GROUPS INTRODUCTION Groups exist in every organisation and they affect the behaviour of their members.

They also have impact on the other groups and the organisation as a whole. Such groups are created by the organisation as well as by organisation members for their own satisfaction. Many groups are also created automatically because of operation of socio psychological factors at workplace. Thus these groups are essential for an organisations functioning. GROUP DYNAMICS The social process by which people interact face to face in small groups is called group dynamics. According to Shaw, a group is defined as two or more persons who are interacting with one another in such a manner that each person influences and is influenced by each other. According to Shepherd, a group may be defined as the aggregation of small number of persons who work for common goals, develop a shared attitude and are aware that they are part of a group and perceive themselves as such. FEATURES OF A GROUP 1. Two or more persons are required to form a group. There should be at least two persons in order to interact. However, there

cannot be any specific limit on the maximum number of persons in a group. 2. Collective identity Members of a group must be aware about their membership of the group. Each member of the group must believe that he is a member of (a participant of) some specific group. The awareness of each other differentiates a group from an aggregation of individuals. 3. Interaction Members of the group interact among themselves. Interaction means that each member shares his ideas with others through communication and this communication can take place face to face, in writing, over the telephone or through any other communication medium. It is not necessary for all members of the group to interact simultaneoulsy, but each member must interact at least occasionally with each other. 4. Shared goal interest The members of the group should subscribe to the attainment of some common objectives. If a group has a variety of objectives or interest, each member of the group must share at least one of the groups concerns. The shared goal interest binds the group members together. TYPES OF GROUPS Groups are classified into different types on the basis of the purpose, extent of structuring, process of formation and size of the groups membership.

1.

PRIMARY AND SECONDARY GROUP A primary group is a typically small social group whose members share close, personal, enduring primary relationships. These groups are marked by members' concern for one another, share activities and culture, and long periods of time are spent together. Examples include family, childhood friends, and highly influential social groups (team sports groups, academic groups, etc...). People in a secondary group interact on a less personal level than in a primary group, and their relationships are temporary rather than long lasting. Members of a secondary group may not have any interest in the problems or pleasures of another.

2.

MEMBERSHIP AND REFERENCE GROUPS A membership group is one to which an individual really belongs while a reference group is one with which the individual identifies or to which he would like to belong. The attractiveness of the reference group makes the norms of that group more attractive to that individual who aspires to be in that group. The reference groups have more relevance to organisational behaviour.

3.

COMMAND AND TASK GROUPS

A command group is composed of the subordinates who report directly to a common superior. This type of group is determined by the organisation chart. Eg. A production manager and his subordinate in his department, a college principal and teachers etc. A task group is comprised of the employees who work together to complete a particular task or project. 4. IN GROUPS AND OUT GROUPS The in group is a clustering of individuals holding prevailing values in a society or at least having a dominant place in social functioning. It can be a majority group or it represents the power structure with its patterns of behaviour considered desirable. The out group is the conglomerate looked up as subordinate or marginal in the society. It is a minority group. 5. FORMAL AND INFORMAL GROUPS. Formal groups are created and maintained to fulfill specific needs or tasks which are related to the total organisational mission. These are consciously created. Such groups may be either permanent (like the top management team i.e. the board of directors, management committee, work units in the various departments of the organisation, staff groups etc); or temporary which are created to fulfill some objectives and disappear on the fulfillment of these

objectives. Example, temporary committee, task force etc. In formal groups, jobs are well defined, there is definite authority, responsibility and accountability. Co-ordination amongst members is well defined and their control is well specified through processes, procedures and rules. It is based on the principle of division of labour and efficiency in operations. These groups are created to serve organisational purposes like : To accomplish tasks that cannot be done by employees individually. To bring a number of skills & talents to bear on complex, difficult tasks. To provide a vehicle for decision making. To provide an efficient means for control of employees behaviour. To provide changes in organisational policies or procedures. To increase organisational stability by transmitting shared beliefs & values to new employees. To aid individuals in gaining new skills and learning about the organisation & its environment. To satisfy important personal needs the needs for social acceptance & affiliation.

Informal groups are created in the organisation because of the natural grouping of people on the basis of some similarity within the members of the group. This similarity can be age, sex, place of origin, caste, religion, personality characteristics, likings/dislikings etc. Members create such groups for their own satisfaction and their working is not regulated by the general framework of organisational rules and regulations. Hence, the membership in these groups is voluntary. Behaviour of members of an informal group is co-ordinated and controlled by group norms and not by the norms of the formal groups.

Basis of comparison Formation Purpose Structure Nature Focus Leadership Source of power Guidelines for behaviour Sources of control

Formal organisation Informal organisation Planned and deliberate Well set goals Well structured Official Positions Superior Delegated Rules and procedures Reward or punishment Spontaneous Social interaction Unstructured Unofficial Persons Anyone Given by group Group norms Sanctions

FORMS OF FORMAL GROUPS Committee : A Committee may be defined as a group of persons in an organisation for taking or recommending certain decisions. Features of Committee : A Committee is a group of persons: there should be atleast two persons but if the number of persons is above seven, communication becomes centralised since then the members do not get opportunity to communicate directly with one another. A committee is set up to deal with specific problems and it cannot go in for actions in all spheres of activities.

 Members have the authority to go into details of the problems. A committee may have the authority either to take a final decision, or it may merely deliberate on problems without the authority to decide. A committee may be constituted at any level of organisation. Its members can be from various levels. The various functional committees can be in the form of finance committee, budget committee, purchase committee, grievance committee, welfare committee etc.

Reasons for the use of committees: Pooling of Knowledge & Experience : Committees aid in the pooling of knowledge & experience and decisions can be arrived at through group deliberation & judgement. These are used to solve those problems which are not within the jurisdiction of a single function or division. They use the expertise of individuals from different backgrounds. Facility for Coordination: They are useful for coordinating activities among various organisational units. It is useful for coordinating, planning & execution of programmes. Representation of Interested Groups: Committees are used to give representation to various interested groups. These committes are found in government, educational & other institutions and business organisations (Board of Directors, grievance committee etc) where people from diversified groups have a say in the functioning of the organisation. Fear of too much authority in a single person: At times, committees are formed to avoid too much concentration of authority in a single individual. This problem is common in government & educational organisations. Board of Directors is appointed to check the excessive use of authority by the chief executive. Bonus Committees are formed who are responsible for the formulation of financial and capital investment policies.

 Consolidation of Authority: A manager cannot solve a problem without simultaneous exercise of authority by other managers related to the problem. Either the problem may be referred upward for a decision or it may be assigned to a committee with membership of all managers related with the problem and the problem can be solved without referring it upward. Transmission and sharing of information: Committes are useful for sharing and transmission of information. Doubts and ambiguity may be removed at the spot. This saves a lot of time in communication. Motivation through participation: People perform better when they participate in decision making. When they are made a part of the decisions, they have a feeling of invlovement and commitment which motivates them for better performance. Tool for Management Development: Committees serve as a tool for management development as managers learn how their own jobs are related to others.

Measures for making Committees effective Appropriate size: Size should be appropriate so that meaningful action can be taken without wasting time. Appropriate size varies from case to case. In case a committees size has to be increased beyond manageable size because representation has to be given to various groups, subcommittees should be constituted, with the problems to be considered broken down for their action. Selection of members: Criteria can be personal characteristics of the members, their functional background, level in organisation and deliberation ability. Higher the degree of similarity among members personal characteristics, higher is the degree of effective deliberation. Functioning can be better if members are friendly, known to each other and mutually respectful to one another. Well defined authority and scope: These things should preferably be in writing. It should be defined whether the committee is responsible for decision, recommendation or mere deliberation for providing better insight to a problem. Terms of reference should be clear so that the committee knows what exactly they have to deliver. Nature of subject matter: Only those matters should be referred to a committee which can be handled in group

discussions. Eg. Establishing major objectives and policies of an organisation. On the other hand, review of performance of a specific management function can be better performed by an individual. Effective chairman: A good chairman can avoid drawbacks of a committee by planning the meeting, preparing the agenda and conducting the meeting effectively. He has to work as a task leader (by ensuring effective discussion on the subject matter) as well as a social leader (by ensuring the group discusses in a cohesive members). Logical procedure for conducting meetings: Chairman should follow guidelines to ensure orderly and meaningful conduct of the meetings. This includes analysis of the problem in terms of what caused it, suggested alternative solutions, group discussion on various alternatives for the solution of the problem and finally integrating opinions expressed by the members so as to arrive at agreed decision. Circulation of minutes and checking conclusions: Minutes should be recorded carefully, circulated for the information of the members, corrected or modified, if needed, and action taken on reccomendations should also be communicated. manner without members undercutting other

 Cost consideration: Whilst committees contribute to the working of an organisation, it also has associated costs. One must continuously question whether the benefits are worth the costs involved.

TASK FORCE It is somewhat related to a committee, particularly ad hoc one, but distinct from it. It is usually temporary but has broader powers of action and decision, as well as responsibilities for investigation, planning, research and analysis. It comprises of persons from different backgrounds who are assigned a common task or mission. Reasons for use of a task force By task force, executives with special skills may pool their talents to focus on a problem with an intensity not possible for them while carrying on their regular departmental duties. Task force provides training ground for the members as they work in an environment different from their routine job. They are able to release their creative energies not channelled by the regular system of hierarchical authority and communication. Problems in Task Force They are potentially disturbing to an ongoing organisation. Department heads have to temporarily relieve their personnel from routine work so that they can perform the given task, thereby interrupting regular work.

 Creation of task force may not be looked upon favorably by those who are not selected for it. There may be a perception that the selected ones are more qualified, thereby creating a demorolising effect on those left out. Members of task force may get feelings of independence from routine work and control of their departmental heads, thereby risking discipline within the organisation. Causes of Informal Organization Following factors are responsible for the creation of an informal organization: Desire to socialize with others: People like to socialize so as to overcome the extreme specialization of the work place as well as psychological fatigue and boredom of the job because it allows them to satisfy their social needs on the job. Job specialization: People concentrate on a single or few tasks that leads to boredom on the job. Greater the degree of specialization, greater the degree of routine work, creating serious morale and motivational problems. Escape from work environment: People tend to seek escape from their jobs when their capabilities exceed those required by the jobs. Greater

the disparity between the two, greater is the tendency to escape from the work environment because enough time remains free and available for informal interaction. Hierarchical control and communication: There exists hierarchy in modern organizations leading to superiorsubordinate relationships, separating decision makers from decision implementers. There is a natural tendency of enforcing control by superiors. Subordinates, being unable to thwart such control, try to find a situation where there is no such control.
Types of informal organization

Since informal organization is spontaneous, it can take place in any way. Consequently informal organization can be on different types. Dubin has distinguished two contrasting classifications of informal organizations natural, family and organized on the basis of the functions of the group on determining standards of conduct and the internal structure. The natural group has very little structure. The family group has regular members who exert marked influence on the behavior of members. The organized groups have some acknowledged leaders and a more consistent structure. Sayles has classified informal groups into four types apathetic, erratic, strategic and conservative. Apathetic groups show indifferent

attitude towards formal organizations consistently. Such groups are characterized by dispersal and unaccepted leadership, lack of cohesiveness, internal disunity and conflict and suppressed dissatisfaction. Erratic groups are marked by rapid inflammability, poor control, inconsistent behavior, centralized autocratic leadership and union formation. Strategic groups have relatively continuous pressures, high degree of internal unity, sustained union participation and usually good production record in the long run. Conservative groups have usual co-operation, moderate internal unity, limited pressures for highly specific objectives.
WORKING OF INFORMAL ORGANISATIONS

As a contrast to formal organizations where role, responsibility, status etc. are prescribed, there is no such prescription in case of informal organizations. In particular, three elements authority, leadership, communication affecting human behaviour are very important in working of informal organization. Authority: Informal organizations invariably arise out of personal and social relationships and are spontaneous in nature. Authority in such cases is personal as contrasted to positional authority in formal organization.

Leadership: Any member of the informal organization may be a leader. The leader performs vital functions that contribute to a groups ability to survive in its environment initiating action, facilitates consensus, provides link to foreign world. Communication: Requirement of speedier communication generates the need for informal channel and organization, which is the supplement for the formal one.
SIGNIFICANCE OF INFORMAL ORGANISATIONS

Informal organizations exist because they perform certain desired functions for their members. Dubin has identified four functions of informal organization:

They are natural units where the actual operations for getting things done are determined They provide simultaneously the climate for experiments with new methods of work They establish and maintain norms of behavior for members They provide each member with the sympathetic type of human consideration, which supports his self-image and personal integrity.

PROBLEMS DUE TO INFORMAL ORGANISATIONS

Resistance to change: Most dynamic organizations want change in work methods and routines, informal groups have tendency to perpetuate the status quo. Each group tries to maintain equilibrium. Since informal groups are bound by convention, custom and culture, they often resist change. Role conflict: A member perceives role conflict when he has to fulfill conflicting requirements of both his group as well as the organization as a whole. Such conflict may be dysfunctional from organizations point of view. Rumour: Rumour deals with temporary events in a way that implies that whatever is said is true even though there is not much information to support it. The basic reason for circulation of rumours is ambiguous circumstances. Since most of the times rumours carry false information, they become detrimental to the organizational functioning. Conformity: Informal groups exert strong pressure for conformity. When conformity is mentioned, a person usually thinks of an autocratic boss and organizational rules. This implies that members of an informal group may become subject to the willful control of an informal leader who may manipulate the group towards selfish or undesirable ends.

DEALING WITH INFORMAL ORGANISATION

Ignoring informal organization: Management can ignore the existence of informal organization and not take any action. This is possible where informal organization does not interfere strongly in the formal organization processes. Making use of informal organization: Management can treat informal organization as complementary to the formal organization. It may be used to establish rapport with the informal leaders who may provide information about what exactly is happening with the organization, which may not otherwise be available through the formal organization. Influencing informal organization: Management can influence and modify informal organization to make it more effective and helpful for the organization. Management can adopt flexible and accommodating approach towards informal organization rather than a strong repressive approach to solve a problem arising out of informal organization. GROUP COHESIVENESS This is another important factor, besides group norms, that affects group behaviour. Group Cohesiveness means the degree of attachment of the

members to their group. A cohesive group usually has the following features: Members share the group goals and norms and have common interests and backgrounds. Number of members is small. Members interact amongst themselves quite frequently and interpersonal communication is very effective. Group loyalty among the members is high because the group enjoys high status. Members stand united against any perceived external threats to the group. Members keep themselves glued to the group as they feel that their needs would be satisfied by the group. Group has a history of past success. There are various factors affecting group cohesiveness:

Degree of dependency on the group: The more highly dependent a person is on a group for some result or effect, the greater will be the groups attractiveness and consequently, greater its cohesiveness.

Size: Other things being equal, size has an inverse relationship with group cohesiveness since cohesiveness increases through interaction amongst group members. Larger the group, less opportunity exists for interaction amongst members.

Common and stable membership: Groups whose members have different interests and backgrounds are often less effective in promoting their interests. Similarly, stable relationships among members enhance group cohesiveness.

Location of the group: If the members are located close to each other, they interact frequently and freely. Alternatively, if the group is itself isolated from other groups, cohesion is high.

Group status: A group with high status and success stories is more attractive to its members. Therefore, they show solidarity amongst themselves.

Group leadership:Qualities of the group leader determine the extent to which the group binds themselves with the group. If the leader is dynamic and energetic, he will be able to motivate the group to work together.

Outside pressures: Members of a group tend to herd together to face challenges from outside pressures. Competition: Competition between members of the group is usually destructive to the cohesiveness of the group. As against this, competition of the group with another group brings about higher levels of cohesiveness between members of a group.

GROUP COHESIVENESS & PRODUCTIVITY Group Cohesiveness & Productivity depict two types of characteristics (1) The productivity of members of a cohesive group tends to be more uniform. This is so because high group cohesiveness promotes high control over the level of production of the individual members and this reduces variation among the members. (2) If the cohesiveness is low in a group, productivity will show a wide variation among members which proves that the group has lower social control over its members. The relationship of group cohesiveness & group productivity depends on the alignment of the groups attitudes towards the organizational goals (setting performance norms).
Group Cohesiveness & Productivity High Performance Norms Low High Productivity Low Productivity Moderate Productivity Moderate to Low Productivity Cohesiveness

High Low

For high productivity, both group cohesiveness and performance norms should be high. Even if there is high group cohesiveness, but if the performance norms are low, the group productivity will be low.