Chapter 10 – Understanding Work Groups and Teams
10-1
CHAPTER 10
Understanding Work Groups and Teams
LEARNING OBJECTIVES
1. Describe formal and informal work groups.
2. Define group norms.
3. Explain group cohesiveness.
4. Define group conformity.
5. Define groupthink.
6. Understand the concept of team building.
7. Explain idiosyncrasy credit.
8. Describe social loafing.
9. List the four phases in the life of teams.
10. Describe a quality circle.
11. Explain self-directed work teams.
12. Explain virtual work teams.
SUGGESTIONS FOR PRESENTATION
Demonstrate Group Development
NOTE: (If you’ve already used groups for classroom discussion, you’ll have to rely on people’s
recall to answer the questions in this demonstration. If groups are a new idea to your class, this
technique may work better.)
When you return, ask the following questions to the groups:
Chapter 10 – Understanding Work Groups and Teams
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Education.
• Who would respond for the group? (Informal leader)
• How was (s)he chosen? (Volunteer? Vote? Showed up with a pencil in hand? Has
answered other questions during class?)
• What questions did you ask or things did you discuss after you’d completed the assignment
I gave you?
Typically, a group can see from their own actions, how informal groups develop out of task
groups, how leaders emerge, how norms may be developed, etc. For a demonstration of group
cohesiveness, see the next suggestion.
Demonstrate Group Cohesiveness
If you’ve already used groups, they’ve probably developed a certain method of operating. If
you’ve not used groups before, go through the previous suggestion first.
The purpose of this exercise is to demonstrate how cohesiveness can develop in a group.
What will usually happen is the representatives, having negotiated to their current list, have
become “wedded” to it, and are reluctant to give up theirs as being “right”. Especially if, when
compromise begins, the team members in the audience put pressure on the leader to not
compromise.
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Having gone through the negotiation and convinced themselves that their list is right, they’ve
developed cohesiveness. Even though the list is irrelevant and only opinion, it becomes an
important thing to the group’s search for status to have their list accepted by the other groups.
LECTURE OUTLINE
Supervision Dilemma
Jane notices that a small group in her unit always seems to be doing things together and
sometimes has a negative effect on the work of the unit.
I. Informal Work Groups
• Informal work groups are formed voluntarily by employees of an organization.
o A special type of informal group is the interest group.
▪ Its members share a purpose or concern.
o Informal groups formed around mutual interests fill important social needs.
o Members of a group derive strength and a sense of identity from their group
membership.
o Informal work groups affect productivity, the morale of other employees, and the
success of supervisors.
• In general, management does not formally recognize informal groups that revolve around
friendships, interests, or shared working space and tasks.
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• Employees join informal groups to meet a social need. They often gain great satisfaction
from these groups.
o Supervisors should seek to duplicate this satisfaction in formal work groups.
II. Formal Work Groups
• Management establishes formal work groups or work teams to carry out specific tasks.
o Formal groups may exist for a short or long period of time.
o A task force is an example of a formal group.
o These groups have a single goal.
• A different type of formal work group is the command, or functional, group.
o This group consists of a manager and all the employees he or she supervises.
o Unlike a task group, the command group’s work is ongoing and not confined to one
issue or product.
III. Group Norms
• Group norms are the informal rules a group adopts to regulate the behavior of its
members.
o They may be extremely simple.
• Group members are expected to abide by the group’s norms.
o Norms don’t govern every action in a group, only those important for group survival.
• Norms may not necessarily be written down or spoken.
o Rather, group members use their actions to show new members how to behave.
IV. Group Behavior
• Informal groups share similar types of behaviors.
A. Group Cohesiveness
• Group cohesiveness is the degree of attraction among group members, or how
tightly knit a group is.
o The more cohesive the group, the more likely members are to follow group
norms.
• A number of factors affect the cohesiveness of informal work groups. They are:
o Size—the smaller the group, the more cohesive it is likely to be. A small group
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groups.
o Outside pressures—outside pressures, such as conflicts with management, can
increase group cohesiveness.
o Stability of membership—long-standing members know each other well and
are familiar with group norms.
B. Group Conformity
• Group conformity is the degree to which group members accept and follow group
norms.
• A group generally seeks to control members’ behavior for two reasons:
o Independent behavior can cause disagreements that threaten a group’s survival.
o Consistent behavior creates an atmosphere of trust that allows members to
work together and socialize comfortably.
• Individual members tend to conform to group norms under certain conditions:
o When group norms are similar to personal attitudes, beliefs, and behavior.
o When they do not agree with the group’s norms but feel pressure to accept
them.
o When the rewards for complying are valued or the sanctions imposed for
noncompliance are devalued.
• Researchers have studied the influence of group pressure on individual members.
o Figure 10.1 illustrates the effect of group norms on a member’s productivity.
C. Groupthink
• When group members lose their ability to think as individuals and conform at the
expense of their good judgment, groupthink occurs.
o Groupthink results in:
▪ Careless judgments
▪ Unrealistic appraisals of alternative courses of action
▪ Lack of reality testing
o It can lead to a number of decision-making problems such as:
▪ Incomplete assessments of a situation
▪ Incomplete information search
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▪ The belief that the group is indestructible and always right.
V. The Importance of Teams
• Teams play an important part in helping an organization meet its goal.
o Groups have more knowledge and information than individuals.
o They make communicating and solving problems easier.
• The importance of managing groups effectively is becoming recognized in the business
world.
o Employees must work closely to improve production and maintain a competitive
A. Influencing Work Groups
• Studies at the Hawthorne plant, where researchers documented the existence of
informal work groups, looked at the effects of various changes on employees’
productivity.
o Researchers varied job factors, including the way employees were paid and
supervised, lighting, the length of rest periods, and the number of hours
worked. Productivity rose with each change.
o This result led to the coining of the term Hawthorne effect.
▪ The Hawthorne effect states that giving special attention to a group of
employees changes the employees’ behavior.
▪ The results of the studies show that when groups of employees are
singled out for attention, they tend to work more.
B. Building Effective Teams
• The linking-pin concept is one way of describing management’s role in work groups
(Figure 10.4).
o The linking-pin concept holds that because managers are members of
overlapping groups, they link formal work groups to the total organization.
o Managers improve communication and ensure that organizational and group
goals are met.
• Team building is the process of establishing a cohesive group that works together to
achieve its goals.
o The success of a group or team can be measured in the same way as the success
of organizations.
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o Successful organizations and groups both meet their goals by using their
• For a group to succeed, members must be able to perform the tasks assigned by
management. Selecting the right individuals is key to the success of a group.
o The first step is to identify qualified people
o Environment also can be important to the success of a group.
▪ An important requirement for meeting group goals is a suitable place to
work
• Trust is essential among group members and between groups and management.
o A successful group effort means sharing responsibilities and making decisions
together.
• Successful teams are highly competitive and eager to succeed.
o Supervisors can influence group cohesiveness by
▪ Keeping groups small.
▪ Selecting group members carefully.
• Some members of groups will always be permitted to depart from group norms. This
phenomenon is known as the idiosyncrasy credit.
o The idiosyncrasy credit occurs when individuals who have played a
significant role in a group are allowed some freedom within the group.
• Social loafing, also called “free riding,” describes the tendency of individuals to put
forth less effort when they are part of a group.
o Because all members of the group are pooling their effort to achieve a common
goal, some members of the group might be tempted to contribute less than they
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▪ A manager can assign specific tasks to each person and holding him or
her accountable for their completion.
▪ Also, some members might be told that if they exert additional efforts,
they will receive a larger share of the “public good,” such as getting a
larger commission.
▪ Since group size is related to free riding, managers should keep group
size from getting overly large.
C. Phases in the Life of Teams
• Effective work teams go through four phases of development. They are:
o Forming—this stage occurs when the team members first come together.
o Norming—this involves developing the informal rules that the team adopts to
regulate the behavior of the team members.
D. Quality Circle
• A quality circle is a group of employees, usually from 5 to 15 people, from a single
work unit (such as a department) who share ideas on how to improve quality.
o The goal of quality circle is to involve employees in decision making.
o Membership is almost always voluntary, and members share a common bond—
they perform similar tasks.
• Quality circles have benefits other than increasing employee participation.
o They encourage communication and trust among members and managers.
o They are an inexpensive way to provide employees with training while giving
them a sense of control over their work lives.
o They create strong lines of communication.
E. Self-Directed Work Teams
• Another type of formal work group is the self-directed work team (SDWT).
o SDWTs are empowered to control the work they do without a formal
supervisor.
o Each SDWT has a leader who normally comes from the employees on the
team.
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F. Virtual Work Teams
• Virtual work teams use technology-supported communication, with the team
members working and living in different locations.
o Globalization, technology, fast responses to customer needs, and financial
pressures have led organizations to establish such teams.
o Today’s financial problems have forced them to communicate virtually—by
phone, e-mail, and videoconference—thereby saving both time and money.
VI. Groups and Leaders
A. Gaining Acceptance
• Supervisors assigned to formal work groups must work to gain acceptance as leaders.
• Supervisors must keep track of those changes within the organization that might
affect the group.
B. Encouraging Participation
• In a traditional organizational structure, managers direct the employees who work for
them.
o As part of a team, however, supervisors encourage participation and share
responsibility, acting more like a coach than a supervisor.
o One way of encouraging team spirit is to provide the group with a vision.
• Supervisors lead by example.
o Their attitude and performance become the standard for group norms.
o A supervisor who believes that a group must listen to and support all members
might create a group of top supervisors who share this feeling.
o Employees who see supervisors functioning within a cohesive group are more
likely to work effectively in groups themselves.
Chapter 10 – Understanding Work Groups and Teams
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VII. Supervision and Informal Work Groups
• Figure 10.7 summarizes some of the potential benefits from informal work groups in
• Some of the factors that can encourage an informal work group to contribute positively are
as follows:
o Communicate openly
o Encourage group participation in decision making
o Respect the informal leader
Solution to the Supervision Dilemma
Jane understands that informal groups exist in all organizations and that supervisors must work
Supervision Illustrations
10-1: The Influence of Group Norms at Phish.Net
10-2: The Downfall of an Airline
10-3: The Failure of the Original Facebook Team
10-4: Self-Directed teams at Harley-Davidson
REVIEW QUESTIONS
1. Describe a formal work group.
10–11
2. Describe an informal work group.
3. What is the Hawthorne effect?
4. What is a group norm?
5. What is group cohesiveness?
6. What is group conformity?
7. What are some suggestions for building group cohesiveness?
10–12
Individual members tend to conform to group norms under certain conditions:
• When group norms are similar to personal attitudes, beliefs, and behavior
9. What is idiosyncrasy credit?
10. Explain the linking-pin concept.
11. Explain social loafing. What are its causes? What can managers do to reduce its impact?
Social loafing, also called “free riding,” describes the tendency of individuals to put forth
12. What is team building?
13. What is a quality circle?
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14. What is a self-directed work team?
15. What is a virtual work team?
1. Do you think it is possible to eliminate the need for informal work groups? Explain.
2. Discuss the following statement: The goals of informal work groups are never congruent
with the goals of the formal organization.
Students’ answers may vary. Informal work groups affect productivity, the morale of other
3. Some employees are described as “marching to the beat of a different drummer.” In light
of the discussion in this chapter, what does this statement mean to you?
10–14
4. Cite one business example and one social example of what you perceive to be groupthink
5. Cite an experience you have had where some group member(s) engaged in social loafing.
What were the reactions of the other group members?
6. Why do you think quality circles can be effective?
feeling of “us” rather than “me.”
SKILL-BUILDING APPLICATIONS
Incident 10-1: One of the Gang?
This case describes a trouble-making group in an organization. The management recruits the
ringleader as the supervisor to control the group and improve productivity.
1. Did the company make a good selection in Ruth? Explain.
2. What suggestions would you make to Ruth?
3. Are work groups necessarily opposed to working toward organizational goals? Explain.
Chapter 10 – Understanding Work Groups and Teams
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Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
organization, the group needs to be shown why they should work with the organization.
Sometimes employees need to be shown how the goal benefits them and not just the
company. It is the management’s responsibility to improve the morale, create the
environment where employees feel valued, and have a sense of ownership.
Incident 10-2: Talkative Mike
This case describes the role an informal leader plays in a group and the supervisor does not agree
with the behavior.
1. Do you agree with Mike and his group?
2. Does the supervisor really have a complaint in light of the fact that Mike’s group produces
well above average?
3. If you were the supervisor, what would you do next?
Exercise 10-1: Characteristics of Effective Work Groups
Exercise 10-2: Crash Project
The purpose of this exercise is to help students understand the different ways a delicate situation
can be handled.
Comments to the class and scores for each alternative:
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1. You’re telling your work group that you do not support the company’s decision. They may,
3. This alternative is also based on developing and using the workers’ loyalty to you
personally, at the expense of loyalty to the company. The company is portrayed as the “bad
5. This, if handled properly, is the best choice. You’re communicating two pieces of
information: (i) This work has to be done, and you’re not criticizing the company or
Exercise 10–3: Your Experience with Free Riders
Exercise 10–4: Your Best and Worst Experiences With Team Members
SUPERVISORY ANECDOTES
At Corning Inc.’s 91-employee specialty cellular ceramics (SCC) plant, the position of shift
trust, and empowerment requires a change in management’s attitude. Cultivating a new
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workplace culture also takes training. Half of the management group underwent training in
socio-technical systems, an approach that focuses on achieving synergy between the factory
social system and the technical system. For the SCC employees, the training program
encompasses team-effectiveness concepts, such as teamworking, conflict resolution, and
consensus decision making, as well as work skills and business concepts.
With global competition, increasingly demanding consumers, and an inability to increase prices,
more organizations are looking to self-directed work teams (SDWTs) to enhance productivity,
service, and quality. The transformation to SDWTs, however, can be difficult, often taking 2 to 5
years, and it affects every aspect of organizational life. A SDWT is a group of employees who
have day-to-day responsibility for managing themselves and a whole work process that delivers a
service or a product. Instead of taking direction from a supervisor, teams take direction from the
requirements of the work itself. Six critical issues for implementation of SDWTs are:
1. Planning needs to be driven by a vision.
Chapter 10 – Understanding Work Groups and Teams
RELATED VIDEOS:
1. Mining Group Gold’, CRM Films, 22 mins. (1993). Based on the book by Thomas Kaiser,
this video covers a variety of issues from organization to emotion.
2. The Power of Teams, Coronet, 28 mins. (1993). This video looks at three companies
including AT&T, Pacific Gas & Electric, and McGuffey’s Restaurants.