Chapter 13 & 14

Group and inter group dynamics &

Decision making and negotiation
Group and inter group
dynamics(team dynamics)
Teams and Informal Groups

● A team is a group of people who work together to

achieve a common goal.
● Team members influence each other and share
responsibility for achieving the goal.
● There are different types of teams, some are
short-term and some have members with very
different skills.
INFORMAL GROUPS

● While all teams are groups, not all groups meet the
criteria for teams.
● Informal groups, driven by social instincts and identity,
provide emotional support, help achieve personal goals,
and influence organizational outcomes.
● Social networks within informal groups enhance trust,
information sharing, and employee well-being, impacting
organizational effectiveness.
Advantages and Disadvantages of Teams

● Teams succeed when conditions enable effective collaboration. Historical studies on British
coal mining and the Japanese economic miracle highlight that, under optimal circumstances,
teams make better decisions, create superior products, and foster a more engaged workforce
than individuals.
● Teams offer faster information sharing, efficient task coordination, and enhanced customer
service.
● Motivation in teams arises from a drive to bond, social identity, accountability to peers, and
performance comparison with colleagues.
THE CHALLENGES OF TEAMS
● Teams, despite their benefits, face challenges due to process losses—time and energy spent on
team development rather than tasks. Disagreements, coordination issues, and conflicts within
teams hinder efficiency.
● While teams are essential for complex tasks, process losses make them less effective than
individuals for simpler tasks.
● Adding members amplifies these losses, leading to coordination challenges. Social loafing,
reduced effort in teams, is common, especially when individual contributions are unclear.
● Smaller teams and clear performance measures help mitigate social loafing, which is less
prevalent in interesting or important tasks.
A Model of Team Effectiveness
Team Processes
1. INTERNAL TEAM PROCESSES
2. EXTERNAL TEAM PROCESSES
3. TEAM DEVELOPMENT
 .
Internal team process
Team processes involve two key
aspects: teamwork and taskwork.
Teamwork focuses on interactions,
cooperation, and coordination
within a team, seen in actions like
guiding discussions and resolving
conflicts. Taskwork involves
technical aspects of a task, such
as understanding requirements
and performing specific
procedures. Successful teams
excel in both areas.
External team process
Team boundary spanning involves
how teams connect with external
parties. Ambassador activities
protect the team, persuade
support, and lobby for resources.
Task coordination focuses on
technical issues, while scouting
seeks external information.
Ambassador and task
coordination positively impact
performance, but prolonged
scouting can harm it by diverting
attention from internal processes.
Team development
Self-Directed Teams

SUCCESS FACTORS FOR SELF-DIRECTED TEAMS

● Successful self-directed teams (SOTs) require responsibility for entire
processes, fostering independence with interdependence.
● Autonomy enhances responsiveness and motivation.
● Effective coordination, communication, and job enrichment are crucial
for SOT success, often hindered by misleading team labels without
proper structure.
Virtual Teams

● Virtual teams are groups of people working together from different locations
using technology to achieve goals.
● Unlike traditional teams, they aren't physically in the same place and rely on
digital communication.
● The level of virtuality increases with distance and less face-to-face interaction
among team members.
Team Decision Making

CONSTRAINTS ON TEAM DECISION MAKING

Time Constraints

Evaluation Apprehension

Pressure to Conform

Overconfidence (Inflated Team Efficacy)

Information Sharing Problem

IMPROVING CREATIVE DECISION MAKING IN TEAMS

● Brainstorming is a team event where participants try to think up as many idea

as possible.
● Brainwriting is a variation of brainstorming that minimizes the problem of
production blocking by removing conversation during idea generation.
● Electronic brainstorming is similar to brainwriting but uses computer
technology rather than handwritten cards to document and share ideas.
● Nominal group technique is another variation of brainwriting that adds a
verbal element to the process.
● Earlier in the chapter we described some different roles team members can
adopt while working together.
Decision making and negotiation
Defining Decision-Making

● Decision-making is the process of selecting a course of action from

a set of available options.
● It involves identifying a problem or opportunity, gathering
information, analyzing alternatives, and making a choice that aligns
with organizational goals.
● Decisions can be strategic (long-term, high-impact) or operational
(day-to-day, routine).
Models of Decision-Making

● Rational Model: A logical, structured approach that

emphasizes objectivity and complete information.
● Bounded Rationality Model: Acknowledges limitations in
time, information, and cognitive ability; decisions are made
that are "good enough" rather than optimal.
● Intuitive Model: Relies on experience, gut feelings, and
subconscious patterns.
Decision-Making and Organizational Behavior

● Decision-making styles can impact employee motivation and

engagement.
● Group decision-making can leverage diverse perspectives but
may be prone to biases.
● Organizational culture influences how decisions are made and
communicated.
Improving Decision-Making

● Define the problem clearly: Avoid rushing to solutions before

understanding the root cause.
● Consider a wide range of alternatives: Challenge assumptions and
brainstorm creatively.
● Evaluate options systematically: Use decision matrices or other tools
to compare pros and cons.
● Involve stakeholders: Consult those affected by the decision for
valuable insights.
● Be prepared to adapt: Monitor outcomes and adjust your course if
needed
DISTRIBUTIVE VERSUS INTEGRATIVE NEGOTIATIONS

● Negotiation situations vary based on goals and structure.

● In zero-sum scenarios, parties compete for a fixed resource, using
win-lose strategies. Distributive bargaining aims for one winner.
● In mutual-gain situations, goals are linked, benefiting all parties.
Example: buying a car (zero-sum) versus collaborating on a song
(mutual gain).
PREPARING TO NEGOTIATE

Prepare and Set Goals : Before negotiating, figure out your goals and what's
truly important to you – it's not just about the numbers.

Know Your BATNA : best alternative to a negotiated agreement

(BATNA).Strong BATNA (having a good alternative option) gives you
negotiation power. Think of it as having a "backup house" when buying a
home.

Know Your Limits : Before negotiating, know your "walk-away point" – the
minimum you'll accept (seller) or the maximum you'll pay (buyer).
DISTRIBUTIVE STRATEGIES THAT WORK
INTEGRATIVE STRATEGIES THAT WORK
Gather Information : To negotiate effectively, focus on listening and understanding the
other side's true needs before presenting your own case.

Discover Priorities through Offers and Concessions : Discovering value in negotiation

involves understanding the importance of issues to each side. Making multi-issue offers
helps gauge priorities, leading to mutually beneficial outcomes through concessions and
compromises.

Build the Relationship : Trust is crucial in conflict resolution and negotiations. Build trust
through shared interests, matching team backgrounds, and demonstrating reliability. Use
emotional intelligence to manage your and others' emotions.
EXPERT VERSUS AVERAGE NEGOTIATORS
Activity #1

Review this story to understand Group

dynamics click here
Activity #1

Review this video to understand negotiation skills

click Here