CHAPTER 14 UNDERSTANDING WORK GROUPSpvkketcho.pbworks.com/f/Chapter14_WorkGroups.pdf · 320 CHAPTER 14 UNDERSTANDING WORK GROUPS CHAPTER 14 UNDERSTANDING WORK GROUPS When you have

LE A R N I N G OB J E C T I V E S

READING STRATEGIESAs you read

● PREDICT what the section will be about.

● CONNECT what you read with your own life.

● QUESTION as you read to make sure youunderstand the content.

● RESPOND to what you read.

320 CHAPTER 14 UNDERSTANDING WORK GROUPS

CHAPTER 14CHAPTER 14UNDERSTANDINGWORK GROUPS

When you have completed this chapter, you will be able to:

� Explain the difference between formal and informalwork groups.

� Discuss group norms, group cohesiveness, and groupconformity.

� Understand why individuals conform to group norms.

� Recognize the importance of work groups to anorganization.

� Suggest ways to build effective work groups.

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WORKPLACE CONNECTIONS

For further reading on man-agers and management go to:www.businessweek.com

“Teams, training, and increased authority for workers are key elements of quality-improvement efforts. . . . To help accomplishtheir objectives, teams are aided by company-trained employees, who provide skills trainingand serve as resources throughout all phases ofthe teams’ work.”

—National Institute of Standards andTechnology, describing its 1992 Malcolm

Baldrige National Quality Award winner, AT&TNetwork Systems Group (Lucent Technologies)

“MANAGEMENT TALK”

321

UnderstandingManagement

When Lucent technologiesspun off from its parent company,AT&T, it gained the freedom toorganize its workforce differently.Most Lucent employees work inteams designed to foster effi-ciency, creativity, and innovation.This approach gives employeesthe flexibility to solve problemsand invent new products. In fact,Lucent can boast of earningabout two patents per workingday, as well as the MalcolmBaldrige National Quality Award.

Analyzing Management Skills

Why would it be important for teammembers to receive continual training?

Applying Management Skills

If you were on a team responsible forinventing a communications system,what qualities would you appreciate inyour team members?

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www.businessweek.com

HOW GROUPS BEHAVE

➤ The differencesbetween formal andinformal workgroups.

➤ Why employees joininformal workgroups.

➤ The factors thatinfluence howgroups behave.

➤ The meaning of“groupthink.”

To supervise groupseffectively, managersmust understand thedynamics of groupbehavior.

• formal work group• informal work group• group norms• group cohesiveness• group conformity• groupthink


Section 14.1

� INFORMAL GROUPS People who work together often join informal groups for socialreasons. What are some of the positive and negative aspects of belonging to sucha group?

Groups Within OrganizationsAll organizations depend on groups to achieve success. In organi-

zations, a group is two or more people who interact to meet a sharedgoal. In your high school, groups of students may form the studentcouncil or organize fundraising or social events. A shared sense of pur-pose sets a group apart from just a gathering of people. In general,organizations contain two kinds of groups: formal work groups andinformal work groups.

Formal Work GroupsManagement establishes to carry out spe-

cific tasks. Formal groups may exist for a short or long period of time.A task force is an example of a formal group. These groups have a sin-gle goal, such as resolving a problem or designing a new product.

formal work groups

WHAT YOU’LL LEARN

WHY IT’S IMPORTANT

KEY TERMS

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A different type of formal work group is the command or functionalgroup. This group consists of a manager and all the employees he orshe supervises. Unlike a task group, the command group’s work isongoing and not confined to one issue or product.

Informal Work Groupsare formed voluntarily by members of an

organization. They develop from personal contacts and interactionsamong people. Groups of employees that lunch together regularly andoffice cliques are examples of informal work groups.

A special type of informal groupis the interest group. Its members sharea purpose or concern. For example,women executives might form agroup to share ideas about issues thatwomen in management face.

Work is a social experience.Employees interact while perform-ing job duties in offices, factories,stores, and other workplaces. Friend-ships emerge naturally from thesecontacts. Informal groups formedaround mutual interests fill impor-tant social needs. In earlier centuries,groups like extended families,churches, and small towns met theseneeds. Today people socialize mostlywith people they meet at work.

Informal work groups affect pro-ductivity, the morale of otheremployees, and the success of man-agers. They can be the result of—andcan help create—a shared sense of loyalty. This is especially prevalent inhigh-risk occupations, such as fire fighting and police work.

Informal work groups often develop in areas where employeeswork close together (such as offices with cubicles) and among employ-ees in the same field (such as accounting or graphic design). Employeesmay band together to share fears or complaints. In such cases, informalgroups work against organization goals.

Studies have identified the power of informal work groups in orga-nizations. The 1924 Hawthorne studies (see Chapter 2) discovered thatgroups may set their own productivity levels and pressure workers tomeet them. In one group, workers who produced more or less than theacceptable levels met with name-calling, sarcasm, ridicule, and insome cases, a blow on the arm. The Hawthorne studies concluded that

Informal work groups

How Groups Behave Section 14.1 323

� RESEARCHING WORK In the first half of the twentieth century,researchers studied the way factory workers behaved on the job. Why do you think factory owners and managers wanted to knowhow workers behaved?

PREDICT

Why would employees form infor-mal work groups?

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informal organizations with their own social systems exist within for-mal organizations.

In general, management does not recognize informal groups thatrevolve around friendships, interests, or shared working space andtasks. Yet an understanding of these groups can improve managers’work with formal groups. Employees join informal groups to meet asocial need. They often gain great satisfaction from these groups.Managers seek to duplicate this satisfaction in formal work groups.

Group Normsare the informal rules a group adopts

to regulate the behavior of group members. They may beextremely simple—a group that lunches together maymaintain a rigid seating order. They may include expec-tations that group members will remain loyal to eachother under any circumstances. Whatever the norms,group members are expected to hold to them. Memberswho break the rules often are shut out.

Norms don’t govern every action in a group, onlythose important for group survival. For instance, a work-ing group’s norms would affect its productivity levels,operating procedures, and other work-related activities.Norms may not be written down or even spoken. Rather,group members use their actions to show new membershow to behave.

Group norms


� CULTURAL VALUES Group norms may be based on shared cultural values. Whatcultural values make work groups successful?

Tips from Robert Half Be enthusiastic and be

ready to perform first-rate workno matter what you’re asked todo. Enthusiasm can help you geta job done faster. You’ll havetime to take on exciting newchallenges.

CONNECT

Describe an informal group atyour school. What are the group’snorms?

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Management Careers in Focus

Labor Relations Manager

Labor relations managers must haveintegrity, strong speaking and writing skills,and experience working with people of allbackgrounds. They must be fair and able tofunction well under pressure.

� Salary RangeLabor relations managers earn $25,300 to

start with a bachelor’s degree; $39,900 with amasters; directors of industrial relations,$100,000+ depending on the size and type ofindustry, and experience.

CRITICAL THINKINGWhy must labor relations managers haveintegrity?

INDUSTRY OUTLOOK When labor negotia-

tions break down in thetransportation industry, itcan have a devastatingeffect on the U.S. economy. Nearly 7 millionbusinesses rely on the U.S. transportation net-work to conduct commerce, and more than100 million U.S. households rely on freighttransportation to access goods and services.

� Nature of the WorkLabor relations managers are vital in com-

panies that employ union workers. However, inmost industries, union membership is declin-ing, and, more often, labor relations managersare working with non-unionized employees.

Labor relations managers prepare the infor-mation used during collective bargaining. Theymust know economics, labor law, and collectivebargaining trends. Their staff sees that griev-ances, wages, salaries, healthcare plans, andpensions are administered according to the con-tract. Directors of industrial relations developlabor policy, oversee labor relations, and nego-tiate collective bargaining agreements.

� Working ConditionsLabor relations managers work in many

different industries, usually in clean, pleasantsurroundings. They tend to work more than 40hours a week and face extreme pressure duringcontract negotiations.

� Training, Other Qualifications, and AdvancementLabor relations managers need a bache-

lor’s degree in liberal arts with emphasis inhuman resources, personnel administration,business or labor law, or industrial relations. Amaster’s degree is required for top manage-ment positions. Internships or work-study pro-grams are useful.

For more information on management careers, go to: busmanagement.glencoe.com

BUSINESS MANAGEMENT

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busmanagement.glencoe.com

Group BehaviorThink about the informal groups of friends and classmates you

have belonged to at school or in your neighborhood. However theydevelop, informal work groups share similar types of behaviors. Theyinclude cohesiveness, conformity, and groupthink.

Group Cohesivenessis the degree of attraction among group mem-

bers, or how tightly knit a group is. The more cohesive a group, the morelikely members are to follow group norms. A number of factors affect thecohesiveness of informal work groups—size, success, status, outside pres-sures, stability of membership, communication, and physical isolation.

Size is a particularly important factor in group cohesive-ness. The smaller the group, the more cohesive it is likely tobe. A small group allows individual members to interact fre-quently. Members of large groups have fewer chances tointeract, therefore these groups tend to be less cohesive.

Think about how two close friends operate when theystudy together. Because they know each other well and talk eas-ily, they have no trouble working together. Now imagine threenew people in the study session. Everyone might not agree onthe best way to cover material. It may be hard to work with dif-ferent people. This might cause the study group to fall apart.

Success and status affect group cohesiveness. The moresuccess a group experiences, the more cohesive it becomes.Several factors contribute to a group’s status. For instance,highly skilled work groups tend to have more status thanless-skilled groups. Like groups that meet their goals, high-status groups tend to be more cohesive than other informalwork groups. These relationships are circular—success andstatus bring about cohesiveness, and cohesiveness bringsabout status and success.

Outside pressures, such as conflicts with management,can increase group cohesiveness. If a group sees manage-

ment’s requests as a demand or threat, it becomes more cohesive. Inthese situations, members may develop an “us against them” mentality.

A stable membership and easy lines of communication improvegroup cohesiveness. Long-standing members know each other well andare familiar with group norms. Employees who work in the same areasocialize easily. In a production line, however, conversation is difficultand groups are less cohesive.

Finally, physical isolation from other employees may increasegroup cohesiveness. The isolation forces workers into close contactwith each other and strengthens bonds.

Group cohesiveness


� GROUP COHESIVENESSMany businesses areabandoning offices infavor of cubicles. Do youthink cubicles increasegroup cohesiveness?

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Group Conformityis the degree to which group members accept

and follow group norms. A group generally seeks to control members’behavior for two reasons. First, independent behavior can cause dis-agreements that threaten a group’s survival. Second, consistent behaviorcreates an atmosphere of trust that allows members to work together andsocialize comfortably. Members are able to predict how others in thegroup will behave.

Individual members tend to conform to group norms under certainconditions:

• when group norms are similar to personal attitudes,beliefs, and behavior

• when they do not agree with the group’s norms butfeel pressure to accept them

GROUP PRESSURE AND CONFORMITY Researchers havestudied the influence of group pressure on individualmembers. One study of group conformity took place at atextile firm in Virginia. A textile employee began to pro-duce more than the group norm of 50 units per day. Aftertwo weeks, the group started to pressure this worker toproduce less, and she quickly dropped to the group’s level.After three weeks, all the members of the group weremoved to other jobs except for this worker. Once again,her production quickly climbed to double the group norm(see Figure 14–1).

Group conformity


110

Productivity(units per hour)

Days

100908070605040

5 10 15 20 25 30 35 40

Grouppressure

Group is broken up

Group production level

Operator on her ownEntire group worked together

EFFECT OF GROUP NORMS ON A MEMBER’S PRODUCTIVITYFigure 14–1

This worker produced more than the group norm. Was it fair for otherworkers to try to slow her down?WORKING WITH GRAPHS

All About

A T T I T U D ESHYNESS DOESN’T SHINEPart of your job is informingothers of your actions andknowledge base. Keeping anopen channel of communica-tion allows information to flowfreely throughout your organi-zation. Speak up and don’t besilent. Your input on situationsis important.

QUESTION

Overall, is conformity to groupnorms a positive or negativehabit? Explain your answer.

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The trailblazing corporatesuperstar will become a

thing of the past. And follow-the-leader is a game companieswill no longer play. The path tosuccess will be paved by teams.

We are all angels with only one wing.

We can only fly while embracing each other.

—Luciano de Crescenzo

The 20th century Italianpoet’s metaphor wasn’t aboutthe 21st century corporation,but it might as well have been.The coming century will beunfriendly to superhero CEOswho try to wing their compa-nies heavenward by sheer forceof will. Success will belong tocompanies that are leaderless—companies whose leadership isso widely shared that theyresemble beehives, ant colonies,or schools of fish.

Today, democratic decision-making in corporations is stillconfined largely to factoryfloors and new-product labora-tories, far from the top of orga-nizational pyramids. That ishardly surprising. In a nationthat loves superheroes, people

cling to the myth of what man-agement guru Warren Benniscalls “the triumphant individ-ual.” The media celebrate CEOsas larger-than-life individualswho single-handedly commu-nicate a vision and lead theway, earning millions for them-selves in the process.

Cool the hero worship. Inthe 20th century, the SovietUnion collapsed because itscommand-and-control econ-omy couldn’t keep up with theWest’s free market. In the 21stcentury, the same fate willbefall companies whose CEOsattempt to control everything.

The Global Corporation Becomes the Leaderless Corporation

Teams at the top will makemore sense than a single outra-geously paid CEO.

The Internet allows com-panies to be more leaderlessbecause information can beshared horizontally ratherthan funneled up to the CEO’soffice and back down again.

Team leadership is ideallysuited for this new reality.When the landscape is chang-ing daily, it’s crucial to reactfast—something bureaucratic,top-down organizations don’tdo well. Most urgent projectsrequire the coordinated contri-butions of many talented peo-ple working together.

Management Model

Excerpted with permisssion fromBusinessWeek, August 30, 1999

CRITICAL THINKINGAccording to the writer,what is the key componentfor a company’s success inthe 21st century?

DECISION MAKINGAs a manager of a large corpo-ration, would you employ thetheory of a leaderless organi-zation? Explain.

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Section 14.1 Assessment

FACT AND IDEA REVIEW

1. What is the major difference between for-mal and informal groups?

2. Name two things that often cause employ-ees to join or initiate informal work groups.

3. Give three factors that influence a group’scohesiveness.

4. Describe two situations in which group mem-bers are likely to conform to group norms.

CRITICAL THINKING

1. Predicting Consequences: Do you think itis possible to eliminate the need for infor-mal work groups? Explain.

2. Drawing Conclusions: Some employees aredescribed as “marching to the beat of a dif-ferent drummer.” After reading this section,what do you think that statement means?

ASSESSING SPEECH SKILLS

You have been a member of many formaland informal groups in your life. Examples of

such groups may include a youth group, asports team, co-workers at a summer or part-time job, or neighborhood friends. Some ofthe groups have been effective and some havenot. Think about the most effective and inef-fective groups you have been in. Prepare abrief presentation describing the characteris-tics of each group.

CASE ANALYSIS

You have been hired for the summer to helpraise money for a local environmental group.The group has two teams that telephone peo-ple in the evenings to solicit donations. Thegroup has raised a respectable sum of money.The problem is that one team member, Marcia,is pulling in most of the donations on a nightlybasis. The rest of the team feels they are notdoing the job well. You decide to talk to theteam leader about the situation.

Apply: With several other students, decidewhat you are going to say to the team leader.Consider the options carefully. For instance, isthere some way Marcia can contribute to rais-ing group productivity?

GROUPTHINK When group members lose their ability to think asindividuals and conform at the expense of their good judgment,

occurs. Members become unwilling to say anythingagainst the group or any member, even if an action is wrong. WilliamGolding explored the concept of groupthink in his novel The Lord ofthe Flies. This book illustrates what can happen when individuals areremoved from society and are left to create their own rules.

Keeping a group together under any circumstance is a goal in itself.Groups with this goal believe that the group is indestructible andalways right. Group members justify any action, stereotype outsiders asenemies of the group, and pressure unwilling members to conform. Inbusiness, groupthink is disruptive because it affects employees’ abilityto make logical decisions.

groupthink


CONNECT

Imagine that you are the newmanager of a department thathas succumbed to groupthink.What steps would you take toencourage individual thinking?

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MANAGING FORMAL GROUPS

➤ The importance offormal work groups.

➤ How managers caninfluence groupcohesiveness andconformity.

➤ Methods of encour-aging teamwork informal groups.

➤ The characteristicsof successful groupleaders.

Formal work groupsare an important wayof organizing work,and managers musthelp them succeed.

• linking-pin concept• team building• idiosyncrasy credit• quality circle


Section 14.2

� TEAM WORK Honda’s team sometimes spends 18 months working together on thedesign of a new car. Why is a team a better choice for this task than an individual?

The Importance of Formal Work Groups

Formal work groups play an important part in helping an organi-zation meet its goals. Groups have more knowledge and informationthan individuals. They make communicating and solving problemseasier. This creates a more efficient and effective company.

The importance of managing groups effectively is becoming rec-ognized in the business world. Employees must work closely toimprove production and maintain a competitive edge. Changes in thework force are bringing men and women from different backgroundstogether. Managers must work with groups to overcome cultural andgender differences. These, and other factors, make managing workgroups one of management’s most important tasks.

WHAT YOU’LL LEARN

WHY IT’S IMPORTANT

KEY TERMS

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Influencing Work GroupsStudies at the Hawthorne plant, where researchers documented the

existence of informal work groups, looked at the effects of variouschanges on workers’ productivity. Researchers varied job factors,including the way workers were paid and supervised, lighting, thelength of rest periods, and the number of hours worked. Productivityrose with each change.

This result led to the coining of the term Hawthorne effect. As youmay remember from Chapter 2, the Hawthorne effect states that givingspecial attention to a group of employees changes the employees’behavior. The results of the studies show that when groups of employ-ees are singled out for attention, they tend to work more efficiently.

Building Effective Work GroupsMembers of informal work groups often develop a shared sense of

values and group loyalty. Formal groups rarely share these qualitiesbecause they are assigned to them rather than voluntary. Managers areresponsible for developing shared values and group loyalty in formalwork groups.

The linking-pin concept is one way of describing management’srole in work groups. The holds that becausemanagers are members of overlapping groups, they link formal workgroups to the total organization. Managers improve communicationand ensure that organizational and group goals are met. In otherwords, managers themselves are the linking pins (see Figure 14–2).

linking-pin concept

Managing Formal Groups Section 14.2 331

Work group

Work group

Work group

Linking pin(manager)

LINKING-PIN CONCEPTFigure 14–2

Managers act as linking pins between an organization and its work groups. What kinds ofresponsibilities might managers acting in this role have?WORKING WITH CHARTS

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Building effective formal work groups often is called team building.is the process of establishing a cohesive group that

works together to achieve its goals. A team will be successful only if itsmembers feel that working conditions are fair to all. A team can fail, evenin a supportive organization, if a manager does not encourage fair play.

The success of a group or team can be measured in the same way asthe success of organizations. Successful organizations and groups bothmeet their goals by using their resources well. Managers encourageteamwork by selecting group members carefully, creating a positive

work environment, buildingtrust, and increasing groupcohesiveness.

CREATING GROUPS For agroup to succeed, membersmust be able to perform thetasks assigned by manage-ment. Selecting the right indi-viduals is key to the success ofa group. The first step is toidentify qualified people.Then management mustmake the group attractive tothese individuals.

For most employees, aformal work group is attrac-tive because it increases payand offers some satisfaction.If employees see that joining

Team building


� ENVIRONMENT Work groupsneed a place to meet and workthat is comfortable and hasthe equipment they need. Why do you think environ-ment is so important to awork group?

International Management

MEXICO

Mexicans emphasize the social and personal aspects oftheir business relationships. The government has signifi-cant influence in private business matters and requirespermits for almost every business transaction. Connec-tions are therefore vitally important and developedthrough frequent and warm interpersonal transactions.

For further reading aboutInternational Management go to: www.businessweek.com

Gulf of Mexico

NorthPacificOcean

Gulf ofCalifornia

UNITED STATES

GUATEMALA

BELIZE

EL SALVADOR

HONDURAS

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a formal group can provide them with the same satisfaction that aninformal group can, they are more likely to participate willingly.

Environment also can be important to the success of a group. Animportant requirement for meeting group goals is a suitable place towork. How the office is laid out and other physical factors will affectthe group’s ability to work together successfully.

BUILDING TRUST Trust is essential among group mem-bers and between groups and management. A successfulgroup effort means sharing responsibilities and makingdecisions together. Group members must feel that theentire group is willing and able to work together success-fully to achieve goals. Without trust, groups can’t set orstick to production norms.

Bill Gates of Microsoft relies on small teams that workon their own. He says, “You’ve got to pick a few people andreally trust them.” Managers must have faith in theiremployees. They also must recognize the interests of theorganization, the group, and the employees. Effective man-agers should become personally involved, take a real interestin group members, share information, and exhibit honesty.

INFLUENCING GROUP COHESIVENESS AND CONFORMITYThink about teams you have belonged to at school orsummer camp. These successful teams often are highlycompetitive and eager to succeed. Effective work groupsshare these characteristics. Both types of groups also drawtheir primary satisfaction from a sense of accomplishment,which comes from a job well done.

Managers can affect formal group performance levelsby studying the degree of group conformity. Formal groupsmust be cohesive and dedicated to high performance norms in order tosucceed. Managers can influence group cohesiveness by

• keeping groups small• selecting group members carefully • finding a good personality fit between new and old employees• developing an office layout that improves communication • creating clear goals• inspiring group competition• rewarding groups rather than individuals• isolating groups from each other

Basketball coach Phil Jackson has an approach to managementthat is based partly on his Zen Buddhist outlook and partly on teambuilding. Jackson claims his approach gave the Chicago Bulls and theL.A. Lakers several NBA championships over the past ten years. When


� SMALL TEAMS Huge corporationsoften use small teams to developproducts such as computer software.How might small teams of workersbenefit the company?

RESPOND

How would you feel if a managerasked you to sacrifice your indi-vidual goals for the sake of teamgoals? What would a managerhave to do in order to persuadeyou to do this?

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asked what Zen Buddhism has to dowith management, Jackson replies,“Whether on the court or off, what Icall for in my people is full aware-ness and attention.”

Jackson’s approach teaches indi-viduals to value the needs of theteam. High individual performancewith poor team performance is notwhat winning is about, either in

sports or in business. Individuals must surrender their egos so that theend result is bigger than the sum of its parts. When this happens, theteam works together like fingers on a hand.

Some members of groups will always be permitted to departfrom group norms. This phenomenon is known as the idiosyn-crasy credit. The occurs when individualswho have played a significant role in a group are allowed somefreedom within the group. People in this position have oftenhelped develop a group’s norms. Because the group’s norms oftenare the same as their own, those who could use the idiosyncrasycredit often do not.

Quality CirclesOne type of formal work group is the quality circle. A

is a group of employees from a single work unit (such as adepartment) who share ideas on how to improve quality. The goalof a quality circle is to involve employees in decision making.Membership is almost always voluntary and members share acommon bond—they perform similar tasks.

Japan has used quality circles since the early 1960s. The ideaarrived in the United States after executives from Lockheed Corpora-tion visited Japan in the 1970s and saw the circles in action. Lockheedused quality circles to improve quality and save several million dollars.

Quality circles have benefits other than increasing employee par-ticipation. They encourage communication and trust among membersand managers. They are an inexpensive way to provide employeeswith training while giving them a sense of control over their work lives.Most importantly, however, they may solve problems that have been

circlequality

idiosyncrasy credit


� TEAM BUILDING The team concept stressesthe good of the group over the good of theindividual. What is required of workers tomake a team succeed?

QUESTION

Are quality circles more consistentwith Theory X or Theory Y manage-ment philosophies?

THERE’S NO “I” IN TEAMWorking in a team envi-ronment means thateveryone contributestoward a common goal.Although you may beworking independently,let others know they can count on you forassistance or clarifica-tion at any time.

EADING THE AY

LWEADING

THE AY

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ENCOURAGING GROUP COHESIVENESSThe third step is to develop a cohesive group that conforms to

group norms. Managers can improvegroup cohesiveness by keeping groupssmall, giving them clear goals, andrewarding them as a team.

3

Managers can build effective teams in three ways: by selecting the right individuals andproviding a positiveenvironment for them,by building trust, andby encouraging groupcohesiveness andconformity.

FIGURE 14–3

Team Building

TRUST-BUILDINGThe second step is to build trust

among group membersand between the groupand management.

2

SELECTING INDIVIDUALSThe first step in building an effec-tive team is finding the right people.

Group members need to have the rightskills and the right personality fit.

1

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around for years. Quality circles create strong linesof communication. “Me” becomes “us” in a goodquality circle.

Groups and LeadersWhen an informal group selects a leader, mem-

bers choose the person most capable of satisfyingthe group’s needs. The group gives this leaderauthority, and can take this authority away at anytime. This leader needs strong communicationskills, especially in setting objectives for the group,giving directions, and summarizing information.

To see how informal groups choose leaders, imag-ine a group of people shipwrecked on an island. Thegroup’s first goal is to find food, water, and shelter.The individual best equipped to help the group sur-vive would naturally become the leader. Later, thegroup’s goal might change to getting off the island.

The original leader may no longer be the best person to help meet this newgoal, and a new leader could emerge. The process may continue throughseveral leaders.

Gaining AcceptanceManagers assigned to formal work groups must work to gain accep-

tance as leaders. They generally do not have the same authority asleaders of informal groups. The formal authority granted by top man-agement is no guarantee that a manager will effectively guide a group.

Think about how you respond to your teachers. You respect teach-ers who know their subject well, communicate information effec-tively, treat students with respect, and make fair judgments. Managersworking with formal groups can use these same behaviors to gain thetrust and respect of employees.

Managers must keep track of those changes within the organizationthat might affect the group. At times, they may have to modify groupgoals to meet new organizational goals. For example, an organizationfaced with strong competition may need to make decisions rapidlyrather than rely on groups to come up with a solution. In these cases,managers must be ready to make immediate decisions for the group.

Encouraging ParticipationBuilding an effective team requires a nontraditional managerial

approach. In a traditional organizational structure, managers direct the


� QUALITY CIRCLES Automakers use the qualitycircle to focus on issues of quality. Why do youthink these groups are able to solve problemsindividuals have not been able to solve?

RESPOND

In general, what qualities wouldmake an effective group leader?

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Section 14.2 Assessment

FACT AND IDEA REVIEW

1. Why are work groups important?2. What two things attract employees to

formal work groups?3. Why is trust essential in a group?4. Describe two methods managers can use to

encourage group participation.

CRITICAL THINKING

1. Analyzing Information: Draw on yourown experience to explain why you thinkthe Hawthorne effect does or does not exist.

2. Evaluating Information: Do you thinkleading by example is a good way to moti-vate people? Why or why not?

ASSESSING PHYSICAL EDUCATIONSKILLS

Within the class, organize teams to competein a game of volleyball or other sport. Have

each group select a captain, then work togetherto create cohesiveness. Methods may includepracticing together, engaging in a group activ-ity, or sharing personal information. Keep arecord of the methods your group uses. Oncethe games have been completed, compare yourmethods with those of the other teams. Whatmethods did the winning team use that mighthave made it successful?

CASE ANALYSIS

Darren Washington, an employee at AT&T,wants to start a volunteer tutoring program at alocal school. His supervisor, Jackie, is pleasedby this idea. AT&T encourages volunteerismand allows employees time to participate.Jackie wants to ensure that Darren will be aneffective group leader.

Apply: Make a list of questions Jackie canask that will help her determine whether Dar-ren is a good candidate for team leader.

employees who work for them. As part of a team, however, managersencourage participation and shared responsibility, acting more like acoach than a manager.

One way of encouraging team spirit is to provide the group with avision. People who organize groups to support social causes often usethis approach. For example, one person may rally a communityaround a project such as reclaiming a vacant lot for a park. In the busi-ness world, managers can offer team members the possibility of design-ing a state-of-the-art product or service.

Managers lead by example. Their attitude and performancebecome the standard for group norms. A manager who believes that agroup must listen to and support all members might create a group oftop managers who share this feeling. Employees who see managersfunctioning within a cohesive group are more likely to work effectivelyin groups themselves.


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REVIEWING VOCABULARY

With a group of students, role-play a meeting of managers who aretrying to find ways to make their work groups more productive. Useeach of the vocabulary words in your role play.

formal work groupinformal work groupgroup normsgroup cohesivenessgroup conformity

RECALLING KEY CONCEPTS

1. Name two types of formal work groups.2. Give two reasons groups try to control member

behavior.3. Name three ways managers can influence group

cohesiveness.4. What two things do managers accomplish when

they act as linking pins between work groups andmanagement?

5. Some people who could use the idiosyncrasycredit in a group often don’t. Why not?

THINKING CRITICALLY

1. Explain why members of formal work groupsoften don’t share informal groups’ loyalty andcommon sense of values.

2. Why is it important for managers to have faith intheir employees and work groups?

3. What are the reasons for wanting a good person-ality fit when selecting people for a work group?

4. Why don’t managers of formal work groups havethe same authority as informal group leaders?

5. Do you think work groups always respond best toa participatory management approach? Why orwhy not?

groupthinklinking-pin conceptteam building idiosyncrasy creditquality circle

CHAPTER SUMMARY

Section 14.1

� Organizations have two kinds ofwork groups, formal and informal.

� Informal work groups developaround friendship, shared interests,or similar work responsibilities.

� Informal groups have their ownnorms, are cohesive, and developways to maintain conformity.

Section 14.2

� Formal work groups often lack theloyalty and shared values that char-acterize informal groups, so man-agers work hard to encourageparticipation.

� Managers can build effective teamsby selecting the right candidates,building trust, and encouraginggroup cohesiveness.

� In order to be good team leaders,managers must be accepted by thegroup, understand how to providea vision, and lead by example.

CHAPTER 14 ASSESSMENTCHAPTER 14 ASSESSMENT


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Assessment CHAPTER 14 339

PREPARING FOR COMPETITIVE EVENTS

Answer true or false and explain your answer.

Group members affectedby groupthink won’t sayanything against the groupor any member of it, evenif an individual or the groupdoes something wrong.

CHAPTER 14 ASSESSMENTCHAPTER 14 ASSESSMENT

ASSESSING ACADEMIC SKILLS

WRITING You are a manager at a family-ori-ented restaurant chain. In the past year, twonew restaurants have opened in the area. Bothof them have done poorly, despite good loca-tions. You must put together a task force tofind ways to boost the new restaurants’ rev-enues. Decide where you would find people forthe task force. Then compose a memo forsenior management presenting your proposaland explaining your reasons for choosing theseemployees.

APPLYING MANAGEMENT PRINCIPLES

SOLVE THE PROBLEM The insurance com-pany where you work is purchasing new soft-ware for the billing department. As head ofthe Information Technology Department, youare to lead the six-member team that willchoose the new software. During the first twomeetings, members of the group bickered con-stantly, and no one madeany realistic suggestions.What can you do to makethe team more effective?

Public SpeakingIn groups of five, discusspossible reasons for thegroup’s behavior. Thendiscuss ways of building amore effective team thataddresses those reasons. Prepare apresentation that describes your planto create a more effective group.

In this chapter you read the Busi-nessWeek Management Model aboutglobal corporations becoming leader-less corporations. For more informa-tion, go to BusinessWeek online at:www.businessweek.com

Using the Internet or libraryresources, find current articles oncompanies that use this theory. Writea two-page summary highlighting thechanges that led to a leaderless orga-nization. Share your summaries withthe class.

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