Chapter five explores group behavior in organizations, defining groups as collections of individuals whose interactions influence one another. It categorizes groups into formal (command and task groups) and informal (interest and friendship groups), explains why individuals form groups, and details the stages of group development: mutual acceptance, communication and decision making, motivation and productivity, and control and organization. Additionally, it discusses group characteristics like structure, status, roles, norms, leadership, and cohesiveness, and introduces the concept of groupthink, where a desire for consensus can hinder consideration of alternatives.

1. Chapter Five
Group Behavior

2. Learning Objectives
 Define the term group.
 Describe various groups that exist in
organizations.
 Discuss people form groups.
 Compare the various stages of group
development.
 Identify the major characteristics of groups.

3. Introduction
 Organizational behavior is more than the
logical composite of the behavior of individuals.
 It is also the behavior of groups that interact and
the activities within groups.
 This chapter provides a model for understanding
the nature of groups in organizations.
 The chapter begins by defining the various types
of groups, reasons for their formation, and
characteristics of groups.

4. The Meaning of a Group
 A group is defined as “two or more employees
who interact with each in such a manner that the
behavior and/or performance of a member is
influenced by the behavior and/or performance of
other members”.

5. Types of Groups
 An organization has technical requirements that
arise from its stated goals.
 Accomplishment of these goals requires that
certain tasks be performed and that employees
be assigned to perform these tasks.
 As a result, most employees are members of a
group based on their positions in the
organization.
 Formal groups: groups created by managerial
decision to accomplish stated goals of
organization.

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 The demands and processes of the organization
lead to the formation types of formal groups:
 Command group: the command group, which is
specified by the organization chart, comprises
the subordinates who report directly to a given
supervisor.
 Task group: a task group comprises the
employee who work together to complete a
particular task or project.
 For example, activities of clerks in an insurance
company are required tasks.

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 Informal group: informal group are natural
groupings of people in the work situation, who
come together in response to social needs.
 Two specific informal groups exist:
 Interest groups: Individuals who may not be
members of the same command or task group
may affiliate to achieve some mutual objective.
 Friendship groups: many groups form because
members have something in common, such as
age, political beliefs, or ethic background.

8. Why People Form Groups
 Formal and informal groups form various
reasons. Some reasons involve needs, proximity,
attraction, goals, and economics.
 The satisfaction of needs: the desire for need
satisfaction can be a strong motivating force
leading to group formation.
 Specifically, some employee’s security, social,
esteem, and self-actualization needs can be
satisfied to a degree by their affiliation with
groups.

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 Proximity and attraction: Interpersonal
interaction can result in group formation. Two
important facets of interpersonal interaction are
proximity and attraction.
 Proximity: involves the physical distance
between employees performing a job.
 Attraction: designates the degree to which people
are drawn to each other because of perceptual,
attitudinal, performance, or motivational
similarity.

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 Group goals: a group’s goals, if clearly
understood, can be reason why an individual is
attracted to it. For example, an individual may
join a group that meets after work to become
familiar with new production methods to be
implemented in the organization over the next
year.
 Economics: in many cases, groups form because
of individuals believe that they can derive
greater economic benefits from their jobs if they
organize.

11. Stages of Group Development
 There are four stages of development:
 (1) Mutual acceptance: in the early stages of group
formation, members are generally reluctant to
communicate with one another. Typically, they aren’t
willing to express opinions, attitudes, and beliefs.
 (2) communication and decision making: after a
group reaches the point of mutual acceptance, its
members begin to communicate openly with one
another. This communication results in increased
confidence and even more interaction within the
group.

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 Motivation and productivity: in this stage of
development, effort is expended to accomplish
the group’s goals. The group works as a
cooperative rather than competitive unit.
 Control and organization: at this point, group
affiliation is valued, and members are regulated
by group norms, group goals take precedence
over individual goals, and the norms are
complied with or sanctions are exercised.

13. Characteristics of Groups
 As group evolve through their various stages of
development, they begin to exhibit certain
characteristics: structure, status, hierarchy, roles,
norms, leadership, cohesiveness, and conflict.
 (1) structure: within any group, some type of
structure evolves over a period of time. Group
members are differentiated on the basis of such
factors as expertise, aggressiveness, power, and
status; each member occupies a position in the
group. The pattern of relationships among the
positions constitutes a group structure.

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 (2) status hierarchy: status and position are so
similar that he terms are often interchangeable. The
status assigned to a particular position is typically a
consequence of certain characteristics that
differentiate one position from other positions.
 (3) Roles: each person in the group structure has an
associated role that consists of the expected behaviors
of the occupant of that position. For example, a
nursing supervisor, is expected to supervise the
activities of nursing personnel engaged in specific
nursing services, such as pediatrics, and surgery.

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 (4) Norms: are the standards shared by the
members of a group. They have certain
characteristics that are important to group
members. First, norms are formed only with
respect to things that have significance for the
group. Second, norms are accepted in various
degrees by group members. Third, norms may
apply to every group member or to only some
group members.
 (5) Leadership: the leadership role in groups is
a crucial group characteristic as the leader plays
an important role in determining group success.

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 (6) Cohesiveness: is generally regarded as a
force acting on the members to remain in a
group that is greater than the forces pulling the
member away from the group.

17. Groupthink
 Groupthink: is a cohesive group’s desire for agreement
interferes with the group’s consideration of alternative
solutions.
 (1) Illusion of invulnerability: members of group believe
that they are invincible.
 (2) Tendency to moralize: any opposition to group views
is characterized by members as weak, evil, or
unintelligent.
 (3) Feeling of unanimity: each member of the groups
supports the leader’s decisions. Members may have
reservations about decisions but do not share their
views.

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 (4) Pressure to conform: formal and informal
groups attempts are made to discourage
discussion of divergent views. Groups exert great
pressure on individual members to conform.
 (5) Opposing ideas dismissed: any individual or
outside groups that criticizes or opposes a
decision receives little or no attention from the
group.