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Organizational behavior 7e by luthans chap010

Chapter Ten

Groups and


© 2008 The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives
• Describe the basic nature of groups: the
dynamics of group formation and the various
types of groups.
• Discuss the implications that research on
groups has for the practice of management.
• Explain the important dynamics of informal
groups and organizations.
• Analyze the impact of groupthink.
• Present the team concept and its practice.

• Formal and informal groups – the team
concept and practice
• Teams – self-managed and crossfunctional

Nature of Groups
• Meaning of a group and group dynamics
• Dynamics of group formation
– Theories of group formation
• Theory of George Homans: activities, interactions,
and sentiments
• Theodore Newcomb’s classic balance theory of
group formation
• Theoretical approach to group formation from
social psychology: exchange theory

Nature of Groups

• Dynamics of group formation (continued)
• Theodore Newcomb’s classic balance theory of
group formation

Nature of Groups

• Dynamics of group formation (continued)
– Identifiable stages of group development:


– Practicalities of group formation
• Punctuated equilibrium model

Nature of Groups

• Types of groups
– Primary groups
• Small groups and self-managed teams

– Coalitions
– Other types of groups
• Memberships and reference groups
• In-groups and out-groups

Nature of Groups

• Implications from research on group
– Groups expert Richard Hackman - important
role leadership plays in group performance
– Conditions a leader can control include:
• Setting a compelling direction for the group’s work
• Designing and enabling group structure
• Ensuring that the group operates within a
supportive context
• Providing expert coaching

Nature of Groups

• Group Cohesiveness

Nature of Groups

• Group/team effectiveness
– Three factors that play the major role
• Task interdependence
• Outcome interdependence
• Potency

– Three behaviors keys to adapting to unusual
circumstances or events:
• Information collection and transfer
• Task prioritization
• Task distribution

Dynamics of Informal Groups
• Norms and roles in informal groups
– Boundary spanner
– Buffer
– Lobbyist
– Negotiator
– Spokesperson

• Informal organization

Dysfunctions of Groups and Teams
• Norm violation and role ambiguity/conflict
• Groupthink, conformity problem
– Symptoms of groupthink

Dysfunctions of Groups and Teams

• Risky shift phenomenon
• Dysfunctions in perspective
• Social loafing

Teams in the Workplace
• Nature of teams
• Cross-functional teams
– Choose members carefully
– Establishing team purpose
– Ensuring understanding of functions
– Conduct intensive team building
– Achieve noticeable results

Teams in the Workplace

• Virtual teams
– Synchronous technologies

• Self-managed teams
– A group of employees who are responsible for
managing and performing technical tasks that
result in a product or service being delivered
to an internal or external customer

Teams in the Workplace

• Training guidelines: self-managed teams

Teams in the Workplace

• How to make teams more effective
– Team building
– Collaboration
– Group leadership
– Cultural/global issues


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