundant, decision making would not be necessary.  But, resources are scarce, so there is the need for decision making.  Decision making is at the core of all planned activities.
  • 65. MEANING OF DECISION MAKING:  Decision making is defined as the process of selecting the best alternative among the available alternatives. DEFINITION:  George R. Terry, “Decision making is the selection based on some criteria from two or more possible alternatives.”
  • 66. CHRACTERISTICS OF DECISION MAKING: The characteristics of decision-making are: 1) Decision making is a selection process.  The best alternative is selected out of many alternatives.  If there is only one alternative, there is no decision making. 2) Decision-making is the end process.  Decision-making is preceded by detailed discussion and selection of alternatives. 3) Decision-making is the application of intellectual abilities to a great extent.  An intelligent man alone can take a good decision.
  • 67. CHRACTERISTICS OF DECISION MAKING… 4) Decision gives happiness to an endeavour. The decision maker takes various steps to collect all the information which is likely to affect a decision. 5) Decision making is a dynamic process.  An individual takes a number of decisions each day. 6) Decision-making is situational.  An individual takes decision according to the situations prevailing.  Different decisions may be taken to solve the same problem.  The reason is that the situation is changed from time to time.
  • 68. CHRACTERISTICS OF DECISION MAKING… 7) Decision is taken to achieve the objectives of an organisation. 8) Decision-maker has the freedom to take a decision which involves the use of resources. 9) Decision-making involves the evaluation of available alternatives through critical appraisal methods. 10) A decision may be both negative or positive.  A decision may direct others to do or not to do. ---
  • 69. PROCESS OF DECISION MAKING: The process of decision making involves the following four steps: 1) DIAGNOSING THE PROBLEM:  The first step in decision making is to diagnose the problems.  There are large number of symptoms which may not be the real problem.  Hence, first step is to recognise and identify the real problem, not simply the symptoms.  It is just like a job of physician analysing all the symptoms before identifying the cause of illness.  For example, a manager notices a symptom of reduction in production.
  • 70. PROCESS OF DECISION MAKING…  The problem of reduction in production may be due to o reduction in the availability of raw material, o reduction in power, o labour crisis, o rising inefficiency in the plant or in employees.  To solve the difficult problem, it is to be broken in to different parts for easier diagnosis and solution.  A variety of causes may be responsible for each part.  Also it is to be found out whether it is controllable or not, if so then who will control and how it is to be controlled.
  • 71. PROCESS OF DECISION MAKING… 2) DEVELOP THE ALTERNATIVES:  Generally a problem has more than one alternative solution and it is very rare that a problem has only one solution.  Without alternative solution, there is no decision to be made.  To find out possible solutions we must keep our minds open.  Ideas comes from experience, suggestions from co-workers, managers and others.  Doing nothing and postponing the decision to a later date is also an alternative solution.
  • 72. PROCESS OF DECISION MAKING… 3. EVALUATE THE ALTERNATIVES AND SELECT THE BEST ONE:  After developing different alternatives next step in decision making is to evaluate the consequences of each proposed alternatives.  Decision depends very much on the skill and care used in evaluating each alternative.  After alternatives are identified, they are needed to be evaluated.  The factors like Feasibility of an alternative, Probability of success of the alternative and Consequences of the alternative on the organisation help to evaluate the alternatives.
  • 73. PROCESS OF DECISION MAKING…  In the process of decision making we have to forecast what will happen if a certain alternative is adopted.  While evaluating the impact of alternative we must keep in mind all the limitations of the concern.  The best alternative is selected by comparing the merits and demerits of each alternative.  Decision maker must also consider Degree of risk, Availability of resources, Limitations and Time required for implementation of the alternative.
  • 74. PROCESS OF DECISION MAKING… 4)IMPLEMENT AND MONITOR THE BEST ALTERNATIVE:  It is the last step in the process of decision making.  Implementing a decision involves more than giving necessary orders.  The resources, which are required to implement the best alternative, must be acquired and allocated.  Schedules are to be drawn for implementing the best alternative.  The decision maker actually makes the decision but he himself does not apply it.  Hence, the decision must be communicated to the persons implementing it in a simple, clear and easily understandable language.
  • 75. PROCESS OF DECISION MAKING…  For better implementation, it is necessary that subordinates must feel sense of participation for which they may be associated at some stage in decision making process.  In the beginning, the decision maker himself must take personal interest in implementing the decision.  Implementation is important because if implementation is wrong, then a good decision may go wrong.  Actions taken to implement the best alternative must be monitored.
  • 76. PROCESS OF DECISION MAKING…  Following questions must be looked out so far as monitoring is concerned: o Are things working according to plan? o What is happening to external and internal environment as a result of implementing the best alternative? o Are subordinates working according to expectations? ---
  • 77. GROUP DECISION MAKING:  When decision is made by a group, it is called group decision making.  Group decision making can be either through the Consensus Mode ‘or’ through Majority Vote.  If all members of the group agree to the decision arrived, it is called “Consensus Mode”.  If majority of the group members agree, it is called “Majority Vote”.
  • 78. ADVANTAGES OF GROUP DECISION MAKING: i) Compared to an individual, the group usually has a greater knowledge, expertise and skill base to make better decisions. ii) Large number of members provide more perspectives of the problem. As such, the narrow vision of a single perspective is avoided in making decisions. iii) As larger number of members participate in group decision making process possibility of reaching at a quality decision also increases. iv) Following increased group participation, comprehension of final decision is usually high. ---
  • 79. DISADVANTAGES OF GROUP DECISION MAKING: It suffers from the following disadvantages: i) Group decision making is a time consuming process. ii) Influencing a group means manipulating the group decision in a direction of one’s liking and interest. iii) Sometimes decisions made by the group members are simply a compromise between the various views and options offered by the group members. ---
  • 80. TECHNIQUES OF GROUP DECISION MAKING:  The following techniques are followed for group decision making: 1. BRAIN STORMING 2. NOMINAL GROUP TECHNIQUE (NGT) 3. DELPHI TECHNIQUE 4. CONSENSUS MAPPING 5. QUALITY CIRCLES (QCs)
  • 81.
  • 82. TECHNIQUES OF GROUP DECISION MAKING… 1) BRAIN STORMING:  This idea was developed by Alex Faickney Osborn in 1938 in an American company for encouraging creative thinking in groups of six or eight people.  According to Osborn, brain storming means using the brain to storm the problem.  In brain storming, the participants are connected with the problem closely.  In a more simple way, brain storming refers to the idea generating process that encourages an alternative by withholding the criticism of alternatives.  It involves people sitting in a room.  The main stress is on giving new ideas rather than analysis of ideas.
  • 83. TECHNIQUES OF GROUP DECISION MAKING…  After a number of ideas are gathered, the stress is to find the best and unique solution among them.  Every idea is presented on projector so that it is visible to every member and any rectification can be easily made by the members.  The leader of the group generally illustrate the problem to various members.  Brain storming is based on the following guidelines: i) Generate as many ideas as possible.  Every idea is considered.  There is no restriction of giving the idea.  Sometimes from all such ideas, a unique solution is obtained.
  • 84. TECHNIQUES OF GROUP DECISION MAKING… ii) Members are encouraged to modify the suggestion given by other.  This process can rectify the idea suggested by the members. iii) No suggestion can be criticised unless all suggestions have been obtained. iv) More suggestions can be gathered by brain storming.  This technique is quite strong in solving a definite and simple problem, but when problem becomes complex, solution can be evaluated by breaking it into parts and after that each part can be taken one by one.
  • 85. TECHNIQUES OF GROUP DECISION MAKING…  The main drawback of brain storming is that it is a lengthy process.  But the main benefit is that it has all member participation, i. e., all levels manager, subordinates and supervisors.  So, it motivates all and they feel that they are integral part of the organisation.  Effectiveness should not be judged at the beginning stage.  The quality of a suggestion can only be known at the end.  The success of brain storming depends on each member’s capacity and willingness to listen others’ thoughts, and to use these thoughts to spark new ideas of their own, and then feel free to express them. Brain storming sessions last from ten minutes to one hour and do not require much preparation. ---
  • 86. TECHNIQUES OF GROUP DECISION MAKING… 2) NOMINAL GROUP TECHNIQUE (NGT):  This technique is used when a high degree of innovation and idea generation is required.  A nominal group exists in the name only as the members have minimum interaction before producing a decision.  This technique is highly structured and contains the following steps: i) Around six to ten participants are brought together and presented with a problem. ii) They develop solutions independently and write on cards.
  • 87. TECHNIQUES OF GROUP DECISION MAKING… iii) Their ideas are shared with others in a structured format (e.g. , a round robin process that ensures all members get the opportunity to present their ideas).  There is no discussion.  The ideas are put on a blackboard or flip chart for all to see. iv) Brief time is allotted so that questions can be asked but only for clarification. v) Group members individually designate their preferences for the best alternatives by secret ballot. vi) The group decision is announced.
  • 88. TECHNIQUES OF GROUP DECISION MAKING… ADVANTAGE: o The NGT helps to overcome the negative effects of power and status differences among group members. o There is no chance of domination by any member. o It can be used to explore problems to generate alternatives, or to evaluate them. DISADVANTAGE: o The primary disadvantage of NGT lies in its structured nature, which may limit creativity. o The group members may feel frustrated as they do not get any opportunity to benefit from cross-fertilisation of ideas. ---
  • 89. TECHNIQUES OF GROUP DECISION MAKING… 3) DELPHI TECHNIQUE:  The name “Delphi” indicates a shrine at which the ancient Greeks used to pray for information about the future.  It is a modified version of brain storming technique but the difference is that in brainstorming all persons are present at one place while in Delphi method, it is not a necessary condition.  In Delphi technique, members are scattered over and they do not have face to face interaction for decision making.  Members are selected because they are experts in the relevant field.  For example, environment experts are asked to put their suggestion on pollution after fifty years.
  • 90. TECHNIQUES OF GROUP DECISION MAKING…  All information is then sent back to these experts.  After seeing the information, they make suggestions for its further improvement.  This process is repeated until consensus is reached.  Generally, the following steps are followed in Delphi technique. i) After considering the problem, some questions are selected and a questionnaire is prepared. ii) Questionnaire is sent to the experts and they are given time to submit their suggestions.  Then the experts send their suggestions to the organiser.
  • 91. TECHNIQUES OF GROUP DECISION MAKING… iii) After receiving the suggestions for the first questionnaire, another questionnaire is to be derived from the first questionnaire and then it is sent to all the experts. iv) The experts again after giving their suggestion, send back it to the organiser who then again derive a third questionnaire which is again sent to the experts who again after answering, send them back to the organiser and process of making questionnaire and suggestion obtained continue till a consensus is made.
  • 92. TECHNIQUES OF GROUP DECISION MAKING…  The effectiveness of the Delphi technique depends on adequate time, participants’ expertise, communication skill and motivation of members to immerse themselves in the task.  This type of technique can not be used for a definite problem.  This involves the story of anticipating effects on society in future of the work done in that area. ---
  • 93. TECHNIQUES OF GROUP DECISION MAKING… 4) CONSENSUS MAPPING:  In this technique of group decision making, an attempt is made to arrive at a decision by pooling the ideas together generated by several task groups.  A task group consists of several task sub-groups.  Consensus Mapping begins with developing ideas by a task sub-group.  The facilitators encourage participants to further develop clusters of ideas.  The ideas generated by the task-sub-group are developed and narrowed in smaller number of ideas.
  • 94. TECHNIQUES OF GROUP DECISION MAKING…  Then all ideas are consolidated into a representative structure called “Straw man map”.  Straw man map is further narrowed down to arrive at a mutually acceptable solution.  Consensus mapping is best suited for : o Problems that are multi-dimensional, o Problems that have inter connected relationships and o Problems involve many sequential steps in problem solving.  Consensus mapping is a qualitative approach.  This technique is conducted in small task teams of five to nine participants. ---
  • 95. TECHNIQUES OF GROUP DECISION MAKING… 5) QUALITY CIRCLES (QCs):  Quality circles are small teams of 7 to 10 employees, from the same department.  The supervisor of the department serves as the quality circle leader.  Among the members one will act as facilitator who guides the QC through the problem solving process.  The members of a quality circle meet for a few hours each week.  They identify quality and productive problems.  They propose solutions to management and if necessary monitor the implementation and consequences of these solutions in their work area.
  • 96. TECHNIQUES OF GROUP DECISION MAKING…  They also consider other issues like cost, safety and management.  Management listens to periodic presentations and recommendations of Quality Circles.  Monetary rewards are also given to the Quality Circles for their suggestions but not always. Advantages of Quality Circles: o Employees are involved in decision making. This privilege helps them to acquire communication and analytical skills and improves efficiency at workplace. o Because the Quality Circle programme is voluntary, employees and unions do not view them as another cost- saving effort.
  • 97. TECHNIQUES OF GROUP DECISION MAKING… o Quality Circle members enhance their chances of promotion to supervisory positions. Quality Circles were introduced for the first time in Japan in early 1960s.  Then Quality Circles have spread all over the world.  In India too, they are being introduced in several firms like BHEL, BEL, SKF, Mahindra & Mahindra, etc.  Experience in Indian industries has been a mixed one. Mahindra Jeeps Division has 76 QCs. Here the experience of QCs is favourable.  The technical problems that had plagued the process since its inception were solved eight months after the first Quality Circle was formed in Mahindra.
  • 98. TECHNIQUES OF GROUP DECISION MAKING…  Quality Circle members feel confident and gain satisfaction as they are being recognised.  On the flip side, the employee representatives may view Quality Circle as an attempt to wean employees away from the unions. ---