MICRO AND MACRO DYNAMICS OF OB

1. MICRO AND MACRO DYNAMICS OF OB • Groups • Leadership • Communication • Organizational structures & Design

2. Groups • Defining and classifying groups • The Dynamics of group formation • Why do people join groups • Work group behaviors • Teams

3. Defining and Classifying Groups Group: Two or more individuals, interacting and interdependent, who have come together to achieve particular objectives Formal Group: A designated work group defined by the organization’s structures. Informal Group: A group that is neither formally structured nor organizationally determined: appears in response to the need for social contact Command Group: a manager and his/her immediate subordinates Task Group: those working together to complete a job task Interest Group: those working together to attain a specific objective with which each is concerned. Friendship Group: those brought together because they share one or more common characteristics

4. Differences between informal and formal groups Basis of Comparison Informal Formal General nature Unofficial Official Major concepts Power & Politics Authority& responsibility Primary focus Person Position Source of leader power Given by group Delegated by management Guidelines for behaviour Norms Rules Sources of control Sanctions Rewards & Punishments

5. Why do Individuals form Groups? • Activities, Interactions and sentiments -The more activities persons share, the more numerous will be their interactions and the stronger will be their sentiments -The more interactions among persons, the more will be their shared activities and sentiments -The more the sentiments persons have for one another, the more will be their shared activities and interactions.

6. Why do………..cont. Individual X Individual Y Z Common attitudes and value Religion Politics Lifestyles work

7. Why do………..cont. • Security • Status • Self Esteem • Affiliation • Power • Goal Achievement

8. Stages of Group Development- The Five Stage Model

9. The Punctuated –Equilibrium Model High Completion Performance Phase 2 First Meeting Transition Phase 1 Low A B (A+B)/2 TIME

10. Work Group Behavior Group task Group Member resources External Conditions Imposed on The groups Group processes Performance and satisfaction Group structure

11. External Conditions Imposed on the Group • Organization Strategy • Authority Structures • Formal Regulation • Organizational Resources • Personnel Selection Process • Performance Education and Reward System • Organizational Culture • Physical Work Setting

12. Group Member Resources • Abilities • Personality

13. Group Structure 1) Leadership 2) Roles: a set of expected behavior patterns attributed to someone occupying a given position in a social unit • Role identity: certain attitudes and behaviors consistent with a role • Role perception: an individual’s view on how he or she is supposed to act in a given situation • Role expectations: how others behave a person should act in a given situation • Psychological contract: an unwritten agreement that sets out what management expects from the employee, and vice versa • Role conflict: a situation in which an individual is confronted by divergent role expectations

14. Group Structure (cont…) 3) Norms: acceptable standards of behavior within a group that are shared by the group’s members • Performance related norms • Appearance norms • Informed social arrangements • Allocation resources

15. How do norms develop? • Explicit statements made by a group member • Critical events in the group’s history • Primacy • Carry over behaviors from past situations

16. Why are they enforced? • It facilitates the group’s survival • If it increases the predictability of group member’s behavior • If it reduces embarrassing interpersonal problems of group members • If it allows members to express the central values of the group and classify what is distinctive about the group’s identity

17. Conformity • Adjusting one’s behavior to align with the norms of the group • Asch’s study: subjects conformed in about 35% of the trials

18. 4) Status • A socially defined position or rank given to group’s or group members by others

19. 5) Size • Does the size of a group effect the group’s overall behaviors?: • Social loafing: the tendency of group members to do less than they are capable of individually, resulting in an inverse relationship between group size and individual performance

20. 6) Composition Heterogeneous groups would be more likely to have diverse abilities and information and should be more effective

21. Group processes • Include the communication patterns used by members for information exchanges, group decision processes, leader behavior, power dynamics, conflict interactions.

22. Group Tasks • The impact of group processes on the group’s performance and member satisfaction is moderated by the tasks that the group is doing • The complexity and interdependence of tasks influence group’s effectiveness • Tasks can be simple/complex, routine/normative

23. Group Cohesiveness • Cohesiveness is the degree to which group members are attached to each other and are motivated to stay in the group Determinants • Time spent together • Severity of initiation • Group size • Gender of members • External threats • Previous successes

24. Effect of cohesiveness on group productivity Cohesiveness High Low High High Productivity Moderate Productivity Performance Norms Moderate to High Productivity low Productivity Low

25. Implications For performance • There is a positive relationship between role perception, and employees performance evaluation.

26. Group Decision Making • Group vs the individual • Strengths- more complete information increased diversity of views acceptance of a solution • Weaknesses- conformity pressures dominated by one or few members ambiguous responsibiliyty

27. Effectiveness and Efficiency • Accuracy- groups more accurate • Speed- Individuals superior • Creativity groups more effective • Acceptance of final solution- group • Groups may be higher on effectiveness but individual decision making is more efficient

28. Groupthink • Phenomenon in which the norm for consensus overrides the realistic appraisal of alternative courses of action • Have you ever felt like speaking up in a meeting, classroom, or informal group but decided against it? • Does group think attack all groups? • What can managers do to minimize group think?

29. Group shift • A change in decision risk between the group`s decision and the individual decision that members within the group would make; can be either toward conservatism or greater risk