OB MODULE 4

Group Dynamics &

Individual decision making
PREPARED BY PROF. DR@SHTI VAISHNAV
CHAPTER 1
GROUP & TEAMS

PREPARED BY: PROF. DRASHTI VAISHNAV 2

WHAT IS GROUP DYNAMICS?
• Group Dynamics means study of groups.
• The social process by which people interact and behave in a group
environment is called group dynamics.
• Group Dynamics' meaning can be explained simply as it is a social process
with which the people can form into groups or teams to attain a set of
common goals.
• Group dynamics is the study of the actions, changes, and processes
within groups and between groups.
• Group Dynamics means two or more individuals, interacting and
interdependent, who have come together to achieve particular objective.
• It is the study of forces operating within the group.

PREPARED BY: PROF. DRASHTI VAISHNAV 3

GROUP
• A group is the collection of individuals who have mutually
dependent relationships.
• Interaction amongst members
• Common interest or goals
• People see themselves as members
• Two or more people are needed to form a group

PREPARED BY: PROF. DRASHTI VAISHNAV 4

Meaning:
• A group refers to two or more individuals who have came
together with a common objective.
• A set of people who meet or do something together because
they share the same purpose/ideas.

PREPARED BY: PROF. DRASHTI VAISHNAV 5

Characteristics of Group
Collective
Group Size Interaction Interdependence
Identity

Group
Shared Goal Group Norms Group Roles
Cohesiveness

Homogeneous
Goal Completion
Interest

PREPARED BY: PROF. DRASHTI VAISHNAV 6

STAGES OF GROUP
FORMATION (given by
Tuckman)
FORMING

STORMING

NORMING

PERFORMING

ADJOURING
 EXPLAINATION
1. Forming (Uncertainty about
group’s purpose, structure and
leadership)
2. Storming (Intergroup Conflict)
3. Norming (members behaviour,
developed relations,
cohesiveness)
4. Performing (fully functional)
5. Adjourning (wrapping up
activities)
PREPARED BY: PROF. DRASHTI VAISHNAV 8
TYPES OF GROUPS
Formal & Informal Group
Primary & Secondary Group
Organized & Unorganized group
Temporary & Permanent Group
Open & Closed Group
Accidental & Purposive Group

PREPARED BY: PROF. DRASHTI VAISHNAV 9

A formal group is deliberately created by an organization to
achieve an objective. This group has defined criteria for
members to join. It has structure, an operating procedure, and
is led by a leader. A formal group is also known as a planned
group.
Informal groups are groups that are formed by individuals
when they communicate with one another. These groups are
not created by organizations and work democratically.

PREPARED BY: PROF. DRASHTI VAISHNAV 10

PREPARED BY: PROF. DRASHTI VAISHNAV 11
PREPARED BY: PROF. DRASHTI VAISHNAV 12
Group Properties

Roles

Norms

Status

Size

Cohesiveness

13
 Teams
Teams are groups of two or more people who interact and
influence other, are mutually accountable for achieving common
goals associated with organizational objectives.

All teams exist to fulfill some purpose.

Work Teams:
A group whose individual efforts result in performance that is
grater than the sum of the individual inputs.

14
Features of Team:
Common Goal

Steamline
Interdependecy
Direction

Leadership Commitment

Mutual High Morale & Team

Accountability Sprit

PREPARED BY: PROF. DRASHTI VAISHNAV 15

Types of teams

Self
Functional Project Virtual
Managed
Team Team Team
Team

Trouble
Cross Shooting
Task Force
Functional (problem
Team
Team Solving
Team)

PREPARED BY: PROF. DRASHTI VAISHNAV 16

Difference between Groups and Teams
Groups
Individual Contribution
less responsible for outcomes
Contribution towards common goal
Strict supervision
General Skills Development
Members selected through formal
Structure
Teams
Combine efforts
Highly responsible for output
Commitment towards goal
Greater freedom in working
Complementary to each other, and self
supporting
Members selected trough skill and
competency
17
Stages of Team Development

PREPARED BY: PROF. DRASHTI VAISHNAV 18

 Ch. 2
CONFLICT

PREPARED BY: PROF. DRASHTI VAISHNAV 19

 Managing Conflicts
• Every morning is the new beginning of conflicts.
• Conflicts are internal parts of our lives.
• Since half of our life is spent on workplace we face many types of
conflicts at our workplace.

20
Meaning of Conflict Management
• The word “Conflict” conveys different meanings. Conflict means
difference of opinions.
• A conflict is not actually quarreling or fighting but it may result into
that.
• Conflict is different from competition.
• It occurs between two parties when one party frustrates the attempts
of another.

21
Continue…
• Cognitive Conflict refers to the difference in perspective or
judgment about the issues.
• Affective Conflict is emotional and directed at other people.
• Conflict needs to be cognitive not affective.
• It occurs when two or more people oppose one another
because their needs, wants, goals and values are different.

22
Definition of Conflict
“Process in which one party recognizes that its
interests are being opposed or negatively affected by
another party.”

“An active effort by individual or group for its own

preferred interest at the cost of others.”

23
Definition of Conflict management
 Conflict management is the process by which disputes are
resolved, where negative results are minimized & positive
results are prioritized.
 Identifying & Handling Conflict is called conflict
management with efficiency & fairness.

PREPARED BY: PROF. DRASHTI VAISHNAV 24

 Nature of Conflict:
Its between two parties Conflicts arises when
Conflict is a dynamic
when they have different individuals choose the It’s a psychological state
process and is episodic in
perceptions, values and alternative course of of mind.
nature.
goals. action.

It’s a tension that is

Its an interaction
experienced when one
between people to It’s a clash of opposing It’s a selfish motive and
perceives the needs and
achieve goals by demands. emotional enmity.
other is not likely to be
eliminating others.
satisfied.

25
CONFLICT PROCESS
STAGE – I POTENTIAL OPPOSITION
OR INCOMPATIBILITY
First Stage of conflict is the appearance of
causes or sources that can lead to a potential
opposition or incompatibility. These conditions
can be divided into :

Personal
Communication Structure
Variables
STAGE II
COGNITION AND PERSONALIZATION

Perceived Conflict: Awareness by one or more parties

of existence of conditions that create opportunities for
conflicts to arise .

Felt Conflict : Emotional involvement in a conflict that

creates anxiety, tenseness ,frustration or hostility.
STAGE III INTENTIONS:
Stage iv BEHAVIOUR:

This is the visible part of the

conflict .
It includes statements,
actions, and reactions made
by conflicting parties ,in
attempts to implement their
decisions.
 Stage v OUTCOMES:
FUNCTIONAL OUTCOME DYSFUNCTIONAL OUTCOME
• Leads to new ideas • Leads to energy wastage
• Stimulates creativity • Harms psychology of members

• Motivates change • Wastage of Resources

• Promotes organizational vitality • Creation of negative atmosphere

• Establishment of group and individual • Harms group cohesion

identity
• Indicative of potential problems • Increase in Hostility and aggressive
behaviour .
• Positive Synergy • Negative Synergy
Types of Conflict
• Inter-Organizational Conflict
• (between two or more organization. Eg: competition
• Inter-Group Conflict
• (Within two or more groups)
• Interpersonal Conflict
• (With two or more individuals)
• Intrapersonal Conflict
• (With Self)

32
Other Types of Conflicts
 Horizontal Conflicts (issues arises on Same distribution channel)
 Vertical Conflict (issues arises on different distribution channel)
 Role Conflict (Role conflict occurs when workers are given different and incompatible
roles at the same time, or their role overlaps with another worker or work group.)
 Constructive (In a constructive conflict, even though, a disagreement between two parties
emerges, this can be resolved in a positive manner so that it benefits both parties. This is often
referred to as a win-win situation because both parties benefit from it. Also, the
communication that takes place between the two parties is often honest and
open communication. They do not involve emotional, impulsive responses and are focused on
finding a solution. Both parties realize the necessity to resolve the conflict so that the demands
of each party can be met.)
and
 Destructive Conflict (Unlike a constructive conflict, a destructive conflict is
characterized by feelings of frustration and antagonism. Destructive conflicts do not bring
about positive outcomes and damages the productivity of an organization.)

33
CONFLICT MANAGEMENT
TECHNIQUES
Conflict management techniques implies that
conflicts can be resolved-finished, completed ,
overcome, or permanently settled through
these techniques.
1) Conflict Resolution Techniques
2) Conflict Stimulation Techniques
 Resolution Techniques used:
PROBLEM SOLVING
Face to face meeting of the conflicting parties for the
purpose of identifying the problem and resolving it through
open discussion.

SUBORDINATE GOALS
Creating a shared goal that cannot be attained without
the cooperation of each of the conflicting parties.

EXPANSION OF RESOURCES :
Expanding the supply of scarce resources (for example,
money promotion , opportunities , office space).

AVOIDANCE :
Withdrawing from or suppressing the conflict.
SMOOTHING :
Playing down differences while emphasizing common interests between the
conflicting parties.

COMPROMISE :
Having each party to the conflict give up something of value.

AUTORITATIVE COMMAND :
Letting management use its formal authority to resolve the conflict and then
communicating its desires to the parties involved.

ALTERING THE HUMAN VARIABLES :

Using behavioral change techniques such as human relations training to alter
attitudes and behaviors that cause conflict.

ALTERING THE HUMAN VARIABLES :

Changing the formal organizational structure and the interaction patterns of
conflicting parties through job redesign, transfer etc…
 CONFLICT STIMULATION
TECHNIQUES
COMMUNICATION : Using ambiguous or threatening messages to increase
conflict levels.
BRINGING IN OUTSIDERS : Adding employees to a group whose backgrounds,
values, attitudes, or managerial styles differ from those of present members.
RESTRUCTURING THE ORGANISATION : Realigning work groups , altering rules
and regulations , increasing interdependence, and making similar structural
changes to disrupt the status quo.
APPOINTING A DEVIL’S ADVOCATE : Designating a critic to purposely argue
against the majority positions held by the group.
 CHAPTER 3
STRESS & NEGOTIATION

PREPARED BY: PROF. DRASHTI VAISHNAV 38

STRESS
STRESS
• Stress is the ability to cope up with the challenges from time to time.

• But if you manage badly, it has devastating impact.

• Stress refers to an individual’s reaction to a disturbing factor in the environment.

• A lot of research has been conducted into it over the last hundred years.

40
MEANING OF STRESS
• Stress comes from Latin word “Stringere” which
means hardship.
• Stress is mental pressure.
• Its positive; Its negative too…

41
WHAT IS IT???
• Stress is not simply anxiety.
• Stress is not simply nervous tension.
• Stress is not necessarily something damaging, bad
or to be avoided.

42
DEFINITION
“An unpleasant psychological process that occurs in
response to environmental pressures”

Challenge Stressors (Ex. Workload)

Hindrance Stressors (Ex. Office Politics)

43
CAUSES OF STRESS
Environmental Factors
Organizational Factors
Personal Factors
Individual Differences

44
WORKPLACE CAUSES
• Relationship at work • Physical Security
• Career path and • Job Security
development
• Pay Structure
• Task Variety • Changing working
• Degree of patterns
independence • Clarity in authority
• Poor working and responsibility
conditions
• Additional
responsibilities

45
CONSEQUENCES
• Physiological Symptom
• Headaches, High Blood Pressures, Heart Disease

• Psychological Symptom
• Anxiety, Depression, Decreased Job Satisfaction

• Behavioral Symptom
• Productivity, Absenteeism, Turnover

46
MANAGING STRESS
• Individual Approaches
– Time Management (Listing, Prioritizing, Scheduling,
knowing daily cycle, avoiding electronic distractions)
– Exercise
– Relaxation Techniques

• Organizational Approaches
– Selection, Placement, Goal Setting, Redesigning
Jobs, Employee Involvement, Communication
– Sabbaticals (break/leaves)

47
NEGOTIATION
MEANING OF NEGOTIATION
• Negotiation is one of the most common approaches
used to make decisions and manage disputes.

• Negotiation is the problem solving process in which

two or more people voluntarily discuss their
differences and attempt to reach a joint decision on
their common concerns.

49
CONTINUE…
• Negotiation requires participants to identify issues
about which they differ, educate each other about
their needs and interests, generate possible
settlement options and bargain over the terms of the
final agreement.

• “A process in which two or more parties exchange

goods or services and attempt to agree on the
exchange rate for them.”

50
CONDITIONS FOR NEGOTIATION
• Identifying parties who are willing to participate
• Interdependence
• Readiness to negotiate
• Means of influence or leverage
• Agreement on some issues and interests
• Will to settle
• Unpredictability of outcome

51
CONTINUE…
• A sense of urgency and deadline.
• No major psychological barriers to settlement
• Issues must be negotiable
• The people must have the authority to decide
• The agreement must be reasonable and
implementable
• External Factors favorable to settlement
• Resources to negotiate

52
BARGAINING STRATEGIES
• Distributive Bargaining
– Negotiation that seeks to divide up a fixed amount
of resources; a win/lose situation.
– Fixed Pie: A belief that there is only a set amount of
goods or services to be divided up between the
parties.

• Integrative Bargaining
– Negotiation that seeks one or more settlements
that can create a win/win solution.

53
SEEKING OUT BARGAINING ZONE

Settlement Range

Aspiration Range Aspiration Range

– Party A – Party B

Party A’s Target Party B’s Party A’s Party B’s Target
Point resistance point resistance point Point

54
CONT…
Bargaining Distributive Integrative
Characteristics Bargaining Bargaining
Goal Get as much of the Expand the pie so that
pie as possible both parties are
satisfied
Motivation Win-lose Win-win

Focus Positions (I can’t go Interests (Can you

beyond this point on explain why this issue
this issue) is important to you?)
Interests Opposed Congruent

Information Sharing Low High

Duration of Short Tem Long Term

Relationship
55
THE NEGOTIATION PROCESS
• Preparation and Planning
– Best Alternative To a Negotiated Agreement (Ex.
Job Offer)
• Definition of Ground Rules
– What, Who, Where, When, How….
• Clarification and Justification
• Bargaining and Problem Solving
• Closure and Implementation

56
THIRD PARTY NEGOTIATIONS
• Mediator
• Suggests alternatives
• Arbitrator
• Authority to dictate an agreement
• Conciliator
• Informal communication links, develops agreements
• Consultants
• Skilled in conflict management, facilitates creative
problem solving

57
PREPARED BY Prof. Dr@shti
Vaishnav