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1. “A collection of two or more interacting
individuals who maintain stable patterns of
relationships, share common goals, and
perceive themselves as being in a group.” –
Greenberg and Baron

2. The word dynamics means
‘force’. Group dynamics means
the study of forces within a
group. The social process by
which people interact with each
other in small groups can be
called group dynamism. In
organizational development,
group dynamics refers to the
understanding of behavior of
people in groups that are trying
to solve a problem or making a
decision.

3. 1. The group can influence the thinking of its members. The
members are always influenced by the interactions of other
members in the group.
2. A group with a good leader performs better as compared to a
group with weak leader.
3. The group can give the effect of synergy, that is, if the group
consists of positive thinkers then its output is more than the
double every time.
4. Group dynamism can give job satisfaction to the members.
5. The group can also bring team spirit among the members.
6. Even the attitude, perceptions, and ideas of members depend
on group dynamism. For example, the negative thinkers can be
converted to positive thinkers with the help of the facilitator.
7. If the group works as a cohesive group, the cooperation and
convergence can result in maximization of productivity.
8. Lastly, group dynamism can reduce the labor unrest and labor
turnover due to emotional attachment among the group
members.

4. Relatively Permanent Relatively Temporary
Formal Command
Groups
Quality
assurance
department
Cost accounting
group
Task Groups
Pope’s special council on finance
Task force on new-product
quality
Informal Friendship
Groups
Friends who do
many
activities
together
Interest Groups
Bowling group
Women’s network

6. 1. In a group, members have access to goods and services more
easily than they would have on an individual basis;
2. Group members pull together scarce resources, own and
manage them themselves in order to fight against poverty, food
shortage, powerlessness of an individual person against market
forces, unemployment and low self esteem;
3. Groups can be learning laboratories, promoting skills such as
enterprise management and problem solving;
4. Some groups form because they accomplish tasks that can not
be achieved by individuals working alone.
5. The group allows more small women entrepreneurs to be
reached;
6. It reduces on administrative transaction costs of lending;
7. A group reduces default through collective risk taking; and
8. Groups provide a channel for information.
9. Some people join groups just for companionship or to be
identified as members of the group.

7. 10. Physical proximity: People who live in the same
village are likely to form a group than people who live in
different villages;
11. Physical attraction: Individuals who attract to each
other physically might form a group, e.g. young and
energetic boys and girls;
12. Rewards: satisfaction of economic and social needs;
and
13. Social support: perhaps provided by members of a
group in times of crisis.

10. According to Edgar Schein, a group may follow
one of these six decision-making methods:
 Decision by lack of response
 Decision by authority rule
 Decision by minority rule
 Decision by majority rule
 Decision by consensus
 Decision by unanimity

11. Methods of Minimizing Non-sampling Errors
 Checking the sampling process
 Preparation of questionnaire
 Pilot survey
 Fix procedures
 Use of competent manpower
 Provide information
 Provide training
 Use of experts
 Checking data processing and analysis