GROUP FORMATION

Management and Organization (5569)
GROUPS & GROUP FORMATION
GROUPS
Definitions & Overview
A group is an interdependent set of people doing a task or trying to reach a common goal. Group
members regularly interact with each other and depend on each other to do their tasks. Job and
organizational design can affect the degree of mutual dependence. A group is a complex, adaptive
system that can change its membership, goals, and structure over time.
Groups can powerfully affect people’s behavior. Knowledge of how and why groups form, and an
understanding of their dynamics, can help one function better within a group or manage group
activities. There are some classic statement about groups in organizations:
“Groups exist; they are inevitable and ubiquitous; they mobilize powerful forces
having profound effects upon individuals; these effects may be good or bad; and
through a knowledge of group dynamics there lies the possibility of maximizing their
good value.” (Champoux, 2011)
A group in the workplace is usually made up of three or more people who recognize themselves as a
distinct unit or department, but who actually work independently of each other. For example, a small
business may have a client services group, but one person may focus on local clients, one person may
focus on regional clients and a third person may assist those individuals. Also, groups tend to be
permanent fixtures with ongoing goals or responsibilities.
Managers recognized many years ago that two heads are better than one, thus small businesses have
turned to groups or departments for many reasons. With group work, members have a shared
knowledge of the group’s objectives, but specific tasks or responsibilities are assigned to different
individuals. By separating work into groups – such as one devoted to marketing, one devoted to
accounting, etc. – individuals within those groups are able to maximize their expertise on a long-term
basis. (Fritz., 2019)
A group is an assemblage of persons who work, interact and cooperate with one another in achieving
a common goal in a specified time. The identity of the group members is taken individually. The
members share information and resources with other group members. In an organization, the groups
are made on the basis of common interests, beliefs, experience in common fields and principles, so
that they can easily coordinate with each other.
There are two kinds of groups:
 Formal Group: Formal groups are either functional groups within an organization or task
groups.4 Functional groups are clusters of people formed by the organization’s design, such
as divisions, departments, sections, and work units. They are a product of the organization’s
division of labor, the way the organization has divided its total work to reach its goals. Such
groups are often permanent, but can change if the organization redesigns its structure.
 Informal Group: Interaction patterns within organizations can affect the formation of
informal groups within and across formal groups. Informal groups can form along interest
lines, such as the task specialization of individuals, hobbies, or other concerns. They might be
friendship groups whose members associate with each other both at work and away from

work. Outsiders and newcomers cannot readily see informal groups, which are part of an
organization’s background. These informal groups form a “shadow organization” that applies
good and bad powerful forces to the organization. (Champoux, 2011)
GROUP vs TEAM
When two or more individuals are classed together either by the organization or out of social needs, it
is known as a group. On the other hand, a team is the collection of people, who are linked together to
achieve a common objective. Most of the work in a business entity is performed in groups. Although
the individual personality of an employee is important, their effectiveness depends on the teams in
which they are working collectively to achieve any objective. In a particular team, there can be
several groups in which the group members individually help their leader to accomplish the goals.
The difference between group and team in an organization is below:
BASIS FOR
COMPARISON
GROUP TEAM
Meaning A collection of individuals who work
together in completing a task.
A group of persons having collective
identity joined together, to accomplish a
goal.
Leadership Only one leader More than one
Members Independent Interdependent
Process Discuss, Decide and Delegate. Discuss, Decide and Do.
Work Products Individual Collective
Focus on Accomplishing individual goals. Accomplishing team goals.
Accountability Individually Either individually or mutually
(Surbhi, 2015)
REASONS OF GROPUPS FORMATION
There are a number of benefits of groups formation:
 Security: people who are part of a group generally feel more secure about their behaviour.
They have fewer doubts, and are more resistant to threats when they are part of a group.
 Status: inclusion in a group is viewed as important by others and it provides recognition and
status for its members.
 Self-esteem: people often feel more confident and have increased self-worth as a result of
participation in a group.
 Affiliation: Groups can fulfil social needs. People enjoy the interaction that comes with group
membership, and often it is their primary source of satisfaction for their affiliation needs.
 Power: the ‘power in numbers’ philosophy supports this finding, that groups can often
achieve more.
 Goal achievement: Often, in order to achieve specific goals various talents must be pooled
together. It not only facilitates completion of a job but increases the quality of the output.
(C2 Management and Organisations, 2012)

Following are some of the reason for the formation of groups:
 Propinquity-spatial/geographical proximity: Groups may be formed due to the
geographical nearness of individuals. For example, students living in the same hostel
room may form a group or people having desks close to each other in the office may get
together as an informal group.
 Common activities, interactions, sentiments: Groups may form due to the common
activities of individuals. When people go together for lunch in the organization, they interact
with each other and share the sentiments. This sharing of sentiments and interaction between
individuals results in the formation of a group.
 Balance theory, similar ideas, attitudes: Balance theory suggests that groups form due
the sharing of similar ideas and attitudes by people. When people have similar ides and think
alike, they tend to gel together. For example, religion, lifestyles, work, etc. all can be sources
or similarity and therefore group formation.
 Exchange theory: Exchange theory is based on the reward-cost outcomes of interaction.
When people find some sort of a reward from interaction with others, they tend to be together
which results in formation of groups.
 Economic security/social needs: By joining a group, individuals can reduce the insecurity of
standing alone. People feel stronger, have fewer self-doubts, and are more resistant to threats
when they are part of a group.
IMPORTANT CHARACTERISTICS OF INDIVIDUALS IN A GROUP
Important characteristics of an individual which has a great influence on group behavior in an
organization are listed below:
1. Qualities: Individual qualities have a strong influence on interaction among group members.
The qualities and traits of an individual decide his way of behavior. Democratic, defensive
and submissive attitudes have a positive impact on group behavior. Similarly, authoritarian,
offensive and abrasive outlooks create distrust among the members of a group. Extroversion
and dominance have an unhealthy impact on group behavior. Self-reliance, introspection,
sociability and helpful attributes of employees create a congenial atmosphere in the
organization.
2. Abilities: Expressed capacity is ability. A talented employee demonstrates high performing
abilities. Trained, experienced and highly motivated employees can perform better because
they develop high abilities for task performance. Abilities indicate what the individual is able
to do and how well he can interact with group members. The relationship between abilities
and performance is positive. Employees having more abilities perform the task in a better
manner. They behave well within the group and contribute significantly to the development of
the organization. If the abilities of these employees are accepted, they tend to contribute more
happily to the organization. Task-related and personality-related abilities have shown positive
contributions to group behavior.
3. Personal characteristics: Personal characteristics such as age, sex, physical features,
personality, appearance and mental aptitude have an impact on group behavior and
performance. An aged person is found more competent in group interaction than a younger
person. A more pleasing atmosphere is created with pleasing faces. Mentality and spirituality
have a certain impact on group behavior. The combined impact of personal characteristics
may be positive, although the impact of a single characteristic is not accurately measurable.
Positive attitudes have a positive impact on group performances.

4. Expectations: Employees’ expectations have always been controlling factors of behavior.
High hopes lead to poor performances, as high hopes are not fulfilled by management.
Similarly, if the employee’s expectations are fulfilled, they get more satisfaction.
Expectations of employees influence interpersonal relationships, rewards and performances.
Unsatisfied expectations or ambiguous expectations cause frustration, disappointment and
low turnover. Proper guidance, autonomy and feedback lead to proper behavior. Employees’
expectations should not only be linked with performance, but with the following of standard
rules, procedures and policies. It is expected that employees will follow the organizational
policies and practices. (Share Your Essays, a)
STAGES OF GROUP FORMATION
Before a group becomes productive, it usually goes through the stages of group formation and also
through some cycles of high/ low performance. Five-stage group-development model characterizes
groups as proceeding through the distinct stages of forming, storming, norming, performing, and
adjourning. (Figure 2.1)
1. The first stage, forming stage, is characterized by a great deal of uncertainty about the
group’s purpose, structure, and leadership. Members “test the waters” to determine what types
of behaviors are acceptable. This stage is complete when members have begun to think of
themselves as part of a group.
2. The storming stage is one of intragroup conflict. Members accept the existence of the group
but resist the constraints it imposes on individuality. There is conflict over who will control
the group. When this stage is complete, there will be a relatively clear hierarchy of leadership
within the group. In the third stage, close relationships develop and the group demonstrates
cohesiveness. There is now a strong sense of group identity and camaraderie.
3. This norming stage is complete when the group structure solidifies and the group has
assimilated a common set of expectations of what defines correct member behavior.
4. The fourth stage is performing. The structure at this point is fully functional and accepted.
Group energy has moved from getting to know and understand each other to performing the
task at hand.
5. For permanent work groups, performing is the last stage in development. However, for
temporary committees, teams, task forces, and similar groups that have a limited task to
perform, the adjourning stage is for wrapping up activities and preparing to disband. Some
group members are upbeat, basking in the group’s accomplishments. Others may be
depressed over the loss of camaraderie and friendships gained during the work group’s life.
(Robbins & Judge 2013)
Figure 2.1

PURPOSE AND STRUCTURE OF THE GROUP
Group formation has certain objectives. The purpose behind group formation may be task
achievement, problem-solving, proximity or other socio-psychological requirements. Group formation
is based on activities, interactions and sentiments.
1. Task accomplishment: The basic purpose of group formation is the achievement of certain
objectives through task performance. Individuals come closer in order to understand the tasks
and decide on the procedures of performance. In any organization, task accomplishment is the
reason for which different groups such as an engineering group; marketing group, foreman’s
group and personnel group are formed for achievement of the organizations’ goals. When an
organization faces some procedural difficulties, concerned groups discuss them and evolve
new techniques of production, marketing and other functions.
2. Problem Solving: When people foresee or face certain problems, they unite to solve the
problems. Unity has strength. A group provides strength to members who are willing to
challenge any problem. Group behavior gives more strength to come down heavily on
problems.
3. Proximity: People form groups because of proximity and attraction towards each other. The
group formation theory is based on propinquity, which means that individuals affiliate
because of spatial or geographical proximity. They interact frequently with each other on
many topics, because this interactive communication is rewarding.

4. Socio-psychological Factors: Sentiments and action-uniformities bring people closer. They
also form groups for safety, security and social achievements. People cooperate with
members of the group on social as well as economic grounds to reach satisfactory levels.
People form groups basically for activities, interaction and due to sentiments. People living in
proximity frequently discuss their problems. They try to reduce their tensions and achieve
satisfaction. Individuals interest each other only when they have common attitudes and
sentiments. People with diverse attitudes form groups under certain compulsions to meet
unexpected problems. (Share Your Essays, b)
GROUP STRUCTURE OF AN ORGANIZATION
Group structure is the framework of a group which has greater influence on the behavior and
interaction of members of a group. Group structure, as its outer framework, and inner relationship are
guiding and controlling factors of behavior. Group structure has different variables such as
interpersonal relationships, roles played, norms, group status, group size and social density.
1. Interpersonal relationships: Every group has a leader whose task is to guide and control group
activities. The nature of the group leader and the formal relationship between the leader and the
subordinates determines group behavior. The formal relationships between subordinates and their
superior are strengthened. This relationship plays a crucial role in organizational performance and
behavior. The interpersonal relationship influences interaction, expectation and the performance of the
group. Group structure develops a particular pattern of behavior and interaction of group members.
Status, norms and roles are designed as per the forms of group structure.
2. Roles: All the employees and group members play their respective roles as per their positions.
Individuals in the group are assigned certain jobs, positions and titles. They are expected to perform
certain roles. The perceived role is the role expected in practice by the individual himself. A perceived
role may be inaccurate. An enacted role is the way he actually behaves. Employees may be required
sometimes to perform more diverse roles than expected. Many organizations have multiple role
performing jobs. Role behavior relates to note role identity, role perception, role expectation, role
enactment, role ambiguity and role conflict.
 Role identity: The behavior and attitude attached to the role together form what is known as
role identity. People’s behavior is predicted as per their roles. A situation that demands a
particular type of behavior is related to the role identity. Each position has its own type of role
behavior. For example, an employee if promoted to managerial cadre will have a pro-
organization attitude.
 Role perception: Role perception is a set of activities or behavior that an individual is
supposed to perform. It is a supposed role to be performed in a given situation. The
perception of an employee toward his job is influenced by different factors such as
atmosphere, environment, socio-cultural situations and other stimuli. Since people have
different stimuli, perceptions differ from person to person. What the management expects
from itself and what employees expect from themselves are role perceptions.
 Role expectations: Role expectation is the behavior expected by others from the employee.
How others believe an employee should perform the job in a given situation is role
expectation. There are differences between role perception and role expectation, because of
the different attitudes of employees and the attitudes of other people towards employee

behavior. What the management expects from employees and what employees expect from
management are role expectations.
 Role enacted: The role enacted is the actual behavior of individuals and group members. The
enacted role depends on the perceived and expected role. If there is no difference between the
expected role, perceived role and enacted” role, the organization will be free from role
ambiguity and role conflict. There are rare possibilities of equating these roles. An
organization desires to have equality of these roles for a better performance.
 Role ambiguity: The differences between the expected role and the perceived role create role
ambiguity. Employees do not perceive what others expect from them. Role ambiguity occurs
due to a lack of clarity regarding job duties, job descriptions and job designs. An individual
has to perform his duties as expected, discharge his expected responsibilities and use his
authority as required by the organization.
 Role conflict: The differences between the perceived role and the enacted role create role
conflict. When an individual’s perception is influenced by multiple demands and directions
from one or more supervisor, employees face uncertainty. Unity of command and direction
avoids role conflicts, but this is a rare phenomenon, as in practice employees receive multiple
directions. Role conflicts may be intra-role conflicts and/or inter-role conflicts.
3. Norms: Group structure incorporates certain norms to be followed by group members. Norms are
acceptable standards of behavior in a group. Members of a group are allowed to act, interact and
perform their functions as per established rules and standards of behavior. Group members learn
necessary behavior for the effective performance of group activities.
 Form of the norms: The norms are traditionally accepted rules of behavior which are
developed through explicit statements, critical events, primary and carry over behavior.
Explicit statements made by group members become norms of behavior if these norms are
accepted by them.
 Classes of norms: Norms are of different types and differ as per different groups,
communities and societies. Norms being commonly accepted principles influence every
member of the group. Formalized norms are written and accepted by the organization, as
manuals or code of conduct. The employees have to follow a code of conduct. The rules and
regulations are strictly followed by the members. Sometimes these rules are relaxed and
people take them casually. Employees devote maximum efforts to utilize their sprits and
capabilities as per the work norms. Many organizations have developed motivation norms for
mobilizing the employees of an organization. Appearance norms refer to the presentation of
employees in an appropriate dress, loyalty, and attitude and communication style. Allocation
norms deal with the rules and principles of allocating resources to employees for performing
their jobs efficiently.
 Uses of norms: Groups are benefitted through norms, as employee behavior is molded and
modified greatly with the use of norms. It is observed that norms protect employees from
indulging in unsatisfactory behavior. The norms of an organization aim at improving morality
and satisfaction among employees. Norms encourage the values and integrity of an
organization. Group performance is maintained by using norms.
 Conformity: The conformity decides the degree of use of norms. Group success depends on
the conformity of norms which is the acceptable degree of norms by the employees. The
reasons for a lower degree of conformity are diagnosed to develop the acceptability of a high
degree of norms. There are four variables influencing conformity. Intelligence and
authoritarian attitudes are negatively correlated to conformity. Situational factors influence

conformity. The group size, group structure and group interaction have positive impacts on
the conformity of norms.
4. Group Status: Status is a defined position or rank. Status may be given to an individual, group or
institution. It is a socially accepted position given to a person by others. Members of a group are
recognized by their status, Group members are proud of the status of their group and organization. A
member can understand his role and rights through the status of his group. Status is a significant
motivator. Within the organization, employees enjoy their respective status which is based on
position, title, wage level, seniority, skill and education. An employee is given status because of his
personality, work experience, skill, age, education and expertise. People are known by their position
or status.
Formal status is given by a particular group. The manager is given an award by the company and he
enjoys this awarded status throughout his career. Status is attached to an impressive title, high pay,
and preferred work style and so on. Status hierarchy, organizational views and employees’ respect are
attached to formal status. Education, experience and skill are linked with status.
5. Group Size: The size of the group has a positive impact on behavior because of diverse decision
and an adequate number of people in the group. A large group is more effective in achieving
organizational objectives. It has given birth to synergy as a result in social loafing. People feel free
when they work collectively, because they get a chance to relax while this is not possible during
individual working. A large group encourages social loafing, i.e. a tendency to extend less effort when
working collectively. A small size group is more easily managed and can produce more qualitative
goods. Small groups result in faster completion of work than proportionately higher groups. A smaller
group is better at performing quality work. Members of smaller groups have more satisfaction than
those of bigger groups.
The impact of size on behavior depends on the nature of the task. The size should be decided after
considering the degree of interaction and satisfaction required in the group. In a decision-making
group, odd numbers are preferred to decide on the majority opinion. In a very small group for
example, three or five members alone may not arrive at an expert opinion. A group of seven or nine
members is considered to be more effective and useful.
6. Social Density: Group behavior depends on social density, which is the number of people at a
particular place, location and system. The degree of interaction depends on the density and quality of
group members. In an office, at least sixteen square feet is required for an effective performance.
There is no definite rule for social density, but it should be decided based on the task, tool and
techniques. The basic purpose is to avoid crowding or confusion. Stress and tension caused by social
density should be avoided. Similarly, too much distance between one employee and another employee
causes unnecessary delay in performances. Proximity must be decided upon as per the needs of the
organization. (Share Your Essays, c)

CONCLUSION
Groups are an excellent vehicle for performing many steps in the decision-making process and offer
both breadth and depth of input for information gathering. If group members have diverse
backgrounds, the alternatives generated should be more extensive and the analysis more critical.
When the final solution is agreed on, there are more people in a group decision to support and
implement it. These pluses, however, can be more than offset by the time consumed by group
decisions, the internal conflicts they create, and the pressures they generate toward conformity.
REFERENCES
C2 Management and Organisations (2012). Vancouver: Commonwealth of Learning.
Champoux, J. E. (2011). Organizational behavior: Integrating individuals, groups, and organizations. 4th
ed. New York: Routledge.
Fritz., R. (2019, March 8). Differences Between Group Work & Team Work. Chron. Retrieved from https://smallbusiness.chron.com/differences-between-
group-work-team-work-11004.html
Robbins, S. P. & Judge, T. A. (2013). Organizational behaviour. 15th
ed. Boston: Pearson Education.
Share Your Essays, a. (n.d). Important Characteristics of an Individual which has a Great Influence on Group Behaviour in an Organisation. Retrieved from
http://www.shareyouressays.com/knowledge/4-important-characteristics-of-an-individual-which-has-a-great-influence-on-group-behavior-in-an-
organisation/93232
Share Your Essays, b. (n.d). Important Purposes Behind Group Formation in an Organisation. Retrieved from http://www.shareyouressays.com/knowledge/4-
important-purposes-behind-group-formation-in-an-organisation/93205
Share Your Essays, c. (n.d.). 6 Important Variables Included in the Group Structure of an Organisation. Retrieved from
http://www.shareyouressays.com/knowledge/6-important-variables-included-in-the-group-structure-of-an-organisation/93239
Surbhi, S. (2015, March 24). Difference Between Group and Team. Key Differences. Retrieved from https://keydifferences.com/difference-between-group-and-
team.html

GROUP FORMATION

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