Defining and Classifying Groups

In organizational behavior (OB), a group consists of two or more individuals who interact and depend on one another to achieve objectives. Groups are classified as:

• Formal Groups: Structured by the organization, with specific roles (e.g., a flight crew).
• Informal Groups: Naturally formed for social purposes (e.g., coworkers gathering for lunch).

Both formal and informal groups influence behavior and performance within an organization.

Social Identity and Group Membership

Social identity theory explains how individuals derive self-esteem from the groups they belong to. People feel emotionally connected to their group’s successes or failures, reinforcing their identification with the group. This identification can foster loyalty and influence behavior within the organization.

Stages of Group Development

The punctuated-equilibrium model outlines how temporary groups evolve:

1. The group establishes direction during its first meeting.
2. The first phase is marked by inertia with limited progress.
3. A transition occurs at the group’s midpoint, triggering changes.
4. The second phase involves executing revised plans.
5. The group’s final meeting accelerates activities to complete its objectives.

This model emphasizes how time-bound groups shift between periods of stability and bursts of activity.

Group Properties and Their Impact

1. Roles: Group members assume roles based on expectations and perceptions. Role conflict arises when different roles clash, such as balancing professional and family responsibilities.
2. Norms: Groups establish behavioral standards. Norms dictate acceptable conduct and significantly influence performance and collaboration. The Hawthorne Studies highlighted how group norms, rather than working conditions, impact productivity.
3. Status: Socially defined rank affects group dynamics. High-status individuals resist conformity pressures, while status inequities can create conflict. Group performance improves when members perceive fair status distribution.
4. Size: Group size affects performance and interaction. Smaller groups are more effective for tasks requiring coordination, while larger groups provide diverse perspectives for problem-solving.
5. Cohesion: Cohesive groups perform better, especially when their norms align with organizational goals. Strategies to increase cohesion include fostering interaction, setting group goals, and encouraging collaboration.

Group Decision-Making

Group decision-making offers several benefits, such as increased information, diverse perspectives, and greater acceptance of outcomes. However, it also presents challenges:

• Groupthink: The pressure to conform can stifle critical thinking and creativity.
• Groupshift: Members may adopt more extreme positions after group discussions.
• Social Loafing: Individuals exert less effort when working in groups compared to working alone. Managers can mitigate this by setting clear expectations and individual accountability.

Conclusion

Group behavior significantly influences organizational success. By understanding the dynamics of group development, norms, roles, and decision-making processes, managers can harness the power of groups while minimizing potential challenges. Effective group management fosters collaboration, enhances performance, and ensures alignment with organizational goals.