Professional Documents
Culture Documents
Group Dynamics
Group Dynamics
Shared goals
Group
There is interaction
Among members
Group
Formal Informal
Command Interest
Task Friendship
The people often join groups since the groups give the members a stability
and
enhances their achievement capacity. The main reasons to join a group
are:
SOCIAL TASK
z
CC)MMO N ATTITU DLS AN D
VALUI S
Religion
Politics
I ifcslyle
Marriage
\Nork
Authori ty
Propounded by “ Thaibaunt and Kelly”. This
theory is based on reward-cost outcomes of
interaction between employees.
The intraction between people is reward.
Stage V
Stage IV Adjourning
Changes
Rigidity or flexibility
Continuous process
The groups operate on a common task and common attitudes.
The group dynamics is concerned with the interaction between the group
members in a social situation. This is concerned with the gaining in the
knowledge of the group, how they develop and their effect on the
individual members and the organization in which they function.
The group dynamics is essential to study since it helps to find
how the relationships are made within a group and how the forces act
within the group members in a social setting. This helps to recognize
the formation of group and how a group should be organized, lead and
promoted.
In 1980 , Richard semler joined SEMCO , founded by his father 27
years earlier, having 100 employees and manufacturing hydraulic
pumps for ships, producing about $4million in revenue and tottered on
the edge of bankruptcy.
For the next 2 years, top managers constantly sought bank loans
and fought off rumors that the company was about to sink.
They also travelled 4 continents that enabled the company to reduce
its cyclical marine business to 60% of total sales.
Today SEMCO has many factories producing range of products like
marine pumps, digital scanners, commercial dishwashers, truck filters
and mixing equipment for substances ranging from bubble gum to rocket
fuel.
Customers include Alcoa,saab,general motors and SEMCO is regarded
as one of the best company in Brazil to work for by press.
The company’s survival and ultimate success is due largely to a major change in
its management approach.
SEMCO emphasized on 3 fundamental values- democracy , information , profit
sharing. These values helped in gaining confidence on work groups as a
primary mechanism for managing the company.
After some experimentations SEMCO found that they need 150 employees per
factory and all are divided into 10 member group given a major responsibilities
for outcomes associated with their areas.
Costs rose up because of duplication of effort and lost economies of scale. within
a year sales got doubled ,inventory dropped from126 to 46 days,8 new products
appeared that had been tied up in R&D for 2 years and the product rejection rate at
inspection dropped from 33 to 1% and increased productivity enabled the
company to reduce the workforce by 32& through attrition and early retirement.
At SEMCO once the members of a group agree on a monthly production
schedule, they meet it . At end of the month every body has done their work
allotted except for motors that had not yet arrived, despite repeated phone calls to
the supplier.
finally 2 employees went to the supplier’s plant and got delivery on the last day of
work groups have access to important information like Balance Sheet,P&L analysis,
cash flow statements for his or her division every month.
All workers voluntarily attend monthly classes so that they can learn to read
and understand the numbers.
Another factor is that although top level managers are strict about meeting the
financial targets, workers have wide latitude in determining the necessary actions and
carrying them out.
Profit sharing plan, twice a year employees receive about 25% of the after tax
profits for their division.
Employees vote on how to disburse the funds, which are visually distributed equally.
A survey was conducted by college graduates by Brazilian magazine found that 25%
of men and 13% of women cited SEMCO as the company they most wanted to work
for.