The Importance of Groups

in an Organizational Setup
Introduction
• Definition of a Group – A group symbolizes a cluster of two or more persons
with some common characteristics. According to this perspective, the
organization as a whole can be called a group.
• In organizations, groups are studied in two forms—primary groups and secondary
groups. Primary groups develop emotional attachment and a culture of their own,
and make themselves distinctly different from others. Secondary groups, on the
other hand, are developed by detaching personal feelings and attachment, to get
some specific work done or to achieve a desired level of performance.

• Stages of Development - Groups generally pass through a predictable sequence

in their evolution.
THE FIVE STAGE MODEL
Characteristics of a Group
• Interpersonal interaction: Individuals do not form a group merely by being in
the same place; there needs to be interaction between them

• Perceptions of membership: Individuals should be perceptibly aware that they

are members of the group

• Interdependency and mutual influence: Any event that affects a group

member affects them all; each member influences, and is influenced by, the other
member

• Mutual goals: Individuals come together in pursuit of a mutual goal, which is

set by using a goal congruence model. When individuals feel that their goals
match the goals of other individuals, they pursue goal achievement voluntarily

• Motivation: Group members seek to satisfy some personal need through their
joint association

• Structured relationships: Interactions are structured by a set of role definitions

and norms
 Importance of Groups
• With clarity of goals, congruence between individual goals and group goals is
achieved. Hence, goals can be changed depending on the situation.
• Such groups facilitate two-way communication and improve mutual understanding in
order to avoid confusion.
• Such groups encourage participative and distributed leadership among group
members and, thereby, facilitate goal achievement and strengthen internal balance.
• Equal sharing of power is possible. This provides opportunity for individual goal
achievement and needs fulfilment.
• There is flexibility in decision making as well as a participative approach, which
encourages group involvement, making the decision-making process more effective.
• Such groups promote positive conflict through group discussions and, thus, improve
the quality of decisions.
• They emphasize group cohesion. Thus, group members can improve their
interpersonal relations, enhancing their level of inclusion and mutual trust.
 Challenges of Groups
• Group effectiveness – It is influenced by the degree of task orientation and people or
process orientation. By balancing these two aspects, a group achieves its goals and
improves the group effectiveness. Hence, the effectiveness of a group depends on its
ability to achieve its goals, its ability to maintain itself internally as a cohesive unit, and
its ability to change and develop in ways that improve its effectiveness.
• Groups may block communication, restricting it to only one person.
• Groups may have dominant people who restrict other group members from expressing
their views.
• In a group, members may be more status-sensitive and impose self-restriction on
participation.
• Groups can also have the bad effect of social loafing, which may make members
perform less.
Implications for Managers
• Recognize that groups can dramatically affect individual behavior in an organization,
to either positive or negative effect thus pay attention to norms and cohesion within a
group.
• To decrease the possibility of deviant workplace activities, ensure that group norms do
not support antisocial behavior.
• To increase employee satisfaction, work on making certain your employees perceive
their job roles the same way you perceive their roles
THANK YOU
FOR YOUR
ATTENTION