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 Groups and Teams

CHAPTER

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Learning Objectives
In this chapter, you will:
 Understand groups.
 Understand the difference between formal and
informal groups.
 Know stages of group development.
 Identify the key factors in explaining group
behaviour.
 Appreciate the benefits and disadvantages of
cohesive groups.

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Learning Objectives (cont.)
In this chapter, you will:
 Understand group properties.
 Understand the work group as an open system.
 Differentiate groups and teams.
 Identify the different types of teams.
 Understand how to build a high performance
team.
 Understand contemporary issues in managing
teams.

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7.1 Groups

 Refers to two or more interdependent

individuals who interact to achieve particular
objectives.
 Groups can either be formal (command
group and task force) or informal, temporary
or permanent, within the same department or
across departments, and there are many
types of groups within an organization.

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7.2 Types of Groups
Formal Groups: Formally appointed by the
organization to carry out certain functions or
tasks.
• Formal groups may include command group and task force.
Task force can be either permanent or temporary.

Informal Groups: Formed by employees for social

purposes based on friendship or interest.
• Friendship group: A group of employees who usually go out
together for lunch, golfing, shopping, etc.
• Interest group: A group of employees who congregate based on
specific interests such as music, fishing, etc.
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7.3 Stages of Group
Development
7.3.1 Five stages of group development
7.3.2 Punctuated equilibrium theory

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7.3.1 Five Stages of Group
Development

 Forming
 Storming
 Norming
 Performing
 Adjourning

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7.3.2 Punctuated Equilibrium
Theory
 The punctuated equilibrium theory suggests
that groups or teams do not have to follow a
step ladder like the five stage group
development. There seems to be a consistent
time span or period whereby a group is formed
and when they change the way they work.
 First phase: Team will define the goals in the first
meeting. The team’s activities will be driven by
inertia.

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7.3.2 Punctuated Equilibrium
Theory (cont.)
 Transition: About halfway the given period, a
transition happens to signify the end of the first
phase. This transition will result in a drastic change
in the team’s activities.
 Second phase: Following the transition, the second
phase inertia will take over with heightened level of
activities.

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7.4 Key Factors in Group
Behaviour
 Composition refers to the nature and attributes of
team members.
 Roles are expected behaviour patterns attributed to
someone occupying a given position in a social unit.
 Size: Teams with 5 to 7 members have an
advantage in that they are small enough to allow for
interaction and big enough to generate ideas, find
solutions to stalemate situations with the odd
number of members.

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7.4 Key Factors in Group
Behaviour (cont.)
 Norms are a form of expectation with regard to
the behaviour of its team members.
 Cohesiveness refers to the degree to which
members are attracted to each other and are
motivated to stay in a group.
 Formal leadership: Leader is the main
representative and exert influence on group tasks
and members.
 Status congruence: Social ranking within the
group.
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7.5 Group Vs Team

 Group refers to two or more interdependent

individuals who interact to achieve particular
objectives.
 Team refers to a group whose individual efforts
result in a performance that is greater than the sum
of the individual inputs.
 Usually a team is not listed in the organizational
chart, it is captured in the relationship between
individuals in organizations that reflects how the
organization operates and its management style.
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7.6 Types of Teams

 Problem solving teams: Group of 5 to 12

employees from the same department working
on ways to improve quality, efficiency and their
work environment.
 Self-managed work teams: Also known as
self-directed work teams. They consist of 10 to
15 employees who manage their own work and
take on the responsibilities of their supervisors.

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7.6 Types of Teams (cont.)

 Cross-functional teams: Employees from

different work areas or functions working
together to achieve a task.
 Virtual teams: Teams that use computer
technology to connect geographically dispersed
team members in accomplishing a common
task.

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7.7 Challenges before Effective
Teamwork
 Cooperation: Integration of team members’
work effort.
 Communication: Manage the team
communication.
 Training: Training members with technical and
interpersonal skills is important for good team
work.
 Rewards: Individual vs team rewards.

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7.8 Improving Team
Effectiveness
There are several ways to improve the effectiveness of
a team or group:
 Setting clear team goals.
 Have a plan for improvement.
 Have clear roles.
 Clear communication.
 Team members’ behaviours.
 Proper procedure for decision making.
 Equal involvement.
 Set guidelines for group norms.
 Understand the group process.

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7.9 Contemporary Issues in
Managing Teams
 Quality of work life (QWL) in terms of job
satisfaction, growth needs satisfaction, social
needs satisfaction, group satisfaction,
organization commitment and trust.
 Getting people to be team players.
 Good selection and proper training to foster
teamwork.

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 Review Questions

1. What are the differences between formal and informal

groups?
2. Describe and compare the two models of group
development.
3. What are the key factors in explaining group behaviour?
4. What are the different types of teams?
5. How do you create an effective team?

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