Group dynamics refers to the interactions that take place among members of a group. There are three views on the nature of group dynamics: normative, techniques-based, and internal processes. Groups form through propinquity, similar attitudes, and reward-cost equations. Formal groups are formed by organizations while informal groups emerge among employees. Highly cohesive groups can positively or negatively influence performance. Groups develop through forming, storming, norming, performing, and adjourning stages. Group structure and processes shape member behavior and performance.

1. Group DynamicsGroup Dynamics
Group-Basic fundamental unit of anGroup-Basic fundamental unit of an
organization.2 or more persons whoorganization.2 or more persons who
interact & work with each other to achieveinteract & work with each other to achieve
a common purpose.a common purpose.
Group Dynamics:The interactions thatGroup Dynamics:The interactions that
take place among the members of atake place among the members of a
group.group.
The term group dynamics was popularisedThe term group dynamics was popularised
by Kurt Lewin in 1930s.by Kurt Lewin in 1930s.

2. Three Views-Nature of GroupThree Views-Nature of Group
Dynamics:Dynamics:
 1.Normative view:Describes how a group is to be1.Normative view:Describes how a group is to be
organised & how its activities are to be carried out.Itorganised & how its activities are to be carried out.It
emphasizes on democratic leadership,participation of theemphasizes on democratic leadership,participation of the
members,& cooperation among them.members,& cooperation among them.
 22ndnd
view:-Group dynamics consists of a set of techniquesview:-Group dynamics consists of a set of techniques
like roleplays,brainstorming,sensitivity training,teamlike roleplays,brainstorming,sensitivity training,team
building,transactional analysis,etc.building,transactional analysis,etc.
 33rdrd
view:Internal nature of groups.-how groups areview:Internal nature of groups.-how groups are
formed,their structure,processes & functioning.Howformed,their structure,processes & functioning.How
group affects individual members,other groups & thegroup affects individual members,other groups & the
organization as a whole.organization as a whole.

3. Theory of Group Formation:Theory of Group Formation:
 1.Propinquity theory:people associate with one1.Propinquity theory:people associate with one
another due to geographical proximity.another due to geographical proximity.
 2.Balance Theory:People who have similar2.Balance Theory:People who have similar
attitudes toward certain objects & goals tend toattitudes toward certain objects & goals tend to
be attracted to each other & form a group.be attracted to each other & form a group.
 3.Exchange Theory-Reward-cost outcome serve3.Exchange Theory-Reward-cost outcome serve
as the basis of group formation.It states thatas the basis of group formation.It states that
affiliation/association takes place when theaffiliation/association takes place when the
reward-cost equation has a positive outcome-reward-cost equation has a positive outcome-
rewards are greater than the costs incurred.rewards are greater than the costs incurred.

4. Types of groups;Types of groups;
1.Formal groups1.Formal groups are formed by theare formed by the
organization to carry out certainorganization to carry out certain
activities.It includesactivities.It includes
a) Command group-permanent ina) Command group-permanent in
nature.eg:functional groups.nature.eg:functional groups.
b) Task group-to carry out specificb) Task group-to carry out specific
tasks:temporary in nature.tasks:temporary in nature.
2.Informal groups2.Informal groups are formed by theare formed by the
employees themselves.employees themselves.

5. Types of Informal Groups;Types of Informal Groups;
 1.Friendship groups;permanent in nature1.Friendship groups;permanent in nature
 2.Interest groups;-relativly temporary & are2.Interest groups;-relativly temporary & are
organized around a common activity or interest.organized around a common activity or interest.
 Fred Luthans-In addition to formal & informal;Fred Luthans-In addition to formal & informal;
Groups can also be classified into small & largeGroups can also be classified into small & large
groups;Primary & secondary groupsgroups;Primary & secondary groups
 Coalitions,memberships & reference groupsCoalitions,memberships & reference groups
 Ingroups & outgroups.Ingroups & outgroups.

6. Schachter Study;Schachter Study;
 Stanley Schachter & his associates carried out aStanley Schachter & his associates carried out a
study to determine the effect of groupstudy to determine the effect of group
cohesiveness & group influence on productivity.cohesiveness & group influence on productivity.
 Schachters study found that highly cohesiveSchachters study found that highly cohesive
groups could exert either a positive or negativegroups could exert either a positive or negative
influence on performance,while less cohesiveinfluence on performance,while less cohesive
groups were not so influencial.groups were not so influencial.
 It can be concluded that if productivity is to beIt can be concluded that if productivity is to be
maximised,the management should build amaximised,the management should build a
cohesive group & should entrust the leadershipcohesive group & should entrust the leadership
of this group to the person who is most capableof this group to the person who is most capable
of leading the group.of leading the group.

7. Stages Of Group Development:Stages Of Group Development:
1.Five stage Model1.Five stage Model; According to this; According to this
model,all groups pass through five stages:model,all groups pass through five stages:
Forming-Initial meeting together.Forming-Initial meeting together.
Storming-Resolving differences.Storming-Resolving differences.
Norming-Agreeing purpose & conduct.Norming-Agreeing purpose & conduct.
Performimg-Achieving the purpose.Performimg-Achieving the purpose.
Adjourning/Mourning;Completion,endingAdjourning/Mourning;Completion,ending
or evolution.or evolution.

8. The Punctuated Equilibrium Model:The Punctuated Equilibrium Model:
According to this model,the process ofAccording to this model,the process of
group formation is characterized by longgroup formation is characterized by long
periods of inertia,punctuated orperiods of inertia,punctuated or
interspersed with brief periods of activity.interspersed with brief periods of activity.
These periods of activity primarily takeThese periods of activity primarily take
place when the members become awareplace when the members become aware
of the time & the approaching projectof the time & the approaching project
deadline.deadline.

9. Group StructureGroup Structure
It helps shape the behavior of itsIt helps shape the behavior of its
members,predict the behavior & guide themembers,predict the behavior & guide the
performance of the group as a hole.performance of the group as a hole.
Groups are characterised by certainGroups are characterised by certain
structural variables such as formalstructural variables such as formal
leadership,roles,norms,group status,groupleadership,roles,norms,group status,group
size & composition of the groupsize & composition of the group

10. Roles:Roles:
It is a set of behaviour patterns which anIt is a set of behaviour patterns which an
individual occupying a certain position inindividual occupying a certain position in
society is expected to display.:society is expected to display.:
Role IdentityRole Identity
Role Perception.Role Perception.
Role expectationsRole expectations
Role conflict.Role conflict.

11. Group processes;Group processes;
 It refers to the processes within a group-theIt refers to the processes within a group-the
communication patterns,the behaviour of thecommunication patterns,the behaviour of the
leader,power dynamics & conflict within the group.leader,power dynamics & conflict within the group.
 1.Social loafing:When individuals work collectively or as1.Social loafing:When individuals work collectively or as
a group,they tend to expend less effort than what theya group,they tend to expend less effort than what they
would have put in individually.would have put in individually.
 2.Synergy;When a group can create output greater than2.Synergy;When a group can create output greater than
the sum of inputs.the sum of inputs.
 3.Social facilitation effect;The performance of an3.Social facilitation effect;The performance of an
individual can vary,depending on whether the task isindividual can vary,depending on whether the task is
performed in front of others or in private.performed in front of others or in private.

12. Difficulties/Problems associated withDifficulties/Problems associated with
Informal Groups;Informal Groups;
 Prevent organizational change.Prevent organizational change.
 Role conflict.Role conflict.
 Increased scope for rumorsIncreased scope for rumors
 Pressure to conform to group normsPressure to conform to group norms
 Management faces 3 major problem whenManagement faces 3 major problem when
dealing with informal groups:dealing with informal groups:
 1.Problems arising out of conflict between the1.Problems arising out of conflict between the
formal & informal status systems.formal & informal status systems.
 2.Employees perception of distributive justice2.Employees perception of distributive justice
 3.Problems of status incongruity.3.Problems of status incongruity.

13. Dynamics of formal work groups:Dynamics of formal work groups:
It includes-It includes-
committees,commissions,boards,teams &committees,commissions,boards,teams &
task forces.task forces.
Committees can perform variousCommittees can perform various
functions-a service,advisory orfunctions-a service,advisory or
administrative functionsadministrative functions
Positive & Negative attributes ofPositive & Negative attributes of
committees.committees.