Groups, Teams, and Corporate Culture

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Chapter 17
Groups, Teams, and Corporate Culture Ninth
Edition Samuel C. Certo
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Chapter Objectives(1 of 2)

• A definition of the term group as used in the
  context of management.
• A thorough understanding of the difference
  between formal and informal groups.
• Knowledge of the types of formal groups that
  exist in organizations.
• An understanding of how managers can determine
  which groups exist in an organization.

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Chapter Objectives(2 of 2)

• An appreciation for what teams are and how to
  manage them.
• Insights into managing corporate culture to
  enhance organizational success.

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Groups

• Group
• A group is any number of people who (1) interact
  with one another, (2) are psychologically aware
  of one another, and (3) perceive themselves to be
  a group.
• Why the Study of Groups is Important to Managers
• Groups exist in all kinds of organizations
• Groups inevitably form in all facets of
  organizational existence
• Groups can cause either desirable or undesirable
  consequences within the organization.
• An understanding of groups can help managers
  raise the probability that the groups with which
  they work will cause desirable consequences
  within the organization.

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Kinds of Groups in Organizations
Formal Groups
Informal Groups
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Formal Groups

• Formal Group
• A formal group is a group that exists within an
  organization by virtue of management decree to
  perform tasks that enhance the attainment of
  organizational objectives.
• Kinds of Formal Groups
• Command group
• Is a formal group that is outlined in the chain
  of command of an organizational chart. Command
  groups handle routine activities.
• Task group
• Is a formal group of organizational members who
  interact with one another to accomplish
  non-routine tasks.

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Example of a Formal Group
A formal group
Figure 17.1
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Other Examples of Formal Groups

• Committees
• A committee is a task group that is charged with
  performing some type of specific activity.
• Work Teams
• A work team is a task group used in organizations
  to achieve greater organizational flexibility or
  to cope with rapid growth.
• Special-Purpose and Self-Managed Teams

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Percentage of Companies Having Committees
Percent of companies that have committees, by
size of company
Figure 17.2
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Stages of Formal Group Development

• The Acceptance Stage
• The Communication and Decision-Making Stage
• The Group Solidarity Stage
• The Group Control Stage
• Members function as a unit
• Members participate effectively in group effort
• Members are oriented toward a single goal
• Members have the equipment, tools, and skills
  necessary to attain the groups goals
• Members ask and receive suggestions, opinions,
  and information from one another

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Informal Groups

• Informal Group
• An informal group is a collection of individuals
  whose common work experiences result in the
  development of a system of interpersonal
  relations that extend beyond those established by
  management.
• Kinds of Informal Groups
• Interest group
• Is an informal group that gains and maintains
  membership primarily because of a common concern
  members have about a specific issue.
• Friendship group
• Is an informal group that forms in organizations
  because of the personal affiliation members have
  with each other.

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Benefits of Informal Group Membership

• Benefits
• Perpetuation of social and cultural values that
  group members consider important.
• Status and social satisfaction that people might
  not enjoy without group membership.
• Increased ease of communication among group
  members.
• Increased desirability of the overall work
  environment.

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Groups Vs. Teams

• Not Synonymous
• The term group and team are not synonymous.
• A group consists of any number of people who
  interact with one another, are psychologically
  aware of one another, and think of themselves as
  a group.
• A team is a group whose members influence one
  another toward the accomplishment of an
  organizational objective.
• A group qualifies as a team only if its members
  focus on helping one another to accomplish
  organizational objectives.

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Types of Teams in Organizations

• Problem-Solving Teams
• A problem-solving team is an organizational team
  set up to help eliminate a specified problem
  within the organization.
• Self-Managed Teams
• A self-managed team is an organizational team
  established to plan, organize, influence, and
  control its own work situation with only minimal
  direction from management.
• Cross-Functional Teams
• A cross-functional team is an organizational team
  composed of people from different functional
  areas of the organization who are all focused on
  a specified objective.

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Stages of Team Development
Forming
Storming
Norming
Performing
Adjourning
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Team Effectiveness
Factors contributing to team effectiveness
Figure 17.7
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Trust and Effective Teams

• Strategies Managers Can Use to Build Trust Within
  Groups
• Communicate often to team members
• Show respect for team members
• Be fair to team members
• Be predictable
• Demonstrate competence

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Corporate Culture(1 of 2)

• Corporate Culture
• Is a set of shared values and beliefs that
  organization members have regarding the
  functioning and existence of their organizations.
• Mechanisms for Developing and Reinforcing the
  Desired Corporate Culture
• What leaders pay attention to, measure, and
  control
• Leaders reactions to critical incidents and
  organizational crises
• Deliberate role modeling, teaching, and coaching

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Corporate Culture(2 of 2)

• Mechanisms for Developing and Reinforcing the
  Desired Corporate Culture (continued)
• Criteria for allocation of rewards and status
• Criteria for recruitment, selection, promotion,
  and retirement of employees