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MGT 201: Chapter 09: Foundations of Group Behavior

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MGT 201 : CHAPTER 09

Foundations of Group Behavior


9-2

Defining and Classifying Groups


Group:
• Two or more individuals interacting and interdependent, who have
come together to achieve particular objectives

• Formal Group:
• Defined by the organization’s structure with designated work,
assignments, establishing tasks to meet goals

• Informal Group:
• Alliances that are neither formally structured nor organizationally
determined
• Appear naturally in response to the need for social contact
• Deeply affect behavior and performance
Why People Join Groups
• Closeness--Being members of the same group builds ties
among people. It gives them a social identity

• Common goals--Moral and practical support is gained by


working with others who have the same or similar goals.

• Achievement of personal objectives--Time spent with


group members can be enjoyable, enhance a person’s
prestige, and satisfy people’s desire to feel important.

• Accomplishment--accomplishing things as part of a group


that they could not accomplish on their own.
9-4

Five Stages of Group Development Model

EEXXHHI IBBI ITT9-1


9-1
• The first stage, forming stage is characterized by a great deal of
uncertainty about the group’s purpose, structure, and leadership.
Members “test the waters” to determine what types of behaviors are
acceptable. This stage is complete when members have begun to
think of themselves as part of a group.

• The storming stage is one of intragroup conflict. Members accept the


existence of the group but resist the constraints it imposes on
individuality. There is conflict over who will control the group. When
this stage is complete, there will be a relatively clear hierarchy of
leadership within the group.
• In the third stage, close relationships develop and the group demonstrates
cohesiveness. There is now a strong sense of group identity and solidarity. This
norming stage is complete when the group structure solidifies and the group has
assimilated a common set of expectations of what defines correct member behavior.

• The fourth stage is performing : The structure at this point is fully functional and
accepted. Group energy has moved from getting to know and understand each other to
performing the task at hand.

• For permanent work groups, performing is the last stage in development. However, for
temporary committees, teams, task forces, and similar groups that have a limited task
to perform, the adjourning stage (fifth stage) is for wrapping up activities and preparing
to disband.
9-7

Critique of the Five-Stage Model


• Assumption: the group becomes more effective as it progresses
through the first four stages
• Not always true – group behavior is more complex
• High levels of conflict may be conducive to high performance
• The process is not always linear
• Several stages may occur simultaneously
• Groups may regress
9-8

Group Decision Making vs. Individual Choice

• Group Strengths:
• Generate more complete information and knowledge
• Offer increased diversity of views and greater creativity
• Increased acceptance of decisions
• Generally more accurate
• Group Weaknesses:
• Time-consuming activity
• Conformity pressures in the group
• Discussions can be dominated by a few members
• A situation of unclear responsibility
Groupthink

• It describes situations in which group pressures for


conformity discourage the group from critically appraising
unusual, minority, or unpopular views. Groupthink is a
disease that attacks many groups and can dramatically
hinder their performance

• Think an example of your own


HOW IT WORKS (EXAMPLE):

• Let's say John, Jane, and Jeff are fund managers for the


XYZ mutual fund company. They meet weekly to discuss
their investing strategies and their top picks. The three get
along well and trust each other's judgment.
• One day, Jeff proposes buying shares of ABC Company for
his fund. He plans to make a large buy and says he likes
the company's fundamentals. John and Jane go along with
the plan and buy the stock for their funds, too. Two weeks
later, the stock has fallen by 50%.
• John, Jane, and Jeff are the victims of groupthink. They
didn't independently analyze the stock and relied on
everyone else in the group to point out flaws in Jeff's
thinking.
Groupshift

• In comparing group decisions with the individual decisions


of members within the group, evidence suggests that
there are differences. In some cases, the group decisions
are more conservative than the individual decisions. More
often, the shift is towards greater risk.

• It indicates that in discussing a given set alternatives and


arriving at a solution, group members tend to exaggerate
the initial positions that they hold. The evidence indicates
that groups tend toward a risky shift. 
Group Decision-Making Techniques
The most common form of group decision making takes place in
interacting groups . Members meet face to face and rely on both
verbal and nonverbal interaction to communicate.

• brainstorming
An idea-generation process that specifically encourages any and all
alternatives while withholding any criticism of those alternatives.

•Nominal Group Technique (NGT)


• Works by restricting discussion during the decision-making process
• Members are physically present but operate independently
Nominal Group Technique (NGT)

• 1. Before any discussion takes place, each member independently


writes down ideas on the problem.

2. After this silent period, each member presents one idea to the
group. No discussion takes place until all ideas have been presented
and recorded.

3. The group discusses the ideas for clarity and evaluates them.

4. Each group member silently and independently rank-orders the


ideas. The idea with the highest aggregate ranking determines the
final decision.
Electronic Meeting

Uses computers to hold large meetings of up to 50 people

 Issues are presented to them, and they type their responses into
their computers

 These individual but anonymous comments, as well as aggregate


votes, are displayed on a projection screen. This technique also
allows people to be brutally honest without penalty.
• Early evidence, however, suggests electronic meetings don’t achieve
most of their proposed benefits. They actually lead to decreased
group effectiveness, require more time to complete tasks, and result
in reduced member satisfaction compared with face-to-face groups

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