18-may-2006
Group
Organizations for their own benefits form groups. No organization can exist without groups.
Important Things for Managers to know:
1. One of the important things that managers must know about groups is that, groups are a fact of organizations. A knowledge of OB will be incomplete if we don’t have a basic understanding of groups.
2. Secondly managers should be aware that organizations will have many groups pursuing their own individual goals. The cumulative of these goals will achieve organizational goals. Thus managers should be aware that people join various groups for various reasons.
3. Groups structure themselves in a variety of ways. Mangers should know how to structure various groups to achieve goals.
4. Managers should also be aware that whenever 2 or more people interact with each other, power relation forms between members.
5. Group Cohesiveness: Managers should also understand about cohesiveness because it is that which totally influences group performance
Group Defined:
In terms of Perception:
Individuals perceive themselves as a group, then the group exists, and this has een developed by R.F. Bales in 1950
In terms of Organization
McDavid and Harai in 1968 defined group as an organized system of 2 or more individuals who are interrelated so that system can perform some functions and they have a standard set of role relationship among its members. So each member has their own set of goals and set of norms that regulate the function of the group and each of its members’ behavior. Norms are standard for group behavior and group function
In terms of Motivation
Bernard M. Bass(1960) developed this defined groups in terms of motivation. A group is a collection of individuals whose existance as a collection is rewarding to the individuals. (Intrinsic Reward, since it comes from within)
In terms of Inter Personal Interaction
By Homans, 1950. The degree to which members communicate and integrate.
If more than 1 person interact and communicate over a period of time, those groups of people will be called a group.
Characteristics of Groups:
è More than one person
è Common Goal
è Interaction, if there is no interaction, we cannot call it a group
Examples:
q A number of people standing in line for ticket are not groups, although they have a common goal. There may however be subgroups, who will interact with one another
q Mob is not a group because they have different individual goals
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There are three types of groups in Organizations:
- Formal Groups:
Two types of Formal Groups are:
- Command Groups: Formal groups given by organizations, eg, HR, production, finance. Relatively parmanent, and only top managers can restructure the relatively parmanent groups in organizations
- Task: Temporary groups formed for a definite purpose. For example if a company wants to launch a new product, it will form a temporary group consisting of people from R & D, Finance, Marketing, etc
- Informal Groups:
- Frienship: Similarities in values, beliefs and interests. Relatively parmanent.
- Interest: People join together for a specific purpose and one that purpose is fulfilled, they dismantle, eg, pressure group
- Psychological Groups:
The groups in which
a) People truly interact with each other
b) They perceive themselves as part of the group
c) They share a common sense of purpose
d) They are psychologically aware of each other
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22-May-2006
Why do people join groups:
q Groups satisfy the needs:
Needs satisfied by joining groups:
i. Social Needs: We are social animals
ii. Security Needs: We feel safe and secure if we are in groups
iii. Self and esteem needs: Through groups, some people actually want to satisfy ego and esteem
iv. Mutual Attraction for each other and that comes from:
a) Similar value systems
b) Enjoy each others company
c) Proximity: Physical distance is less and there is a tendency to join; walking distance
or 35’. Social Density. Marketing and Production people will make groups, because of
the small distance between the two departments.
Group Goals: if groups goals match with individual goal ??
q To satisfy economic needs: People with the same interest will form groups and try to satisfy their economic needs.
Four stages of Group Development
1. Mutual Acceptance: is the first stage of group development. You try to explore each others backgrounds. You are trying to form mutual acceptance
2. Communication and Decision Making: is also known as norming. You try to express your feelilngs and opinions more openly. You also decide upon group goals and activities and then communicate about the different roles each will assume in the group
3. Motivation and Productivity: also known as the performing group. As this stage you actively participate to achieve the goals and play the roles assigned to you
4. Control and Organization: Final stage of development also known as performing. When this stage is reached, the group is known as a mature group. At this stage you organize and control. Activities are relatively spontaneous. In your mind you have already organized and you also evaluate yourself with your roles and correct any deviation; you also try to correct your mistakes according to group goals.
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Group Performance Factors:
1. Composition: Everything should be in the right amount
a. Homogeneous Groups: When all members have similar characteristics which is critical fkor attaining group goal. MBA class is a homogeneous group because critical characteristics is having a graduation degree, passing the admission test, etc. A marketing command group will be homogeneous in the sense that everybody should have some marketing knowledge. Heterogeneous in the sense that different people come from different backgrounds
b. Heterogeneous Groups: Group members will have one or more varied characteristics critical for group goal achievement. Intentionally characteristics are selected different. Example: Task force for a new product development, and when you need creativity
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When you need Homogeneous Groups:
è Homogeneous groups will be effective when task is simple and variety of resources is not needed
è When you need great deal of cooperation and coordination among group members
è When managers will need a quick decision
When you need heterogeneous groups:
è When you need innovative creative ideas
è When quick decisions will have negative results in the long run
Drawbacks of Homogeneous groups:
è No one will disagree, so decision may be incorrect
Drawbacks of Heterogeneous Groups:
è If it is too heterogeneous, that group cannot reach a solution or decision. So managers should not be encouraged to form too heterogeneous groups
2. Size of the group: 10 to 12 members is the maximum a group should have. Group members should always be in odd numbers, so decision does not result in a tie.
Advantages of Large Groups:
è People can relieve their frustrations, when the group is big
Drawbacks of Big Groups:
è Reduced job satisfaction: By nature human beings like to work in smaller groups. Will also result in sub grouping. Clique will form
è Absenteeism and Turnover will increase because of increased frustration. People will try to leave the bigger group. Because everybody wants to feel important. Those outside the clique will feel unimportant
Relationship between Size and Productivity:
When group reaches a point of marginal/diminishing return, one more member will reduce productivity. But this is not the case for simple tasks, like collecting names for voter list. So it will follow the law of contingence. When you need very much coordination, interrelated tasks, smaller groups are preferred. But in case of income tax inspection, more people will not have adverse effect. Also, when urgency or quick decision is required, smaller groups are preferred.
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25-5-2006
Factors of Group Performance (contd.)
2. Size: There is no definite formula for the size of a group
Bigger groups will do better when Task is complex
Smaller groups will do better when Coordination and quick decision is required
3. Norms:
The performance standard of group behavior; standard against which member behavior will be compared, and if deviation occurs, measures can be taken.
People who will not usually conform to group norms:
è People with high intelligence, eg artists usually don’t abide by society norms
è People with high ego or high self-confidence
è People free of inferiority complex
People having opposite of all the above characteristics usually stick to group norms.
But certain situations will make even people with high intelligence to stick to group norms:
è When situation is ambiguous, when goal is not certain
è When individual goals match with group goals, people usually conform to group norms
4. Cohesiveness: The glue which compel group members to stay together and bond. It is the motivation to stay together
Factors that increase cohesiveness:
i. When group passes through the first two stages of group development
ii. When there is frequent interaction, but it also has a point of diminishing return. Too much interaction causes conflict
iii. When group members are mutually attracted to each other and particularly enjoy each others company.
iv. Intergroup Competition: When groups perceive that there is a common enemy outside the group. For example, competition between sales and marketing department
v. When there is success
Factors that decrease group cohesiveness
i. All the opposite factors to the ones mentioned above will decrease cohesiveness
ii. Competition among group members
iii. When one or two members try to dominate
Sources of attraction to stay together
i. When group and individual goals match
ii. When group has a charismatic leader
iii. When group has a reputation of being successful
iv. When group is small enough so everybody can express their opinions
v. When member are supportive of each other
Following factors also increase cohesiveness:
i. Homogeneous groups are very cohessive groups
ii. Mature groups, that is, passed through all four developmental stages
iii. When group is small in size
iv. When there is small distance among members
v. Goal is clear to everybody
vi. Success
Consequences of high cohessiveness:
Advantage:
è If group is homogeneous, group achievement will be easier
è Mature group, small size and frequent interaction will lead to personal satisfaction of group members. Frequent interaction will also lead to increased quality and quantity of interaction.
Disadvantage:
è Group Think: When all members start thinking like one individual
Following factors will decrease cohesiveness
i. Heterogeneous
ii. Immature
iii. Big Size
iv. Physical Dispersion
v. Ambiguous Goal
vi. When there is failure
Consequences:
è If heterogeneous, difficultyin achieving goal
è Physical
è If group has a reputation as a failure, there will be individual orientation
Relationship between Organizational Productivity and Group Cohesiveness
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Group goal is congruent with
Organizational goal
Organizational
Productivity
When group goal is
incongruent with organization
goal. Managers should then try
to decrease cohesiveness
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Group Cohesiveness
How cohesiveness can be broken
è By changing group members. They will go back to the first stage
Degree of
Cohesiveness
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Low
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Low
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High
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Performance probably oriented away from organization goal
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Performance probably oriented towards organizational goal
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High
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Performance oriented away from organizational goal
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Performance will be oriented towards achievement of organizational goal
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Group goal congruent with organizational goal
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Role Dynamics: We play multiple roles in our society, and multiple roles have multiple expectaions, at the same point in our lives, and because of this, we face role conflicts
1. Person role conflicts: When role requirement does not match with personal value system or basic belief
2. Multiple role conflicts: When different roles have different expectations, for eg, part time students have to decide whether to take an exam or attent a meeting, he has to make a choice
3. Intra role conflicts: Caught between two roles. For the same role, there are different expectations
4. Role ambiguity: When roles are not clear to you. When expectations are not clear, you suffer from role ambiguity
TEAM EFFECTIVENESS
Difference between groups and teams:
Same skilled people can form a group, or they may be selected randomly and formed a mixed skilled group
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Teams are intentionally formed to be heterogeneous
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Skills must complement one another
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Group synergy is sometimes neutral or negative
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Synergy should always be positive
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TAKE NOTE FROM SECTION A
29-5-06
Leadership
Ability of influencing people to willingly work for the leader to strive to achieve a goal or change their behavior.Essence of leadership is followership.
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Manager who lacks
Leadership power and abilities
Leaders as well as managers
Leaders without managerial power,
eg union leaders who do not have the
legal authority to direct people
The things that a leader in an organization should have:
è He must be a manager (must have position power)
è He must have the ability to comprehend that individuals have unique (or individual) needs
è He must have the ability to create an environment where people will be motivated to follow him(willingly)
è Leadership style: Can be developed in a continuum based on decision making power
Authocratic
Style: Leader has all the power, group has none. Leader makes all decisions & no input from gr
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Benevolent Autocrat: Leader has all the power but he interprets the needs of group members. Takes decision on behalf of others. Gives only lip-service
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Consultative:
Leader has the mamimum input and group has some in decision making
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Participative: Leader shares everything with group members. Equal sharing in decision making
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Democratic: Group has all the powers and leader has none. Leader only carries out the wishes of the group. Leader only implements
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4 approaches to Leadership:
1. Trait: Before 1949 it was believed that great men were born. But after that they have discarded that idea. Before there was kingship, but many kings failed as leaders. There were also people not born in big families and yet were great leaders. Stodgill and Ghiselli discarded that thought. Supervisory ability which has positive relationship with leadership style can be developed. Cooperativeness is learnt from environment. Leaders are very assertive people, confident, and not necessarily highly intelligent. A leader must have an intelligence level matching those of followers.
2. Personal Behavior (P-B):
a. The university of Michigan: Likert Scale, developed for social research, will always have odd numbers to benefit the statistical scale. He has identified two kinds of leaders
i. Employee Centered Leaders (E-C leaders): They care more for human elements in group activity
ii. Job centered Leaders (J-C leaders): They only care for the jobs at hand. More task-oriented.
The study also revealed that if an organization has more E-C leaders, it will have higher productivity.
b. The Managerial Grid theory developed by Blake and Mouton
1.1 -> Impoverished Managers
1.9 -> Country Club managers: High concern for others but no concern for productivity, like
dhaka club members, who have no productivity
9.1-> Task Managers: High concern for productivity, but no concern for others
9.9 -> Team Manager -> High concern for others and also productivity
5.5 -> They have middle concern for people and productivity
But Blake and Mouton only identified the types of managers, but not the reason as to why these managers are like this
01-june-2006
3. Contingency Approach:
a. Path-Goal Theory : The essence of the path-goal theory is that it’s the leader’s job to provide followers with the information, support, or other resiources necessary for them to achieve their goals. The term path-goal is derived from the belief that effective leaders clarify the path to help their followers get from where they are to the achievement of their work goals and to make the journey along the path easier by reducing roadblocks.
Four types of leadership styles:
è Directive: Totally autocratic; The directive leader lets followers know what is expected of them, schedules work to be done, and give specific guidance as to how to acomplish tasks.
è Supportive: The supportive leader is friendly and shows concern for the needs of followers.
è Participative: The participative leader consults with followers and uses their suggestions before making a decision.
è Achievement-oriented: The achievement-oriented leader sets challenging goals and expects followers to perform at their highest level.
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b. Fiedler Contingency Theory: The first comprehensive contingency model for leadership was developed by Fred Fiedler. The Fiedler Contingency model proposes that effective group performance depends on the proper match between the elader’s style and the degree to which the situation gives control to the leader.
Identifying Leadership Styles:
Fiedler believes that a key factor in leadership success is the individual’s basic leadership style. So he begins by trying to find out what that basic style is. He created the least preferred coworker (LPC) questionnaire , for this purpose (see pg339,robbins). It tries to measure whether a person is
i. Task-oriented: If the least preferred coworker is seen in relatively unfavorable terms (a low LPC score), the respondent is primarily interested in productivity and thus would be labeled task-oriented
ii. Relationship-oriented: If the least preferred coworker can be described in relatively positive terms (a high LPC score), then the respondent is primarily interested in good personal relations with this coworker. That is, if you essentially describe the person you are least able to work with in favorable terms, Fiedler would label you as relationship-oriented. Even if you don’t like a
person, yet you identify the person as a good person, you are relationship oriented and you value relationship
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warm, friendly cold, unfriendly
After the basic leadership style has been assessed through the LPC, it is necessary to match the leader with the situation. Fiedler has identified three contingency dimensions that define the key situational factors that determine leadership effectiveness.
è Leader-member relations: The degree to which members have confidence, trust, and respect in their leader
è Task structure: The degree to which job assignments are procedurized(that is structured or unstructured); All creative jobs have low structure eg advertising, research analyst. Highly structured jobs involve routine work, eg, account. When everything is written down, it is very easy to make you accountable for your job.
è Position power: The degree of influence a leader has over power variables such as hiring, firing, descipline, promitions, and salary increases
The model evaluates the situation in terms of these three contingency variables. Managers style will be determined by the situation;
Summary of Fiedler’s Situational Variables and Their Preferred Leadership Styles , pg283,James
Situational characteristics
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LMX(leader manager relationship)
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Good(LPC high)
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Poor(LPC low)
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Task Structure
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H
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L
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H
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L
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Position Power
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S
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W
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S
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W
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S
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W
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S
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W
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1
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2
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3
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4
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5
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6
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7
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8
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8 -> autocratic
7-> task or relationship oriented depending on situation
6-> Relationship
5-> Relationship
4-> T/R
3-> T/R
2-> Task oriented (relationship is already good)
1-> Task (everything is working for manager, if he becomes autocratic no one will mind)
Fiedler also coined the word Engineering. He says that task structure and position power are given by organization, but LMX depends totally on the manager or leader. Engineering LMX depends entirely on the manager. Can also be said “Engineering the Situation”. If manager has too much power, organization can engineer it and make it lower. If manager has little power, organization can engineer it and make it stronger.
Contemporary Approach:
Vertical Dyad Model: So far we assumed leaders have all same relationship with the members. But this model says leaders will develop five different relationships with five different team members. Leader for some unknown reason select some people for closer relationship, they are know as In-group members/Cadres; Reason can be same background, same locality, etc. These members get all the inside information, resources, privileges from the leaders. But that does not mean the others are in a bad relationship with the leader. They are known as out-group/Hired Hands. In the long run these members are frustrated and leave the company when they know they don’t get the extra privileges and do all the dirty work
================= END OF LEADERSHIP ==========================
Power and Politics
Everybody uses power whether manager or non-managerial person, to strenghten their position in the organization. Power is a social relationship between person-A and person-B, or person-A and a group of people. Power is also potential to influence and influence is power in action. Power cannot exist in isolation. Power requires audience and followers. pg390Robbins. Pg249James
So objective for manager is to obtain power, maintain power and use those powers. Even in democratic society, organization managers do this for organizational gain or personal motives. If for organizational goal, then the power is positive power, other negative power.
1. Legitimate power base comes with your position. Three characteristics:
a) It is invested by the organization, eg Teacher has the grading power
b) It is accepted by the subordinates:
Zone of indifference: your zone of indifference is smaller if you don’t listen to your boss, eg
government officials. If you listen and accept it, zone of indifference is bigger.
Dependency Theory (pg394R): Relationship between A (the manager) and B(the subordinate)
depends on how much resource A is controlling and how much B depends on those resources.
Dependency is increased when the resource you control is important, scare, and nonsubtitutable.
è Importance: A has the power to promote B, but promotion is not important for B. A can give overtime, but B is already well-off, so dependency on A becomes less
è Scarcity: If the resource is scare; for example promotion is scare, but B just got promoted, so B does not depend on A for promotion
è Substitute: If there any other option for the resource controlled by A, B will depend less on A
Legitimate power only goes downwards
5-June-2006
Organizational Power
Power Bases (cont.), pg251James
Organizational Power
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Social/Interpersonal Power developed by French and Raven
1. Legitimate power base: A person’s ability to influence others by being in a more
powerful position
2. Reward Power: A person’s ability to reward the behavior of others
3.
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4. Expert Power: Power to influence others based on special expertise. Knowledge base,
you will be expert in the field you are interested.
5. Referent Power: Power based on charisma due to personality or style of behavior.
Charismatic leaders have referrent power on their followers. When managers have
tremendous personal power on his followers. You will find many managers in organizations
that other managers want to follow, maybe the way they dress.
Structural Power Base pg254James
1. Resource Power: For example information, is a very strong power base for managers
2. Decision making Power
But what can you do with power unless you play politics. Anything you do beyong your legitimate power base, it is known in organizations as POB, Politically Oriented Behavior
Earlier we learnt
Rational Decision Making Process RD-MP involved,
1. Identifying the problem 2. 3. Evaluate 4. 5.
In decision making, it is 80% for organization, and 20% based on emotion. Managers will never make a decision that does nto fulfill his own personal need. So, no decision an individual makes can be rational, it is always political. No human can look above his own emotion, personal interest. So you play
a) Personal Politics
b) Organizational Politics: When you play politics for organizational goal
What will managers do in case of too much politics. Why do people play politics
Which environment triggers politics:
1. When goal is ambiguous, eg, we will increase our share in the market (time or % not specified)
2. When resource is scarce
3. When technology, processes, etc and environmental(external or internal) is dynamic, that is, moving too fast.
4. Too many non-programmed decisions. Decisions which are not routined
5. When there is structural/organizational change. Example, from mechanistic to organistic, when company is changing rules and regulations
How to reduce politics
1. Set a clear specific goal
2. Open the communication line, to be effective company processes should always be two ways.
3. When there is organizational change, managers must provide as much information as possible to the subordinates, because people tend to resist any change, people fear new things and they become anxious
How you play politics, Techniques :
1. Control as much information as possible
2. Control the communication line
3. Use outside expert, consultant: One benefit manager will get from using outsider is he will go along with the manager
4. Controlling the agenda of the company
5. Play games , pg263James
a. Insurgency Game: resisting the authority
b. Sponsorship Game: As a lower level manager you attach yourself to a very powerful manager. Listen to all his directives but not take credit
c. Counterinsurgency Game ?????increase your zone of indifference
d. Coalition Building: Form interest groups
e. Line vs Staff: Line managers may be lower in hierarchy, but he may hide informaiton and play politics
f. Whistle Blowing: One of the best examples of Whistle Blowing is
8-June-2006 .
Ways of dealing with Conflict:
1. Ignore(lose-lose situation)
2. Give in (lose-win situation, expectancy rises)
3. Win-Lose
4. Splitting the difference
5. Cooperative (win-win style)
How the cooperative Technique works:
1. Share the problems -> eg by asking “is there a way, what can we do about it”
2. Uncover needs
3. Identifying creative solution
Handling Difficult People
1. Complainer
a. Take Aside
i. When you
ii. I feel
iii. I’d like you to
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