Group Dynamics

the social process by which

people interact face-to-face in
small groups
Types of groups:
formal
1. temporary
2. Permanent

informal

Formal groups
- established by the organization and
have a public identity and goal to
achieve
Temporary created to accomplish a
short-term task and then
disband
E.g. committee, task force, etc.
Meeting event at which group members
discuss ideas or solve problems
Permanent more natural and enduring
work group
Team when people regularly perform
tasks together as part of their job
assignments
Comparison of Informal and
Formal Organizations
Informal Organization
- network of personal and social
relations not established or required by
the formal organization but arising
spontaneously as people associate with
one another
Developed as a result of the Western Electric
studies in the 1930s
Differences between Informal and Formal Organizations
Basis of Comparison Informal Organization Formal
Organization
General nature Unofficial Official
Major concepts Power and politics Authority and
responsibility
Primary focus Person Position
Source of leader power Given by group Delegated by
management
Guidelines of behavior Norms Rules and policies
Sources of control Sanctions Rewards and
penalties
Effects of the informal organization:
1. Employees act differently than required
2. Employees often interact with different people
3. Workers may embrace a set of attitudes, beliefs,
and, sentiments
President
Vice President
VP Finance VP Marketing
VP
Accounting
VP Human
Resource
Secretary
Jueteng Club
Rock Band
Members
Saturday Night Party
People
Hidden Agenda
Informal Leader employee with the largest
amount of status in the informal
organization
Roles:
model and explain key norms to new members
apply various forms and degrees of punishment
recognize daily achievements of workers
organizing social events
Benefits:
permitted by co-workers for certain privileges
holds high esteem
Benefits of Informal Organizations
Makes a more effective total system
Lightens workload on management
Helps get the work done
Tends to encourage cooperation
Fills in gaps in a managers abilities
Gives satisfaction and stability to work groups
Improves communication
Provides a safety valve for employee emotions
Encourages managers to plan and act
more carefully
Contributes to higher cohesiveness
Problems of Informal Organizations
Develops undesirable rumor
Encourages negative attitudes
Resists change
Leads to interpersonal and intergroup conflicts
Rejects and harasses some employees
Weakens motivation and satisfaction
Operates outside of managements control
Supports conformity
Develops role conflicts
Network charts visual portrait of informal
systems that usually focus on either
interpersonal feelings or actual behaviors
Red Patrick
Toni
Malou
ER
Tin2x
Management Guidelines for Action:
1. Accept and understand informal organizations
2. Identify various levels of attitudes and
behaviors within them
3. Consider possible effects on informal
systems when taking any kind of action
4. Integrate the interest of informal groups with
formal ones
5. Keep formal activities from unnecessarily
threatening informal organizations