FOUNDATIONS OF GROUP BEHAVIOR IN AN ORGANIZATION

CHAPTER THREE
FOUNDATION OF GROUP BEHAVIOR
Introduction
Group behavior is a cornerstone of organizational success, influencing how individuals
collaborate, communicate, and achieve shared objectives. In any organization, groups form to
pool diverse skills, ideas, and efforts, creating outcomes that individuals could not achieve alone.
Understanding the dynamics of group behavior, how people interact within teams and how teams’
function within the larger structures is crucial for fostering productivity, innovation, and a
positive work environment. Whether it's through effective leadership, clear communication, or
cultivating group cohesion, organizations thrive when they actively manage and leverage group
behavior.
It is said that honey is not made with one bee in a hive; it takes many bees to make honey. The
same concept works in any organization. There are many people who work in it. Everyone has
a role in the organization. But the whole employee must work as a member of a different team to
achieve organizational objectives. Organizations of all sorts seem to feel that teams are the
solution to whatever problem they have, and that is not completely wrong.
A group is defined as a collection of two or more individuals who interact with one another,
share common goals, and perceive themselves as a cohesive unit. In an organizational context,
groups come together to collaborate on tasks, solve problems, and achieve objectives that
contribute to the overall success of the organization
.1. Types of Groups
A. Formal Group
It is a structured group established by an organization to achieve specific tasks or objectives.
These groups are deliberately created, and their roles, responsibilities, and goals are clearly
defined by the organization's management.
➢ Command group:
Defined by the organizational hierarchy (e.g., a manager and their team). It is a type
of formal group and specified by the organization chart and is composed of the
subordinates who report directly to a given supervisor. The relationship between a

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senior nurse and her subordinate or an elementary school director; his 12 teachers
can be taken; and the department of management and his 15 teachers can be taken as
an example.

➢ Task group:
Formed temporarily to complete a specific task (e.g., project teams or committees). It is also
a formal group, and it represents employees who work together to complete a particular task
or project. A task group’s boundaries are not limited to its immediate hierarchical superior.
It can cross command relationships.
➢ Functional Groups:
Groups based on organizational functions, such as marketing or finance teams. Functional
groups are specialized teams within an organization that focus on specific functions or areas
of expertise. They are a type of formal group, typically created to manage distinct aspects of
the organization's operations. Members of functional groups possess skills and knowledge
relevant to their designated function, ensuring efficiency and effectiveness.
Features of formal group
o Designed deliberately/purposely by the management to perform
certain activities.
o It is based on the principles of division of labor, efficiency of operation and
safety of customers.
o People in hierarchy, status is designed clearly and authority
o Coordination and control are achieved through rules, regulation and procedures
B. Informal group:
An informal group is a naturally formed gathering of individuals based on personal
relationships, shared interests, or mutual support, rather than organizational directives. These
groups arise spontaneously and are not officially structured or recognized within the formal
hierarchy of an organization. It is neither formally structured nor organizationally
determined; it appears in response to the need for social contact. It is natural groupings of
people in a work environment appear in response to the need for social contact. For example,
three students who came from the same woreda can form a group; or two workers who
always ate their lunch in the same hotel can form a group; or four students who are always

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watching football games may form group. It includes interest and friendship groups.
➢ Interest group:
Formed by individuals with shared hobbies, passions, or interests. Example: Employees who
enjoy playing sports together or discussing books. It may not be members of the same
command, task, or group may come together to achieve some mutual objectives. For
example, people who have been fired, or seek improved working conditions. Remember that
the objectives of such groups are not related to those of the organization but are specific to
each group.
➢ Friendship group (based on interest)
Created based on personal relationships and emotional connections. Example: A close circle
of friends at work who support and socialize with each other. Many groups often develop
because the individual members have one or more common characteristics like similar age,
holding similar political view, ethnic group, or people who smoke, etc.
Features of informal Group
o It is not deliberately designed by the organization
o It is based on age, religion...
o It is based on voluntary affiliation of individuals
o Coordination and control are achieved through norms and not through
rules.
.2. What is team?
A team is a group of individuals who come together to work collaboratively toward a shared
goal or purpose. Teams are characterized by their strong focus on interdependence, mutual
accountability, and complementary skills among members, which contribute to achieving
objectives effectively. It can be defined as the collection of two or more individuals, interacting,
interdependent and who come together to achieve a particular objective. People use team and
group interchangeably, but they are not similar.
Features of team
o Common Goal: All members are aligned around a clear, shared objective.
o Interdependence: Members rely on one another’s expertise and efforts to succeed.
o Mutual Accountability: Both individual and collective accountability drive
performance.
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o Collaboration: Cooperation and communication are essential for achieving

results.
o Diverse Skills: Team members often have varied and complementary skills,
enriching problem-solving and innovation.
o Social interaction: Team is composed of two or more people in social interaction
or most have some influence on each other. The interaction may be either verbal
or nonverbal
o Stability: Team also must possess a stable structure. There must be some stable
relationships that keep team members together and function as a unit.
o Common interest or goal: A team is sustained by the mutual interest of members.
If there is no common interest, there won’t be a team.
o Recognition as a team: To be a team, the individuals involved must perceive
themselves as a team.
3.3. Why do people form and join a team?
People form and join teams or groups for various reasons, often driven by practical, social, or
psychological motivations. People often join teams to satisfy their mutual interests and goals.
To the extent that getting together with others allows us to achieve ends that would not be
possible alone, forming a team makes a great deal of sense. Teams are formed when a
combination of skills, knowledge and expertise are required to undertake a particular task. A
single individual may not have such a combination. In short people join a team for many
different reasons but the most important reasons can be summarized:
✓ To satisfy mutual interest (by bonding together people can satisfy common
goals)
✓ To achieve security (group provides safety in numbers, protection against
common enemies.)
✓ To fill social needs (being in groups helps satisfy people’s basic need to be
with others.)
✓ To fill the need for self-esteem:( group memberships provide opportunities
for people to be recognized)
✓ To maximize the chance to bring a variety of skills and experiences to
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tackling a problem or task.

✓ An appreciation of each other’s special contribution.
✓ To maximize the opportunity of people to learn from each other.
✓ It has synergy effect/ the whole is greater than the sum of its individual
parts/.
3.4. What is the different between Teams and Groups?
The terms group and team are not synonymous. A group consists of any number of people who
interact with one another are psychologically aware of one another and think of themselves as
a group. To deal with groups appropriately managers must have a thorough understanding of
the nature of groups in organizations. While as we have seen in the definition of team, a team
is a group whose members influence one another toward the accomplishment of organizational
objective.
Not all groups in organizations are teams, but all teams are groups. A group qualifies as a team
only if its members focus on helping one another to accomplish organizational objectives. In
today’s rapidly changing business environment, teams have emerged as a requirement for
success. Therefore, good managers constantly try to help groups become teams. The purpose
of assembling a team is to accomplish bigger goals than any that would be impossible for the
individual working alone. The aim and purpose of a team is to perform, get results and achieve
victory in the workplace and marketplace. The very best managers are those who can gather a
group of individuals and mound them into a team. Here are ten key major features that
differentiate group from team.
1. Ownership. In a group, members tend to focus on themselves because they are not
sufficiently involved in planning the unit's objectives. In a team, members feel a sense of
ownership for their jobs and unit, because they are committed to values-based common
goals that they helped establish.
2. Understandings. In a group, members think they are grouped together for administrative
purposes only. In a team, members recognize their independence and understand both
personal and team goals are best accomplished with mutual support
3. Creativity and Contribution. In a group, members are told what to do rather than being
asked what the best approach would be. Suggestions and creativity are not encouraged. In
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a team, members contribute to the organization’s success by applying their unique talents,
knowledge and creativity to team objectives.
4. Trust. In a group, members distrust the motives of colleagues because they do not
understand the role of other members. Expressions of opinion or disagreement
are considered divisive or non-supportive. In a team, members work in a climate of trust
and are encouraged to openly express ideas, opinions, disagreements and feelings.
Questions are welcomed.
5. Common Understandings. In a group, members are so cautious/care about what they say,
that real understanding is not possible. Game playing may occur, and communication traps
be set to catch the unwary/careless. In a team, members practice open and honest
communication. They make an effort to understand each other's point of view.
6. Personal Development. In a group, members receive good training but are limited in
applying for the job by the manager or other group members. In a team, members are
encouraged to continually develop skills and apply what they learn on the job. They
perceive they have the support of the team.
7. Conflict Resolution. In a group, members find themselves in conflict situations they do
not know how to resolve. Their supervisor/leader may put off intervention until serious
damage is done, i.e. a crisis. In a team, members realize conflict is a normal aspect of
human interaction, but they view such situations as an opportunity for new ideas and
creativity. They work to resolve conflict quickly and constructively
8. Participative Decision Making. In a group, members may or may not participate in
decisions affecting the group. In a team, members participate in decisions affecting the
team but understand their leader must make a final ruling whenever the team cannot
decide, or an emergency exists. Positive win/win results are always the goal.
9. Clear Leadership. In a group, members tend to work in an unstructured environment
with undetermined standards of performance. Leaders do not walk the talk and tend to
lead from behind a desk. In a team, members work in a structured environment, they
know what boundaries exist and who has final authority. The leader sets agreed high
standards of performance and he/she is respected via active, willing participation.

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3.5. Stages in team development

More and more managers are using work teams to accomplish organizational tasks. Simply
establishing such a team, however, doesn’t guarantee it will be productive. In fact, managers
should be patient when an established work team is not initially productive, for teams generally
need to pass through several developmental stages before they become productive. Managers
must understand this developmental process so they can facilitate it.
High performing teams don’t just spring up ready to go. It takes time, energy, experience, and
learning for a group of people who come together as a team to learn how to operate a functioning
unit.
It is useful for anyone who is trying to start a team or who is going to be a member of one to
understand these team development stages. In this way team members won’t have their
expectations shattered when things don’t go so smoothly at the beginning. At each stage we can
expect different behaviors. Some have to do with getting used to each other. Some have to do
with creating modes of working together. And some have to do with getting on with the tasks
and objectives for which the team was formed in the first place in this terminology of teams,
the five stages of team development are forming, storming, norming, performing, and
adjourning.
3.5.1. Forming/Dependency/ Stage
In this initial stage, members come together and familiarize themselves with each other and the
group's purpose. Just as the name implies, this is the first stage of the team development process.
This is the initial orientation period. During this stage, members of the newly formed team
become oriented towards the team and notified with one another. This period is characterized
by exploring issues related to the member’s new job situation, such as what is expected of them,
who has what kind of authority within the team, what kind of people are team members, and
what skills team members possess.
The forming stage of team development is usually characterized by uncertainty & stress.
Recognizing that team members are struggled to adjust to their new work situations and to one
another, managers should be tolerant of extensive, informal discussions exploring team
specifics and not regard them as time wasters. They are asking questions about what their task
is and how they are going to organize themselves to achieve this goal. If the team can articulate

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a clear sense of purpose of itself, this makes the rest of the stages go more smoothly. This stage
is completed when the members begin to see themselves as a part of the group.
3.5.2. Storming Stage
Members start asserting their opinions, leading to conflicts and competition for roles. After a
team has formed, it being to storm, storming, this stage is characterized by conflict and
disagreement as team members become more assertive in clarifying their individual roles.
During this stage, the team seems to lack unity because members are continually challenging
themselves with the way the team functions and they may realize that it is more difficult than
they imagined. They still don’t have their roles figured out. At this time, it’s normal for
members to become a little defensive because they are not making progress as quickly as they
would like. They are not sure how it’s all going to work out, and they might become restless
and impatient.
When this uncertainty about the team creeps in, members typically fall back on their personal
& professional experiences and sick to push their own views onto the whole group rather
than hearing what others have to say. There may be open conflicts and competition among
team members as different members try to assert their individual viewpoints. The storming
stage can be lengthy, but members must stick with it. At the same time this stage can be short
or perhaps even skipped if the team has done a good job at the forming stages of articulating
its mission and purpose.
3.5.3. Norming Stage
The group begins to settle into a routine, with clearer roles, norms, and improved relationships.
It is the third stage of the team development process; team members begin to settle differences
among themselves and finally get used to working together. They accept each other, their
roles, norms, rules, expectations and acceptable behavior while working on the team. As
this happens, the team members’ initial resistance to working together fades away and
competitive relationships become more cooperative. In the norming stage, members begin to
appreciate that others have a contribution to make and that they can learn from each other.
They start looking at their process for interacting and may set up ground rules for guiding
these interactions.
This stage is characterized by the idea of cohesion/unity. Members identify with the team and

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feel a bond with other team members. But the norming stage might not arrive if the team does
not have a clear sense of purpose for itself.
3.5.4. Performing
The group becomes highly functional and productive, working effectively toward its goals.
At this stage, the team members have prepared to accept most of their differences, and they
become comfortable with each other. They have discovered and they accept each other’s
strengths and weaknesses. The team fully focuses on solving organizational problems and
on meeting assigned challenges. The team is now productive after successfully passing
through the earlier stage of team development, it knows itself and has settled on teams’ roles,
expectations and norms.
They communicate openly with one another and have developed methods and techniques for
effectively interacting with one another. They know how to constructively disagree with one
another and how to resolve these disagreements in ways that lead to productive actions.
Another way to characterize this stage is interdependency. Members know their role is to
contribute, to help the team perform well as a team, they develop a close attachment to the
team, they gain insight into personal and team processes, and there is strong feeling of
commitment to one another and to their objectives.
There is no finger pointing when something goes wrong. If one member has a problem, they
consider it the team’s problem and work together as a team to solve it likewise, when they
succeed, the members give credit to the whole team rather than their individual efforts.
At this stage, we have a team performing at a high level. But in making this observation, it’s
still important to note that they had to go through the stages described here. High performing
teams are most likely to happen in organizations that have a set of values in fasten that support
teamwork. Without such values and the supportive culture that goes with them, people will
mainly be going through the motions. It’s unlikely that the team will ever reach the performing
stage.
3.5.5. Adjourning
The fifth and last stage of team development process is known as adjourning. The group
disbands after achieving its goals or completing its task. In this stage, the team finishes its
job and prepares to disband. This stage normally occurs only in teams established for some

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special purpose to be accomplished in a limited time. Special committees and task groups
are examples of such teams. It is important that management then do everything necessary
to integrate these people into new teams or other areas of the organization.
Although some work teams don’t pass through every development stage just described
understanding different stages will give managers many useful insights on how to build
productive work teams.
3.6. Obstacle to team productivity
There are different obstacles to the success of a team. First, some teams fail because their
members are unwilling to cooperate with each other, the second reason why some teams are
not effective is that they fail to receive support from management. A third obstacle to team
success, and a relatively common one, is that some managers are unwilling to relinquish
control. Fourth, teams might fail not only because their members do not cooperate with each
other but also because they fail to cooperate with other teams. Those obstacles can be
divided int o external and internal barriers to team success.
1. External barriers to teamwork (Adapted from Interaction Associates, 2001)
o Workload: members are often required to work on their team assignments in
addition to a full workload or are given more work than they are capable of
handling
o Team does not model the norms of behaviors that support teams in being
successful
o Inadequate recognition for individual team members
o Team leaders do not control or release the team members adequately
o Teams are not given adequate resources
o Frequent changes in team membership
o The team’s charter is not well written
2. Internal barriers to teamwork (Adapted from Interaction Associates, 2001)
o Inadequate support from key external stakeholders /Management
o Team members don’t set appropriate goals for the team and do not
implement a plan for reaching them
o Team members don’t spend enough time planning how they will work together
o Team members don’t resolve interpersonal conflict

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o Teams’ members don’t conduct efficient meetings

o Team members don’t have compatible levels of problem-solving, analytic, or
project management skills
o Team members don’t know how to influence the work of other members
o Lack of consistent or clear team leadership
o Inability to make decisions effectively as a group

Mostly we only see the effect of the problem, like in the above example; where those team
members not present didn't produce a result, which was caused by a lack of communication.
We've refined the cause of problems that interrupt team performance down to these 6 factors:
1. Fear - the most common cause of poor team performance is real or perceived fear.
The fears can be personal or shared by the entire team. To overcome these fears skilled team
leaders can assist individuals and the team to identify their fears, understand the cause of the
fear and create a plan to reduce or eliminate it. Then there is also the fear of the external
environment, which can be reduced by creating shared objectives and goals. Along with
identifying the actions the team could take it would give the team a common bond and help
them overcome their fears.
2. Internal conflict - is an enormous source of underperformance in many teams.
Conflict occurs most commonly when there are no ground rules and problems are not dealt with
or cleared up as soon as they arise. Creating a Team Code of Practice will assist teams to
reduce conflict by giving team members a pre-determined set of rules to abide by and to use
in conflicting situations.
3. Lack of direction - can easily sabotage team performance without team members being
aware of it. If the team leader, manager or leaders of the organization are not clear in the
direction they are heading in, their teams will simply follow in their footsteps. Direction must
be set by the leadership and consistently communicated to everyone in the team.
4. Lack of communication - amongst team members and from the leadership to the
employees remains one of the biggest problems in managing and increasing team performance.
When people are not adequately informed there is an increase in mistakes, poor decision
making, poor customer service and more. Multiple channels of communication that are open
to communication passing in both directions are a critical part of increasing team performance.

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5. Lack of trust - between management and staff or amongst team members creates a
negative curve that can be difficult to reverse. When there is sufficient reason for people to stop
trusting each other it can take a long time to re-establish that trust and get the team back to a
higher level of performance. It's very important that team leaders and managers avoid this
scenario because the consequences can be devastating and long-term.
6. Divisive culture - occurs in teams where there is no agreed set of values to guide the
culture. This results in the most dominant people creating team culture which can quickly divide
the team. For instance, dominant leaders and managers can alienate some or all team members
by not facilitating a process that develops team culture. From the leaders or managers’
viewpoint it may seem to be an effective form of team management and control, but it usually
has the effect of reducing productivity and performance. Ensure you're building an inclusive
culture in your business and amongst your teams. If you are experiencing low levels of team
performance, consider the list of causes above and ask yourself if any of them could be the
reason. Take some time to step back and truly analyze the cause, either by listening and
observing or asking questions. Once you've identified the cause you'll need to make decisions
and take action that will give you a different result. As you involve your team in this process
possibly, you'll gain far more than you would believe.
3.6. Increasing Performance Team
Increasing team performance is not an easy task, because success is not an automatic event.
Rather, it needs to be carefully nurtured and maintained for them to accomplish their missions.
Experience in teamwork showed us that successful teams can be established by the following
approaches:

• Provide training in team skills: to be effective in teamwork, team members must have the right
blend of needed for the team to contribute to the group’s mission. Formal efforts to direct toward
making teams effective are referred to team building. The key areas of team training are: Being
a team member and self-management.
• Compensate team performance: To increase teams’ effort, an organization should give
recognition to team’s effort, design skill based or performance-based pay system, design gain
–sharing plan
• Provide support: to help a team survive, it is essential for them to receive unqualified support
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from top management. Besides support team members should share a common vision and are
committed to attaining it, they are generally very cooperative with one another, leading to
success.
• Communicate the urgency of the team’s mission: Knowing the mission of the organization
will stimulate employees to work toward the attainment of it.
• Promote cooperation within and between teams: Team success requires not only cooperation
within the team, but also between teams as well in the organizations. Research showed most
teams fall because organizations do not know how to make them work together with other
teams.
• Select team members based on their skills: To be successful, team demand that they work
together closely on a wide variety of tasks, it is essential for team to have a complementary set
of skills. This includes not only job skills but also interpersonal skills.
• All for One and One for All: Teams should be evaluated, rewarded and feedback, as a group.
Each team member should also receive feedback on an individual basis. When it comes to
poor performance, unless it is the instance where it is obvious that the poor performance of
one team member is affecting the whole team, it should be addressed to the group.
• Discussing Poor Performance with a Team: This means addressing poor performance to the
team in a group forum, perhaps a team meeting. Make it clear that it is the overall performance
of the team that is concerning; it is important not to single people out individually.
Discuss with the team the reasons why performance is unacceptable. Perhaps the group is
struggling with issues, and they need your help to resolve them. Don’t assume that you have all
the answers: give the team the opportunity to explore ideas and you might be surprised by some
of their suggestions. As the manager of the team, it is likely that you will have actions you will
want to see happen. Don't allow team members to point fingers at each other, the objective is
to understand why the team is performing poorly, not to hold individuals responsible.
3.7 Determinants of High-Performing Teams: (The Four Cs)
Over the past several decades, as we have consulted with teams and conducted research
on team performance, we have concluded that there are four factors that must be understood
and managed for teams to achieve superior performance. These factors,
1. Context for the Team: team context refers to the organizational environment
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in which the team must work. Understanding context, and how it influences team
performance, experience has shown that the teamwork required to achieve high-
performance is much more important when the team must complete a complex task
characterized by a high degree of interdependence.

2. Composition of the Team

The composition of the team concerns the skills and attitudes of team members. You have
to have the “right people on the bus” to make things happen as a team and achieve top
performance.
Of course, “team composition” also refers to assembling a group of individuals with
complementary skills. High-performing teams use the complementary skills and abilities
of each team member in a synergistic way to achieve high performance. Team members of
high-performing teams clearly understand their roles and assignments and carry them out
with commitment.
Team size
Team size also plays a significant role in team effectiveness. A team that is too large may
be unwieldy and cause team members to lose interest due to a lack of individual
involvement. Having too few team members may place unnecessary burdens on individual
team members, and the team may not have the resources seeded to accomplish its goals.
What is the optimal size of an effective team? There is no clear answer to this question
because the optimal size is determined in part by the nature of the task. Some managers
like large teams because they feel that large teams generate more ideas and call attention
to the importance of the project. Moreover, some managers feel that putting people on a
team will be a good experience for them, and

they don’t want to leave anyone out. However, in general small teams are preferable to
large teams and there are rules of thumb and certain pitfalls to avoid in determining team
size. We find that large teams (typically over ten people) have lower productivity than
smaller teams.

3. Competencies of the Team

We have found that successful teams have certain competencies that exist independent of

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any single member of the team but are embedded in the team’s formal and informal
processes—its way of functioning.
4. Change Management Skills of the Team
High-performing teams must change and adapt to new conditions to be effective over time.
Factors related to team context, composition, and competencies may need to be changed
for the team to succeed in reaching a new goal. A team that can monitor its performance
and understand its strengths and weaknesses can generate insights needed to develop a
plan of action to continually improve. It is possible to view “change management skills”
as just another team competency, but this “meta- competency”—what we call “team-
building skills”—is so important that it deserves special attention.
3.7. Implication for performance and satisfaction
The implications of group behavior for performance and satisfaction are significant, as the
dynamics within a group can directly impact outcomes in both areas. Here's a breakdown:
Implications for Performance:
1. Collaboration and Efficiency: Groups with positive behavior and strong cohesion can
collaborate effectively, leveraging diverse skills to achieve better results.
2. Innovation: Groups with open communication and trust encourage idea-sharing, fostering
creativity and innovation.
3. Conflict Management: Poor group dynamics, such as unresolved conflicts, can hinder
performance by causing distractions or reducing motivation.
4. Role Clarity: Clear roles and responsibilities in a group enhance productivity and prevent
overlapping or inefficiency.
5. Team Cohesion: High cohesion can lead to strong commitment and task focus, but
excessive cohesion might suppress critical thinking (groupthink).
6. Decision-Making: Groups that balance diverse opinions and mutual respect tend to make
better and faster decisions.
Implications for Satisfaction:
1. Sense of Belonging: Groups that foster positive relationships enhance members' feelings
of inclusion and emotional well-being.
2. Support System: Informal groups, in particular, provide emotional and social support,

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improving overall satisfaction.

3. Recognition and Validation: Being part of a group allows individuals to contribute
meaningfully, gaining recognition for their efforts.
4. Conflict and Tension: Negative dynamics, such as interpersonal conflicts or power
struggles, reduce satisfaction and morale.
5. Alignment of Goals: Satisfaction increases when personal goals align with group goals
and achievements are celebrated collectively.
6. Work-Life Balance: Groups that respect individual boundaries and stress levels contribute
to greater satisfaction.

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