CHAPTER 7:WORK TEAMS AND
GROUPS
A. What are groups
Group – a two or more person,
interacting and interdependent,
who have come together to
achieve certain objectives.
Classifications of a group:
1. Formal Group – it is defined
by the organization structure, with
designed work assignments and
established tasks.
Types of Formal Groups:
 Command Group – a group
composed of individuals who
report directly to a certain
manager
 Task Group – a group
consisting of persons working
together to complete a job task.
2. Informal Group – this group type
is neither formally structured nor
organizationally determined. It is
formed by individuals and developed
around common interests and
friendship rather than around a
deliberate design.
Types of Informal Groups:
 Interest Groups – it is formed
because of some special topic
interest. The group disbands
when the interest declines or a
goal has been achieved.
 Friendship Groups – a group
where members are brought
together because they share one
or more common characteristics
such as age, political beliefs, or
ethnic background.
B. Why people form groups
5 Reasons Why People Form
Groups
1. Need satisfaction
- People join groups in order to satisfy
their needs such as their social needs.
2. Proximity
- When people work near each other, it
is not hard for them to form a group.
3. Attraction
- People are attracted to each other
because of similarities in perception,
attitude, performance, or motivation.
4. Goals
- A group is formed when a number of
people are required to achieve a goal.
5. Economics
- Individual person joins groups so they
can obtain economic benefits not
otherwise made available if they are
not members of a group.
C. Stages of group development
1. The Forming Stage- The initial entry
of members to a group is a primary
concern. These concerns consist of the
following:
a. They are eager to learn what tasks
they will be performing
b. How they can benefit from group
membership
c. What constitutes acceptable behavior
d. What rules must be followed
2. The Storming Stage
- As individuals compete to impose
their preferences on the group and to
achieve their desired status position,
conflict may develop over leadership
and authority.
3. The Norming Stage
- Also known as the initial integration
stage. This is when the group really
begins to come together as a
coordinated unit. Cooperation and
collaboration are its main
characteristics.
4. The Performing Stage
- The group emerges as a mature,
organized, and a well-functioning
group, and it is ready to focus on
accomplishing its key tasks. This stage
is also referred to as the total
integration stage.
5. The Adjourning Stage
- This stage involves the termination of
activities.
The termination of the group may be
triggered by any of the following:
a. When the group’s purpose has been
fulfilled
b. When the group has failed to
revitalize itself during the performing
stage.
ROLES WITHIN GROUPS
Group efforts can be more effective if
relevant roles are played within the
group
Specific roles that are deemed
important in the group process:
1. Knowledge contributor
-provides the group with useful and
valid information
2. Process observer
-a person occupying this role forces the
group to look at how it is functioning
3. People supporter
-a person occupying this role assumes
some leadership responsibility for
providing emotional support to
teammates and resolving conflict
4. Challenger
-A challenger will criticize any
decision or preliminary thinking that is
deficient in any way, including being
ethically unsound
5. Listener
-Listening contributes so substantially
to team success that it comprises a
separate role even though other roles
involve listening
6. Mediator
-Because disputes among members
may become so prolonged and intense,
a team leader or member may have to
mediate
7. Gatekeeper
-When the opportunity gate for
contributing is closed to several
members, the gatekeeper pries it open.
He or she requests that a specific team
member be allowed to contribute, or
that the member's past contribution be
recognized
8. Take-charge leader
-When leadership is lacking, a team
member can assume the role of the
take-charge leader.
ADVANTAGES AND
DISADVANTAGES OF GROUPS
Advantage:
1. More inputs from various
perspective can be made available for
effective decision-making;
2. Synergism is more likely when
people work together as a group;
3. People in the groups are more
supportive of decisions that were
formulated with their assistance;
4. It allows the efficient exchange of
information for effective problem
solving;
5. The opportunity for fulfilling the
safety, affiliation, and esteem needs of
group members is made available; and
6. Group members get mutual support
from each other.
Disadvantage:
1. Group activity is usually slower and
more cumbersome because every
member has the opportunity to make
contributions;
2. Group meetings are held to
disseminate strictly routine data that
could be more efficiently conveyed in
writing through interoffice
memorandum. When this happens, the
effectiveness of the group is
undermined;
3. The group’s decision may be diluted
by every member’s input in making the
decision ineffective;
4. The accountability is often a
problem with group activity;
5. There are occasions when some
members shirk responsibility and let
other members of
the group do the work;
6. When the group is highly cohesive
and motivated, outside criticism tends
to be ignored as group members look
inward for reinforcement of each
other’s opinions;
Groupthink
-deterioration of mental efficiency,
reality testing, moral judgment in the
interest of group cohesiveness.
How to Minimize Groupthink
1. Monitoring group size, so it will not
grow large enough to intimidate some
members to
perform well;
2. Encouraging group leaders to play
an impartial role by actively seeking
input from all members and avoid
expressing their own opinions,
especially in the early stages of
deliberation;
3. Appointing a member to play the
role of devil’s advocate; and
4. Using exercises that stimulate active
discussion of diverse alternatives
without threatening the group and
intensifying identity protection.
TECHNIQUES IN GROUP
DECISION MAKING
Interacting Groups
-are typical groups in which members
interact with each other face-to-face
Brainstorming
-is a group problem-solving technique
which promotes creativity by
encouraging members to come up with
any idea, no matter how strange,
without fear of criticism
Procedures;
1. Generate as many ideas as possible;
2. Be creative, freewheeling, and
imaginative;
3. Build upon, extend, or combine
earlier ideas; and
4. Withhold criticism of other’s ideas.
Nominal Group Technique
-is a group decision-making method in
which individual members meet face-
to-face to pool their judgments in a
systematic but independent fashion
Discrete steps;
1. Individual members quietly list their
ideas.
2. Ideas are written on a chart one at a
time until all ideas are listed.
3. Brief time is allotted so that
questions can be asked, but only for
clarification.
4. A written vote is taken and the group
decision is announced.
Electronic Meeting
-is a decision-making technique
wherein members interact through
computers, allowing anonymity of
comments and aggregation of votes
WHAT ARE WORK TEAMS
 Important elements of
organizations
 Groups expected to deliver high
performance when the
organization requires it
 Formal group comprised of
people interacting very closely
together with a shared
commitment to accomplish
agreed-upon objectives
Differences between Workgroups
and Teams
 A workgroup is one that Team members are collectively
interacts primarily to share held accountable for the team’s overall
information and to make performance results.
decisions to help each members
perform within his or her area Advantages:
of responsibility. 1. improved flexibility of staff;
 Groups emphasize individual 2. the reduced number of job
leadership, individual classifications result to more efficient
accountability, and individual operations;
work products. 3. absenteeism and turnover rates are
 Teams emphasize shared lower;
leadership, mutual 4. organizational commitment and job
accountability, and collective satisfaction are at higher levels.
work products.
Disadvantages:
1. implementing the concept takes
time;
TYPES OF TEAMS
2. the cost of training is high;
There are various types of teams. The
3. there are inefficiencies created
most common are:
during the training period;
1. Problem-solving teams
4. some employees are not able to
2. Self-managed work teams
adapt to a team structure.
3. Cross functional teams
4. Virtual teams
 Cross-Functional Teams
A cross functional team is one
 Problem Solving Teams
composed of employees from about the
Problem-solving teams are groups
same hierarchical levels, but from
of 5 to 12 employees from the same
different work areas, who come
department who meet for a few hours
together to accomplish a task.
each week to discuss ways of
Cross functional team allows
improving quality, efficiency, and work
people from different units to:
environment.
1. Exchange information
2. Develop new ideas
 Self-Managed work Teams
3. Solve problems
A self-managed work team is one
4. Coordinate complex projects
that is empowered to make decisions
about work schedules, task allocations,
The main disadvantage is that is
job skills training, performance
consumes much time as the members
evaluation, selection of new team
learn to work with diversity and
members, and controlling quality of
complexity.
work.
  Virtual Teams
Virtual teams are those that use
computer technology to tie together
physically dispersed members in order
to achieve common goal. They also
share information, make decisions, and
complete tasks. The difference is they
do it with the aid of computers.
A major disadvantage of virtual
teams is the high cost of the required
supporting technology and training.
DEVELOPING EFFECTIVE
TEAMS
Teams can be made effective if the
following are observed:
1. Team size must be kept as small as
possible.
2. The team must have sufficient range
of skills, information, and/or
experience to do the task.
3. Team members must have sense of
common purpose.
4. The team must be free to develop its
work procedures.
5. The team must have a sense of
accountability.
TURNING INDIVIDUALS INTO
TEAM PLAYERS
Team players are indispensable human
assets of many organizations, and these
organizations would want to make sure
that they are available when their
services are needed. An important
concern, however is to turn individuals
into team players.
The available options consist of the
following:
1. Selection
2. Training
3. Rewards
Selection
In searching for team players, it
must be remembered that not all people
are alike. Some were born natural team
players, while others could become
team players if they are properly
trained. There is a third category of
persons who cannot become team
players, even with training. They
should not be considered for selection.
Training
Training is a way of turning
individuals into team players. They
should be made to attend training
courses in problem-solving,
communication, negotiation, conflict
management, and coaching. Fully
trained members of the team must be
well-versed in the company's
philosophy regarding teams, the team
mission, and new roles and
responsibilities individuals will have as
a consequence of being part of the
team.
Rewards
Rewards are powerful
motivators. This is also true if it is
directed towards effective teamwork.
With adequate rewards, team members
would be motivated to be effective
team players.
POTENTIAL TEAM PROBLEMS
Two notable team problems involve the
following:
1. Changing membership
2. Social Loafing
 Changing membership
Newly formed teams need time to turn
into mature groups.
Members may drop out due to reasons
like:
1. transferring to a higher priority
project;
2. the occurrence of personal problem
requiring extended leaves of absence;
or
3. accepting a job in another company.
2. the members prefer to see others
carry the workload.
To minimize or eliminate social
loafing, some means of identifying
individual efforts must be provided. If
this is not possible, it may be proper to
consider first whether the team
approach is appropriate for the task at
hand.
It may be wise to consider an analysis
of the following:
1. the nature of the task;
2. the qualifications and desires of the
participants; and
3. the time and cost constraints.

The higher the membership turnover is,

the bigger is the team's problem.

To address such concern, the team

must learn to manage its internal
turnover through the following:

1. recognition of the potential problems

brought by high turnover;
2. development of a plan for managing
turnover; and
3. thinking through how best to
integrate new members.

 Social Loafing
This refers to the tendency for
individuals to expend less effort when
working collectively
that when working individually.

The reasons for social loafing are:

1. the members think their contribution
is less noticeable; and
CHAPTER 8: LEADERSHIP
Definition of Leadership
Leadership is the process of
guiding and directing the behavior of
people in the
organization in order to achieve certain
objectives.
Leadership is the element that
convinces members of an organization
to behave in such a manner that will
facilitate the accomplishment of the
goals of the organization.
The Difference between Leadership
and Management
Managers and leaders are different in
the following ways:
1. Managers are rational problem
solvers, while leaders are intuitive,
more visionary.
2. Managers perform other
administrative function such as
planning, organizing, decision-making,
and communicating.
3. Leaders are primarily concerned
with results; managers are concerned
with the efficiency of results.
4. Leaders obtain their power from
below; managers obtain their power
from above.
Kinds of Leadership
1. Formal Leadership
-The process of influencing others to
pursue official objectives.
-Formal leaders are vested with formal
authority and as such, they generally
have a measure of legitimate power.
-They rely on expedient combination of
reward, coercive, referent, and expert
power.
2. Informal Leadership
-The process of influencing others to
pursue unofficial objectives.
-Informal leaders lack formal authority.
-Informal leaders also rely on
expedient combination of reward,
coercive, referent, and expert power.
Power and the Leader
The bases of power that the leader may
use to convince subordinates may be
classified as either:
1. Position Power is a power derived
as a consequence of the leader’s
position.
It consists of the following types:
 Legitimate Power – this power
emanates from a person’s
position in the organization.
The legitimate power vested in
a person is characterized by the
following:
1. It is invested in a person’s
position. Even if the person
occupying the position is
replaced, the power remains
and the new occupant can
exercise it.
 2. It is accepted by
subordinates. The persons
working under the supervision
of a manager believes that the
manager has the right to tell
them what to do and what to
expect from them.
3.Authority is used vertically.
The flow of authority is from
the top level down to the lower
levels.
 Reward Power – this power
emanates from one’s ability to
grant rewards to those who
comply with a command or
request
 Coercive Power – this power
arises from the expectation of
subordinates that they will be
punished if they do not conform
to the wishes of the leader
2. Personal Power results from the
leader’s personal characteristics.
It may be any or both the following:
 Expert Power – An expert who
possess and can dispense valued
information generally exercise
expert power over those in need
of such information.
 Referent Power – this power
refers to the ability of leaders to
develop followers from the
strength of their own
personalities
People follow because their emotions
push them to do so. Some religious and
political leaders like Nelson Mandela
of Africa, the late Mother Teresa, and
the late Michael Jackson are example
of those who have or had referent
power.
Theories about Leadership
Through the years, eminent researchers
have forwarded their own theories
about leadership. Their outputs may be
classified as follows:
1. Trait theories
2. Behavioral theories
3. Contingency theories
Trait Theories
Trait theories of leadership
consider leaders to possess common
traits.
This theory places emphasis on
traits which resulted in the
determination of a wide span of
personal attributes such as physical
appearance, intelligence, and self-
confidence.
A single statement that best
describe trait theories assumes that
“leaders are
born than made.”
Person who occupies a position of
leadership based on this theory exceeds
the average on the following factors:
1.Sociability
2. Persistence
3. Initiative
4. Knowing how to get things done
5. Self-confidence
6. Alertness to and insight into
situations
7. Cooperativeness
8. Popularity
9. Adaptability
10. Verbal facility
Guided by findings, researchers later
on drafted a more general view of what
good leaders have in common. This
consists of the following.
1. Extraversion – individuals who like
being around people and are able to
assert themselves.
2. Conscientiousness – individuals
who are disciplined and keep
commitments that they make.
3. Openness – individuals who are
creative and flexible.
4. Emotional intelligence –
individuals who are able to understand
and manage their personal feelings and
emotions, as well as their emotions
towards other individuals, events, and
objects.
Behavioral Theories
These theories propose that specific
behaviors differentiate leaders from
non-leaders.
Four theories related to leadership
behavior:
1. The Ohio State University studies
-Started at Ohio State University
during the late 1940’s in which the
researchers sought to identify
independent dimensions of leader
behavior.
The two dimensions were referred to
as:
1. Initiating structure
 The extent to which a leader is
likely to define his or her role and those
employees in the search for goal
attainment.
 The leader with a high initiating
structure tendency focuses on goals and
results, so he or she might be seen as
similar to a production-oriented
supervisor.
 Structure is initiated by activities
such as assigning specific tasks,
specifying procedures to be followed,
scheduling work, and clarifying
expectations.
2. Consideration
 The degree to which the leader
creates an environment of emotional
support, warmth, friendliness, and trust.
 The leader’s behaviour would be
one that is friendly and approachable,
looking out for the personal welfare of
the group, keeping the group informed
about new developments, and doing
small favors for group members.
Note: The findings of the Ohio studies
indicate that successful leaders are
those that are engaged not in one of
the two behaviors but in both.
2. The University of Michigan studies
-University of Michigan
-Researchers attempts to locate
behavioral characteristics of leaders
that appeared to be related to measures
of performance effectiveness.
The researchers identified two distinct
styles of leadership
1. Job-centered
 Job-centered managers set tight
work standards, organized tasks
carefully, prescribed the work methods
to be followed, and supervised closely.
2. Employee-centered
 Employee-centered managers
encouraged group members to
participate in goal setting and other
work decisions, and helped to
ensure high performance by
engendering trust and mutual respect.
Note: The researchers found out that
the most productive work groups
tended to have leaders who were
employee-centered rather than job-
centered.
3. The Yukl studies
-Gary M. Yukl and his colleagues tried
to seek answers to specific behavior of
leaders for varying situations.
They were able to isolate nineteen
behaviors
consisting of the following:
1. Performance emphasis
 The extent, to which a leader
emphasizes the importance of
subordinate performance, tries to
improve productivity and
efficiency, tries to keep subordinates
working up to their capacity, and
checks on their performance.
2. Consideration
 The extent to which a leader is
friendly, supportive, and considerate in
his or her behavior toward subordinates
and tries to be fair and objective.
3. Praise-Recognition
 The extent to which a leader
provides praise and recognition to
subordinates with effective
performance, shows appreciation for
their special efforts and contributions,
and makes sure they get credit for their
helpful ideas and suggestions.
4. Decision-Participation
 The extent to which a leader
consults with subordinates and
otherwise allows them to influence his
or her decisions.
5. Training-Coaching
 The extent to which a leader
determines training needs for
subordinates and provides any
necessary training and coaching.
6. Problem Solving
 The extent to which a leader takes
the initiative in proposing solutions to
serious work-related problems and acts
decisively to deal with such problems
when a prompt solution is needed.
7. Work Facilitation
 The extent to which a leader obtains
for subordinates any necessary
supplies, equipment, support services,
or other resources, eliminates problems
in the work environment, and removes
other obstacles
that interfere with the work.
8. Inspiration
9. Structuring reward contingencies
10. Autonomy-Delegation
11. Role Clarification
12. Goal Setting
13. Information Dissemination
14. Planning
15. Coordinating
16. Representation
17. Interaction Facilitation
18. Conflict Management
19. Criticism-Discipline
4. The Managerial Grid
-Developed by Robert Blake and Jane
Mouton.
- It is an approach to understanding a
manager’s concern for production and
concern for people.
A brief description of selected styles in
the grid is provided as follows:
i. 1,1 Impoverished manager
-also referred to as the laissez-faire
leaders.
-Leaders have little concern for people
or productivity, avoid taking sides, and
stay out of conflicts. They do just
enough to get by. This leadership style
is a form of abdication of
responsibility.
ii. 1,9 Country club manager
-Leaders have great concern for people
and little concern for production. They
try to avoid conflicts and concentrate
on being well-liked. To them, no task is
more important than good interpersonal
relations. Their goal is to keep people
happy.
iii. 9,1 Authority-obedience manager
-Leaders have great concern for
production and little concern for
people. They desire tight control in
order to get tasks done efficiently.
They consider creativity and human
relations unnecessary.
iv. 5,5 Organization man manger
-also called middle-of-the-road
manager
-Leaders have medium concern for
people and production. They attempt to
balance their concern for both people
and production, but are not committed
to either.
v. 9,9 Team manager
-The ideal leadership style of manager
-Leader has great concern for both
people and production. He works to
motivate people to reach their highest
levels of accomplishment.
Note: The Managerial grid proposes
that there is a best way to manage
people, i.e., the way used by the 9,9
manager, who has 9 units of concern
for production and 9 units of concern
for people.
Contingency Theories
The various theories related to the
situational approach to leadership
consist of the following:
1. CONTINUUM OF LEADERSHIP
BEHAVIOR - Robert Tannenbaum
and Warren H. Schmidt
-This model consists of seven
alternative ways for managers to
approach decision making, depending
on how much participation they want to
allow subordinates in the decision-
making process

Alternative Behaviors of the Leader
1. Manager makes decision and
announces it
2. Manager “sells” decision
3. Manager presents ideas and invites
questions
4. Manager presents tentative decision
subject to change
5. Manager presents problems, gets
suggestion, makes decision
6. Manager defines limits, asks group
to make decision
7. Manager permits subordinates to
function within limits defined by
superior
The leader’s choices depend on three
factors:
1. Forces in the manager;
2. Forces in subordinates; and
3. Forces in the situation
The leadership style of greater
participation and freedom can be
exercised by the manager if the
subordinates;
1. Are having for independence and
freedom of action;
2. Want to have decision making
responsibility;
3. Identify with the organization’s
goals;
4. Are knowledgeable and experienced
enough to deal with the problem
efficiently;
5. Have experience with previous
managers that lead them to expect
participative management.
2. THE CONTINGENCY
LEADERSHIP MODEL - Fred
Fiedler
-This leadership model proposes that
effective group performance depends
on the proper match between the
leader’s style and the degree to which
the situation favors the leader.
Fiedler measures leadership style
through the use of the Least Preferred
Coworker (LPC) Scale which is
actually an instrument that assesses the
degree of positive or negative feelings
held by a person toward someone with
whom he or she least prefers to work.
Low scores on the LPC is a reflection
of the leader who is task-oriented, or
controlling, and with a structuring
leadership style. High scores reflect a
leadership style that is relationship-
oriented, or one that is passive and
considerate.
To determine how favourable the
leadership environment is, Fiedler
maintains that it
will depend on three factors:
1. Leader-member relations
2. Task structure
3. Position power
Together, the three factors determine
how favourable the situation is for the
leader.
The most favourable situation exists
when there is good leader-member
relations, high task structure, and
strong position power. The least
favourable situation happens when
there are poor relations, low degree of
structure, and weak position power.
3. THE PATH-GOAL MODEL -
Robert ----House and Terrence
Mitchell
-This leadership model states that the
leader’s job is to create a work
environment through structure, support,
and rewards that helps employees reach
the organization’s goals.
The two major roles involved are:
1. The creation of a good orientation;
and
2. The improvement of the path toward
the goals so that they will be attained.
House and Mitchell identified four
leadership behaviors:
1. The directive leader
2. The supportive leader
3. The participative leader
4. The achievement-oriented leader
4. THE HERSHEY-BLANCHARD
SITUATIONAL LEADERSHIP
THEORIES - Paul Hershey and
Kenneth Blanchard
-The leader must know follower’s
readiness and then use a leadership
style that fits the level.
Readiness refers to the ability and
willingness of subordinates to take
responsibility for directing their own
behaviour.
Readiness consists of two concerns:
1. Job readiness (or task competence);
and
2. Psychological readiness (or
commitment)
Based on the foregoing, subordinates
may be classified as follows:
1. Those with low competence and low
commitment (D-1);
2. Those with low competence but with
high commitment (D-2);
3. Those with high competence but
with low commitment (D-3); and
4. Those with high competence and
high commitment (D-4)
To match the various states of
readiness by subordinates, Hershey and
Blanchard devised four leadership
styles available to leaders:
1. A “directing” style that is best for
low follower readiness.
2. A “coaching” style that is best for
low to moderate follower readiness.
3. A “supporting” style that is best for
moderate to high follower readiness.
4. A “delegating” style that is best for
high readiness.
5. THE LEADER-MEMBER
EXCHANGE APPROACH - George
Graen and his associates
-This leadership theory recognizes that
leaders develop unique working
relationships with each group member.
Leaders and their followers exchange
information, resources, and role
expectations that determine the quality
of their interpersonal relationships.
6. THE NORMATIVE DECISION
MODEL
-developed by Victor and Philip Yetton
-revised by Vroom and Arthur Jago
-Also known as “the leader-
participation model” and “decision
making model of leadership”, this
model views leadership as a decision-
making process in which the leader
examines certain factors within the
situation to determine which decision-
making style will be most effective.
Five decision making styles are
presented by the normative model, each
reflecting a different degree of
participation by group members:
1. Autocratic I – the leader individually
solves the problem using the
information already available.
2. Autocratic II – the leader obtains
data from subordinates and then
decides.
3. Consultative I – the leader explains
the problem to individual subordinates
and obtains ideas from each before
deciding.
4. Consultative II – the leader meets
with group of subordinates to share the
problem and obtain inputs, and then
decides.
5. Group II – the leader shares problem
with group and facilitates a discussion
of alternatives aiming to reach a group
agreement on a solution.
The normative decision model is based
on the following assumptions:
1. The leader can accurately classify
problems according to the criteria
offered.
2. The leader is able and willing to
adapt his or her leadership style to fit
the contingency condition he or she
faces.
3. The leader is willing to use a rather
complex model.
4. The employees will accept the
legitimacy of different styles being
used for different problems, as well as
the validity of the leader’s
classification of the situation at hand.
7. THE MUCZYK-REIMANN
MODEL - Jan P. Muczyk and Bernard
C. Reimann
-This model suggests that
“participation” behaviour is concerned
with the degree to which subordinates
are allowed to be involved in decision
making. It is separated from “direction”
which is viewed as the degree of
supervision exercised in the execution
of the tasks associated with carrying
out the decision.
To make delegation effective, four
leadership styles are considered:
1. The directive autocrat. The leader
makes decisions unilaterally and
closely supervises the activities of
subordinates.
2. The permissive autocrat. This leader
makes decision unilaterally but allows
subordinates a great deal of latitude in
execution.
4. The directive democrat. This leader
wants full participation but closely
supervises subordinate activity.
5. Thepermissive democrat. This leader
allows high participation in decision-
making and in execution.