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Society, Management and Accounting

Group Dynamics

Organizational Behavior: Perception, Motivation, Group Dynamics, Organizational Culture

Paper I · Unit 3 Section 5 of 11 0 PYQs 25 min

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Group Dynamics

4.1 Types of Groups

Type Description Example
Formal Group Deliberately created; defined tasks, roles, authority Project team, department committee, task force
Informal Group Spontaneously formed; based on social ties, shared interests Lunch group, tea-break colleagues, employee friendship networks
Command Group Defined by organisation chart — manager + direct reports A sales manager and her 8 sales executives
Task Group Created to complete specific project; may cross formal lines Cross-functional new product development team
Interest Group Share common goal not defined by organisation Employees lobbying for better cafeteria food
Friendship Group Social ties; often extends outside workplace Colleagues who play cricket together on weekends

4.2 Group Development: Tuckman's Stages (1965)

Bruce Tuckman (1965) identified five sequential stages of group development:

Stage Characteristics Manager's Role
Forming Members polite, uncertain, dependent on leader; testing boundaries Provide clear direction and structure
Storming Conflict over roles, power, approach; resistance to leader; sub-group formation Facilitate conflict resolution; clarify roles
Norming Consensus develops; group cohesion; shared norms established Step back; facilitate; praise cooperation
Performing High productivity; effective collaboration; self-directed Delegate; focus on results; provide resources
Adjourning (Added 1977) Project completion; disbanding; mixed emotions Celebrate achievements; prepare for transition

4.3 Group Cohesiveness

Group cohesiveness is the degree to which members are attracted to the group and motivated to remain in it. Factors increasing cohesion:

  • Small group size
  • High threat from external environment
  • Success history of group
  • Frequent interaction
  • Similarity of values and interests

High cohesion + aligned goals → very high performance
High cohesion + unaligned goals → harmful resistance to management goals
Groupthink (Irving Janis, 1972): highly cohesive groups develop a norm of consensus that suppresses critical evaluation of alternatives — classic example: Bay of Pigs invasion (1961).

4.4 Hawthorne Studies: Foundation of Group Dynamics

Elton Mayo's Hawthorne Studies (1924–32) at Western Electric Company, Hawthorne Works, Illinois:

  • Illumination experiments: Productivity rose even when lighting was reduced — observer effect
  • Relay Assembly Test Room: 5 women produced more regardless of rest breaks/hours — social dynamics mattered
  • Bank Wiring Observation Room: Workers restricted output to group norms even with incentive pay — informal norms override individual incentives
  • Hawthorne Effect: People change behavior when they know they are being observed