Module 3

Group and Team Decision Making

Notes

Course Outcome (CO) 3

Student should be able to explain the various steps of Group Formation and types of team

MBA Semester 4
Course –
Topics Covered
1. Concept of Group and Team
2. Synergy of Team work
3. Social loafing
4. Stage of Group Formation
5. Types of Team
6. Team Processes
7. Team Decision making
8. Team morale

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Module – 3

Group and Team Decision Making

Concept of Group and Team

What is the difference between a group of employees and a team?

A group is a collection of individuals who coordinate their individual efforts.

On the other hand, at team is a group of people who share a common team purpose and a number of challenging
goals. Members of the team are mutually committed to the goals and to each other. This mutual commitment
also creates joint accountability which creates a strong bond and a strong motivation to perform.

Without purpose and goals you cannot build a team. The purpose must be worthwhile and
create a important together sense of doing something . The goals must be challenging and
specific so that each member can understand how they contribute to
the success of the team.

Teamwork is an important aspect to the success of any team, including organizational teams and sports teams.
A leader can foster an environment of teamwork by promoting a culture of synergy within that team.

A group is a collection of individuals who coordinate their efforts, while a team is a group of people who share
a common purpose. In order to improve working relationships, it’s important to understand the differences
between the two to encourage healthy working dynamics.

While similar, the two are different when it comes to decision-making and teamwork.

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a group is a number of people who work together. They have individual goals that they work toward collectively.
While groups work toward separate goals, they have a related interest or identity that brings them together.

There are two types of groups: informal groups and formal groups.

Formal Group: These groups are created by the management of the organisation for performing a specific task.

Informal Group: The formation of these groups is done naturally in an organisation, to satisfy the social or
psychological human needs.

For example: Ethnic groups, trade unions, friendship circles, airline flight crew, etc.
Group advantages

There is some debate about whether groups or teams are better. The reality is, both have advantages and
disadvantages, and it’s up to you to decide which one is best for your needs. Here are some advantages of
groups:

Groups build temporary relationships: Since groups focus on individual members working in parallel to one
another, they build temporary working relationships such as short-term external projects or temporary
internal consulting.
Groups are great for efficiency: While teams work to create efficiency for the greater good, groups focus
on individual efficiency. This can improve effectiveness when looking at individual work and larger group
objectives.

Groups focus on individual growth: Since groups support individual work, they also focus on individual
growth. This can be seen in the form of individual experts rather than a team of experts.
Group drawbacks

While groups support individual work and career growth, they don’t share all of the advantages of working
in a team setting. These disadvantages include not connecting work to goals and the lack of team bonding.

Here are some disadvantages of working in a group:

Groups can alienate individuals: Since groups work individually, there isn’t as much time spent on team
building. This lack of teamwork can alienate individuals and cause communication issues.

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Groups don’t support organizational goals: Likewise, this lack of teamwork can cause a gap in organizational
clarity. This makes it difficult to connect work to organizational goals and objectives.
A team is a number of people who work together to accomplish a shared purpose or goal. Each team is the
sum of its parts, which means members of the team rely on one another to accomplish the outcome.

Teams work together to solve problems, create new products, and other functions such as aligning passions
and purpose. There are a few different types of teams, including cross-departmental teams, process teams,
and self-managed teams.

The most important feature of a team is “synergy” i.e. the team can achieve much more as the members
can achieve individually. The three key features of team functioning are:

Cohesion

Confrontation

Collaboration
For example: Cricket team, team for accomplishing a project, team of doctors, management team etc.

Here are some advantages of working in a team:

Teams build on collaboration and synergy: Teamwork can increase collaboration and synergy. These help
support the overall goal and can aid in communication and organizational transparency.

Teams encourage group productivity: While groups aid in efficiency, teams have the advantage when it comes
to productivity. This is because team members support each other’s work and help solve the overall problem,
making the actual work more productive.

Teams are better for problem solving: It’s true that the more people brainstorm together, the better. This is
why teamwork can help solve problems quicker and more effectively the first time around.
Team drawbacks

While teams have a variety of advantages, they also have some disadvantages. These disadvantages include
struggling to support individual growth and efficiency issues.

Here are some disadvantages of working in a team:

Teams don’t always focus on individual growth: While not always the case, some teams struggle with fostering
individual growth. This is because results are most commonly focused on the greater good than what’s best for
each person.

Teams may struggle with efficiency: Teams have the advantage of productivity, though they can struggle with
efficiency if the right organizational processes are not put into place. This can cause work to take longer than
expected and deadlines to be missed.

Synergy of Team work

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Synergy is the combined action that takes place when different individuals collaborate for one common cause
that improves results by the sharing of perceptions, insights and knowledge.

A leader who promotes a culture of synergy can drive teamwork and improved results.

Synergy is when two or more organizations interact or cooperate to produce a combined effect that is greater
than the sum of its separate parts. The word might be newish, but the idea is old enough to have a catchphrase
attached to it. You’ve all heard, “Two heads are better than one.” That’s just another way of saying synergy.

The combination of common interests, common values, and complementary talents defines the potential for
team synergy.

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Common interests. When people share common interests, they align their individual efforts toward the same
goal. More specifically, they find personal affinities that help them work together, seek opportunities to
leverage each other’s talents, and measure the results of their collective efforts with respect to their common
goal.

Common values. When people share common values, they can forge strong, long-lasting alliances. More
specifically, I have found that people who share the values of humility, honesty, trust, and discipline achieve the
highest synergies.

Humility is the capacity to acknowledge one’s own truth.

Honesty is the capacity to share one’s own truth with others. Trust is the ability to focus on one’s task while
letting others focus on theirs, thus optimizing efforts.

Discipline is the ability to continue to work toward a goal regardless of the circumstances.

Complementary talents. When people have complementary talents, they can overcome adversity, stay focused,
and achieve success more efficiently. Everyone needs help and teamwork is based on team members helping
each other.

There are many ways in which synergy helps a team.

Synergy creates better effects and results

Synergy generates better solutions to problems

Synergy achieves organizational vision and mission

Social Loafing
Social loafing describes the tendency of individuals to put forth less effort when they are part of a group.
Because all members of the group are pooling their effort to achieve a common goal, each member of the group
contributes less than they would if they were individually responsible.

The idea of working in groups is typically seen as a way to improve the accomplishment of a task by pooling the
skills and talents of the individuals in that group. But, in some groups, there is a tendency on the part of
participants to contribute less to the group's goal than if they were doing the same task themselves.

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Causes of Social loafing

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 Motivation (or lack thereof): This can
play an important role in determining whether social loafing takes place. People who are less motivated by a
task are more likely to engage in social loafing when they are part of a group.

Diffusion of responsibility: People are more likely to engage in social loafing if they feel less personally
accountable for a task, and know their individual efforts have little impact on the overall outcome.
Group size: In small groups, people are more likely to feel their efforts are more important and will, therefore,
contribute more. The larger the group, however, the less individual effort people will extend.

Expectations: If you expect other people to slack off, you probably will as well since you don’t want to get stuck
doing all of the work. On the other hand, if you are in a group of high-achievers who seem to be in control of
everything, you might also be more likely to kick back and let them handle all the work.

How to minimize the effects of social loafing

Social loafing can have a serious impact on group performance and efficiency. However, there are some things
that can be done to minimize the effects of social loafing.

Assigning individual tasks and responsibilities

Creating small groups and establishing individual accountability can help.

Establishing clear standards and rules

Evaluating individual and group performance

Highlighting the achievements of individual members

Stage of Group Formation

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Forming stage
People with a common goal come together.

Power Struggle (Storming Stage)

The second stage of group development is the storming stage. The storming stage is where dispute and
competition are at its greatest because now group members have an understanding of the work and a
general feel of belongingness towards the group as well as the group members.

This is the stage where the dominating group members emerge, while the less confrontational members
stay in their comfort zone.

Questions around leadership, authority, rules, policies, norms, responsibilities, structure, evaluation
criteria and reward systems tend to arise during the storming stage. Such questions need to be answered
so that the group can move further on to the next stage.

Cooperation and Integration (Norming Stage)

In this stage, the group becomes fun and enjoyable. Group interaction are lot more easier, more
cooperative, and productive, with weighed give and take, open communication, bonding, and mutual
respect.
If there is a dispute or disruption, it’s comparatively easy to be resolved and the group gets back on track.

Group leadership is very important, but the facilitator can step back a little and let group members take
the initiative and move forward together.
Synergy (Performing Stage)

Once a group is clear about its needs, it can move forward to the third stage of group development, the
norming stage. This is the time where the group becomes really united.

At this stage, the morale is high as group members actively acknowledge the talents, skills and experience
that each member brings to the group. A sense of belongingness is established and the group remains
focused on the group's purpose and goal.

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Members are flexible, interdependent, and trust each other. Leadership is distributive and members are
willing to adapt according to the needs of the group.
Closure (Adjourning Stage)

This stage of a group can be confusing and is usually reached when the task is successfully completed. At
this stage, the project is coming to an end and the team members are moving off in different directions.

This stage looks at the team from the perspective of the well-being of the team instead of the perspective
of handling a team through the original four stages of team growth.

Types of Team:
4 Different Types of Teams

#1: Functional Teams. Functional teams are permanent and include members of the same department with
different responsibilities. ...

#2: Cross-Functional Teams. Cross-functional teams are made up of individuals from various departments. ...

#3: Self-Managed Teams. ...

#4: Virtual Teams.

#1: Functional Teams

Functional teams are permanent and include members of the same department with different responsibilities.
A manager is responsible for everything and everyone reports to them. This is the typical top-down
management approach that you’ll see in most organisations. Across all organisational teams, it’s important to
prioritise workplace culture; the foundations of which are communication and trust.

To take your functional team to the next level, consider running a program in-house to improve communication
by giving your team the tools to give feedback without causing offense. Additionally, it may be worthwhile
getting clear on each individual teams’ goals, identity and preferred support methods to boost productivity and
individual employee engagement.

#2: Cross-Functional Teams

Cross-functional teams are made up of individuals from various departments. These teams tackle specific tasks
that require different inputs and expertise. This can happen when various teams need to work on a project
together to get the best outcome. This can be a difficult dynamic to navigate if teams have been operating in a
‘silo’ approach up until the point of collaboration. It’s crucial that the different personalities and perspectives
are embraced, and that everyone in the cross-functional team are working to their strengths.

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#3: Self-Managed Teams

Generally, individuals in self-managed teams are employees of the same organisation who work together. Even
though they may have a wide array of objectives, their aim is to reach a common goal They operate without
managers and are relatively autonomous, sharing responsibility and leadership. High-performing teams can
often fall into this category.

People working in startups or small businesses may also find themselves in this type of team dynamic. It can be
difficult for people who have worked in other types of teams for most of their career to adjust to this way of
working, so there will likely be an adjustment period of sorts. It’s crucial that self-managed teams know how to
deliver feedback and have tough conversations with tact. Without high levels of communication, trust,
autonomy and mutual respect, self-managed teams will find it difficult to thrive.

#4: Virtual Teams (wfh)

Virtual teams are made up of individuals who work in different physical locations and who use technology and
collaboration tools to achieve a common goal.

With more employees looking for work from home opportunities, virtual teams will become much more
common in the future of work. You may even have a few remote team members in your organisation right now
who need to collaborate within a functional or cross-functional team.

It’s important for virtual team members to be involved from a cultural perspective within your organisation.
Having face to face video calls and giving your team members the opportunity to connect on a personal
relationship level will help to improve rapport and moral. We’ve already shared a bunch of info on creating a

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strong remote team culture, so give that a look when you have a moment.

Team Processes:
Team processes refer to the actions team members take to combine their individual resources, knowledge, and
skill to resolve their task demands and achieve collective goals.

Team processes represent actions team members take, whereas emergent states represent team member attitudes,
values, cognitions, and motivations.
Team processes are increasingly recognized as having task work and teamwork dimensions, with task work being
represented as creative behavior, decision-making, and boundary spanning; and teamwork being represented by
transition, action, and interpersonal processes. Process driven team Vs Person driven

Team Decision making:

Managers in organizations often need to take the decision based on consensus. They need members of a
team to discuss debate and decide on a mutually agreeable conclusion.

Group decision making process-

Diagnosing the problem.
Developing alternatives
Evaluating the alternatives.
Implementing and monitoring the decision.

Types of team decision-making techniques are;

Brainstorming.

Nominal Group Technique.

Electronic Meeting.

Multi-Voting.

Delphi Method.

Dialectic Decision Methods.

Brainstorming
Brainstorming is a process for developing creative solutions to problems. It is a popular method for
encouraging creative thinking in groups of about 8 people.
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Generate as many ideas as possible.

Be creative, freewheeling, and imaginative.

Build upon, extend, or combine earlier ideas.

Withhold criticism of others’ ideas.

It is a combination of group problem solving and discussions. Brainstorming works by focusing on a

problem, and then deliberately coming up with as many solutions as possible and by pushing the ideas as
far as possible.
Nominal Group Technique

Another technique is the nominal group technique (NGT), which is a group process involving problem
identification, solution generation, and decision making.
The nominal group technique restricts discussion or interpersonal communication during the decision-
making process, hence, the term nominal. Members meet as a group but, before any discussion takes place,
each member independently writes down his or her ideas on the problem.
After this silent period, each member presents one idea to the group. Each member takes his or her turn, presenting
a single idea until all ideas have been presented and recorded. No discussion takes place until all the ideas have been
recorded.

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

Each group member silently and independently rank-orders the ideas. The idea with the highest aggregate ranking
determines the final decision.

Electronic Meeting

The most recent approach to group decision making blends the nominal group technique with
sophisticated computer technology.

An electronic meeting system (EMS) is software intended to provoke problem-solving and decisionmaking
within a group. Standard features of electronic meeting systems include electronic brainstorming
(generally in an anonymous format), parallel processing, discussion tools, and voting. The unique features
of an EMS overcome the limitations of traditional face-to-face meetings such as lack of participation,
criticism, and domination of the proceedings by only a few members. It’s called the computer-assisted group
or electronic meeting. It is a meeting in which members interact by a computer, allowing for anonymity of
comments and aggregating of votes.

An electronic meeting system (EMS) is a software platform that provides a digital meeting space for group
collaboration, problem-solving, and providing anonymous feedback, among other features.

Electronic meeting systems help companies by cutting down on travel costs and by making participation
easier because everything's anonymous and accessible from wherever the worker is located.

Multi-Voting
It starts with a number of rounds of voting where an individual casts his/her vote for the options that are
shortlisted. Each individual can cast one vote at a time.

In this way, the options favouring the maximum number of votes is carried to the next round.
This process is repeated until a clear winning option is obtained Display the items under consideration on a
flipchart, making sure to eliminate duplicate items

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Number the items on the list to facilitate recordkeeping.
Give each team member a number of votes equal to approximately one half of the number of items on the
list (e.g., 10 votes for a 20-item list).

Have each team member vote for the items he or she believes are most important. Team members may
cast all votes for one item, for several items, or vote for individual items until they use their allotted number
of votes.
Tally the votes.

Select the four-to-six items that receive the highest number of votes. Discuss and rank order the items. If
the team cannot establish the top four-to-six, remove the items having the fewest votes and then conduct
another vote.

Delphi Method

In this method of decision making, the facilitator allows team members to individually brainstorm their
ideas and submit their ideas “anonymously”. The other team members do not know the owner of the ideas.
First, the group facilitator selects a group of experts based on the topic being examined. Once all participants
are confirmed, each member of the group is sent a questionnaire with instructions to comment on each topic
based on their personal opinion, experience, or previous research.
The questionnaires are returned to the facilitator who groups the comments and prepares copies of the
information. A copy of the compiled comments is sent to each participant, along with the opportunity to
comment further. At the end of each comment session, all questionnaires are returned to the facilitator who
decides if another round is necessary or if the results are ready for publishing.
The questionnaire rounds can be repeated as many times as necessary to achieve a general sense of
consensus.

Dialectic Decision Methods

Some face-to-face decision taking groups converge too quickly on one alternative while overlooking others.
Their incomplete evaluation of options may reflect either the participants’ dislike of meetings or their
lack of willingness to raise and confront tough issues. The Dialectic Decisions Method is a technique used
to overcome the problem in the group-decision making, wherein the group members quickly agree to one
alternative proposal and might overlook more promising solutions than the chosen one. Thus, it ensures a
full consideration of alternatives.
First of all, a clear statement of a problem is stated.
Then, all the possible alternative proposals are generated.
Once the set of alternatives is listed, the group members identify all the implicit and explicit assumptions
central to the proposals.
Then each alternative is broken into subgroups to study all the pros and cons of the proposals in the light of
a problem.
Once these steps are completed individually, the group members meet and decide on a proposal to be chosen
on the basis of its ultimate results (pros and cons).
Thus, through a dialectic decisions method, every group member participates equally in finding out the most
promising alternative proposal in the context of a given problem.

Team morale:

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Team morale refers to the optimism, enthusiasm, and excitement within a group of co-workers with common
business goals. It is a collection of attitudes and feelings that creates a positive working environment. People support
each other to work confidently. Studies have proved that higher team morale increases employee engagement which
has a clear impression on productivity.

Team morale means that self-esteem, assurance, confidence, drive, humor and a good outlook are in abundant
supply within a group. When a team exhibits good morale, there is excitement and enthusiasm generated, as well as
an optimistic approach toward the team effort and motivation.

Morale is a state of mind. It is based on usefulness, purpose, a sense of confidence and the spirit of an entire
group that makes the group and individual want to succeed.

5
Factors Affecting Employee Morale

Employee morale is a complex phenomenon and depends on various factors. Here is the different criterion that
affects employee morale:

Organization Itself: While it may sound surprising, but the organization itself is one of the biggest and most
important factors that affect employee morale. An organization influences an employee’s attitude towards
his/her work. The reputation of an organization can certainly build up for better or worse, their attitude towards
it.

Type of work: The nature of work an employee is performing at his/her workplace also is greatly responsible to
determine the morale. If the employee is expected to perform the same task day in and out, there is going to
boredom associated with it sooner or later. It can make situations worse for an employee. Unorganized
organization structure also affects employees, if the employee feels that he/she is just a cog machine in a factory
line, instead of a real person, this too may adversely affect their morale.

Personal attributes: Mental and physical health play an important role in determining employee morale. If
the employee is not physically or mentally fit, this can be a potential obstacle in their progress and learning
at their workplace. There are also other important factors that concern their progress and in turn their
morale: age, education qualification, years of experience, occupational levels, reward perception, and
similar factors.

Supervision and feedback: The level of supervision received by an employee is a tremendous factor that
affects the morale. If the employees feel they have no direction or don’t understand the organizational
goals and commitments, then it the job of the superiors and the leadership in the organization to get them

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on the same page. But there shoul d not be too much interference too if the employees are given the
freedom to work their morale will be high.
Work-Life balance: Most organization fails to recognize the importance of a healthy work-life balance. It is
important that the employees have some activities to relax while they are at work. It’s not just about the
foosball culture or an inventory stuffed with food. It is important that proper guidance and counselling is
given to the employees whenever needed.

Points to build team morale-

Allow your team to do the best of what it can do without a hindrance.

Accept your employees' mistakes as a part of the process.

Make sure they have everything they need to be successful.

Please encourage them to take chances.

Be available to resolve queries.

Let them lead the day-to-day stuff.

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