1. Group No 5 Group Behaviour
Sr.Sr.
No.No.
ParticularParticular Page No.Page No.
1. IntroductionIntroduction 3
2.
Formal organization differs from informal organization.Formal organization differs from informal organization. 4.
3. Formation of Informal group in organizationFormation of Informal group in organization 5.
4. Why do people joint groups?Why do people joint groups? 7.
5. Types of groups.Types of groups. 8.
6. Characteristic feature of informal groupsCharacteristic feature of informal groups 10
7. Informal group are Informal organisationInformal group are Informal organisation 11.
8. Group BehaviourGroup Behaviour 12.
9. Concept of Group DynamicsConcept of Group Dynamics
13
10. Team v/s GroupsTeam v/s Groups 14.
11. Group Decision MakingGroup Decision Making 15.
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2. Group No 5 Group Behaviour
INTRODUCTION
Groups are an integral part of modern organisation. They are presentGroups are an integral part of modern organisation. They are present
everywhere, from the shop floor to the highest levels of management. Weeverywhere, from the shop floor to the highest levels of management. We
cannot study behaviour in organisation without attempting to understand thecannot study behaviour in organisation without attempting to understand the
behaviour of people in-group setting. An organisation is not mere collectionbehaviour of people in-group setting. An organisation is not mere collection
of individuals who somehow flock together to purse their goals, needs andof individuals who somehow flock together to purse their goals, needs and
interests. It consists of a network of several formal work groups and informalinterests. It consists of a network of several formal work groups and informal
social group of people. Every member of an organisation invariably belongssocial group of people. Every member of an organisation invariably belongs
to some formal work group or the other and almost invariably associatesto some formal work group or the other and almost invariably associates
himself with one or more informal social groups. Groups extensivelyhimself with one or more informal social groups. Groups extensively
influence the behaviour and performance of the member as also the over allinfluence the behaviour and performance of the member as also the over all
behaviors of the organisation. An understanding of the formation, structurebehaviors of the organisation. An understanding of the formation, structure
and functioning of groups in an organisation is important for a betterand functioning of groups in an organisation is important for a better
understanding of the organisation and for managing the groups andunderstanding of the organisation and for managing the groups and
organisation in a more effective manner.organisation in a more effective manner.
DEFINITIONDEFINITION
The term ‘group’ is defined as a cluster of two or more individualsThe term ‘group’ is defined as a cluster of two or more individuals
who interact with each other on a relatively enduring basis, identifywho interact with each other on a relatively enduring basis, identify
themselves as belonging to a distinct unit and who share certain commonthemselves as belonging to a distinct unit and who share certain common
activities, interests, values and goals. Members of a group relate to each otheractivities, interests, values and goals. Members of a group relate to each other
in some way and are united by common ties, beliefs and perceptions on ain some way and are united by common ties, beliefs and perceptions on a
relatively sustained and structured basis. It consist two or more people &relatively sustained and structured basis. It consist two or more people &
member share common interest or goal. The members are mutuallymember share common interest or goal. The members are mutually
dependent on one another.dependent on one another.
According to Baron Group as a collection of two or more interactingAccording to Baron Group as a collection of two or more interacting
individuals who maintain stable pattern of relationship, share common goal.individuals who maintain stable pattern of relationship, share common goal.
Stephen Robbins defines a group" as two or more individuals,Stephen Robbins defines a group" as two or more individuals,
interacting and interdependent, who have come together to achieveinteracting and interdependent, who have come together to achieve
particular objectives."particular objectives."
According to Marvin Shaw," A group is two or more persons whoAccording to Marvin Shaw," A group is two or more persons who
interacting with one another such that each person influence and isinteracting with one another such that each person influence and is
influenced by each other persons."influenced by each other persons."
The above definition suggest that the term ‘group’ is distinct from aThe above definition suggest that the term ‘group’ is distinct from a
crowd which travel in a bus or watches a football match; crowds do notcrowd which travel in a bus or watches a football match; crowds do not
exhibit any structure or perform any specific function, which are two of theexhibit any structure or perform any specific function, which are two of the
distinguishing characteristics of groups.distinguishing characteristics of groups.
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3. Group No 5 Group Behaviour
FORMAL ORGANISATION DIFFERS FROM INFORMALFORMAL ORGANISATION DIFFERS FROM INFORMAL
ORGANISATION IN THE FOLLOWING WAYSORGANISATION IN THE FOLLOWING WAYS
(1) Meaning:(1) Meaning:
A formal organisation is formed when:A formal organisation is formed when:
(a)(a) Two or more persons come together.Two or more persons come together.
(b)(b) They have a common objective (goal).They have a common objective (goal).
(c)(c) They are willing to work together to achieve the common objective.They are willing to work together to achieve the common objective.
Formal Organisation has its own rules and regulation. These rulesFormal Organisation has its own rules and regulation. These rules
must be followed by the member (employees and managers). A formalmust be followed by the member (employees and managers). A formal
organisation has a system of co-ordination. It also has a system of authority. Itorganisation has a system of co-ordination. It also has a system of authority. It
has a clear superior – subordinate relationship. In a formal organisation, thehas a clear superior – subordinate relationship. In a formal organisation, the
objectives are specific and well defined. The entire member is given specificobjectives are specific and well defined. The entire member is given specific
duties and responsibilities. For example: A company, a school, a college, aduties and responsibilities. For example: A company, a school, a college, a
bank, etc. are examples of formal organisation.bank, etc. are examples of formal organisation.
All informal organisations exist within the formal organisation. AnAll informal organisations exist within the formal organisation. An
informal organisation is a network of personal and social relationships.informal organisation is a network of personal and social relationships.
People working in a formal organisation meet regularly. They travel together,People working in a formal organisation meet regularly. They travel together,
they eat together, they work together, etc. Therefore, they become friends.they eat together, they work together, etc. Therefore, they become friends.
There are many groups of friends in a formal organisation. These groups areThere are many groups of friends in a formal organisation. These groups are
called informal organisation.called informal organisation.
An informal organisation does not have its own rules and regulation. It doesAn informal organisation does not have its own rules and regulation. It does
not have a system of co-ordination. It does not have a system of authority. Itnot have a system of co-ordination. It does not have a system of authority. It
does not have a superior-subordinate relationship. It does not have anydoes not have a superior-subordinate relationship. It does not have any
specific and well-defined objectives. In an informal organisation,specific and well-defined objectives. In an informal organisation,
communication is done through the grapevine.communication is done through the grapevine.
(2) Formed by Whom.(2) Formed by Whom.
The top-level management forms a formal organisation.The top-level management forms a formal organisation.
Social forces within the formal organisation form an informal organisation.Social forces within the formal organisation form an informal organisation.
(3) Rules and Regulations:(3) Rules and Regulations:
The members of a formal organisation have to follow certain rules andThe members of a formal organisation have to follow certain rules and
regulations. These rules are in writing. A formal authority makes them. If theregulations. These rules are in writing. A formal authority makes them. If the
member follows these rules properly then they will be rewarded. But if theymember follows these rules properly then they will be rewarded. But if they
do not follow these rules properly they will be punished.do not follow these rules properly they will be punished.
The members of an informal organisation do not have to follow any rules andThe members of an informal organisation do not have to follow any rules and
regulations.regulations.
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4. Group No 5 Group Behaviour
(4) Duties, Responsibilities, etc.:(4) Duties, Responsibilities, etc.:
In a formal organisation, the duties, responsibilities, authority andIn a formal organisation, the duties, responsibilities, authority and
accountability of each member is well defined.accountability of each member is well defined.
In an informal organisation, there are no fixed duties, responsibilities, etc. forIn an informal organisation, there are no fixed duties, responsibilities, etc. for
the members.the members.
(5) Objectives:(5) Objectives:
In a formal organisation, the objectives are specific and well defined. TheIn a formal organisation, the objectives are specific and well defined. The
main objectives of a formal organisation are productivity, growth, etc.main objectives of a formal organisation are productivity, growth, etc.
(6) Stability:(6) Stability:
A formal organisation is stable.A formal organisation is stable.
An informal organisation is not stable.An informal organisation is not stable.
(7) Channels of communication:(7) Channels of communication:
A formal organisation uses formal channels of communication.A formal organisation uses formal channels of communication.
An informal organisation uses informal channels of communication (i.e.An informal organisation uses informal channels of communication (i.e.
grapevine)grapevine)
(8) Organisation Chart:(8) Organisation Chart:
A formal organisation is show on the organisation charts.A formal organisation is show on the organisation charts.
An informal organisation is not show on the organisation charts.An informal organisation is not show on the organisation charts.
(9) Superior-Subordinate relationship:(9) Superior-Subordinate relationship:
In formal organisation, there is a superior – subordinate relationship.In formal organisation, there is a superior – subordinate relationship.
In an informal organisation, there is not superior – subordinate relationship.In an informal organisation, there is not superior – subordinate relationship.
(10) Benefits:(10) Benefits:
The members of the formal organisation get financial benefits such as wagesThe members of the formal organisation get financial benefits such as wages
and salaries.and salaries.
The members of the informal organisation get social and personal benefits.The members of the informal organisation get social and personal benefits.
Reasons for emergence / formation of informal groups inReasons for emergence / formation of informal groups in
organizationsorganizations
In any formal organization, informal groups emerge for several reasons. TheIn any formal organization, informal groups emerge for several reasons. The
causes of their emergence may be discussed as follows:causes of their emergence may be discussed as follows:
Proximity and Similarity:Proximity and Similarity: Individual sharing the same workspace in anIndividual sharing the same workspace in an
organization may come together and form into a group. Similarly, people whoorganization may come together and form into a group. Similarly, people who
handle same or similar type of work have it or similar economic, educational,handle same or similar type of work have it or similar economic, educational,
ethnic, communal and regional background (for e.g. A group of individualsethnic, communal and regional background (for e.g. A group of individuals
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5. Group No 5 Group Behaviour
hailing from Karnataka, working in different wings in an organization) tends tohailing from Karnataka, working in different wings in an organization) tends to
band together, because they generally feel attractive each to other. Also,band together, because they generally feel attractive each to other. Also,
individuals who interact with each other on a regular basis in the course of theirindividuals who interact with each other on a regular basis in the course of their
organizational activities, get together into an informal group.organizational activities, get together into an informal group.
Need Satisfaction:Need Satisfaction: We have seen earlier that individuals have a range of needsWe have seen earlier that individuals have a range of needs
which they seek fulfillment. Groups cater to the safety needs of individuals (bothwhich they seek fulfillment. Groups cater to the safety needs of individuals (both
physical psychological safety, reduction of anxiety an uncertainty) socialphysical psychological safety, reduction of anxiety an uncertainty) social
affiliation needs (needs for belonging, to be cared and accepted needs to getaffiliation needs (needs for belonging, to be cared and accepted needs to get
feelings of warmth and friendship and to get away from isolation andfeelings of warmth and friendship and to get away from isolation and
anonymity) ego needs (for respect, influence, power and status) and selfanonymity) ego needs (for respect, influence, power and status) and self
actualization needs (need for self-development, artistic and creative self-actualization needs (need for self-development, artistic and creative self-
expression, achievements and so on) groups, especially small informal group areexpression, achievements and so on) groups, especially small informal group are
formed to meet the above and other similar needs of members-as for e.g. needsformed to meet the above and other similar needs of members-as for e.g. needs
for information, participation, relaxation, stress reduction, emotional supportfor information, participation, relaxation, stress reduction, emotional support
and so on.and so on.
Promotion of interests and pursuit of goalsPromotion of interests and pursuit of goals:: Many in formals groups are formedMany in formals groups are formed
with an explicit or implicit aim of protecting and promoting the economic andwith an explicit or implicit aim of protecting and promoting the economic and
other interests of members (for e.g. a few individual retiring shortly may bandother interests of members (for e.g. a few individual retiring shortly may band
together to urge management to extend their tenure or provide some extratogether to urge management to extend their tenure or provide some extra
retirement benefits) There could also be groups which provides opportunities toretirement benefits) There could also be groups which provides opportunities to
promote the professional, literary or artistic tastes, interests and goals ofpromote the professional, literary or artistic tastes, interests and goals of
members.members.
Thus, the causes for emergence of informal groups are several-to facilitate taskThus, the causes for emergence of informal groups are several-to facilitate task
accomplishment, to peruse certain goals promote and certain interests, to meetaccomplishment, to peruse certain goals promote and certain interests, to meet
certain needs and so on. They have the potential to satisfy both organizationalcertain needs and so on. They have the potential to satisfy both organizational
goals and individual needs.goals and individual needs.
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6. Group No 5 Group Behaviour
WWhy do people joint group?hy do people joint group?
People join groups for a variety of different reasons. Most people belongPeople join groups for a variety of different reasons. Most people belong
to several groups because different groups provide different benefits. Theto several groups because different groups provide different benefits. The
following are major benefits.following are major benefits.
1)1) SecuritySecurity-By joining a group, individuals can reduce the insecurity of-By joining a group, individuals can reduce the insecurity of
standing alone. People feel stronger and more resistant to threats whenstanding alone. People feel stronger and more resistant to threats when
they are part of a group. Group provides safety and protection against athey are part of a group. Group provides safety and protection against a
common enemy.common enemy.
2)2) AffiliationAffiliation- Groups can fulfill social needs. People enjoy the regular- Groups can fulfill social needs. People enjoy the regular
interaction that comes with groups me membership for many people theseinteraction that comes with groups me membership for many people these
on the job interaction are their primary sources for fulfilling their need foron the job interaction are their primary sources for fulfilling their need for
affliction.affliction.
3)3) PowerPower-What cannot be achieved individually after becomes possible-What cannot be achieved individually after becomes possible
through group action. There is power in number.through group action. There is power in number.
4)4) Goal achievementGoal achievement- Through pooling of knowledge, resources, talents and- Through pooling of knowledge, resources, talents and
power in-group, people are able to achieve goals that may not be possiblepower in-group, people are able to achieve goals that may not be possible
individually. More than one person can achieve one particular goal easily.individually. More than one person can achieve one particular goal easily.
In such instances management will rely on the use of formal groupIn such instances management will rely on the use of formal group
5)5) Problem solvingProblem solving- when people face certain problems they provide- when people face certain problems they provide
strength to its member who are willing to challenge any problems.strength to its member who are willing to challenge any problems.
6)6) Self-esteem:Self-esteem: Membership of prestigious groups increases the self-esteemMembership of prestigious groups increases the self-esteem
of people. It generates positive felling of self worth.of people. It generates positive felling of self worth.
7)7) Status:Status: Individuals get recognition and status when they are members ofIndividuals get recognition and status when they are members of
groups that are considered to be important by other. people look at themgroups that are considered to be important by other. people look at them
with respect and awe.with respect and awe.
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7. Group No 5 Group Behaviour
HDFC BANK: WE UNDERSTAND YOUR WORLD & OUR BANKINGHDFC BANK: WE UNDERSTAND YOUR WORLD & OUR BANKING
HDFC bank has a created number of groups/committees to ensure thatHDFC bank has a created number of groups/committees to ensure that
the banks operated smoothly without any hiccups. Each of the committee hasthe banks operated smoothly without any hiccups. Each of the committee has
senior board member on them. There are different committee and its functionssenior board member on them. There are different committee and its functions
useful to carry banking activity smoothly. Such as ….useful to carry banking activity smoothly. Such as ….
Audit and Compliance CommitteeAudit and Compliance Committee oversees the Bank's financial reportingoversees the Bank's financial reporting
process and ensuring correct, adequate and creditable disclosure of financialprocess and ensuring correct, adequate and creditable disclosure of financial
information. It also recommended appointments and removal of externalinformation. It also recommended appointments and removal of external
auditors and fixing of their fees.auditors and fixing of their fees.
Share/Investors Grievance CommitteeShare/Investors Grievance Committee approves and monitors transfers,approves and monitors transfers,
transmission, splitting and consolidation of shares and bonds issued by thetransmission, splitting and consolidation of shares and bonds issued by the
banks and allotments of share to the employee pursuant to employee stockbanks and allotments of share to the employee pursuant to employee stock
option scheme.option scheme.
Risk Monitoring CommitteeRisk Monitoring Committee develops banks credit and market risks policiesdevelops banks credit and market risks policies
and procedure, verifies adherences to various risk parameters.and procedure, verifies adherences to various risk parameters.
Premises Committee approves purchase and leasing of premises for the use ofPremises Committee approves purchase and leasing of premises for the use of
bank branches, banks offices, ATM's in accordance with guidelines laid down bybank branches, banks offices, ATM's in accordance with guidelines laid down by
the board.the board.
Fraud Monitoring CommitteesFraud Monitoring Committees main objective is the effective detection of fraudmain objective is the effective detection of fraud
and immediate reporting.and immediate reporting.
Nomination Committee: The bank constitutes a Nomination committee forNomination Committee: The bank constitutes a Nomination committee for
recommending the appointment of independednt/nonexcutive directors on therecommending the appointment of independednt/nonexcutive directors on the
board of the bank.board of the bank.
Types of GroupsTypes of Groups
There are several ways in which groups may be categorized. We may brieflyThere are several ways in which groups may be categorized. We may briefly
describe a few major types of groups.describe a few major types of groups.
Small and large groupsSmall and large groups: A small groups is a compact cluster of a few individuals: A small groups is a compact cluster of a few individuals
who have almost face-to-face inter-personal relations, interaction and inter-who have almost face-to-face inter-personal relations, interaction and inter-
dependencies. A large group is rather a collection of a few small groups. In adependencies. A large group is rather a collection of a few small groups. In a
sense an organization is a large group, a state, a nation and groups of nations (forsense an organization is a large group, a state, a nation and groups of nations (for
example European community, SAARC etc.) are larger group. Inter personalexample European community, SAARC etc.) are larger group. Inter personal
relation; interaction and inter-dependencies are somewhat weak in large groups.relation; interaction and inter-dependencies are somewhat weak in large groups.
Primary and secondary groupsPrimary and secondary groups; The term primary groups is almost identical to; The term primary groups is almost identical to
a small groups. Example of primary groups is family, a work groups and aa small groups. Example of primary groups is family, a work groups and a
friendship groups. Though all primary groups are small in size all small groupsfriendship groups. Though all primary groups are small in size all small groups
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8. Group No 5 Group Behaviour
need not always be primary groups. The additional feature of primary groups,need not always be primary groups. The additional feature of primary groups,
which distinguish it from a small group, is the existence of a shared scene ofwhich distinguish it from a small group, is the existence of a shared scene of
identity among member and their common value, interest and goals.identity among member and their common value, interest and goals.
A secondary group is a larger entity and is made up of several primary groups.A secondary group is a larger entity and is made up of several primary groups.
Just like in a large group, inter-personal relation and unity of purpose are weakJust like in a large group, inter-personal relation and unity of purpose are weak
in secondary groups. An organization a village or urban communities arein secondary groups. An organization a village or urban communities are
example of secondary groups. A secondary group is less cohesive then aexample of secondary groups. A secondary group is less cohesive then a
primary groups.primary groups.
Formal and informal groupsFormal and informal groups; A formal groups is work unit that is established as; A formal groups is work unit that is established as
a part of an organization its structure. It is set up by managerial action; itsa part of an organization its structure. It is set up by managerial action; its
members are selected by management and are required to assume certain ruledmembers are selected by management and are required to assume certain ruled
and to undertake specific tasks relating to the goals of the organization; it isand to undertake specific tasks relating to the goals of the organization; it is
governed by organizational ruled, procedure and regulation. Example of formalgoverned by organizational ruled, procedure and regulation. Example of formal
groups is the various works unit, section, departments and divisions establishedgroups is the various works unit, section, departments and divisions established
by an organization to achieve its goals.by an organization to achieve its goals.
There are two types of formal groups. Command group and task group.There are two types of formal groups. Command group and task group. A commandA command
group consists of a manager and a set of his immediate subordinated directlygroup consists of a manager and a set of his immediate subordinated directly
reporting to him. It is a relatively permanent work group and undertakes certainreporting to him. It is a relatively permanent work group and undertakes certain
regular activities. It is the group determined by the connection betweenregular activities. It is the group determined by the connection between
individuals who are formal part of the organisation. For example, the marketingindividuals who are formal part of the organisation. For example, the marketing
departments comprising of the general Manager and the other marketing staff.departments comprising of the general Manager and the other marketing staff.
A task group is one, which assembled for undertaking certain specifiedA task group is one, which assembled for undertaking certain specified
tasks. A committee or a project group is task groups. For examples committeetasks. A committee or a project group is task groups. For examples committee
established to study and recommend changes in the wage system of theestablished to study and recommend changes in the wage system of the
organisation. Task group is usually disbanded once the assigned task or purposeorganisation. Task group is usually disbanded once the assigned task or purpose
has been accomplished. Task group created by the management to accomplishhas been accomplished. Task group created by the management to accomplish
certain organizational goals. It is specifically created to solve problems orcertain organizational goals. It is specifically created to solve problems or
perform a defined task. It composed of individuals with some special interest orperform a defined task. It composed of individuals with some special interest or
expertise in a specific area regardless of their position in the organisationexpertise in a specific area regardless of their position in the organisation
hierarchy.hierarchy.
Informal Group: -Informal Group: -Informal groups are groups that develop naturally amongInformal groups are groups that develop naturally among
people, without any direction from the organisation within which they operate.people, without any direction from the organisation within which they operate.
They are formed spontaneously and are based on personal relationship orThey are formed spontaneously and are based on personal relationship or
specific interest. An informal group is a voluntary unofficial formation of a smallspecific interest. An informal group is a voluntary unofficial formation of a small
number of members of an organization who are mutually attracted and alignednumber of members of an organization who are mutually attracted and aligned
by virtue of certain commonly shared backgrounds interests, value and needs.by virtue of certain commonly shared backgrounds interests, value and needs.
In any organization, informal groups emerge and evolved spontaneously byIn any organization, informal groups emerge and evolved spontaneously by
virtue of that fact that members seek social alliance, interaction and relationshipvirtue of that fact that members seek social alliance, interaction and relationship
on selective basis in the courses of their association with their jobs. Example ofon selective basis in the courses of their association with their jobs. Example of
music groups magazine circle.music groups magazine circle.
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9. Group No 5 Group Behaviour
Informal groups are two types:Informal groups are two types: Friendships groups and interest groups,Friendships groups and interest groups,
Friendship group consists of individual who come together because they shareFriendship group consists of individual who come together because they share
one or more common characteristics. Friendships groups emerge to meet theone or more common characteristics. Friendships groups emerge to meet the
social afflictions needs of members-need for belonging, for affection acceptance,social afflictions needs of members-need for belonging, for affection acceptance,
and so on.and so on.
Interest group consists of person who shares common interest. Interest groupsInterest group consists of person who shares common interest. Interest groups
emerge to pursue certain goals and interest as for example a volley bolls groups.emerge to pursue certain goals and interest as for example a volley bolls groups.
A few members in an organization may band together to protect their interestA few members in an organization may band together to protect their interest
Characteristic features of informal groupsCharacteristic features of informal groups
At this point we may confine our attention to informal groups and outline theirAt this point we may confine our attention to informal groups and outline their
basic characteristics as follows:basic characteristics as follows:
a.a. They are small in size and relatively homogeneous in one or moreThey are small in size and relatively homogeneous in one or more
important respects, so as to facilitate interpersonal interaction.important respects, so as to facilitate interpersonal interaction.
b.b. Members share certain goals, values and beliefs. They have collectiveMembers share certain goals, values and beliefs. They have collective
perception of their identity and unity.perception of their identity and unity.
c.c. Members participate in a system of inter-locking roles and relationships.Members participate in a system of inter-locking roles and relationships.
d.d. There are strong elements of social controls over the behavior andThere are strong elements of social controls over the behavior and
performance of members through a network of norms to which membersperformance of members through a network of norms to which members
are expected to comply.are expected to comply.
e.e. Co-operation, cohesiveness and conflict co-exist in informal groups.Co-operation, cohesiveness and conflict co-exist in informal groups.
f.f. There are strong social rankings among members depending on theirThere are strong social rankings among members depending on their
powers relations, even though there are no superiors and subordinates aspowers relations, even though there are no superiors and subordinates as
such.such.
g.g. Each informal group has its own culture which evolves over a period ofEach informal group has its own culture which evolves over a period of
time.time.
h.h. Membership is over-lapping-an individual may belong to more than oneMembership is over-lapping-an individual may belong to more than one
informal group.informal group.
i.i. Members behave in a natural and relax manner and generally feel atMembers behave in a natural and relax manner and generally feel at
home.home.
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10. Group No 5 Group Behaviour
j.j. Though membership is voluntary, it is not automatic. It involves someThough membership is voluntary, it is not automatic. It involves some
informal section process.informal section process.
k.k. Members engage in mostly oral communication in a direct and frequentlyMembers engage in mostly oral communication in a direct and frequently
face-to-face manner.face-to-face manner.
l.l. Informal groups are loosely structured.Informal groups are loosely structured.
m.m. The goals of informal group tend to be different from and are often inThe goals of informal group tend to be different from and are often in
conflict with the goals of the organization. Informal groups are stronglyconflict with the goals of the organization. Informal groups are strongly
oriented to the interests and needs of the members.oriented to the interests and needs of the members.
We will hopefully come across some more features of informal groups as weWe will hopefully come across some more features of informal groups as we
proceed further with our discussion of groups and their dynamics.proceed further with our discussion of groups and their dynamics.
Informal groups are informal organizationInformal groups are informal organization
A distinction may also be made between the concepts of informalA distinction may also be made between the concepts of informal
groups and informal organizational, even though a few authors treat them asgroups and informal organizational, even though a few authors treat them as
inter changeable terms. An informal group is a nucleus of informalinter changeable terms. An informal group is a nucleus of informal
organization. The latter is in a sense, a network of several over-lappingorganization. The latter is in a sense, a network of several over-lapping
informal groups. In other words, an informal organization is a larger entityinformal groups. In other words, an informal organization is a larger entity
consisting of all informal groups in an organization. Being a larger entity,consisting of all informal groups in an organization. Being a larger entity,
inter personal relationship; interactions and inter-dependencies amonginter personal relationship; interactions and inter-dependencies among
members in an informal organizational tend to be less intense and intimatemembers in an informal organizational tend to be less intense and intimate
than in an informal group. The emotional identification and cohesiveness ofthan in an informal group. The emotional identification and cohesiveness of
members to their informal organizational is also likely to be somewhat less.members to their informal organizational is also likely to be somewhat less.
Further, informal organization is a social, real- life emergent dimension ofFurther, informal organization is a social, real- life emergent dimension of
formal organization. They often inter-mingle and converge so closely thatformal organization. They often inter-mingle and converge so closely that
they can be separated only conceptually. But, informal social groups in anthey can be separated only conceptually. But, informal social groups in an
organization have often little inline with formal work groups. They areorganization have often little inline with formal work groups. They are
hardly co-extensive with formal groups. Another point of distinction is thathardly co-extensive with formal groups. Another point of distinction is that
members who are attracted to each other for some reason or the other, asmembers who are attracted to each other for some reason or the other, as
against this, form informal groups, the informal organization is not formed asagainst this, form informal groups, the informal organization is not formed as
such. It is an intangible perceptions and an emergent dimension of the formalsuch. It is an intangible perceptions and an emergent dimension of the formal
organization as it functions in reality and departs from official, prescribedorganization as it functions in reality and departs from official, prescribed
framework.framework.
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11. Group No 5 Group Behaviour
GROUP BEHAVIOURGROUP BEHAVIOUR
Group behaviour is the social process by which people relate and respondGroup behaviour is the social process by which people relate and respond
to each other and perform their respected roles as members of small-integratedto each other and perform their respected roles as members of small-integrated
clusters. An integrated and comprehensive behaviour of people in-group isclusters. An integrated and comprehensive behaviour of people in-group is
referred to as group behaviour. Group behaviour is studies through groupreferred to as group behaviour. Group behaviour is studies through group
dynamics, teams, communication, power and politics, leaderships and decision-dynamics, teams, communication, power and politics, leaderships and decision-
making. Group behaviour is guided by a basic unity of purpose and identity ofmaking. Group behaviour is guided by a basic unity of purpose and identity of
interest. It strives to uphold and promote group cohesiveness-the tendency of theinterest. It strives to uphold and promote group cohesiveness-the tendency of the
members to commit themselves to the group, come what may. Group stress themembers to commit themselves to the group, come what may. Group stress the
need for member conformity to certain group values and norms of behaviourneed for member conformity to certain group values and norms of behaviour
and performance. At the same time, some differentiation in roles assigned for aand performance. At the same time, some differentiation in roles assigned for a
different member is implicates in-group behaviour. Group behaviour is alsodifferent member is implicates in-group behaviour. Group behaviour is also
characterized by empathy; members develop the habit of appreciating eachcharacterized by empathy; members develop the habit of appreciating each
other’s position and point of view. Further, group behaviour has certainother’s position and point of view. Further, group behaviour has certain
naturalness or spontaneity about it-it is not contrived or stage-managed. Finally,naturalness or spontaneity about it-it is not contrived or stage-managed. Finally,
members of the group have little social distance between each other – theymembers of the group have little social distance between each other – they
interact as equals.interact as equals.
There are two dimensions of group behaviors: intra group behaviour i.e.There are two dimensions of group behaviors: intra group behaviour i.e.
how members of a group behave with each other and inter-group behaviour, i.e.how members of a group behave with each other and inter-group behaviour, i.e.
how members of a group behave with respect to members of other groups.how members of a group behave with respect to members of other groups.
George humans, a social psychologist, provided a conceptual scheme forGeorge humans, a social psychologist, provided a conceptual scheme for
understanding how informal groups and their behaviour take shape. Theunderstanding how informal groups and their behaviour take shape. The
elements of the conceptual scheme are activities, sentiments and interactions. Theelements of the conceptual scheme are activities, sentiments and interactions. The
formal organization establishes certain relationships and roles for the individualformal organization establishes certain relationships and roles for the individual
who join as its members. It defines the activities which are to be carried out aswho join as its members. It defines the activities which are to be carried out as
also the performance and behavioral norms for the members i.e., the behaviouralso the performance and behavioral norms for the members i.e., the behaviour
expected to them to achieve the goal of the organization. Members bring withexpected to them to achieve the goal of the organization. Members bring with
their own sentiments, values, goals, attitudes and ideas. Individuals, as memberstheir own sentiments, values, goals, attitudes and ideas. Individuals, as members
of the organization, interact with each other to carry out the activities and to gainof the organization, interact with each other to carry out the activities and to gain
social satisfaction. They form into small informal groups on the basis of theirsocial satisfaction. They form into small informal groups on the basis of their
sentiments, interactions and activities, emerging the behaviour of the group,sentiments, interactions and activities, emerging the behaviour of the group,
which is different from the required behaviour, determined by the formalwhich is different from the required behaviour, determined by the formal
organization. Members refine, modify and reinforce their values, sentiments andorganization. Members refine, modify and reinforce their values, sentiments and
attitudes as a result of their interactions in groups and by virtue of theirattitudes as a result of their interactions in groups and by virtue of their
association with the activities. Interactions among members tend to be bothassociation with the activities. Interactions among members tend to be both
formal and informal-not always the activities. Members also tend to undertakeformal and informal-not always the activities. Members also tend to undertake
the activities in a way different from those defined by the organization.the activities in a way different from those defined by the organization.
The conceptual model provided by humans help us to understand groupThe conceptual model provided by humans help us to understand group
behaviour in organizations. It is a systems model to extent that it recognizes thebehaviour in organizations. It is a systems model to extent that it recognizes the
integrated nature of theintegrated nature of the
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12. Group No 5 Group Behaviour
Negative side of group influenceNegative side of group influence
We till now concentrated on the positive, favorable role of groups inWe till now concentrated on the positive, favorable role of groups in
organizational performance and morale. However, the negative andorganizational performance and morale. However, the negative and
dysfunctional side of groups is not to be ignored. Work and informal groups indysfunctional side of groups is not to be ignored. Work and informal groups in
organizations evolve their own goals and interests, which often tend to the goalsorganizations evolve their own goals and interests, which often tend to the goals
and interests of the organization and thus adversely affects organizationaland interests of the organization and thus adversely affects organizational
performance. Similarly, certain work groups also establish their standards andperformance. Similarly, certain work groups also establish their standards and
norms of performance and behaviour and insist on members to conform to them,norms of performance and behaviour and insist on members to conform to them,
even at the expense of their own personal inclinations and interests. In general,even at the expense of their own personal inclinations and interests. In general,
group norms of performance (acceptable level of output per day, for-example)group norms of performance (acceptable level of output per day, for-example)
tend to be lower than organizationally determined norms. Such a tendency istend to be lower than organizationally determined norms. Such a tendency is
likely to distort organizational performance. Groups indulge in power politics,likely to distort organizational performance. Groups indulge in power politics,
conflicts and bickering; cliques, intrigues and vested interests get entrenched inconflicts and bickering; cliques, intrigues and vested interests get entrenched in
groups and undermine organizational structure and functions. Informal groups,groups and undermine organizational structure and functions. Informal groups,
which up the informal organization adopt ways of doing things, which representwhich up the informal organization adopt ways of doing things, which represent
a departure from organizationally, desired ones. Also, some work groups anda departure from organizationally, desired ones. Also, some work groups and
informal groups design mechanisms to water down the exercise of managerialinformal groups design mechanisms to water down the exercise of managerial
authority and work towards distortion of various organizationally determinedauthority and work towards distortion of various organizationally determined
systems, process and practices. Highly cohesive groups are also capable of usingsystems, process and practices. Highly cohesive groups are also capable of using
their cohesiveness against the interests of the organization.their cohesiveness against the interests of the organization.
Group behavior is studied through group dynamics, team communications,Group behavior is studied through group dynamics, team communications,
power& politics, Leaderships and Decision-making.power& politics, Leaderships and Decision-making.
CONCEPT OF GROUP DYNAMICSCONCEPT OF GROUP DYNAMICS
Groups are formed with a specific purpose. They exit for some time until theGroups are formed with a specific purpose. They exit for some time until the
purpose is achieved & then disband or adjourn. Group dynamics is a fieldpurpose is achieved & then disband or adjourn. Group dynamics is a field
concerned with research and analyzing of the various forces in and pattern of theconcerned with research and analyzing of the various forces in and pattern of the
formation, of small informal groups. It also covered study of behaviors offormation, of small informal groups. It also covered study of behaviors of
compositions, interaction and behavior of the university of lown, USA, was thecompositions, interaction and behavior of the university of lown, USA, was the
founder of group dynamics as an academics and research de discipline in thefounder of group dynamics as an academics and research de discipline in the
1930s. It has emerged as a powerful and growing sub-discipline of social1930s. It has emerged as a powerful and growing sub-discipline of social
psychology since then. Group Dynamics as disciplines is concerned with thepsychology since then. Group Dynamics as disciplines is concerned with the
promotions of ones understanding on the following aspects:promotions of ones understanding on the following aspects:
1)1) Why and how groups are formed,Why and how groups are formed,
2)2) What forces are operative in the structure of groups?What forces are operative in the structure of groups?
3)3) How groups are grow, decline and die.How groups are grow, decline and die.
4)4) How they make decision and solve the problems.How they make decision and solve the problems.
5)5) How they achieved unity and handle conflict,How they achieved unity and handle conflict,
6)6) How they change and adapt themselves.How they change and adapt themselves.
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13. Group No 5 Group Behaviour
7)7) How they influence task performance and member satisfaction.How they influence task performance and member satisfaction.
Several researches studied and experiments have been done and a body ofSeveral researches studied and experiments have been done and a body of
rich literature has been built up over the years on the above areas and aspect.rich literature has been built up over the years on the above areas and aspect.
Group's dynamics continues to be of great help to professional and otherGroup's dynamics continues to be of great help to professional and other
managers in improving their understanding of how to handle and managemanagers in improving their understanding of how to handle and manage
groups, both formal and informal in organizations.groups, both formal and informal in organizations.
TEAM VERSUS GROUPSTEAM VERSUS GROUPS
People often refer to their groups as team. However a tam is differentPeople often refer to their groups as team. However a tam is different
from group. In a team the focus is on individuals accountability as well asfrom group. In a team the focus is on individuals accountability as well as
mutual accountability. The team works together to produce an outcome and eachmutual accountability. The team works together to produce an outcome and each
team member responsible for that outcome. Rewards are shared in a team but inteam member responsible for that outcome. Rewards are shared in a team but in
the groups members do not consider themselves responsible for any result otherthe groups members do not consider themselves responsible for any result other
than their own. Teams usually have greater autonomy than groups. In a groupthan their own. Teams usually have greater autonomy than groups. In a group
members share a common interest goals. team member not only have commonmembers share a common interest goals. team member not only have common
goals but they also shave a common commitment to the purpose.goals but they also shave a common commitment to the purpose.
A team includes people with mix of skills appropriate to the task to beA team includes people with mix of skills appropriate to the task to be
done. Team consist of different individuals who come from differentdone. Team consist of different individuals who come from different
environment and who taste, personalities, thinking, beliefs, skills and attitude areenvironment and who taste, personalities, thinking, beliefs, skills and attitude are
different.different.
A sound team requires not just the right combination of skilled people butA sound team requires not just the right combination of skilled people but
also individuals whoa re willing to work together with other as a tem.also individuals whoa re willing to work together with other as a tem.
Greenberg and Baron define team asGreenberg and Baron define team as "a group whose members have"a group whose members have
complementary skills and are committed to a common or set of performancecomplementary skills and are committed to a common or set of performance
goals for which they hold themselves mutually accountable.goals for which they hold themselves mutually accountable.
Stephon Robbins describes a work team asStephon Robbins describes a work team as " a group whose individuals efforts" a group whose individuals efforts
in performance that is greater than the sum of those individuals"in performance that is greater than the sum of those individuals"
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14. Group No 5 Group Behaviour
GROUP DECESION MAKINGGROUP DECESION MAKING
Group decision making is widely use in organization. Committees, study team,Group decision making is widely use in organization. Committees, study team,
rearview panels are example of groups frequently used to make majorrearview panels are example of groups frequently used to make major
organizational decision. Both individual and group decision has their strengthorganizational decision. Both individual and group decision has their strength
and weakness. Neither is ideal for all situations. Each has its own advantagesand weakness. Neither is ideal for all situations. Each has its own advantages
and disadvantages.and disadvantages.
Advantages of Group Decision MakingAdvantages of Group Decision Making
1) Pooling of resources:1) Pooling of resources: Bringing people together increase the amount ofBringing people together increase the amount of
knowledge and information available to make good decision. This happenknowledge and information available to make good decision. This happen
because a group consist of member having varied background.because a group consist of member having varied background.
2) Increase diversity of views:2) Increase diversity of views: In groups different individuals look at theIn groups different individuals look at the
problem from different perspectives thus providing more approaches andproblem from different perspectives thus providing more approaches and
alternatives to be considered.alternatives to be considered.
3) Sharing the load:3) Sharing the load: Group member can distribute or divide the problemsGroup member can distribute or divide the problems
instead of overburdening single individuals.instead of overburdening single individuals.
4) Specialization of labour:4) Specialization of labour: Expertise various fields can be included in theExpertise various fields can be included in the
groups. Thus decision made will be superior quality.groups. Thus decision made will be superior quality.
5) Increase belongingness:5) Increase belongingness: Group Decision increases fellow felling among theGroup Decision increases fellow felling among the
employees and creates a sense of belongingness to the organization.employees and creates a sense of belongingness to the organization.
DISADVANTAGES OF GROUP DECISION MAKINGDISADVANTAGES OF GROUP DECISION MAKING
1) Time Consuming;1) Time Consuming; An obvious drawback of group decision-making is in termsAn obvious drawback of group decision-making is in terms
of waste of time. It takes time to organize a groups and group member tend toof waste of time. It takes time to organize a groups and group member tend to
spend a lot of time socializing before getting down to the actual business or workspend a lot of time socializing before getting down to the actual business or work
2) Threat or intimidation;2) Threat or intimidation; A problem with group decision-making is that someA problem with group decision-making is that some
member may be threatened or intimidates by other and thereof they aremember may be threatened or intimidates by other and thereof they are
discourage from freely expressing their view.discourage from freely expressing their view.
3) Domination by a few:3) Domination by a few: If group discussion are dominated by one or a fewIf group discussion are dominated by one or a few
members and the other remain mere spectators then the entire purpose ofmembers and the other remain mere spectators then the entire purpose of
meeting as a group is defeated.meeting as a group is defeated.
4) Conflict and ill will:4) Conflict and ill will: Lack of agreement can cause bad felling to developLack of agreement can cause bad felling to develop
between group membersbetween group members..
Group decisions have their advantages and disadvantages. Hence question thatGroup decisions have their advantages and disadvantages. Hence question that
arises is when are group decision better than individual decision? An importantarises is when are group decision better than individual decision? An important
determinant of whether a decision should be made by a group or an individual isdeterminant of whether a decision should be made by a group or an individual is
the degree of task structure or the nature of the problem.the degree of task structure or the nature of the problem.
Compared to individual, groups tend to make more extreme decision regardingCompared to individual, groups tend to make more extreme decision regarding
the amount of risk they are willing to take or the amount of caution they want tothe amount of risk they are willing to take or the amount of caution they want to
take. Research has shown that groups recommended riskier decision thantake. Research has shown that groups recommended riskier decision than
individuals.individuals.
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15. Group No 5 Group Behaviour
Prof. Priya GawadeProf. Priya Gawade
(Projec(Projec
t Guide)t Guide)
II Prof. Priya Gawade Hereby certify that the Group No. 5Prof. Priya Gawade Hereby certify that the Group No. 5
Second Year B. Com. Banking & Insurance of Chinai College ofSecond Year B. Com. Banking & Insurance of Chinai College of
commerce and economics has completed their project titled Groupcommerce and economics has completed their project titled Group
Behaviour in the academic year 2005-06. This project providesBehaviour in the academic year 2005-06. This project provides
detail description of various topics of organizational behaviour. Thedetail description of various topics of organizational behaviour. The
15

16. Group No 5 Group Behaviour
information submitted herein is true, satisfactory and original to theinformation submitted herein is true, satisfactory and original to the
best of their knowledge.best of their knowledge.
16