The document provides an in-depth exploration of group and team dynamics, highlighting the definitions, nature, and importance of both concepts. It details the stages of group formation, classification of groups, advantages and disadvantages, and effective team processes, as well as methods for improving group decision-making and morale. Key differences between groups and teams are also explained, emphasizing collaboration, accountability, and shared goals.

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Jayanti R Pande
email: jayantipande17@gmail.com
RTMNU MBA Sem 4 – TEAM DYNAMICS [HR]
MODULE NO 3: GROUP & TEAM DECISION
MAKING
CONCEPT OF GROUP
A group is a bunch of people who join forces
for a common goal, like sharing ideas or
information. It can be formal or informal, with
or without a leader, and the members may
not have specific roles or equal levels of
dedication. Examples include business
brainstorming sessions, social events, and
interest groups.
DEFINITION OF GROUP
A group is a collection of individuals who
come together for a common purpose or
interest.
Edgar H Schien – “A Group may be defined as
social phenomenon in which two or more
persons decide to interact with one another,
share common ideology & perceive
themselves as a group”
NATURE OF GROUP
1 Two or More People: A group requires at
least two people.
2 Collective Identity: A group has a distinct
identity based on shared values, beliefs, or
goals.
3 Interaction: Members of a group interact to
achieve shared goals.
4 Shared Goal Interest: A group is united by a
common goal or interest.
WHY DO PEOPLE JOIN GROUPS?
1 People attraction: Shared interests, values,
or personalities can attract people to join a
group and provide social support and
companionship.
2 Group activities: Groups engage in
enjoyable, challenging, or rewarding activities
that provide opportunities for personal
growth and socialization.
3 Group goals: Groups are formed to achieve
specific objectives or goals, providing
direction and motivation.
4 Security and social affiliation: Being part of
a group provides a sense of security,
protection, and social affiliation.
5 Status and self-esteem: Being part of a
successful or high-status group can boost self-
esteem and provide a sense of purpose.
6 Power: Being part of a group provides a
sense of power and influence, contributing to
a sense of control and autonomy.
STAGES OF GROUP FORMATION
1 Forming: Members get to know each other,
establish ground rules, and define the group's
goals and purpose.
2 Storming: Conflicts and tensions arise as
members assert opinions and ideas to
establish group norms and values.
3 Norming: The group develops cohesion,
compromise, and trust as members work
together to achieve common goals.
4 Performing: The group functions effectively
with clear roles and responsibilities, mutual
support, and high productivity.
5 Adjourning: The group comes to an end,
either because the project is complete or
members move on to other things, leading to
a sense of closure.
CLASSIFICATION OF GROUPS
1 Primary & Secondary groups:Primary
groups: small, emotional (e.g. family, close
friends). Secondary groups: large, task-
oriented (e.g. work teams, associations).
2 Membership groups & reference groups:
Membership groups: individuals have formal
membership (e.g. clubs, orgs). Reference
groups: individuals use them as standards for
evaluation (e.g. aspirational, social
comparison).
3 In groups & out groups: In groups:
individuals identify and belong (e.g. sports
team, political party). Out groups: individuals
do not identify and may view as different or
inferior (e.g. rival team, opposing political
party).
4 Interest & Friendship groups:
Interest groups: formed around shared
interests (e.g. hiking club, book club).
Friendship groups: formed around personal
relationships and shared values (e.g.
childhood friends).
5 Formal & Informal groups:
Formal groups: established by organization to
perform a specific task or achieve a goal (e.g.
work teams, committees). Informal groups:
emerge spontaneously among members (e.g.
lunch groups, social networks).
6 Temporary & Permanent groups:

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Temporary groups: formed for a specific
purpose or period of time (e.g. project teams,
task forces). Permanent groups: exist over an
extended period of time (e.g. social clubs,
families).
7 Nominal & Non-performing groups:
Nominal groups: in name only, without
interaction or communication among
members. Non-performing groups: fail to
achieve goals or objectives due to lack of
cohesion, coordination, or commitment
among members.
GROUP STRUCTURE
1 GROUP COMMUNICATION - The exchange
of information and ideas among group
members, which can be verbal or nonverbal.
2 GROUP SIZE - The number of individuals in a
group, which can impact communication,
decision-making, and overall dynamics.
3 GROUP ROLES - The expected behaviours
and responsibilities of individual members
within a group, which can vary depending on
the group's purpose and structure.
4 GROUP LEADERSHIP - The process of
guiding and directing a group towards a
common goal or objective, which can involve
various leadership styles and approaches.
5 GROUP NORMS - The unwritten rules and
expectations for behavior within a group,
which can influence communication, decision-
making, and overall cohesiveness.
6 GROUP COHESIVENESS - The degree of
unity and loyalty among group members,
which can be influenced by factors such as
shared goals, norms, and communication
patterns.
7 GROUP STATUS - The relative level of
power, prestige, and influence among group
members, which can impact communication,
decision-making, and overall dynamics.
GROUP BEHAVIOUR
EXTERNAL FACTORS - Environmental factors
that can impact group behaviour, such as
societal norms, cultural values, and economic
conditions.
GROUP MEMBER'S RESOURCES - The
individual characteristics and resources that
each member brings to the group, such as
skills, knowledge, and experience.
GROUP STRUCTURES - The formal and
informal rules and norms that shape the
organization and operation of the group, such
as roles, communication patterns, and
decision-making processes.
GROUP PROCESSES - The interactions and
dynamics that occur within the group, such as
conflict resolution, decision-making, and
communication.
GROUP TASKS - The specific goals and
objectives that the group is trying to achieve,
which can influence the group's behaviour
and dynamics.
PERFORMANCE & SATISFACTION - The
outcomes and evaluations of the group's
efforts, such as productivity, quality of work,
and member satisfaction.
ADVANTAGES OF GROUP
1 ENHANCED CREATIVITY AND INNOVATION
- Sharing ideas and perspectives leads to more
diverse and creative solutions.
2 INCREASED PRODUCTIVITY AND EFFICIENCY
- Dividing tasks allows for quicker and more
efficient completion of complex tasks.
3 IMPROVED LEARNING AND DEVELOPMENT
- Group work provides opportunities for
members to learn from one another and
develop their interpersonal abilities.
4 ENHANCED DECISION-MAKING - Diverse
perspectives and expertise lead to more
informed and well-rounded decisions.
5 IMPROVED MORALE AND ENGAGEMENT -
Group work increases members' sense of
involvement and connection, leading to
higher motivation and satisfaction.
DISADVANTAGES OF GROUP
1]INEFFICIENT COMMUNICATION -
Communication breakdowns and conflicts can
arise, hindering productivity and
effectiveness.
2]CONFLICT AND TENSION - Differences in
opinion and personality clashes can create
tension and discord within the group.
3]SOCIAL LOAFING - Some members may not
contribute their fair share, relying on others
to complete tasks.
4] LACK OF ACCOUNTABILITY - With shared
responsibility, individual accountability may
be diluted, making it harder to identify and
address individual performance issues.
5] POTENTIAL FOR GROUPTHINK - The desire

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for group harmony can lead to conformity and
a lack of critical evaluation, potentially leading
to flawed decision-making.
CONCEPT OF TEAM
A team is a group of individuals working
together towards a common goal, with
complementary skills and roles, often led by a
designated leader. Teams have structured
communication channels, decision-making
procedures, and shared accountability.
Examples include project teams, cross-
functional teams, or management teams in
the business context.
DEFINITION OF TEAM
A team is a group of individuals who work
together closely and regularly towards
achieving a common goal or objective, with
shared accountability and complementary
skills and roles.
Stephen P Robbins – “ A Work Team is a
collection of people whose individual efforts
result in a level of performance which is
greater than the sum of their individual
contributions.”
NATURE OF TEAM
1 COLLABORATION - Teams work together to
achieve a common goal or objective, often
requiring a high degree of collaboration and
coordination.
2 INTERDEPENDENCE - The success of the
team depends on the contributions of each
individual member, leading to a high level of
interdependence.
3 SHARED ACCOUNTABILITY - Team members
share responsibility for achieving the team's
goals, and are held accountable for their
individual contributions to the team's success.
4 INTERACTION - Teams regularly interact and
communicate with one another to share
information, make decisions, and resolve
conflicts.
5 DYNAMIC - Teams are dynamic and can
evolve over time, with changes in
membership, roles, and goals influencing their
structure and performance.
SYNERGY OF TEAM WORK
It refers to the idea that the combined efforts
of a group of individuals working together are
greater than the sum of their individual
efforts.
In other words, when individuals collaborate
and work together effectively in a team, they
can achieve more than they could working
alone. Team synergy needs following key
components- Common Values, Common
Purpose, Complementary Talent.
TYPES OF TEAM
A] PROBLEM-SOLVING TEAMS: Temporary
teams of individuals from different
departments working together to solve
specific organizational problems, such as
quality improvement or project teams.
B] SELF MANAGED TEAMS OR
AUTONOMOUS WORK GROUPS: Self-
managed teams are groups of skilled
individuals who work autonomously to
achieve a common goal, responsible for their
own decision-making in manufacturing,
product development, or service teams.
C] CROSS FUNCTIONAL TEAMS: Temporary
groups from different departments who
collaborate on specific projects, led by a
project manager, to leverage diverse
expertise and achieve objectives, such as new
product development or process
improvement.
D] VIRTUAL TEAMS OR GDT (Global
Distributed Teams): work remotely from
different locations, often across countries and
time zones, and rely on technology for
communication and collaboration, such as
video conferencing and online tools. Examples
include software development, customer
service, and project teams.
TEAM PROCESSES
1 Team objectives: Clear and achievable goals
aligned with organizational goals.
2 Participation: Interaction and information
sharing among team members.
3 Constructive controversy: Healthy debate
and disagreement for better solutions.
4 Error management: Identifying and
correcting mistakes to prevent future errors.
5 Creativity & innovation: Generating new
ideas through brainstorming and risk-taking.
6 Reflexivity: Reflecting on team processes,
identifying areas for improvement, and
recognizing success.
ESSENTIALS OF EFFECTIVE TEAM
1 Clear goals and roles: Establish team

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objectives, roles, and responsibilities for
direction and alignment.
2 Trust and communication: Build an
environment of trust and open
communication to foster sharing and idea
exchange.
3 Collaboration and participation: Encourage
teamwork, knowledge sharing, and
participation in decision-making for better
problem-solving.
4 Feedback and recognition: Provide regular
feedback, recognition, and support to
reinforce positive behavior and address
issues.
5 Team development: Invest in training, skill
development, and team-building activities to
strengthen cohesion and performance.
IMPORTANCE OF TEAMS
1 Increased productivity
2 Enhanced creativity and innovation
3 Improved problem-solving
4 Better decision-making
5 Increased job satisfaction and employee
engagement
DIFFERENCE BETWEEN GROUPS & TEAMS
Groups
1.Suitable for short-term projects or tasks.
2.Limited sharing of information and
expertise.
3.Members are individually accountable for
their own work.
4.Focus is on individual contributions rather
than group performance.
5.Roles may little concern for other members'
needs or opinions.
6. overlap or be unclear.
7.Often led by an appointed leader.
8.Members may not have a shared identity or
goal.
9.Examples Can be formed quickly and
disbanded easily.
10.include study groups or committees.
Teams
1.Suitable for long-term or complex projects.
2.Active sharing of information and expertise.
3.Members are collectively accountable for
achieving team goals.
4.Focus is on group performance and
achieving shared objectives.
5.Clear roles and responsibilities for each
team member.
6.High level of concern for other members'
needs and opinions.
7.Leadership is shared or rotates among team
members.
8.Strong sense of shared identity and
purpose.
9.Require time and effort to form and
develop.
10.Examples include sports teams, project
teams, or cross-functional teams in a
company
SOCIAL LOAFING
Social loafing is when individuals contribute
less in a group setting due to feeling their
efforts are not valued, leading to reduced
effort.
CAUSES OF SOCIAL LOAFING
1 Lack of motivation: Individuals feel their
contributions aren't essential or valued,
leading to reduced effort.
2 Relaxation due to others' presence:
Working in a group reduces individual
accountability, resulting in reduced effort.
3 Simple tasks: When tasks are too simple,
individuals believe their contributions aren't
needed, leading to reduced effort.
4 Dispersion of responsibility: In larger
groups, individuals feel less responsible for
the task outcome, leading to reduced effort.
WAYS OF REDUCING SOCIAL LOAFING
1] Individual Task Assignment: Assigning
specific tasks to group members to identify
their contributions.
2] Interesting and Important Tasks: Making
tasks challenging and valuable to increase
motivation and effort.
3] Rewarding Individual Contributions:
Recognizing and rewarding individual
contributions to enhance value and
motivation.
4] Punishment Threats: Implementing
consequences to motivate contributions and
avoid negative outcomes.
GROUP DECISION MAKING
Group decision making is the process of
making decisions collectively by a group of
individuals. It involves a series of steps and
techniques that help the group to reach a

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consensus or agreement on a particular
course of action.
GROUP DECISION-MAKING PROCESS
1 Problem identification: Identify the
problem that needs to be addressed.
2 Problem diagnosis: Analyse the problem to
understand its causes and effects.
3 Solution generation: Generate possible
solutions to the problem.
4 Solution evaluation: Evaluate each solution
based on feasibility and effectiveness.
5 Framing a decision: Make a decision based
on gathered information.
6 Follow-up actions: Identify necessary
follow-up actions to implement the decision.
GROUP DECISION MAKING TECHNIQUES
1 Interacting groups: Members discuss and
exchange ideas to generate solutions.
2 Brainstorming: Generating a large number
of ideas quickly without evaluation.
3 Nominal group technique: Generating ideas
independently and then discussing and
evaluating them.
4 Electronic meeting: Using technology for
communication and decision-making for
geographically dispersed groups.
ADVANTAGES OF GROUP DECISION MAKING
1 Diverse perspectives: Groups offer a range
of diverse perspectives that can lead to more
creative and innovative solutions.
2 Shared knowledge: Group members can
share their unique knowledge and expertise,
leading to better-informed decisions.
3 Increased acceptance: When group
members are involved in the decision-making
process, they are more likely to accept and
support the decision.
4 Greater commitment: Group decision-
making can lead to a greater commitment to
the decision because members feel more
invested in the outcome.
5 Better problem-solving: By pooling their
resources and working together, groups can
often come up with more effective problem-
solving strategies.
TEAM MORALE
MORALE- refers to the level of enthusiasm,
confidence, and motivation that employees
have towards their work and the organization
they work for. High morale indicates that
employees are satisfied with their job, are
committed to the organization's goals, and
are motivated to perform at their best.
Davis – “ Organisational morale is basically a
mental condition of groups & individuals
which determines their attitude.”
MEASURES TO STRENGHTHEN TEAM
MORALE
1 Control: Provide decision-making power and
involve employees in decision-making
processes
2 Communication: Regularly communicate
goals, plans, and updates
3 Recognition: Recognize and reward
employee efforts and achievements
4 Flexibility: Offer flexible work hours and
remote work options
5 Respect: Listen to employee opinions and
treat them fairly
6 Comfortable work environment: Provide
comfortable furniture and proper lighting
7 Group collaboration: Foster teamwork
through team-building activities and group
projects
IMPORTANCE OF TEAM MORALE
1 Increases productivity and efficiency
2 Improves communication and collaboration
3 Enhances employee satisfaction and
engagement
4 Boosts creativity and innovation
5 Facilitates problem-solving and decision-
making
GROUP DYNAMICS
Group dynamics refers to the interactions and
processes that occur within a group or team.
It encompasses the social and psychological
factors that affect the behavior, attitudes, and
performance of group members.
DEFINITION
Kurt Lewin – “ Group Dynamics deal with
internal nature of groups, how they are
formed, what structure and processes they
adopt, how they function & affect individual
members, other groups & organisations.”
NATURE OF GROUP DYNAMICS
1 Continuous process: Group dynamics is an
ongoing and evolving process.
2 Dynamic: Group dynamics is constantly
changing and influenced by internal and
external factors.

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email: jayantipande17@gmail.com
3 Concerned with group: It focuses on the
behaviour, attitudes, and interactions of
group members.
4 Rigidity or flexibility: Group dynamics can
be rigid or flexible, depending on the group's
goals and norms.
5 Defines effectiveness of leader: Leaders
must understand and manage group dynamics
to be successful.
IMPORTANCE OF GROUP DYNAMICS
1 Boost productivity: Better group dynamics
leads to higher productivity.
2 Improve communication: Essential for
shared goals and conflict resolution.
3 Foster teamwork: Positive dynamics lead to
more collaboration.
4 Manage conflicts: Identifying and resolving
conflicts in the group.
5 Encourage innovation: Positive dynamics
lead to increased creativity.