Lecture by:

Sachin Garhwal
Assistant Professor
 What is a Group?

A group can be defined as several individuals who come

together to accomplish a particular task or goal.

• Group dynamics refers to the attitudinal and behavioural characteristics

of a group.

• Group dynamics concern how groups form, their structure and process,
and how they function.

• Group dynamics are relevant in both formal and informal groups of all
types
In other words, a group is defined as two or more individuals, interacting and
interdependent, who have come together to achieve particular objectives.

A comprehensive definition would say that is a group exists in an organization,

its members:
• Are motivated to join.
• Perceive the group as a unified unit of interacting with people.
• Contribute in various amounts to the group processes (that is, some people
contribute more time or energy to the group than do others).
• Reach agreements and have disagreements through various forms of
interaction.

According to David Smith “a group is a set of two or more individuals who

are jointly characterized by a network of communication, a shared sense of
collective identity and one or more shared dispositions with associated
strength”.
• Size: To form a group, it must be having at least two members. Practically,
the number of group members ranges from 15 to 20. The more the
members in the group, the more complex it is to manage.
• Goals: Every group has certain goals that are the reasons for its existence.
• Norms: A group has certain rules, for interacting with the group members.
• Structure: It has a structure, based on the roles and positions held by the
members.
• Roles: Every member of a group has certain roles and responsibilities,
which are assigned, by the group leader.
• Interaction: The interaction between the group members can occur in
several ways, i.e. face to face, telephonic, in writing or in any other manner.
• Collective Identity: A group is an aggregation of individuals, which are
separately called as members, and collectively called as a group.
Is Group and Team same?
 BASIS GROUP TEAM
Meaning A group is made when independent individuals, A team is that group of interdependent
having something in common, come together. individuals, who join hands for the
realization of a specific goal.

Accountability Individual Individual and mutual

Decision-Making Authority Group members Team leader
Individual Growth Proper training but limited application Skill development and application
Focus On Individual goals Team goals
Dependency Independent members Interdependent members
Specific Roles Assigned to No Yes
Individuals
Interpersonal Understanding Not necessary Compulsory
Leadership Unstructured Structured
Level of Trust Low High
Level of Commitment Low High
Conflict Management Weak Strong
Synergy Neutral or negative Positive
Formal Groups Informal Group

Friendship Group
Command Group

Task Group Interest Group

Functional Group Reference Group

Formal groups are deliberately created to achieve organizational objectives while informal
groups come into existence spontaneously.

FORMAL GROUPS: A formal group is set up by the organization to carry out work in
support of the organization's goals. In formal groups, the behaviours that one should
engage in are stipulated by and directed toward organizational goals.

INFORMAL GROUPS: An organization's informal groups are groups that evolve to meet
social or affiliation needs by bringing people together based on shared interests or
friendship. Thus, informal groups are alliances that are neither formally structured nor
organizationally determined. It comes into existence to satisfy members’ social and
psychological needs which formal structure cannot satisfy.
 Points Formal Group Informal Group

Member derives authority They derive authority

Authority Structure from superior through from interpersonal
delegation relationship.

Unstable and based on

Stable in nature
Tenure or Stability liking/ disliking and other
and continues for a long time
associated features

Governed by group
norms, beliefs, and
Behaviour is governed
Behaviour of values.
by prescribed policies, rules,
Members Those who dislike norms
and procedures.
and values can leave the
group.
 Points Formal Group Informal Group

Communication takes place

Communication Related to organization’s
as per the needs of
Pattern functioning only -v^/-
members

Normally, size tends to be

Based on organization's small so as to have proper
Size of Group
requirement. Interactions and group
cohesiveness.

Created by organization's Created by members

Abolition deliberate actions and can And cannot be abolished by
be abolished by similar actions. management.

Controllability Controllable Uncontrollable

COMMAND GROUP: A command group consists of a manager and the employees who
report to him or her. Thus, it is defined in terms of the organization's hierarchy.

TASK GROUP: A task group is made up of employees who work together to complete a
particular task or project. A task group's boundaries are not limited to its immediate
hierarchical superior. Task group may be temporary with an established life span, or they
may be open ended.

FUNCTIONAL GROUP: A functional group is created by the organization to accomplish

specific goals within specified timeframe. Functional groups remain in existence after
achievement of current goals and objectives.
Ex: Marketing department, Customer service department or accounting department.
FRIENDSHIP GROUPS: Groups often develop because the individual members have one or
more common characteristics. Social alliances, which frequently extend outside the work
situation, can be based on similar age, hold same political view, attended the same college
etc.

INTEREST GROUPS: People who may or may not be aligned into common command or
task groups may affiliate to attain a specific objective with which each is concerned. This is
an interest group.

REFERENCE GROUPS: Some times, people use a group as a basis for comparison in making
decisions or forming opinions. When a group is used in this way, itis a reference group.
Employees have reference groups inside or outside the organization where they work.
• Nearness and Similarity

• Security

• Social Needs (Affiliation)

• Power

• Recognition

• Economic Benefits

• Source of Information and Development

 There are many explanations regarding why people join groups.
Logical and practical explanations can be referred as theories of group dynamics.

1. PROPINQUITY THEORY: This theory says that individuals form informal

social groups based upon their physical proximity or closeness to other
group members.

2. INTERACTION THEORY: According to George C. Homans, “The more

activities persons share, the more numerous will be there interactions and
the stronger will be their shared activities and sentiments.”
3. BALANCE THEORY: This theory as proposed by Theodore Newcomb states
that “Persons are attracted to one another on the basis of similar attitudes
towards commonly relevant objects and goals. Once a relationship is
formed, it strives to maintain a symmetrical balance between the attraction
and the common attitudes. If an imbalance occurs, attempts are made to
restore the balance. If the balance cannot be restored, the relationship
dissolves.”
Common attitudes and values that people hold make groups.
4. EXCHANGE THEORY: This theory says that individuals associated based upon
perceived cost-benefit (reward). That is individuals receive some benefits
from association (such as personal satisfaction or gratification). The drive to
be in this group is measured against the cost associated with affiliation (such
as effort, anxiety, embarrassment, discomfort, etc.)

Reward-costs-outcomes of interactions attract people to form groups.

.
Model of Group
Development was
first proposed by
BRUCE TUCKMAN
in 1965
 FORMING: At this stage, the formation of a new group begins, wherein the
members come together and get to know each other through the interactions.

 STORMING: Once the forming stage is over, the individuals will start
interacting with each other in the context of the task to be achieved. The
conflict and competition among the group members will be highest at this
stage.

The issues related to the leadership, responsibility, strategies, rules, authority,

evaluation, reward system, etc. arises at the storming stage.

 NORMING: Once the role of every member is cleared along with the authority
and responsibility of each, the team members start settling in a group. Here,
everybody works cohesively towards the target and appreciate each other’s
experience and skills.
 PERFORMING: At this stage, synergy gets created between the members,
where everyone works towards the accomplishment of a goal. This stage is
characterized by flexibility and interdependence. The members know each
other so well that they can handle any complex problem that comes.

 ADJOURNING: This is the last stage of group development, where the group is
terminated, and the group members are separated from each other. Every
group is created for a purpose, and once the purpose is fulfilled the group is
adjourned.

For permanent work groups, performing is the last stage in their development.
However, for temporary groups, committees, teams, task forces, and similar
groups that have a limited task to perform, there is an adjourning stage.
 Formal Group Informal Group
• Achieving goals • Informal group binds people together
• Benefits of specialization • Social Satisfaction
• Advantage of synergy • Solving Work Problem (extend help and
• Source of job satisfaction share knowledge)

• Source of social needs • Filling Communication Gap

• Solving work-related problems • Emotional Support (satisfying

psychological needs)
• Effective allocation of resources
• Contribution to Organization Efficiency
• Delegating authority and assignment of
responsibilities
• Defining roles and status
• Formal design and organizational chart
• Facility for interaction and
communication
Types of Teams
With reference to business management, leadership is one of
the techniques of directing. However, OB view point, it is one
of the powerful factors that affects/determines subordinates’
behaviour.

Leadership ??
 Leadership: Definitions
Some popular definitions are stated below:

1. Barnard Keys and Thomas Case: "Leadership is the process of

influencing and supporting others to work enthusiastically towards
achieving objectives”

2. Keith Davis: "Leadership refers to the ability to persuade others to

seek defined objectives enthusiastically”

3. Weihrich, Cannice and Koontz: "Leadership is the art or process of

influencing people so that they will strive willingly and
enthusiastically towards the achievement of group goals”

4. Stephen Robbins and Seema Sanghi: "Leadership is the ability to

influence a group towards the achievement of goals”
 Leadership: Role and Functions of a Leader
Leader (particularly formal leader) is responsible to perform following
roles:
• Deciding on goals
• Observing discipline and order – making people of group behave as
per the prescribed policies, rules, and procedures
• Formulating suitable groups
• Providing necessary inputs and facilities
• Directing employees (motivating, communicating, and supervising
employees)
• Coordinating efforts
• Building morale (contd.)
 Leadership: Role and Functions of a Leader
• Avoiding conflicts and promoting cooperation

• Building relations (external and internal relations)

• Creating healthy climate and culture

• Arbitrating between followers and top authority

• Representing groups/department

• Employees’ development and welfare

• Helping authority and employees in all possible ways

• Balancing between higher authority and employees

 Leadership: Role and Functions of a Leader

While Informal Leader shows ability to be perceived as a leader

because of their reputation, credibility and influence in the
workplace. >> “Informal Leadership”

o Individuals within an organization view informal leaders as

worthy of following or listening to.

o Their ability to lead is based on the level of respect,

confidence and trust others in the workplace place on them.
 Theories of Leadership
TRAIT THEORY

Trait theory assume that people inherit certain qualities and traits
that make them better suited to leadership. That is, certain
qualities such as intelligence, sense of responsibility, creativity
and other values puts anyone in the shoes of a good leader.

The trait theory of leadership focused on analyzing mental,

physical and social characteristic in order to gain more
understanding of what is the characteristic or the combination of
characteristics that are common among leaders.
 Theories of Leadership
BEHAVIOURAL THEORY

Success in leadership depends more on what the leader does than

on his traits. The behavioural approach is based on the premise
that effective leadership is the result of effective role behaviour.
Behavioural theories of leadership are based upon the belief that
great leaders are made, not born. According to this theory, people
can learn to become leaders through teaching and observation.
 Theories of Leadership
TRANSACTIONAL LEADERSHIP THEORY

The transactional style of leadership was first described by Max

Weber in 1947 and then by Bernard Bass in 1981. This style is
most often used by the managers. It focuses on the basic
management process of controlling, organizing, and short-term
planning.

The power of transactional leaders comes from their formal

authority and responsibility in the organization. The main goal of
the follower is to obey the instructions of the leader.

The leader believes in motivating through a system of rewards

and punishment.
 Theories of Leadership
TRANSFORMATIONAL LEADERSHIP THEORY

Creating high-performance workforce has become increasingly

important and to do so business leaders must be able to inspire
organizational members to go beyond their task requirements. As
a result, new concepts of leadership have emerged -
transformational leadership being one of them.

Leaders encourage, inspire and motivate employees to innovate

and create change that will help grow and shape the future
success of the company.
 Autocratic or Authoritarian Participative or Democratic

The autocratic leader gives orders The leaders invite and encourage the
which must be obeyed by the team members to play an important
subordinates.
Styles of role in decision-making process,
though the ultimate decision-making
Leadership power rests with the leader.

Paternalistic Free Rein or Laissez Faire

The leader assumes that his function
is paternal or fatherly. He works to
help, guide, protect, and keep his
followers happily working together as
members of a family.
The leader totally trusts their
employees/team to perform the job
themselves. The team/employees are
welcomed to share their views and
provide suggestions which are best
for organizational interests.
Thank You