Comprehensive Study Notes: Groups and Teams in Organizational Behavior

Fundamental Concepts of Groups and Teams

  • Group Definition: A group consists of two or more people who interact with one another in such a way that each person influences and is influenced by each other person.

  • Team Definition: A team is an interdependent collection of at least two individuals who share a common goal and share accountability for the team’s outcomes as well as their own individual outcomes.

  • Relational Dynamics:

    • Two people physically near each other do not constitute a group unless they interact and exert mutual influence.

    • All teams are groups, but not all groups are teams.

    • Teams require interdependence regarding information, resources, and skills.

    • As tasks increase in complexity, the requirements for coordination, teamwork, reciprocal communication, and feedback among team members also increase.

  • Workgroups: These are formal groups created by an organization to perform its work.

    • Command Group: A relatively permanent, formal group characterized by functional reporting relationships. These are typically documented in the official organization chart.

    • Affinity Group: A collection of employees originating from the same level in the organization. They meet regularly to share information, identify and capture emerging opportunities, and solve problems.

  • Specific Types of Teams:

    • Functional Teams: Members are sourced from the same department or functional area.

    • Cross-functional Teams: Members are sourced from different departments or functional areas.

    • Problem-solving Teams: Focused specifically on solving problems and making organizational improvements.

    • Self-directed Teams: These teams set their own goals and determine the methods they will use to pursue them.

    • Venture Teams: Groups that operate semi-autonomously for the purpose of creating and developing new products, processes, or businesses.

    • Virtual Teams: Comprised of geographically or organizationally dispersed coworkers who utilize telecommunications and information technologies for communication.

    • Global Teams: Teams (can be face-to-face or virtual) with members originating from different countries.

  • Informal Groups: Groups established by members rather than the organization.

    • Friendship Group: Residents of social relationships, these are relatively permanent and informal, drawing benefits from member interactions.

    • Interest Group: Organized around a common activity or interest; these are typically relatively temporary and informal.

Group Performance Factors

  • Group Composition: The degree of similarity or difference among group members regarding factors vital to the group's work.

    • Homogeneity: The degree to which members are similar in critical ways.

      • Homogeneous groups are more productive when the task is simple, sequential, requires cooperation, or demands quick action.

    • Heterogeneity: The degree to which members differ in critical ways.

      • Heterogeneous groups are more productive when the task is complex, requires collective effort, demands creativity, and emphasizes thoroughness over speed.

  • Group Size: The number of members in a group.

    • Impacts: Affects available resources, degree of formalization in interactions, communication styles, and levels of participation.

    • Social Loafing: The tendency for some group members to put forth less effort than they would if working individually.

    • Determinants of Ideal Size: Includes member ability to interact/influence, group maturity, nature of the tasks, and the leader's ability to manage conflict and communication.

  • Group Norms: Standards against which the appropriateness of behavior is judged.

    • Origins: Result from member personality characteristics, the situation, and historical traditions.

    • Enforcement: Norms are usually only enforced for actions deemed important to members.

    • Purposes: Groups utilize norms to survive, increase the predictability of behaviors, avoid embarrassing situations, and express central values that identify the group to others.

  • Group Cohesiveness: The extent to which a group is committed to staying together, driven by attraction to the group, resistance to leaving, and motivation to remain a member.

    • Groupthink: A negative consequence of high cohesiveness where the overriding concern is reaching a unanimous decision rather than performing a critical analysis of alternatives.

    • Productivity Relationship: The best performance occurs when a group is highly cohesive and its goals are congruent with the organization's goals. The lowest performance occurs when a group is highly cohesive but its goals are inconsistent with organization goals.

  • Informal Leadership: An informal leader engages in leadership activities without formal organizational recognition.

    • Power Sources: Often stems from referent or expert power.

    • Impact: Can be a major asset if aligned with the firm's interests, but highly disruptive if not.

Stages of Group and Team Development

  • Mutual Acceptance Stage: Members share information about themselves and become acquainted.

  • Communication and Decision-making Stage: Members discuss feelings openly and agree on group goals and individual roles.

  • Motivation and Productivity Stage: Members cooperate and assist each other while working toward task completion.

  • Control and Organization Stage: The group reaches maturity; members are flexible, adaptive, self-correcting, and work together effectively.

  • Evolutionary Note: If new members are added or a new task is assigned, the group must repeat these development stages.

Team Implementation and Process Factors

  • Process Gain: Improvements in performance resulting from people working together rather than independently.

  • Process Loss: Decrements in performance occurring when a team performs worse than members would have individually.

  • Team Efficacy: A shared belief within the team that it can organize and execute behaviors needed to reach goals.

  • Trust: Confidence that others will honor commitments, particularly when monitoring behavior is difficult.

  • Social Facilitation: Motivation triggered by the desire to look good to others and maintain a positive self-image.

  • Roles: Defined behaviors and tasks expected of a member based on their position.

  • Phases of Team Implementation:

    • Phase 1: Start-Up: Performance is at a normal level.

    • Phase 2: Reality and Unrest: Performance declines due to confusion, frustration with training, and lack of top-management direction.

    • Phase 3: Leader-Centered Teams: Performance increases as familiarity with the team process grows and internal leadership is restored.

    • Phase 4: Tightly Formed Teams: Performance continues to increase steadily.

    • Phase 5: Self-Managing Teams: Performance peaks as teams mature and become highly flexible.

Benefits and Costs of Teams in Organizations

  • Benefits categories:

    • Enhanced Performance: Includes increased productivity and improved quality and customer service.

    • Employee Benefits: Enhanced quality of work life and lower stress.

    • Reduced Costs: Lower turnover, absenteeism, and fewer injuries.

    • Organizational Enhancements: Increased innovation and flexibility.

  • Organizational Examples of Benefits:

    • Ampex: Achieved on-time delivery levels of 98%98\%.

    • K Shoes: Reduced rejects per million from 5,0005,000 down to 250250.

    • Eastman: Productivity rose by 70%70\%.

    • Milwaukee Mutual: Employee assistance program usage dropped to 40%40\% below the industry average.

    • Kodak: Turnover reduced by 50%50\%.

    • Texas Instruments: Costs reduced by more than 50%50\%.

    • Westinghouse: Costs reduced by 60%60\%.

    • IDS Mutual Fund Operations: Improved flexibility to handle market fluctuations.

    • Hewlett-Packard: Developed an innovative order processing system.

  • Costs of Teams: Difficulty of organizational change, slowness of the implementation process, and the risk of premature abandonment of the team model.

Teamwork Competencies and Management

  • Management Requirements: Top management must support teams for business-performance reasons rather than following fads. They must understand that implementation takes longer than anticipated.

  • Rewards Systems: Organizations must adjust rewards to include incentives for team contributions, such as skill-based pay, gain-sharing systems, and team bonus plans.

  • Critical Team Member Abilities:

    • Conflict resolution.

    • Collaborative problem-solving.

    • Communication.

    • Goal-setting and self-management.

    • Planning and task coordination.

  • Ethical Issues:

    • Fair distribution of work.

    • Assignment of blame and awarding of credit.

    • Ensuring participation and resolving conflict.

    • Avoiding deception and corruption.

  • Team Contract: A written agreement that establishes ground rules for processes, roles, and accountabilities.

Emerging Challenges: Virtual and Multicultural Teams

  • Virtual Team Challenges: Geographic/temporal separation, feelings of isolation, difficulty in mentoring/development, and the need for the team to function without a present leader.

  • Virtual Leadership Skills: Effective communication, building community, establishing shared vision/goals, leading by example with measurable results, and coordinating across boundaries.

  • Technology (Groupware):

    • Synchronous: Real-time technologies (meeting software, electronic whiteboards).

    • Asynchronous: Technologies for work posted at any time (collaborative editors).

    • Impact: Reduces travel time and expenses; allows immediate, paperless sharing of resources.

  • Diverse and Multicultural Team Benefits: Creativity, innovation, and improved decision-making and problem-solving.

  • Challenges for Diverse Teams:

    • Communication Styles: Western cultures use direct communication, while non-Western cultures often embed meaning in presentation (indirect). This leads to misunderstandings.

    • Attitudes Toward Authority: Status-oriented cultures may feel uncomfortable disagreeing with leaders or elders.

    • Decision-Making Norms: Cultures differ in the expected speed and decisiveness of the decision-making process.

Questions & Discussion

  • Discussion Activity 1: How are groups and teams different? Consider class projects and whether you felt part of a group or a team. When might one form be more effective than the other?

  • Discussion Activity 2: What are some positive and negative norms you have experienced in groups? Norms result from member personalities, the situation, tasks, and traditions. Positive norms provide predictability; negative norms are behaviors consistent within the group but unhelpful to goals.

  • Knowledge Check 7.1: A team’s shared belief that it can organize and carry out the tasks necessary to reach its goals is called team efficacy.

  • Group Activity Scenario: You lead a team of 1212 volunteers for a non-profit capital campaign seeking to raise $2 million\$2\text{ million}. Two highly motivated members have conflicting ideas. What can you do as a leader to move toward the objective?

  • Polling Activity 1: Which is the most valuable aspect of synchronous technology for virtual teams: reduced travel time, reduced expense, ability to meet from dispersed locations, or immediate paperless document sharing?

  • Polling Activity 2: What is the greatest challenge for culturally diverse teams: direct vs. indirect communication, attitudes toward hierarchy, or conflicting decision-making norms?

  • Self-Assessment Reflection:

    • Which groups in your life have been most memorable and why?

    • What qualities did you use or need as a team leader, and which would you improve?

    • What aspects of your personality contribute most to the success of a diverse work team?