Chapter Ten: Groups and Teams
Chapter Synopsis
This chapter examines the dynamics and influences of groups and teams in organizations by
focusing on the nature of groups and important group characteristics. The discussion begins by
defining different types of groups, explaining why and how they are formed, and outlining the stages
of group development.
Learning Objectives:
After completing this chapter, students should be able to:
1. Summarize the model of group formation and development
2. Compare the differences between formal and informal groups
3. Understand the reasons why people form groups
Key Terms
group— Two or more individuals interacting to accomplish a common goal.
team—Group of individuals with complementary skills that shares a common purpose,
responsibility, and accountability for achieving performance goals.
task group—A group of individuals who are working as a unit to complete a project or job task.
interest group—A group that forms because of some special topic of interest. Generally, when the
interest declines or a goal has been achieved, the group disbands.
social loafing—The tendency for individuals to exert less effort in groups than when working
individually.
groupthink—The deterioration of the mental efficiency, reality testing, and moral judgment of the
individual members of a group in the interest of group solidarity.
quality circle—A small group of employees who meet on a regular basis, usually on company time,
to recommend improvements and solve quality-related problems. Frequently a part of total quality
management efforts.
Lecture Outline
The Chapter outline is organized to correspond with the PowerPoint slides.
The chapter title slide may be used as a background to introduce the class.
Review the chapter learning objectives. These will be reviewed on the last slide of the pack.
Introduction (2 of 2)
Groups and teams are not the same. A group is two or more individuals interacting with each
other to accomplish a common goal. Teams are mature groups that share a common purpose,
responsibility, and accountability for achieving performance goals. Teams start out as groups,
but not all groups become mature and interdependent or teams. Teams and groups share many
EXHIBIT 10.1 Comparison of Groups and Teams
Exhibit 10.1 presents some of the differences between groups and teams. The depth of
commitment distinguishes groups and teams. Groups are accountable to a manager and are
often randomly formed (e.g., hiring different people over time), resulting in a varied mix of
The Nature of Groups
As indicated earlier, the following definition of groups will be used throughout this chapter: two
or more individuals interacting with each other to accomplish a common goal. One way of
viewing this definition is to think of it in terms of specifying three minimum requirements that
must be met for a group to exist. The first requirement deals with size. There must be two or
members might never speak with one another; their only interactions are typically in writing
The final requirement in our definition of groups is that of attempting to accomplish a common
goal. If there is no common goal or purpose, there is no group by our definition. A common
goal is a goal toward which individual members are willing to work.
EXHIBIT 10.2 A Model of Group Formation and Development
Although every group is different, possessing its own unique attributes and dynamics, it is also
true that in many important ways groups tend to display similar patterns of evolution. Exhibit
Types of Groups
An organization has technical requirements that arise from its stated goals. The accomplishment
of these goals requires that certain tasks be performed and that employees be assigned to
perform these tasks. As a result, most employees will be members of a group based on their
Command Group- The command group is specified by the organization chart and is made up of
the sub-ordinates who report directly to a given supervisor. The authority relationship be-tween
a department manager and the supervisors, or between a senior nurse and her subordinates, is an
example of a command group.
Task Group-A task group comprises the employees who work together to complete a particular
task or project.
or team may come together to achieve some mutual objective.
Friendship Groups-Many groups form because the members have something in common such
as age, political beliefs, or ethnic background. These friendship groups often extend their
interaction and communication to off-the-job activities.
A distinction has been made between two broad classifications of groups—formal and informal.
The major difference between them is that formal command and task groups and teams are
designated by the formal organization as a means to an end. Informal interest and friendship
groups are important for their own sake.
EXHIBIT 10.3 Five Reasons Why People Form Groups
One of the most compelling reasons people join groups is because they believe membership in a
particular group will help them to satisfy one or more important needs. Social needs, for
example, can be satisfied through groups that provide a vehicle for members to interact with
one another. Security needs may be partially met by membership in a group that acts as a buffer
between employees and the organizational system. Esteem needs may be partially met by
people to each other because of perceptual, attitudinal, performance, or motivational similarity.
Proximity makes it easier to determine areas of common attraction. Thus, both of these factors
work together to facilitate group formation.
Stages of Group Development
Groups learn just as individuals do. The performance of a group depends both on individual
learning and on how well the members learn to work with one another. One widely cited model
of group development assumes that groups proceed through as many as five stages of
development: (1) forming, (2) storming, (3) norming, (4) performing, and (5) adjourning.
Although critics of this model suggest that other factors such as time and deadlines are more
valid predictors of group functioning, the five-stage model remains influential.
Group Composition
As groups evolve through their various stages of development, they begin to exhibit certain
characteristics. To understand group behavior, you must be aware of these general
characteristics. Some of the more important ones are composition, status hierarchy, roles,
norms, leadership, and cohesiveness.
Members of a homogeneous group share a number of similar characteristics. Characteristics
origin), personality, skills and abilities, or work experience, to name just a few. A
groups are likely to be more cohesive than heterogeneous ones. On the other hand,
heterogeneous groups may outperform homogeneous ones in certain situations because they
have a richer variety of knowledge, information, and experience to draw upon.
Group Status Hierarchy
Status and position are so similar that the terms often are used interchangeably. The status
assigned to a particular position is typically a consequence of certain characteristics that
differentiate one position from other positions. In some cases, a person is given status because
of such factors as job seniority, age, or assignment. Assigned status may have nothing to do
with the formal status hierarchy.
Group Roles
The perceived role is the set of behaviors that a person in a position believes he or she should
enact.
The enacted role, on the other hand, is the behavior that a person actually carries out.
These multiple roles result in a number of expected role behaviors. In many instances, the
behaviors specified by the different roles are compatible. When they are not, however, the
individual may experience role conflict.
Group Norms
Norms are the standards of behavior shared by members of a group, and they have certain
characteristics that are important to group members. First, norms are formed only with respect
to things that have significance for the group. They may be written, but very often they can be
verbally communicated to members. In many cases, they may never be formally stated but
somehow are known by all group members.
Norm Conformity
An issue of concern to managers is why employees conform to group norms. A number of
variables may influence conformity to group norms. The personal characteristics of the
individual play a role. For example, research indicates that persons of high intelligence are less
likely to conform than less intelligent individuals, and authoritarian personality types conform
more than do nonauthoritarians. Situational factors, such as group size and structure, may
identifies with the group, are another potentially important variable. The degree of conformity
EXHIBIT 10.4 Hypothetical Production Norm and Its Zone of Acceptance
The exhibit illustrates where a group’s production norm might fall on a productivity continuum.
The zone of acceptance depicted in the exhibit represents minor deviations above and below the
norm that would be deemed acceptable to the group. Group members greatly exceeding the
norm might be referred to as rate-busters, while those producing well below group expectations
are seen as social loafers.
the orders or rules. Sometimes, however, there is no single formal leader, even in a formal
group. Such a condition may exist in the case of autonomous work groups. Self-managed teams,
for example, may collectively share leader duties among the group members.
Group Leadership (2 of 2)
The leadership role also is a significant factor in an informal group. The person who becomes
an informal group leader generally is viewed as a respected and high-status member who
embodies the values of the group, aids the group in accomplishing its goals, and enables
members to satisfy needs. Additionally, the leader is the choice of group members to represent
their viewpoint outside the group and usually is concerned with maintaining the group as a
functioning unit.
attractiveness for the members. Since highly cohesive groups are composed of individuals who
are motivated to be together, management tends to expect effective group performance. This
may be inconsistent with those of the organization.
Group Cohesiveness (2 of 2)
There are, of course, numerous sources of attraction to a group. These might include:
1. The goals of the group and the members are compatible and clearly specified.
2. The group has a charismatic leader.
3. The reputation of the group indicates that the group successfully accomplishes its tasks.
4. The group is small enough to permit members to have their opinions heard and evaluated by
others.
5. The members are attractive in that they support one another and help one another overcome
obstacles and barriers to personal growth and development.
cohesiveness and the members have goals that are not in agreement with those of management;
then the results probably will be negative from the standpoint of the organization.
To Increase Group Cohesion
As a manager, you may find that members of your workgroup aren’t getting along as well as
they should. To improve cooperation within the group and its overall productivity, you may
want to increase the cohesion level of the group. Some strategies for increasing group cohesion
are shown on this slide.
analyzed foreign policy decisions by a number of presidential administrations and concluded
that those made by such groups often included a decision-making process he called groupthink.
Janis defines groupthink as the “deterioration of mental efficiency, reality testing, and moral
judgment” in the interest of group solidarity. According to Janis, groups suffering from
groupthink tend to display a number of common characteristics.
Groupthink (1 of 2)
Characteristics of groups suffering from groupthink include the following.
The illusion of invulnerability. Group members collectively believe they are invincible.
The tendency to moralize. Opposition to the group’s position is viewed as weak, evil, or
unintelligent.
Opposing ideas dismissed. Any individual or outside group that criticizes or opposes a decision
receives little or no attention from the group. Group members tend to show strong favoritism
toward their own ideas in the manner by which information is processed and evaluated, thereby
ensuring that their own ideas will win out.
End Results
Groups exist to accomplish objectives. In the case of work groups, those objectives are
generally related to the performance of specific tasks, which in turn are designed to result in
attainment of formal organizational outcomes. Measurable production (e.g., number of units
assembled, percent of market captured, the number of customers served) is perhaps the most
obvious, but certainly not the only, end result of work group activities. While some form of
production output (goods, services, ideas, etc.) is typically an important measure of group
performance and effectiveness, it is not the only consideration. Organizational researcher
Richard Hackman identifies three important criteria of group effectiveness.
who share a common purpose, responsibility, and accountability for achieving performance
goals. Admittedly, the distinction between a team and a group can be arbitrary and is sometimes
vague. A total commitment to common goals and accountability to the team is what makes a
team stand out and distinguish itself from immature, developing groups.
Types of Teams
There is no standard classification system for describing different types of teams. Distinctions
among teams can be made on the basis of size, composition, organizational level, duration
(temporary versus permanent), objectives, and potential contribution to organizational
performance, to name only a few distinguishing characteristics. We will use a number of these
to categorize important types of teams in organizations today—problem-solving teams, research
and development teams, and the previously mentioned self-managed teams (SMT).
Team Effectiveness
Teams represent one form or type of group. As such, factors influencing the effectiveness of
any group are important in determining team effectiveness. Previously discussed group
characteristics such as composition, norms, leadership, and cohesion are examples. Some
issues, however, are particularly important when it comes to developing effective teams. Four
of these issues are: training, communications, empowerment, and rewards.
always suggests training. Depending on the type and purpose of the team, training may be
least, team members must be well-versed in the company’s philosophy regarding teams, the
team mission, and new roles and responsibilities individuals will have as a consequence of
being part of the team.
Improving Team Member Effectiveness
Whether a member of a student project group or a self-managed work team in an organization,
what does it take to be an excellent team member? Research indicates that these seven skills are
highly desirable for team members to be effective.
objectives. Much of this is information that has traditionally been management’s exclusive
domain. If teams are to be effective, however, full disclosure of formerly restricted information
may be necessary. Management—particularly middle management—is often threatened by this,
fearing a loss of decision-making power. The failure of many team efforts can be traced directly
Empowerment
Along with information, teams must have the authority to make decisions and act
autonomously. Whether a problem-solving team, an R&D team, or an SMT, teams that lack
authority are generally less effective. In addition to hindering taking action, lack of authority
suggests to team members that management doesn’t really trust them in the first place, further
reducing team effectiveness Being given insufficient authority is typically the root of team
empowerment problems. It should be noted, however, that sometimes teams may be given too
much authority. This is particularly a danger in the early stages of team involvement. Team
members may be unaccustomed to making decisions and be overwhelmed by the degree of
authority they suddenly possess.
are rewarded based on an evaluation of their individual performance. While the individual’s
contribution to team success is a legitimate part of the reward system, team success must also
be factored in. To the extent that teams perform well, the team should be rewarded. Distribution
of that reward to individual team members is an important, but separate issue. Rewards can be
organization. Many organizations using SMTs have modified their reward structure to include
some form of profit sharing. Regardless, it is important that teams be rewarded for their
contribution to organizational objectives.
In Review, Did We…
Instructors may wish to refer to the learning objectives to facilitate a review of the chapter
concepts.
Summary of Key Points
• Groups can be viewed from a number of perspectives, including perception, organization,
and motivation. For our purposes, a group may be thought of as two or more individuals
• Formal and informal groups exist for a number of reasons. Need satisfaction may be a
compelling reason to join a group. Security, social, and esteem needs are typical examples.
Proximity and attraction may be another reason. That is, people may form groups because
their physical location encourages interaction they enjoy. People may also form groups to
facilitate the accomplishment of common goals. Finally, some groups form because
• The model of the process of group formation and development presented in the chapter has a
number of elements. These include the different types of groups; the reasons groups are
formed, stages in group development, important characteristics of groups, and end results of
group activity.
capability of group members to work together inter-dependently in the future; and (3) the
extent to which the group experience contributes to the growth and well-being of the group.
• A team is a special kind of unit. Different types of teams include problem-solving teams,
cross-functional teams, virtual teams, research and development teams, and self-managed
teams.
Review and Discussion Questions
1. Think of a formal group to which you belong. Describe the group in terms of the
characteristics of groups discussed in this chapter.
Ans: Student answers will vary. A complete answer would do more than provide a laundry list of
2. Have you ever been part of a virtual team? Describe it. What are the advantages and
disadvantages of virtual work arrangements?
Ans: Student answers will vary. Some advantages of virtual work arrangements are that we can work
anywhere in the world at any time and communicate to a group website. We can exchange
information in a nanosecond. Workers are demanding more flexible work/life arrangements, more
3. Why is it important for managers to be familiar with the concepts of group behavior?
Ans: The pervasiveness of groups alone makes it important for managers to be familiar with the
concepts of group behavior. But more importantly, groups can alter individual motivation, needs,
4. Are groups more effective in problem solving than individuals?
Ans: It depends. Some individuals have the expertise and can solve a problem better than a group.
5. Why is groupthink something to be avoided? How might a manager attempt to insure that
groupthink doesn’t occur in his or her group?
Ans: Groupthink may mean that rather than making the best decision, members of a group define the
6. What is the relationship between group norms and group cohesiveness? What roles do both
cohesiveness and norms plan in shaping group performance?
Ans: Norms are standards of behavior shared by the group members. Cohesiveness refers to the
7. Describe a situation in which you were part of a formal work group (while working in a job
or as a student) and one of the members of the group did not contribute much work to the
group effort or project. How did the other group members deal with this person? How did this
person’s behavior affect the attitude of the other group members?
Ans: Student answers will vary.
8. Thinking back to a recent student or work group project in which you participated, how
effective were you as a team member? What behaviors did you engage in that contributed to
your and the group’s effectiveness? (Refer to the seven characteristics of effective team
members presented in this chapter.)
Ans: Student answers will vary. Seven characteristics of effective team members: open-mindedness,
9. Is leadership a more or less important consideration in self-managed teams than in other
types of groups? Why or why not?
Ans: In many ways leadership could be considered much more important in self-managed teams.
10. If you were creating a research and development team for an organization, what kinds of
factors would you take into consideration in deciding the composition of the team? Would
these factors be different if you were putting together a problem-solving team?
Ans: R&D teams are mostly utilized in highly technical industries to develop new and innovative
EXERCISE 10.1: Participating in and Observations of Group Processes
Purpose
To provide students experience in participating in and observing groups undertaking a specific task.
The Exercise in Class
This activity provides an excellent opportunity to bring to life some of the group concepts
In post-exercise discussion, it is useful to pose these questions:
1. Did a leader emerge in the group(s)? If so, what characteristics did the individual
exhibit which led you to conclude that he/she was the group leader?
2. Were you able to determine if and when the group progressed from one stage of group
development to another? Did the group progress through all four stages?
3. What roles did members assume? Which roles were particularly distinctive?
EXERCISE 10.2: What to do With Johnny Rocco
Purpose
To give students an opportunity to participate in a group discussion and to diagnose the group
decision process.
The Exercise in Class
This exercise combines role playing and group problem solving-an excellent method for helping
Directions:
1. Students should take a few minutes to read the material on Johnny Rocco.
3. Each group should choose one person to be chairperson; the chair, in turn, will assign roles to
each of the other participants. The chair is Johnny Rocco’s supervisor. Each group has seven
other members: shop steward, head of production, Johnny’s co-worker, director of personnel,
social worker, and two observers.
4. After the roles have been assigned, each role-player should complete the personal preference
part of the worksheet, ordering the alternatives according to their appropriateness from the
vantage point of his or her role. (As a courtesy, it would be helpful to have copies of the
6. Groups must work together until they have completed the assignment.
7. When all groups have completed the task, they should begin the process of answering the
Group Process Diagnostic Questions.
8. As a final step in the exercise, reassemble the entire class and asked them what they learned
from the experience. Students will have many insights, including those related to leadership,
perception, communication, roles, conflicting points of view, conflicts, feelings, attitudes,
task performance, group effectiveness and many other subjects already covered in the course.
Challenge students to try to relate what they have learned through the experience to the
course material.
CASE 10.1: Zappos Eliminates Managers
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1. Do you think the new self-managed team approach at Zappos helps employees become more
innovative in their new roles? Explain.
Student answers will vary; however, they should acknowledge the benefits of teams in general and
2. If you were Hsieh, how would you respond to critics who say people have little or no
incentive to stay with Zappos because there is no opportunity for advancement?
Hsieh may respond that he doesn’t want people that are just looking for promotions and using
3. If you were a manager at Zappos, would you take the offer to leave the company?
Teaching Hints and Tips
Lecture Ideas
1. Skills in working effectively in groups, whether that means leading a group or being a
contributing member, have become increasingly important in organizations of all kinds.
2. Among the factors cited for increasing group cohesiveness is the presence of a common
enemy. Ask students to consider why this should be so. Try to get them to think about the way
athletic coaches, some CEOs, and even the national leaders use this idea to focus energy, rally
support, and accomplish tasks. Sometimes the enemies are real, sometimes imagined. Does this
make a difference? Why or why not? This exercise can be used to reiterate the importance of
perception and stereotyping in how we define others and ourselves. What happens when the
3. One rich source of illustrations of many of the chapter’s concepts is your students’ own
experiences with groups. Ask students to use group experiences, identified first in class
discussion, to illustrate such topics/issues as:
A. Why individuals join groups
B. The stages of group development
Have they have ever been a part of a group that achieved beyond its means or failed to achieve
its goals? Ask students to describe the dynamics at work in each instance.
4. It is increasingly likely that we will all work in some sort of team in our organizations. You
might have the students compare and contrast teams and groups. They could then do some
Projects Class Speakers Ideas
1. Ask students to identify a campus group with a fairly diverse membership. If they have trouble
identifying such a group, take the opportunity to ask why, and as you listen to their responses
remind them of the group concepts, which help explain the “non-group” behavior. If students
can identify a group which most agree has a fair degree of diversity, ask them to analyze the
2. Hollywood has made some wonderful movies illustrating the process of group formation and
detailing its impact on individuals. The classic, Twelve Angry Men, shows how a jury,
assigned the task of reaching a verdict in a murder case, works together. It is a tense and very
“talky” movie, but it can be an excellent vehicle for discussing the stages of group
3. Instead of drawing upon students’ experiences with groups in class discussion, have your
students prepare a written profile of a group in which they have been members. In their reports,
Term Paper Topics
1. Games People Play in Groups
2. Personal Strategies for Being Effective in Self-Managed Teams
3. What Group Theory Can Tell Us About Racism in America
4. Hitler’s Nazi Party: The Roots and Power of Group Cohesiveness