Chap17

Objectives
1. A definition of the term group as used in the context of management

2. A thorough understanding of the difference between formal and
informal groups

3. Knowledge of the types of formal groups that exist in organizations

4. An understanding of how managers can determine which groups exist
in an organization

5. An appreciation for what teams are and how to manage them

6. Insights into managing corporate culture to enhance organizational
success

© Prentice Hall, 2005 1-2

Groups
Group is any number of people who:
(1) interact with one another
(2) are psychologically aware of one another
(3) perceive themselves to be a group

Why managers should study groups:
1. Exist in all kinds of organizations
2. Form in all facets of organizational existence
3. Cause either desirable or undesirable consequences
4. Raise the probability of causing desirable consequences


Kinds of Groups in Organizations
Formal Groups
Kinds of Formal Groups
Command groups

Task groups


Formal Groups (continued)
Examples of Formal Groups
 Committees

Reasons for establishing committees:
1. Allow organization members to exchange ideas
2. Generate suggestions and recommendations
3. Develop new ideas for solving existing organizational problems
4. Assist in the development of organizational policies

 Why Managers Should Use Committees
 Improve quality of decision making
 Encourage expression of honest opinions
 Increase members’ participation in decision-making
 Ensure representation of important groups in decision-making process

Examples of Formal Groups (continued)
 Committees (continued)
 What Makes Committees Successful
 Procedural Steps
 Define goals clearly, preferably in writing
 Specify authority
 Determine optimum size
 Select chairperson
 Appoint permanent secretary
 Distrubute agenda and support material before meeting
 Start meetings on time-announce ending time at outset
 People-Oriented Guidelines.
 Rephrasing ideas already expressed
 Bringing all members into active participation
 Stimulating further thought by members
 Groupthink

Examples of Formal Groups (continued)
 Work Teams
 Special-Purpose and Self-Managed Teams
Stages of Formal Group Development
 The Acceptance Stage
 The Communication and Decision-Making Stage

 The Group Solidarity Stage

 The Group Control Stage
 Members function as a unit
 Members participate effectively in group effort
 Members are oriented toward a single goal
 Members have equipment, tools, and skills necessary to attain goals
 Members exchange suggestions, opinions, and information

Informal Groups
Kinds of Informal Groups
Interest groups
Friendship groups

Benefits of Informal Group Membership
1. Perpetuation of social and cultural values
2. Status and social satisfaction
3. Increased ease of communication
4. Increased desirability of the overall work environment

© Prentice Hall, 2005 1 - 10

Managing Work Groups
Determining Group Existence
Sociometric Analysis
Applying the Sociogram Model

Understanding the Evolution of Informal Groups
Homans’ Model
 Applying the Homans Model


Teams
Groups Versus Teams
Group consists of any number of people who:
Interact with one another
Are psychologically aware of one another
Think of themselves as a group
Team is a group whose members:
Influence one another toward the accomplishment of objective(s)
Types of Teams in Organizations
Problem-Solving Teams
Self-Managed Teams
Cross-Functional Teams

Teams


Teams
Stages of Team Development
Forming

Storming

Norming

Performing

Adjourning


Teams
Team Effectiveness
People-related steps:
1. Trying to make the team’s work satisfying

2. Developing mutual trust among team members and
between the team and management

3. Building good communication

4. Minimizing unresolved conflicts and power struggles within the team

5. Dealing effectively with threats toward and within the team

6. Building the perception that the jobs of team members are secure


Teams


Teams
Team Effectiveness (continued)
Organization-related steps:
1. Building a stable overall structure team members view as secure

2. Becoming involved in team events and
demonstrating interest in team progress and functioning

3. Properly rewarding and recognizing teams for accomplishments

4. Setting stable goals and priorities for the team


Teams
Team Effectiveness (continued)
Task-related steps:
1. Developing clear objectives, directions, and project plans for the team

2. Providing proper technical direction and leadership for the team

3. Establishing autonomy for team and challenging work within the team

4. Appointing experienced and qualified team personnel

5. Encouraging team involvement

6. Building visibility within the organization for the team’s work


Teams
Trust and Effective Teams
 Communicate often to team members
 Show respect for team members
 Be fair to team members
 Be predictable
 Demonstrate competence


Corporate Culture
Status Symbols
Traditions and History
Physical Environment
The Significance of Corporate Culture
Mechanisms for developing and reinforcing desired corporate culture:
 What leaders pay attention to, measure, and control
 Leaders’ reactions to critical incidents and organizational crises
 Deliberate role modeling, teaching, and coaching
 Criteria for allocation of rewards and status
 Criteria for employee recruitment, selection, promotion, and retirement


Questions


Chap17

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Chap17