humanbeh chapter 12 informal and formal groups

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    Organizational Behavior (OB)

    Informal and Formal Groups

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    Group Dynamics

    Social process by which people interact face-

    to-face in small groups

    Types Formalestablished by the organization and

    which have a public identity and goal to

    achieve Informalemerge on the basis of common

    interests, proximity and friendships

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    Differences between Informal and

    Formal Organizations

    Basis of Comparison Informal

    Organization

    Formal

    Organization

    General nature Unofficial Official

    Major concepts Power and politics Authority andresponsibility

    Primary focus Person Position

    Source of leader

    power

    Given by group Delegated by

    managementGuidelines for

    behavior

    Norms Rules and policies

    Sources of control Sanctions Rewards and

    penalties

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    Informal Leaders

    Employee with the largest amount of status inthe informal organization

    Informal groups overlap

    A group can have multiple informal leaders

    One primary leader has more influence thanothers

    Leaders can be identified by their distinctivebehaviors

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    Monitoring Informal Organizations

    Network charts:Focus on either interpersonal

    feelings expressed among individuals or actual

    behaviors exhibited

    Determines who trusts whom and selects an

    individual to negotiate a satisfactory compromise

    on an issue

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    Guidelines for Influencing Informal

    Organizations

    Accept and understand them

    Identify various levels of attitudes andbehaviors within them

    Consider possible effects on informal systemswhen taking any kind of action

    Integrate the interests of informal groups with

    those of the formal organization Keep formal activities from unnecessarily

    threatening them

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    Formal Groups: Committees

    Group in which members who have theauthority to handle a problem meet to

    address and resolve it

    Groups authority is expressed in terms of onevote for each member

    Limitation - People are unable to make

    adjustments from their normal work roles andrelationships

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    Systems View of Effective Committees

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    Potential Outcomes of Formal Group

    Processes

    Support for decisions

    Quality of decisions and problem solving

    improves

    Individual development

    Social facilitation: Members try harder to

    contribute on a task just because other people are

    around

    Conformity: Members are alert to the perceived

    expectations and norms of the majority

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    Consensus

    Group engages in widespread input gathering,

    which results in a shared level of

    understanding

    Consensus-oriented members can and will

    support the decision made

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    Weaknesses of Committees

    Groupthink: Tendency of a tightly knit groupto bring individual thinking in line with the

    groups thinking

    Symptoms Self-censorship of critical thoughts

    Rationalizing their actions

    Illusion of invulnerability, unanimity, and morality

    Reliance on self-appointed mind-guards

    Stereotyping others outside the group

    Pressure on dissidents to conform to the group

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    Weaknesses of Committees

    Polarization: Individuals bring to the grouptheir strong predispositions toward a topic

    Risky shift:Willingness to take chances with

    organizational resources as a group than theywould as individuals

    Group decisions dilute and thin out

    responsibility Social loafers: Individual members who shirk responsibility

    with justifications

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    Weaknesses of Committees

    Escalating commitment: Persevering inadvocating a course of action despite rational

    evidence that it will result in failure

    Selective perception results in confirmation bias Ego needs of the decision makers affect decisions

    Admiration of leaders who are risk takers

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    Weaknesses of Committees

    Other related problems Linearity bias - Propensity to make overly simple

    cause-effect conclusions

    Egocentrism - Temptation to overemphasize our

    own importance while forcing a decision Framing bias - Temptation to be overly influenced

    by how the problem was presented

    Self-confidence bias - Premature belief that thebest solution has already been uncovered

    Anti-statistical bias - Reluctance to examinerelevant statistical information and give themweight

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    Weaknesses of Committees

    Overcome through: Proper group structures to be selected

    Group size is an important factor

    Various leadership roles to be played Devils advocate: Guardians of clear and moral

    thinking who provide constructive criticism

    Red teaming: Subset of a group:

    Challenges underlying assumptions

    Takes an adversarys viewpoint

    Proposes scenarios that have not been considered

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