Unit 3

Group dynamics
Team work
Leadership
 Group dynamics
• The social process by which people interact face-
to-face in small groups is called group dynamics.
• Every group choses its leader who may effectively
coordinate the group efforts towards the
accomplishment of its objectives.
• A group may consist of two or more persons who
interact with each other consciously for the
achievement of certain common objectives.
 Types of groups
Two type of groups coexist in an organisation
1. Formal groups
1.1 Command and task group

2. Informal groups
2.1 interest and friendship group
 Reasons for formation of groups
• Companionship
• Sense of identification
• Source of information
• Job satisfaction
• Protection of members
• Outlet for frustration
• Perpetuation of cultural values
• Generation of new ideas
 Importance of group
• Filling in gaps in managers ability
• Solving work problems
• Better coordination
• Channel of communication
• Restraint on managers
• Better relations
• Norms of behaviour
• Satisfied workforce
• Developing future executives
 Problems created by informal groups
• Negative attitude of informal leaders
• Conformity
• Resistance to change
• Rumours
• Role conflict
 Five stage model of group
development
• Groups generally pass through a standardised
sequence in their evolution, this sequence is
called the five stage model of group development
• However groups formed for meeting temporary
needs do not follow all the stages of formation.
They are formed to meet deadlines.
• The five stages involved are forming, storming,
norming, performing, adjourning.
 Five stage model
• First stage forming is characterised by great deal
of uncertainty about the group’s purpose,
structure, leadership. Members are testing the
waters to determine what behaviour is
acceptable. This stage is complete when
members have begun to think of themselves as
part of the group.
• Storming is intra group conflict, where members
accept the existence of the group, there is conflict
over who controls the group and there is clear
hierarchy of leadership within the group.
 Five stage model
• Norming is the stage where close relationship
develops and group demonstrates
cohesiveness. There is strong sense of group
identity, group solidifies, group has also
assimilated common set of expectations of
what defines correct member behaviour.
• In Performing structure is fully functional and
accepted, group moves from knowing and
understanding to performing the task.
 Five stage model
• For permanent groups performing is the last
stage, but for temporary groups the last stage
is adjournment. In this stage the group
prepares for disbandment.
• Attention is directed towards wrapping up
activities, responses of the members vary-
some are sad for loss of friendship, some are
rejoicing over group’s achievements
 Alternative model for temporary
groups with deadlines (not in cbcs)
The sequence of these groups is
• Their first meeting sets the groups direction
• This first phase of group activities is one of inertia
• A transition takes place at the end of this phase,
which happens when the group has used up half
its allotted time
• A transition initiates major changes
• second phase of inertia follows
• Last meeting of the group is characterised by
accelerated activity
Determinants of group behaviour (not
in cbcs)
• External factors
• Group members resources
• Group structure
• Group process
• Group tasks
 External factors
• Group exist in sub systems and the
organisation
• It is affected by organisation policies, rules
and regulations, organisation structure,
layout, lightning, interiors, seating
arrangement, staffing, appraisal and reward
system, etc.
 Group members resources
• Ability of members
• Personality characteristics
 Group structure
• Leadership
• Goals
• Communication
• Role relationships- role set, identity, perception,
incongruence, expectations, conflict
• Group norms (performance and behaviour
norms)
• Group status
• Group size (issue is social loafing)
• Group composition (sharing demography)
 Group norms
• Behavioural norms
• Performance norms
 Group cohesiveness
• It means the degree of attachment of the
members to their group. The members of a
cohesive group strongly share the goals of the
group and are attached to one another.
• The greater the degree of attachment the
greater the likelihood that all members will
conform strictly to group standards and leader
will represent the feelings of the group.
 Group cohesiveness
Cohesive group possesses the following attributes:
• Members share common goals and have common
interest and backgrounds
• Number of members are small
• Members are in touch and have effective interpersonal
communication
• Group loyalty is high
• Members stand united
• The group has history of success in past. Members are
glued to each other as they feel that their social and
economic needs with be satisfied by the group
Factors influencing group cohesiveness
• Nature of group
• Size of the group
• Location of group
• Communication
• Status of the group
• Outside pressures
• Inter-dependency
• Leadership
• Management behaviour
 Relationship b/w group cohesiveness
and productivity
Cohesiveness
High low
High productivity Moderate productivity

High

Performance Low productivity Moderate to low

productivity
norms
Low
 Work teams
• Team is a cooperative group whose members
interact with one another towards
accomplishment of specified objectives.
• A team may be defined as a group whose
members have complementary skills and are
committed to common purpose or goals
which they hold themselves mutually
accountable.
• The practice of working in teams is teamwork.
 Types of teams
• Problem solving team
• Self managed teams
• Cross functional teams (e.g. Hindustan
Sanitary wares)
• Virtual teams
 Attributes of high performing teams
• Participative leadership
• Shared responsibility
• Aligned on purpose
• High communication
• Future focused
• Focused on task
• Creative talents
• Rapid response
 Group decision making
It involves establishing goals, defining tasks,
searching for alternatives and choice of the best
alternative. Decision making may be carried on by
both individuals and groups.
Organisations are composed of both informal and
formal groups. In group Decision making members
interact with each other, deliberate the problem
and arrive at some collective decision. The decision
may be arrived at through either consensus or
simple majority.
 Merits of group decision making
• Knowledge base of the group is greater which can help
in taking better decisions.
• Inputs from the group help eliminate the biases which
can occur in individual decision making process.
• Group format allows participation of group members in
decision making process
• Group decisions are likely to be implemented
effectively
• Group decision making process can be used as a
training ground for new members to learn decision
making and communication skills.
 Dangers of group decision making
• A group may take a decision that is simply a
compromise b/w the various views of individual
members
• Group decision is a time consuming process
• Group decision may be affected by the problem
of group think.
• Group decision making may prove to be more
risky than individual decision making
• When there is a conflict b/w group goals and the
organisational goals the group decision is likely to
be detrimental to the interest of the organisation
 Groupthink
Cohesive groups can lead to conformity and
compromise. This tendency of a tightly knit
group to bring individual thinking in line with
group thinking is called groupthink or levelling
effect.
The ideas of the dominant members those who
have authority, speak with confidence, or are
more vocal in their arguments – are more likely
to be accepted whether or not they have value.
 Group shift or polarisation
Group members bring predisposition (either
positive or negative) towards the problem. As
ideas are explored and logic is challenged some
people become defensive.
 Techniques of group decision making
• Brainstorming
• Nominal group
• Electronic meeting
• Interacting groups
 Creating effective teams
Key elements for an effective team are
• Work design
• Team’s composition
• Contextual influence
• Process variables
 Team effectiveness

Work design Composition Context

• Autonomy • Ability • Adequate
• Skill variety • Personality resources
• Task identity • Role and diversity • Leadership
• Task significance • Size • Climate of trust
• Flexibility • Performance
• Preference for evaluation,
teamwork rewards
 Team effectiveness

Process

Common purpose
Specific goals
Team efficacy
Conflict
Social Loafing
 Leadership
Chester Barnard viewed Leadership as the quality of
behaviour of individuals whereby they guide people
or their activities in organising effect.
A leader is one who guides and directs other
people. He gives the efforts of his followers a
direction and purpose by influencing their
behaviour. (Louis Allen)
Leadership is the process by which an executive
imaginatively directs, guides and influences the
work of others in choosing and attaining specified
goals by mediating b/w the individuals and the
organisation in such a manner that both will obtain
maximum satisfaction. (Theo Haimann)
 Characteristics of leadership
• Leadership is the process of influence
• It is related to situation
• Leadership is the function of stimulation
• Leadership gives an experience of helping
attain the common objective
• Employees must be satisfied with the type of
leadership provided
 Styles of leadership
• Autocratic leadership
• Participative/ democratic leadership
• Free rein/ Laissez Faire leadership
 Trait theory of leadership
• Trait theory seeks to determine universal
personal characteristics of effective leaders.
• Some traits of effective leaders are intelligence,
physical features, inner motivation drive,
maturity, vision and foresight, acceptability of
responsibility, open and adaptable, self
confidence, human relations attitude, fairness
and objectivity
• Criticism of this theory is that the environment in
which a leader exist is not given any weightage,
leadership is related to a situation, traits of
leadership are observed when he is tagged a
good leader.
 Behavioural theories of leadership
• This approach is based on the premise that effective
leadership is the result of effective role behaviour.
• Success of leader depends on what he does rather than
his traits.
• Contributions include Ohio state studies, Michigan
University studies and management grid of Blake and
Mouton.
• These theories are static as they consider the
leadership style and not the situation variables. They
fail to explain why a particular behaviour is effective in
one situation but fails in another.
 Ohio studies
• They attempted to identify various dimensions of
leader behaviour and narrowed the description of
leader behaviour to two dimensions: initiating
structure and consideration.
• Initiating structure is the leaders behaviour in
delineating the relationship b/w himself and
members of work groups and in endeavour to
establish well defined patterns of organisation,
channels of communication, methods, procedures
• Consideration behaviour indicative of friendship,
mutual trust, respect, warmth in relation b/w leader
and member.
• They are two distinct dimensions and not mutually
exclusive.
 Michigan studies
• Two distinct styles of leadership are identified
which are production centred ( task oriented) and
employee centred ( relation oriented)
• Production oriented emphasise on productivity
by use of procedures, rules, close supervision.
They concentrate on technical aspect of the job,
employee are seen as tools to accomplish goals
• Employee centred concentrate on human
relations, delegation of authority, concerns for
employee needs, welfare, advancement, stress
on relationship aspect of the job.
 Evaluation
• Michigan studies found that both styles of
leadership led to increase in production but it
was slightly more in case of production oriented,
however direct supervision and pressure led to
decreased supervision and absenteeism,
turnover.
• Employee centred approach led to improved
work flows and more cohesion in interactions
resulting in increased satisfaction and reduced
turnovers.
 Managerial grid
• Two dimensions of leadership- concern for
people and concern for production.
• Five leadership styles recognised
1-9 country club 9-9 team
High
5-5
Concern for middle road
People
Low
1-1 impoverished 9-1 task

low high
concern for production
 Situational theories of leadership
• Fiedler’s contingency model
• Hersey and Blanchard's situational theory
• Path goal theory
 Fiedler’s contingency theory
• Contented that there is no best style of
leadership instead a particular style might work in
one situation and not in other.
• He identified two styles- task oriented (leader
gets satisfaction from seeking tasks) and
relationship oriented (leader tries to achieve
good interpersonal relations with subordinates.
• He developed a least preferred co-worker scale
which was constructed on the basis of preference
of co- worker, a worker would like to work with.
This scale had traits of the workers which were
rated.
 Fiedler’s theory
• Low LPC emphasises completing task even at
expense of interpersonal relations, high LPC
emphasises good interpersonal relations,
more considerate.
• Low LPC reflects task oriented leadership and
high LPC reflects relationship leaders.
• He analysed three Situational variables which
exert powerful influence on leaders behaviour
and his effectiveness. They include leader-
follower relations, task structure and position
power.
 Fielder's theory
Situation Leader follower Task Position power Situational
structure favourableness
1 Good High Strong High
2 Good High Weak
3 Good Low Strong
4 Good Low Weak
5 Poor High Strong
6 Poor High Weak
7 Poor Low Strong
8 Poor Low Weak Low
 Hersey and Blanchard's theory
• It is known as the life cycle theory of leadership.
• It is based on interaction among- the amount of
direction (task behaviour), amount of
socioeconomic support (relationship behaviour),
maturity level exhibited by followers.
• This theory utilises Ohio style.
• Maturity which is the third variable is the
capacity to set high goals, plus willingness and
ability to take responsibility and use education /
experience.
• As soon as the maturity of a worker increases the
leader should reduce task behaviour and increase
relationship behaviour.
 Hersey and Blanchard's theory
High Participative style Selling style

Relationship
Behaviour Delegating style Telling style

low

Low high
Task behaviour
 Path goal theory
• It states that a leaders job is to create work
environment that helps the employees reach
organisational goals.
• Two major roles involved are to create goal
orientation and to improve the path towards the
goal so that it can be attained.
• It focuses on how leader influences subordinates
perception for valence (goal attractiveness),
expectancy (goals paths) and instrumentality.
 Path goal theory
• The theory visualises four types of leader
behaviour- instrumental or directive, supportive,
participative, achievement oriented.
• Two sets of contingency variables moderate the
relation b/w leaders behaviour and subordinate
output- personal characteristics of subordinate
and environmental pressure.
• If subordinates work on unstructured they
require directive leadership but if people work in
structured and well defined jobs then supportive
style is favourable.
• Thus leadership behaviour will be motivational to
the extend that it assist the subordinates cope
with environmental uncertainty.
 Other topics
• Authentic leadership: Self leadership,
Mentoring
• Inspirational approaches- Charismatic leaders
and Transformational leadership
• Online leadership (style of writing, tone, use
of emoticons, etc.)
 Self leadership
How do leaders create self leaders?
1. Model self leadership
2. Encourage employees to create self set goals
3. Encourage the use of self rewards to
strengthen and increase desirable behaviour
4. Create positive thought pattern
5. Create a climate of self leadership
6. Encourage self criticism
 Mentoring
➢A mentor is a senior employee who sponsors
and supports a less experienced employee.
➢It includes coaching, counselling and
sponsorship.
➢They provide advice and guidance on how to
survive and get ahead in the organisation
➢Why would leaders want to be mentors?- to
get access to attitude and feelings at lower
levels, information, etc.
 Charismatic leaders
• It is a form of interpersonal attraction of a leader that
inspires support and acceptance from others. It is a
type of influence based on leaders personal charisma.
Someone with charisma is more likely to be able to
influence others than someone without charisma.
• They are more dynamic, risk taking, express high
performance expectations, use symbols and language
to inspire others.
• They have a compelling vision or sense of purpose,
they can communicate the vision in clear terms that
their followers can readily identify with, they
demonstrate consistency and focus in the pursuit of
their vision, and they know their own strength and
capitalise on them.