BUS 520 Chapter 09
BUS 520 Chapter 09
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Chapter Learning Objectives
➢ After studying this chapter, you should be able to:
– Define groups, and distinguish the different types of groups.
– Identify the five stages of group development.
– Show how role requirements change in different situations.
– Demonstrate how norms and status exert influence on an
individual’s behavior.
– Show how group size affects group performance.
– Contrast the benefits and disadvantages of cohesive groups.
– Contrast the strengths and weaknesses of group decision making.
– Compare the effectiveness of interacting, brainstorming, nominal,
and electronic meeting groups.
– Evaluate evidence for cultural differences in group status and
social loafing, and the effects of diversity in groups.
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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
➢ 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
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Subclassifications of Groups
9-3
Why People Join Groups – Social Identity
➢ Similarity
➢ Distinctiveness
➢ Status
➢ Uncertainty
Reduction
9-4
Five Stages of Group Development Model
9-5
The Five Stages of Group Development
1. Forming
– Members feel much uncertainty
2. Storming
– Lots of conflict between members of the group
3. Norming
– Members have developed close relationships and
cohesiveness
4. Performing
– The group is finally fully functional
5. Adjourning
– In temporary groups, characterized by concern with
wrapping up activities rather than performance
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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
➢ Ignores the organizational context
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An Alternative Model for Group Formation
Temporary groups with deadlines don’t follow the five-
stage model
➢Punctuated-Equilibrium Model
– Temporary groups under deadlines go through transitions
between inertia and activity—at the halfway point, they
experience an increase in productivity.
– Sequence of Actions
1. Setting group direction
2. First phase of inertia
3. Half-way point transition
4. Major changes
5. Second phase of inertia
6. Accelerated activity
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Group Properties
Norms
Status
Roles
Group
Performance
Cohesiveness Size
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Group Property 1: Roles
Role
– A set of expected behavior patterns attributed to someone
occupying a given position in a social unit
➢ Role Perception
– An individual’s view of how he or she is supposed to act in a given
situation
➢ Role Expectations
– How others believe a person should act in a given situation
– Psychological Contract: an unwritten agreement that sets out
mutual expectations of management and employees
➢ Role Conflict
– A situation in which an individual is confronted by divergent role
expectations
9-10
Zimbardo’s Prison Experiment
➢ Set up a fake prison using student
volunteers
➢ Randomly assigned student
volunteers to guard and prisoner
roles
➢ Within six days, the experiment
was halted due to following
concerns:
– Guards had dehumanized the prisoners
– Prisoners were subservient
– Fell into the roles as they understood
them
– No real resistance felt
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Group Property 2: Norms
Norms
– Acceptable standards of behavior within a group that are
shared by the group’s members
➢ Classes of Norms
– Performance norms - level of acceptable work
– Appearance norms - what to wear
– Social arrangement norms - friendships and the like
– Allocation of resources norms - distribution and assignments
of jobs and material
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Group Norms and the Hawthorne Studies
9-14
Defying Norms: Deviant Workplace Behavior
➢ Deviant Workplace Behavior
– Also called antisocial behavior or workplace incivility
– Typology:
• Performance – working speed
• Material – damage and stealing
• Interpersonal – favoritism, gossip, and sexual harassment
SEE E X H I B I T 9-4
9-15
Group Influence on Deviant Behavior
E X H I B I T 9-5
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Group Property 3: Status
Status
– A socially defined position or rank given to groups or group
members by others – it differentiates group members
– Important factor in understanding behavior
– Significant motivator
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Status Effects
➢ On Norms and Conformity
– High-status members are less restrained by norms and
pressure to conform
– Some level of deviance is allowed to high-status members so
long as it doesn’t affect group goal achievement
➢ On Group Interaction
– High-status members are more assertive
– Large status differences limit diversity of ideas and
creativity
➢ On Equity
– If status is perceived to be inequitable, it will result in
various forms of corrective behavior.
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Group Property 4: Size
Size
– Twelve or more members is a “large” group
– Seven or fewer is a “small” group
➢ Group size affects behavior
➢ Best group sizes based on requirement:
Attribute Small Large
Speed X
Individual Performance X
Problem Solving X
Diverse Input X
Fact-finding Goals X
Overall Performance X
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Issues with Group Size
Social Loafing
– The tendency for individuals to expend less effort when
working collectively than when working individually
– Ringelmann’s Rope Pull: greater levels of productivity but
with diminishing returns as group size increases
– Caused by either equity concerns or a diffusion of
responsibility (free riders)
➢ Managerial Implications
– Build in individual accountability
– Prevent social loafing by:
• Setting group goals
• Increasing intergroup competition
• Using peer evaluation
• Distributing group rewards based on individual effort
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Group Property 5: Cohesiveness
Cohesiveness
− Degree to which group members are attracted to each
other and are motivated to stay in the group
➢Managerial Implication
– To increase cohesiveness:
• Make the group smaller.
• Encourage agreement with group goals.
• Increase time members spend together.
• Increase group status and admission difficulty.
• Stimulate competition with other groups.
• Give rewards to the group, not individuals.
• Physically isolate the group.
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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 (but not as accurate as the most
accurate group member)
➢ Group Weaknesses:
– Time-consuming activity
– Conformity pressures in the group
– Discussions can be dominated by a few members
– A situation of ambiguous responsibility
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Group Decision-Making Phenomena
➢ Groupthink
– Situations where group pressures for conformity deter the
group from critically appraising unusual, minority, or
unpopular views
– Hinders performance
➢ Groupshift
– When discussing a given set of alternatives and arriving at a
solution, group members tend to exaggerate the initial
positions that they hold. This causes a shift to more
conservative or more risky behavior.
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Group Decision-Making Techniques
Made in interacting groups where members meet face-to-
face and rely on verbal and nonverbal communication.
➢Brainstorming
– An idea-generating process designed to overcome pressure
for conformity
➢Nominal Group Technique (NGT)
– Works by restricting discussion during the decision-making
process
– Members are physically present but operate independently
➢Electronic Meeting
– Uses computers to hold large meetings of up to 50 people
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Evaluating Group Effectiveness
Type of Group
Brain-
Effectiveness Criteria Interacting Nominal Electronic
storming
Number and quality of ideas Low Moderate High High
Social Pressure High Low Moderate Low
Money Costs Low Low Low High
Speed Moderate Moderate Moderate Moderate
Task Orientation Low High High High
Potential for Interpersonal
High Low Moderate Moderate
Conflict
Commitment to Solution High N/A Moderate Moderate
Development of Group
High High Moderate Low
Cohesiveness
E X H I B I T 9-7
9-25
Global Implications
➢ Status and Culture
– The importance of status varies with culture
– Managers must understand who and what holds status when
interacting with people from another culture
➢ Social Loafing
– Most often in Western (individualistic) cultures
➢ Group Diversity
– Increased diversity leads to increased conflict
– May cause early withdrawal and lowered morale
– If the initial difficulties are overcome, diverse groups may
perform better
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Summary and Managerial Implications
➢ Performance
– Typically, clear role perception, appropriate norms, low
status differences and smaller, more cohesive groups lead to
higher performance
➢ Satisfaction
– Increases with:
• High congruence between boss and employee’s
perceptions about the job
• Not being forced to communicate with lower-status
employees
• Smaller group size
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