Interpersonal Relations

Interpersonal Relation
TABLE OF CONTENTS
CHAPTER 1 8
INTRODUCTION TO INTERPERSONAL RELATIONS
TYPES OF INTERPERSONAL RELATIONS
FORMATION OF INTERPERSONAL RELATIONS
CHAPTER 2 14
1. INTERPERSONAL RELATIONS IN A GROUP
2. INTRODUCTION TO GROUP
3. HISTORY
4. CLASSIFICATION
5. TYPES
6. NATURE
7. WHY GROUPS ARE FORM
8. HOW ARE THEY FORMED (STAGES OF FORMATION)
9. GROUP PERFORMANCE
10. GROUP DECISION MAKING
CHAPTER 3 38
1. INTERPERSONAL RELATIONS IN A TEAM
2. INTRODUCTION
3. TYPES OF TEAMS
4. NATURE
5. EFFECTIVENESS OF A TEAM
6. GUIDELINES FOR DEVELOPING EFFECTIVE TEAMS
7. CROSS FUNCTIONAL TEAM
CHAPTER 4 50
1. IMPORTANT ELEMENTS OF TEAM
2. TEAM V/S GROUP
3. CONFLICT MANAGEMENT
CHAPTER 5 73
CASE STUDIES
CHAPTER 6
CONCLUSION 81
BIBLIOGRAPHY 83
M.L. DAHANUKAR COLLEGE OF COMMERCE 1

INTERPERSONAL RELATIONS
INTRODUCTION
A number of relations exist in organizations.

Intra personal relations – with respect to oneself and how we perceive ourselves
Inter personal relations - our relations with other colleagues, juniors and seniors
Intra group relations – relations within a group
Inter group relations – relations between groups
Intra organizational relations – relations of departments within an organization
Inter organizational relations- relations between organizations
Extra organizational relations – relations of organizations with their environment and
elements of the environment like customers, shareholders, govt agencies, legal authorities
etc.
Interpersonal relations have been found to be an integral part of the managerial job the
world over and several studies have established their importance in formal organizations,
especially for effective decision making and implementation of decisions. The domain
continues to receive the attention of academicians, managers and management
consultants. Despite interesting insights offered by numerous studies of interpersonal
relations over the past four decades, more remains to be known about the underlying
bases of interpersonal behavior.
Interpersonal relationships are social associations, connections, or affiliations between

two or more people who may interact overtly, covertly, face to face or may remain
effectively unknown to each other such as those in a virtual community who maintain
anonymity and do not socialize outside of a chat room.

The interactions that define an interpersonal relationship can be observable and explicit
such as body language or dialogue or they can be implicit such as standing in a shopping
line or in an emergency room. They are usually a mixture of both.
Interpersonal relations can make or break an organization. Effective communication and
interpersonal relations between manager and subordinate, employer and employee is a
need in an organization at the same time it is a key to the success of a project, and more
than 75% of project failure result due to communication breakdown and ineffective
interpersonal communication.
It is a need of every individual to understand others and know the social norms as man is
a social animal he is directly or indirectly dependent on others. Interpersonal relations are
not only important for multinationals or corporate world but also for an individual to be a
better person and give his best in his or her career.
EVOLUTION OF INTERPERSONAL RELATIONS
The evolution of interpersonal and intrapersonal relations within an isolated group was
investigated during two Italian Antarctic summer campaigns using the Matrix of Intra and
Interpersonal Processes in the Group (MIPG). This instrument was effective in the
detection of particular modifications of the underlying social-emotional dynamics taking
place in the group. In the group of the first campaign, fear of revealing one’s true self
decreased during the campaign, whereas idealization of the harmony and the repression of
all tensions increased. In the second campaign, idealization decreased even more with
time, whereas the fear of revealing the self increased at the end of the stay. An indirect
confirmation of t he validity of the MIPG parameters is provided by the correlation
between some of its configurations and the positive aspects of individual behavior
empirically assessed by the medical officers.

STAGES OF FORMATION OF INTERPERSONAL RELATIONS
There are various stages in formation of interpersonal relations but prior to that
interpersonal communication which is the foundation of relations has to be understood
.Interpersonal communication can be divided into six categories:-
• Listening
• Self-presentation
• Problem-solving
• Decision-making
• Negotiating
• Conflict management.
The formation of interpersonal relations in an organization has basically four important

stages they are as follows:-
1) Contact:-
a) Perceptual - notice how a person looks at the other and their body language.
b) Interactional cues - nodding, maintaining eye contact, etc.
c) Invitational - encouraging the relationship (e.g. asking if they want to meet up later for
coffee)
d) Avoidance strategies - if one person discloses and the other does not, minimal
response, lack of eye contact, etc.
2) Involvement:-
a) Feelers – hints or questions (ex. asking about family)
b) Intensifying strategies - further the relationship (ex. meeting old friend, bringing the
other to meet family, becoming more affectionate, etc.)
c) Public - seen in public together often (ex. if in a romantic relationship, may be holding
hands)

3) Intimacy:-
Very close, may have exchanged some sort of personal belonging or something that
represents further commitment. (Ex. may be a promise ring in a romantic relationship or
friendship necklaces symbolizing two people are best friends)
4) Deterioration:-
Things start to fall apart. In a romantic relationship, typically after approximately six
months, people are out of what is sometimes referred to as the "honeymoon stage", NRE,
or limerence and start to notice flaws. The way this is addressed determines the fate of
the relationship.
Types of interpersonal relationships
There are various types of interpersonal relations but the ones mentioned
below are few of them:-
Theories of friendship emphasize the concept of
Friendship
friendship as a freely chosen association
Family communication patterns establish roles,

Family identities and enable the growth of individuals. Family
dysfunction may also be exhibited by communication
patterns.
Romantic relationships are defined in terms of the
Romantic
concepts of passion, intimacy and commitment.
Professional communication encompasses small group
Professional Relationships
communication and interviewing.
Assess interpersonal effectiveness in various types of
Interpersonal Competence
relationships and contexts.
These are the types of interpersonal relations but in this project I have given more
emphasis on professional relationships

Thus in professional relationships also there are specific skills which are required and so
to know what are the professional relations let us 1st highlight on interpersonal skills.
INTERPERSONAL SKILLS
In today’s workplace, task or technical proficiency is not enough to achieve success. In

fact, leading studies from well known universities like Universities of Michigan and Ohio
have shown that a balance of people and task management is critical to professional and
organizational success. A professional who cannot work well with others, does not earn
the trust and confidence of others, and who cannot easily navigate the interpersonal side
of management will reflect poorly on his or her department and the institution as a whole.
Reliable and consistent interpersonal skills are critical to personal and professional
leadership.
Interpersonal skills are goal-directed behaviors used in face-to-face interactions, which

are effective in bringing about a desired state of affairs.
John Hayes argues that a distinguishing factor between the successful and unsuccessful
manager is his or her level of interpersonal competence. Research has demonstrated that
people who are able to consciously manage the way they relate to others are much more
successful in terms of achieving their goals. With this in mind Interpersonal Skills aims at
increasing our awareness of those techniques which will help us to manage working
relationships more effectively. The author explains clearly, using practical examples and
illustrations, how we can learn to read the actual or potential behavior of others around us
and use this knowledge to our advantage in the workplace.
John Hayes suggests techniques for improving management performance in a number of

key areas:
*Listening and interpreting non-verbal messages
* Information-getting and presenting

* Negotiating and influencing
* Working in group situations
Interpersonal skills refers to mental and communicative algorithms applied during

social communications and interactions in order to reach certain affects or results. The
term “interpersonal skills” is used often in business contexts to refer to the measure of a
persons ability to operate within business organizations through social communications
and interactions. Interpersonal skills is how a person relates to one another.
Thus “GOOD INTERPERSONAL SKILLS” helps for an effective productivity in the
organization without any conflicts.
Now as interpersonal skills is known let us put light on professional relations.

Professional relations consist of various types i.e.
• Superior- subordinate relations

• Employer-employee relations
• Leader –followers relations
• Colleagues’ relations
• Teammate’s relations
• Group members relations
•
Further in this project I have highlighted on two major aspects of professional
relations i.e.
INTERPERSONAL RELATIONS IN A GROUP
INTERPERSONAL RELATIONS IN A TEAM
GROUPS
DEFINITION:-

A group is defined as two or more individuals , interacting and interdependent, who have
come together to achieve particular objectives.
Interpersonal relations in a group
HISTORY OF GROUPS
Group came into the picture in the 19th century. F Taylor did not accept the method of
getting things done through people by forming groups. he gave more stress on individual
performance rather than working in groups which is understood in his well known theory
i.e. scientific management
Taylor's scientific management consisted of four principles:-
1) Replace rule-of-thumb work methods with methods based on a scientific study of
the tasks.
2)
3) Scientifically select, train, and develop each employee rather than passively
leaving them to train themselves.
4) "Detailed instruction and supervision of each worker in the performance of that
worker's discrete task" (Montgomery 1997: 250).
5) Divide work nearly equally between managers and workers, so that the managers
apply scientific management principles to planning the work and the workers
actually perform the tasks
According to him an individual is not able to give his best when he is in a group.the
modern method is different from his principle today there is much emphasis on groups
and teams. As managers think that they are one of the best method and an efficient one to
get the things done from their employees.
In today’s world groups and teams are a vital component and one of the best tool in every
organization.

Groups are derived from organizational behavior i.e. a study of individual; teams and
group etc so let us see what is organizational behavior .
ORGANISATIONAL BEHAVIOR:-
“A field of study that investigates the impact that individuals, groups, and structure have
on behavior within organizations,for the purpose of applying such knowledge towards
improving an organizations’ effectiveness.”
THE NATURE OF GROUPS
The group is widely recognized as an important sociological unit of analysis in the study
of organizational behavior. Studying groups is especially valuable when the dynamics are
analyzed. Group dynamics is concerned with the interactions and forces among group
members in a social situation. When the concept is applied to the study of organizational
behavior, the focus is on the dynamics of members of formal or informal work groups
and, now teams in the organization.
The popularity of work group and team is soaring. Although they were the first used in
corporate giants such as Toyota, Motorola recent surveys indicate that not only
manufacturing but also that teams are being used in the service sector as well. Yet, as
with many other areas of organizational behavior. Alderfer noted that:
“Groups and group dynamics are a little like the weather—something that nearly
everyone talks about and only a few do anything about. Research, practice, and
education about group dynamics are currently in a state of ferment. In the world of
practice, we hear leaders speaking out to encourage teamwork, to support
empowering people, and to establish organizational cultures that promote total

quality management. Each of the initiatives depends on understanding groups well
and acting effectively with them.”
Instead of quickly moving to teams per se, to begin with let us understand the basics of
organizational behavior i.e. group dynamics. The term group can be defined in a number
of ways, depending on the perspective that is taken. A comprehensive definition would
say that if a group exists in an organization, its members:
1. Are motivated to join
2. Perceive the group as a unified unit of interacting people
3. Contribute in various amounts to the group processes (i.e. some people contribute
more time or energy to the group than do others)
4. Reach agreements and have disagreements through various forms of interaction.
Just as there is no universal definition of the term “group”, there is no universal
agreement on what is meant by group dynamics. Although Kurt Lewin popularized the
term in the 1930s, through the years different connotations have been attached to it.
• One normative view is that group dynamics describes how a group should be
organized and conducted. Democratic leadership, member participation, and
overall cooperation are stressed.
• Another view of group dynamics is that it consists of a set of techniques. Here,
role playing, brainstorming, buzz groups, leaderless groups, group therapy,
sensitivity training, team building, transactional analysis and the Johari windows
are traditionally equated with group dynamics, as are the self managed teams.
• A third view is closest to Lewin’s original conception. Group dynamics is viewed
from the perspective of the internal nature of groups, how they form, their
structure and processes and how they function and affect individual members,
other groups, and the organization.
CLASSIFICATION OF GROUPS

Groups can be either formal or informal.

1. Formal groups :- formal groups mean those defined by the organizations
structure, with designated work assignments establishing tasks.
2. Informal groups :- these are alliances that are neither formally structured nor
organizationally determined. These groups are natural formations in the work
environment that appear in response to the need for social contact. Three
employees from different departments who regularly eat lunch together is an
example of an informal group.
It is possible to further sub classify groups as:-
• command groups
• task groups
• interest groups
• friendship groups
Command and task groups are dictated by formal organization.
Interest and friendship groups are informal alliances.
• COMMAND GROUP:- a command group is determined by the organization

chart . it is composed of the individuals who report directly to a given manager.
Example:-
1) an elementary school principal and her 18 teachers form a command
group.
2) Similarly the director of postal audits and his five inspectors form a
command group.

• TASK GROUPS:- task groups are also organizationally detemined, represent
those working together to complete a job task. However, a task group’s
boundaries are not limited to immediate hierarchical superior. It can cross
command relationships.
Example:-
1) If a college student is accused of a campus crime, it may require
communication and coordination among the dean of academic affairs, the
dean of students, the registrar, the director of security and the student’s
advisor. Such a formation would constitute a task group.
“It should be noted that all command groups are also task groups, but
because task groups can cut across the organization, the reverse need not be true.”
• INTEREST GROUPS:-People who may or may not be aligned into common

command or task groups may affiliate to attain a specific objective with which
each is concerned. This is an interest group.
EXAMPLE:-
Employees who band together to have their vacation schedules altered , to support
a peer who has been fired , or to seek improved working conditions represent the
formation of a united body to further their common interests.
• FRIENDSHIP GROUPS:- Groups often develop because the individual

members have one or more common characteristics. They are known as friendship
groups.
EXAMPLE :- Social alliances , which frequently extend outside the work
situation, can be based on similar age or ethnic heritage, holding of the same
political views,etc are some of the characteristics of friendship group individuals.

Informal groups provide a very important service by satisfying their members’ social
needs. Because of interactions that result from the close proximity of workstations or task
interactions, we find workers often do things together –like comute to work , take lunch,
and chat during coffee breaks. We must recognize that these types of interactions among
individuals , even though informal, deeply affect their behavior and performance.
Types Of Groups
There are numerous types of groups. Of course, in the real world groups are usually much
more complex than the dyad. There are small and large groups, primary and secondary
groups, coalitions, membership and reference groups, in-and out-groups, and formal and
informal groups. Each type has different characteristic and different effects on its
members.
PRIMARY GROUPS
Often the terms small group and primary group are used interchangeably. Technically,
there is a difference. A small group has to meet only the criterion of small size. Usually
no attempt is made to assign precise numbers, but the accepted criterion is that the group
must be small enough for face-to face interaction and communication to occur. In
addition to being small, a primary group must have a feeling of comradeship, loyalty, and
a common sense of values among its members. Thus, all primary groups are small
groups, but not all small groups are primary groups.
Two examples of a primary group are the family and peer group. Initially, the primary
group was limited to a socializing group, but then a broader conception was given
impetus by the results of the Hawthorne studies. Work groups definitely have primary

group qualities. Research findings point out the tremendous impact that the primary
group has on individual behavior, regardless of context or environmental conditions. An
increasing number of companies have begun to use the power of primary groups by
organizing employees into self-managed teams. Importantly, these teams are natural work
groups with all the dynamics described so far. The team members work together to
perform a function or produce a product or service. Since they are self managing, they
also perform functions such as planning, organizing and controlling the work.
For example at 3M a well known company the self-managed teams are empowered to
take corrective actions to resolve day-to-day problems; they also have direct access to
information that allows them to plan, control, and improve their operations.
COALITIONS
Although recent research indicates that the social structure will affect the increasingly
popular strategic alliance formation patternsa between organizations, at a more micro
level, coalitions of individuals and roups within organizations have long been recognized
as an important dimension of group dynamics. Although the concept of coalition is used
in different ways by different theorists, a recent comprehensive review of the coalition

literature suggests that the following characteristics of a coalition can be included:
1. interacting group of individuals
2. deliberately constructed by the members for a specific purpose
3. independent of the formal organizations structure
4. lacking a formal internal structure
5. mutual perception of membership
6. issue-oriented to advance the purposes of the members
7. external forms
8. concerted member action, act as a group

Although the above have common characteristics with other types of groups, coalitions
are separate, usually very powerful, and often effective entities in organizations. For
example, a recent study found that employees in a large organization formed into
coalitions to overcome petty conflicts and ineffective management in order to get the job
done.
OTHER TYPES OF GROUPS
Besides primary groups and coalitions, there are also other classifications of groups that
are important to the study of organizational behavior. Two important distinctions are
between membership and reference groups, and between in-groups and out-groups. These
differences can be summarized by noting that membership groups are those to which the
individual actually belongs. An example would be membership in a craft union.
Reference groups are those to which an individual would like to belong –those he or she
identifies with. An example would be a prestigious social group.
In-groups are those who have or share dominant values, and out-groups are those on the
outside looking in. All these types of group have relevance to the study of organizational
behavior, but the formal and informal types are most directly applicable.
There are many formally designated work groups, such as committees, in the
modern organization. The functional departmental committees (finance, marketing,
operations, and human resources) and now cross-functional teams are examples, as are
standing committees such as the public affairs committee, grievance committee, or
executive committee. Teams, however have emerged as an important type of group in
today’s organizations.
Thus informal groups form for [political, friendship, or common interest reasons. For
political purposes, the informal group may form to attempt to get its share of rewards
and/or limited resources. Friendship groups may form on the job and carry on outside the

workplace. Common interests in sports or ways to get back at management can also bind
members into an informal group.
THE DYNAMICS OF GROUP FORMATION
Why do individuals form into groups? Before discussing some very practical reasons, it
would be beneficial to examine briefly some of the classic theories of group formation, or
why people affiliate with one another. The most basic theory explaining affiliation is
‘propinquity’. This interesting word means simply that individuals affiliate with one
another due to spatial or geographical proximity. The theory would predict that students
sitting next to one another in class, for example, are more likely to form into a group than
the students sitting in opposite ends of the room. In an organization, employees who work
in the same area of the plant or office or managers with offices close to one another
would more probably form into a groups than would those who are not physically located
together. There is some research evidence to support the propinquity theory, and on the
surface it has a great deal of merit for explaining group formation. The drawback is that it
is not analytical and does not begin to explain some some of the complexities of group
formation. Some theoretical and practical reasons need to be explored.
WHY GROUPS ARE FORMED?
There is no single reason why individuals join groups. Because most people belong to a
number of groups, it is obvious that different groups provide different benefits to their
members.
Security :- by joining a group , individuals can reduce the insecurity of “standing alone.”
People feel stronger , have fewer self-doubts, and are more resistant to threats when they
are a part of a group.

Status:- inclusion in a group that is viewed as important by others provides recognition

and status for its members.
Self-esteem:- groups can provide people with feelings of self-worth. That is, in addition
to conveying status to those outside the group, membership can also give increased
feelings of worth to the group members themselves.
Affiliation:- groups can fulfill social needs. People enjoy the regular interaction that
comes with group membership. For many people, these pn-the-job interactions are their
primary source for fulfilling their needs for affiliation.
Power :- what cannot be achieved individually often becomes possible through group
action. There is power in numbers.
Goal achievement:- there are times when it takes more than one person to accomplish a
particular task- there is a need to pool talents, knowledge, or power in order to complete a
job. In such instances, management will rely on the use of a formal group.
Except for these reasons there are few more reasons which influence employees to be a
part of a particular form or kind of a group they are as follows:-
Companionship, identification, understanding from friends, opportunities for initiative
and creativity, help in sorting out an issue etc.
Theories of group formation
A more comprehensive theory of group formation than mere propinquity comes from the
theories based on activities, interactions, and sentiments. These three elements are

directly related to one another. The more activities persons share, the more numerous will
be their interactions and the stronger will be their sentiments (how much the other
persons are liked or disliked); the more interactions among persons, the more will be their
shared activities and sentiments; and the more sentiments persons have for one another,
the more will be their shared activities and interactions. This theory lends a great deal to
the understanding of group formation and process. The major element is interaction.
Persons in the group interact with one another not just in the physical propinquity sense,
but also to accomplish many group goals, such as problem solving and cooperation.
There are many other theories that attempt to explain group formation. Most often they
are only partial theories, but they are generally additive in nature . one of the more
comprehensive is a balance theory of group formation. The theory states that persons are
attracted to one another on the basis of similar attitudes toward commonly relevant
objects and goals.
The following figure shows this balance theory. Individual X will interact and form a
relationship/group with individual Y because of common attitudes and values (Z). Once
this relationship is formed, the participants strive to maintain a symmetrical balance
between the attraction and the common attitudes. If an imbalance occurs, an attempt is
made to restore the balance. If the balance cannot be restored, the relationship dissolves.
Both propinquity and interaction play a role in balance theory.
Individual X Individual Y

Balance theory of
Group formation
Z
Common attitudes and values

Religion
Politics
Lifestyle
Marriage
Work
Authority
Still another theoretical approach to group formation receiving considerable attention in

exchange theory. Similar to its functioning as a work-motivation theory, exchange theory
is based upon reward-cost outcome must exist in order for attraction or affiliation to take
place. Rewards from interactions gratify needs, while costs incur anxiety, frustration,
embarrassment, or fatigue. Propinquity, interaction, and common attitudes all have roles
in exchange theory.
Besides the more established social psychology explanations for group formation, there
are also some generally recognized identifiable stages of group development.
These stages can be briefly summarized as follows:
(Stages of group formation)
1. FORMING: this initial stage is marked by uncertainty and even confusion.
Group members are not sure about the purpose, structure, task, or leadership of
the group.

2. STORMING: this stage of development, as indicated by the term, is
characterized by conflict and confrontation. (In the usually emotionally charged
atmosphere, there may be considerable disagreement and conflict among the
members about roles and duties.)
3. NORMING: finally, in this stage the members begin to settle into cooperation
and collaboration. They have a “we” feeling with high cohesion, group identity,
and camaradie.
4. PERFORMING: This is the stage where the group is fully functioning and
devoted to effectively accomplishing the tasks agreed upon in the norming stage.
5. ADJOURNING: this represents the end of the group, which is ongoing,

permanent groups will never be reached. However, for project team or task forces
with a specific objective, once the objective is accomplished, the group will
disband or have a new composition, and the stages will start over again.
Practicalities of group formation.
Besides the conceptual explanations for group formation and development, there are very
practical reasons for joining and/or forming a group. For instance, employees in an
organization may form a group for economic, security, or social reasons. Economically,
workers may form a group to work on a project that is paid for on a group-incentive plan
such as gainsharing, or they may form a union to demand higher wages. For
security,joininga group provides an individual with a united front in combating
indiscriminant, unilateral treatment. The adage that there is strength in numbers applies in
this case. The most important practical reason individuals join or form groups is,
however, that groups tend to satisfy the very intense social needs of most people.

Workers, in particular, generally have a very strong desire for affiliation. This need is met
by belonging to a group or becoming a member of a team. Research going as far back as
the Hawthorne studies has found the affiliation motive to have a major impact on human
behavior in organizations.
HOW GROUPS ARE FORMED?
When an engineer designs the plans and technology for a new factory, and when an
architect designs the office layout, they are also designing the social relations that will
prevail within the organization. Management determines where men will work and what
opportunities they will have to contact each other during the day. It also determines rates
of pay, conditions of work, and the various symbols that are associated with each job.
Given these basic elements, a sophisticated observer can predict the social relations that
will exist within the organization long before the first employee enters the building. In
telling men where and how they are to work, management is also telling them with whom
they will come into contact. Normally, individuals develop friendships with the people
they see the most often. In fact, employees who have the greatest opportunities to make
contacts on the job make the largest number of friends and are in the best position to
become the leaders of the group.
Multiple Group-Memberships
Rarely do participants in an organization belong to just one group.

For example take Adam Kopka, a mechanical engineer in the w company. He has one
group of friends whom he works with on a development project: two electrical engineers,
a technician, and a chemist. In addition, he is identified with all those who report to Alex
Fisher, the manager of the special projects department, which includes two other project
groups. He also feels close to other mechanical engineers who are scattered through the
laboratory. His lunch and after-hours bowling associates may include still other people.

Now each of these groups has a different membership, although there may be a great deal
for overlapping. For some purpose some group is the most important to Adam; for others,
another. The mere fact that he belongs to several groups, however, may subject him to
considerable stress when their respective interests come into conflict.
Suppose, for instance, that the mechanical engineers grow concerned that their jobs
and point of view are assuming less significance in the laboratory. The engineers agree
among themselves to exert greater pressure for higher mechanical-engineering standards
in their work design. As long as Adam is in the company of his fellow mechanical
engineers, he feels this is a fine decision. Back in his project group, however, he may find
that this is a minority position and he is under pressure to emphasize other project goals.
Now he feels under cross pressures; he cant be loyal to both groups.
The group becomes an organization
Employees form friendship groups based on their contacts and common interests-and
these groups arise out of the life of the organization. Once these groups have been
established, however, they develop a life of their own that is almost completely separate
from the work process from which it arose. This is dynamic, self-generating process.
Brought together by the formal organization, employees interact with one another.
Increasing interaction builds favorable sentiments toward fellow group members. In turn,
these sentiments become the foundation for an increased variety of activities, many not
described by the job descriptions: special lunch arrangements, trading of the job duties,
fights with those outside the group, gambling on paycheck numbers. And these increased
opportunities for interaction build stronger bonds of identification. Then the group
becomes something more than a mere collection of people. It develops a customary way
of doing things – a set of stable characteristics that are hard to change. It becomes an
organization in itself.
Suboptimisation : Group Goals

So far it is illustrated that group perform a psychological function for the individual :
providing support and permissiveness. Most importantly, the group sets goals for itself
that become important motivators for the individual.
In the large organization, everyone i.e. manager and nonmanager is supposed to be
working toward the same objectives. But individuals are likely to put their own need
satisfactions ahead of these goals . in addition , groupings of individuals set goals for
themselves and these goals take precedence over the total organisation’s objectives.
Here is one example:

The installation of a new computer in the y corporation was delayed by 2 years by an
interdepartmental struggle over who would control this new equipment. The finance
group claimed that it should be under their jurisdiction but production and sales both
wanted a new “ Computation and Programming” department to be created . finance felt it
would lose prestige if a separate department was created while production and sales
believed that the new computer would not be as helpful to them if it was placed in an
existing department. Thus, a very costly piece of equipment was wasted for two years,
from the point of view of the total organization, because of these special interest
groupings.
In a sense, then, the organization pays some price in divisiveness for the help of the group
in attaching and holding the individual. This has come to be called the suboptimisation
problem, where small group objectives tend to
Conflict with or take precedence over the larger organizations goals. Members are
motivated primarily by small group goals, not by large organization goals.
GROUP DECISION MAKING
The belief characterized by juries that two heads are better than one has long been
accepted as a basic component of North American and many other countries legal
systems. This belief has expanded to the point that, today, many decisions in

organizations are made by groups, teams, or committees. In this section, we want to
review group decision making.
Basic Steps in Group Decision Making

1. Identifying the problem or opportunity. problems are often ambiguous or hidden
behind symptoms, so understanding the problem is more difficult than we often think.
2. Analyzing and Clarifying the problem: once the problem is identified, a team must
determine its scope, complexity, who is involved, what areas are affected, what
contextual factors might affect the problem, what information is missing, what
constituencies are involved. This step involves gathering all the relevant information.
3. Proposing and Evaluating Solutions: generate a list of alternative solutions and

choosing among them. Often complete information is unavailable and a group must make
intelligent guesses about the consequences of each alternative. Brainstorming is critical
in this stage. Also in this stage, it may make sense for people to work individually to
generate possible solutions before getting together. In a group, individuals tend to self-
censor and good ideas may be lost without taking steps to avoid this problem.
4. Implementing the Decision: In this step. members need to identify what needs to be
done, what equipment and materials are needed, identify contingency plans if plans don't
go as planned, and evaluate the plan throughout the implementation stage. It is important
here also to test the consequences of the group's tentative choices
GROUP DECISION-MAKING TECHNIQUES

The most common form of group decision-making takes place in interacting groups. In
these groups, members meet face-to- face and rely on both verbal and nonverbal
interaction to communicate with each other. But as our discussion of groupthink
demonstrated, interacting groups often censor themselves and pressure individual
members toward conformity of opinion. Brainstorming, the nominal group technique, and
electronic meetings have been proposed as ways to reduce many of the problems inherent
in the traditional interacting group.
Brainstorming is meant to overcome pressures for conformity in the interacting

group that retard the development of creative alternatives. It does this by utilizing an
idea-generation process that specifically encourages any and all alternatives, while
withholding any criticism of those alternatives.
In a typical brainstorming session, a half-dozen to a dozen people sit around a table.
The group leader states the problem in a clear manner so that it is understood by all
participants. Members then “free-wheel” as many alternatives as they can in a given
length of time. No criticism is allowed, and all the alternatives are recorded for later
discussion and analysis. That one idea stimulates others and that judgments of even the
most bizarre suggestions are withheld until later encourage group members to “think the
unusual.” Brainstorming, however, is merely a process for generating ideas. The
following two techniques go further by offering methods of actually arriving at a
preferred solution.
The nominal group technique restricts discussion or interpersonal communication

during the decision-making process, hence, the term nominal. Group members are all
physically present, as in a traditional committee meeting, but members operate
independently. Specifically, a problem is presented and then the following steps take
place:
1. Members meet as a group but, before any discussion takes place, each member
independently writes down his or her ideas on the problem.

2. After this silent period, each member presents one idea to the group. Each member
takes his or her turn, presenting a single idea until all ideas have been presented and
recorded. No discussion takes place until all ideas have been recorded.
3. The group now discusses the ideas for clarity and evaluates them.
4. Each group member silently and independently rank-orders the ideas. The idea with
the highest aggregate ranking determines the final decision.
The chief advantage of the nominal group technique is that it permits the group to
meet formally but does not restrict independent thinking, as does the interacting group.
The most recent approach to group decision making blends the nominal group
technique with sophisticated computer technology. It’s called the computer assisted
group or electronic meeting. Once the technology is in place, the concept is simple. Up
to 50 people sit around a horseshoe-shaped table, empty except for a series of computer
terminals. Issues are presented to participants and they type their responses onto their
computer screen. Individual comments, as well as aggregate votes, are displayed on a
projection screen.
The major advantages of electronic meetings are anonymity, honesty, and speed.
Participants can anonymously type any message they want and it flashes on the screen
for all to see at the push of a participant’s board key. It also allows people to be
brutally honest without penalty. And it’s fast because chitchat is eliminated,
discussions don’t digress, and many participants can “talk” at once without stepping on
one another’s toes. The future of group meetings undoubtedly will include extensive
use of this technology.
Each of these four group decision techniques has its own set of strengths and
weaknesses. The choice of one technique over another will depend on what criteria you
want to emphasize and the cost-benefit trade-off. For instance, as Exhibit 8-10 on page
246 indicates, the interacting group is good for building group cohesiveness,
brainstorming keeps social pressures to a minimum, the nominal group technique is an
inexpensive means for generating a large number of ideas, and electronic meetings
process ideas fast.

Effectiveness and Efficiency

Whether groups are more effective than individuals depends on the criteria you
use for defining effectiveness. In terms of accuracy, group decisions will tend to be more
accurate. The evidence indicates that, on the average, groups make better-quality
decisions than individuals. However, if decision effectiveness is defined in terms of
speed, individuals are superior. If creativity is important, groups tend to be more effective
than individuals. And if effectiveness means the degree of acceptance the final solution
achieves, the nod again goes to the group.
But effectiveness cannot be considered without also assessing efficiency. In
terms of efficiency, groups almost always stack up as a poor second to the individual
decision maker. With few exceptions, group decision making consumes more work hours
than if an individual were to tackle the same problem alone. The exceptions tend to be the
instances in which, to achieve comparable quantities of diverse input, the single decision
maker must spend a great deal of time reviewing files and talking to people. Because
groups can include members from diverse areas, the time spent searching for information
can be reduced. However, as we noted, these advantages in efficiency tend to be the
exception. Groups are generally less efficient than individuals. In deciding whether to use
groups, then, consideration should be given to assessing whether increases in
effectiveness are more than enough to offset the losses in efficiency.
Strengths of Group Decision Making

Groups generate more complete information and knowledge. By aggregating the
resources of several individuals, groups bring more input into the decision process. They
offer increased diversity of views. This opens up the opportunity for more approaches
and alternatives to be considered. The evidence indicates that a group will almost always
outperform even the best individual. So groups generate higher-quality decisions. Finally,
groups lead to increased acceptance of a solution. Many decisions fail after the final
choice is made because people don’t accept the solution. Group members who

participated in making a decision are likely to enthusiastically support the decision and
encourage others to accept it.
Weaknesses of Group Decision Making
In spite of the pluses noted, group decisions have their drawbacks. They are time
consuming. They typically take more time to reach a solution than would be the case if an
individual were making a decision alone. There are conformity pressures in groups. The
desire by group members to be accepted and considered an asset to the group can result in
squashing any overt disagreement. Group discussion can be dominated by one or a few
members. If this dominant coalition is composed of low-and medium-ability members,
the group’s overall effectiveness will suffer. Finally, group decisions suffer from
ambiguous responsibility. In an individual decision, it’s clear who is accountable for the
final outcome. In a group decision, the responsibility of any single member is watered
down.
GROUP THINK : A MAJOR PROBLEM WITH COMMITTEES AND GROUPS
Symptoms of groupthink
1. There is the illusion of invulnerability. There is excessive optimism and risk
taking.
2. There are rationalizations by the members of the group to discount warnings.
3. There is an unquestioned belief in the group’s inherent mortality. The group
ignores questionable ethical or moral issues or stances.

4. Those who oppose the group are stereotyped as evil, weak or stupid.
5. There is direct pressure on any member who questions the stereotypes. Loyal
members don’t question the direction in which the group seems to be heading.
6. There is self-censorship of any deviation from the apparent group consensus.
7. There is illusion of unanimity. Silence is interpreted as consent.
8. There are self-appointed mindguards who protect the group from adverse
information.
A dysfunction of highly cohesive groups and committees that has received a lot of
attention has been called groupthink by Irving Janis. He defines it as “a deterioration of
mental efficiency, reality testing, and moral judgement that results from in- group
pressures”.
Essentially groupthink results from the pressures on individual members to conform and
reach consensus. Committees that are suffering from groupthink are so bent on reaching
consensus that there is no realistic appraisal of alternative courses of action in a decision,
and deviant, minority, or unpopular views are suppressed.
Janis has concluded that a number of historic fiascos by government policy-making
groups ( for example, britains do-nothing policy toward Hitler prior to World War 2, the
unpreparedness of the us forces at pearl harbor.the bay of pigs invasion at cuba, and the
escalation of the Vietnam war) can be attributed to groupthink. The Watergate affair
during the Nixon administration, the Iran-Contra affair during the reagon administration,
and the whitewater affair in the Clinton administration are also examples. The decision
process by which NASA launched the space shuttle Challenger on its fateful mission can
be analysed in terms of the characteristics of groupthink. For example, conformity
pressures were in evidence when NASA officials complained to the contractors about
delays. Other symptoms of groupthink are mentioned above. Illusions of invulnerability
and unamity and mindguarding—were played out in the Challenger disaster
management’s treatment and exclusion of input by the engineers.
Although historically notorious news events can be used to dramatically point out the
pitfalls of groupthink, it can commonly occur in committees in business firms or

hospitals or any other type of organization. To date, there has been at least some partial
support of the groupthink model when applied to areas such as leader behavior and
decision making. In general, committees should recognize and then avoid, if possible, the
symptoms of groupthink identified as mentioned above. For example, the first symptom
leads to the so-called “risky shift phenomenon” of groups. Research going back many
years back has shown that, contrary to popular belief, a group may make more risky
decisions than the individual members would on their own. This conclusion, of course,
must be tempered by the values attached to the outcomes, but most of the research over
the years finds out that the group decision enhances the initial tendency of individual
members in a given direction. Called group-included attitude polarization, this means
that, for example, if an employee has a prounion (or antiunion) attitude before group
discussion, the group discussion results in an even more extreme attitude in the same
direction.
Such symptoms as risky shift, polarization, and the others as mentioned earlier should
make groups take notice and be very careful that they do not slip into groupthink. To help
overcome the potentilly disastrous effects of groupthink, free expression of minority and
unpopular viewpoints should be encouraged and legitimatized.
Companies such as Bausch & Lomb, apple computer, ford, Johnson &Johnson etc are
known not only tolerating, but formally encouraging, conflict and debate during
committee meetings.
Although many studies show that successful companies advocate such open conflict and
healthy debate among its group members, other studies point to the value of consensus.
This apparent contradiction may be resolved by recognizing the following:
“Consensus may be preferred for smaller, non diversified, privately held firms
competing in the same industry while larger firms dealing with complex issues of
diversification may benefit from the dissent raised in open discussions. Larger firms
in uncertain environments need dissent while smaller firms in more simple and
stable markets can rely on consumers”.

Groups Versus the Individual
Decision-making groups may be widely used in organizations, but does that imply that
group decisions are preferable to those made by an individual alone? The answer to this
question depends on a number of factors. Let’s begin by looking at the strengths and
weaknesses of groups.
Group v/s individual decision making .

Even apart from possible differences in objectives , is group decision-making more
effective than individual decision making? The answer seems to depend on the nature of
the group, the problem being considered, and what is meant by “effective.” Groups
sometimes turn out higher-quality solutions than do individuals, although this isn’t
always the case. In solving problems where there is one definite solution, a group is more
likely to be accurate than an individual. Furthermore, group problem-solving has an
advantage of enlisting a variety of backgrounds and experiences; thus, the range of
solutions is usually greater, and the group solution is more likely to represent a balanced
point of view. Meetings are particularly useful when the participants represent various
departments whose coordination is required to implement the final decision, for the
discussions tends to force the departmental representatives to look at the problem from an
organizational rather a departmental point of view.
Individual decision making, on the other hand, is more likely to be firm than to represent
a compromise. Individuals are more capable than groups of handling subtle relations-
whether in threading a needle or in developing complex theoretical formula. Great work
of art are almost without exception the products of single individuals. “could hamlet have
been written by a committee,” it has been asked, “Mona Lisa been painted by a club?”
In addition, meetings are awfully time-consuming. Decisions reached in them take longer
than those of individuals, particularly if time is computed and easier acceptance of
decisions reached through meetings makes them worth the extra time involved. On the
other hand, on occasion pass the buck to meetings when they are psychologically

unprepared to make decisions themselves. Meetings under these circumstances rarely
accomplish much.
There is the risk, too, that presenting a problem to a group to discuss may lead to chaotic
situation.
The following are a few self-centered and disruptive behaviors that can happen in a group
along with a few ideas of "what to do about it". These help one to be prepared when
meetings begin to get off track.
Self Centered Roles and Behavior Some Ideas for Coping
The Blocker -- Goes off on tangents, a. Try to focus away from the person
consistently argues on points the group has exhibiting the behavior.
resolved, and rejects ideas without b. Politely point out that the person has
consideration strayed away from the topic and
refocus on the task you are doing.
c. Summarize conclusions to conflicts

to avoid argument on the same topic.
The Fighter -- Attacks the motives of a. Put a stop to it as gently as possible

others, shows hostility toward the group or by getting the person to direct anger
some individual without relation to the toward a topic, rather than a person.
group’s task, and criticizes and blames b. Point out where the person has been
others. critical and why the criticism is
unwarranted.
c. Point out that you all share ideas as

you work and everyone should be
recognized for what they have
contributed.

The Pleader -- Proposes own pet concerns a. Give the person some attention, then
beyond reason; attempts to speak for ‘the focus on the priorities of the group.
girl,’ ‘the leader,’ etc.
b. Ask the person gently to speak only
for her self or him self.
The Dominator -- Interrupts the a. Give the person a special project.

contributions of others; uses authority in b. Send the person on an errand.
manipulating the group or certain members
c. Add a strong person to the group
by pulling rank.
and encourage more group
participation.
The Withdrawer -- Acts passive or a. Direct questions to the person that

indifferent, doodles, whispers to others, and you know can be answered.
passes notes. b. Ask the person to lead a discussion.
c. Find ways to get the person actively

involved with others in the group.
The Talker -- Seeks recognition by a. Use tact to interrupt the flow of

extreme ideas and boisterous boasts. talking. Ask specifically for others
to comment.
b. Indicate that you are happy that the
person has so much to share and
could others have a chance to
contribute.
c. Have a private conversation with the

person.
The Nit Picker -- Criticizes, finds fault a. Try to get the person to see that
with everything—the room set-up, the these things do not affect the group

typing, and the materials, under the guise that much.
of helping.
b. Ask the person to help with the next
session with assurances that you will
discuss it later.
The Dependent One -- Overeager to a. Ask the person to initiate ideas and
please the leader by doing whatever is give reactions.
expected or desire, waits to be directed,
b. Watch for changes to praise for
demonstrates little initiative.
initiative.
Conclusion
To know better what the groups are I have summarized it in the following way
Groups share the following features:
• Roles - allocate responsibility for tasks.

• norms - identifies suitable behaviors.
• communication structure -details who talks to who.
• power structure - who has the most influenc
When it comes to groups, "the whole is greater than the sum of its parts." (a saying not to
be confused with " a rolling stone gathers no moss.")Although many important tasks can
only be accomplished through the coordinated effort of a large group, individual

productivity does decline as the group gets larger.Some of the strengths of being in a
group can cause the chilling group polarization effect andgroupthink.
INTERPERSONAL RELATIONS IN A TEAM
Introduction
A team comprises a group of people or animals linked in a common purpose. Teams are
especially appropriate for conducting tasks that are high in complexity and have many
interdependent subtasks.
A group in itself does not necessarily constitute a team. Teams normally have members
with complementary skills and generate synergy through a coordinated effort which
allows each member to maximize his or her strengths and minimize his or her
weaknesses.

Thus teams of sports players can form (and re-form) to practice their craft. Transport
logistics executives can select teams of horses, dogs or oxen for the purpose of conveying
goods.
Theorists in business in the late 20th century popularized the concept of constructing
teams. Differing opinions exist on the efficacy of this new management fad. Some see
"team" as a four-letter word: overused and under-useful. Others see it as a panacea that
finally realizes the human relations movement's desire to integrate what that movement
perceives as best for workers and as best for managers. Still others believe in the
effectiveness of teams, but also see them as dangerous because of the potential for
exploiting workers — in that team effectiveness can rely on peer pressure and peer
surveillance.
Compare the more structured/skilled concept of a crew, and the advantages of formal and
informal partnerships.
Definitions of Team
• A distinguishable set of two or more individuals who interact dynamically,

interdependently and adaptavively to achieve specified, shared and valued
objectives.
• A small number of people with complementary skills committed to a common

purpose, specific performance goals, a common working approach, and mutual
accountability
TEAMS IN THE MODERN WORKPLACE
In recent years, teams have emerged as the most important group phenomenon in
organizations. The term “team” is not new to organizations, and teamwork has been
stressed throughout the years. For example, the well known quality guru Joseph Juran
first took his “Team Approach To Problem Solving” to the Japanese in the 1950’s and

then in the 1980’s to the United States. Today, teams are becoming increasingly popular.
Recent estimates of the prevalence and the type of teams among fortune 1000 companies
are as follows:-
1. Almost all use project teams ( diverse managerial/professional employees
working on projects for a defined, but typically extended, period of time).
2. a large majority (87%) use parallel teams (employees working on problem-
solving or quality teams in parallel to the regular organizational structure).
3. About half use permanent work teams (self-contained work units responsible for
manufacturing products or providing services).
After first defining what is meant by a team and critically analyzing self-managed
teams found in today’s organizations, the ways to train self-managed teams and
make them effective are mentioned below in this topic.
Team size, composition, and formation
Team size and composition affect the team processes and outcomes. The optimal size
(and composition) of teams is debated and will vary depending on the task at hand. At
least one study of problem solving in groups showed an optimal size of groups at four
members. Other works estimate the optimal size between 5-12 members. Less than 5
members results in decreased perspectives and diminished creativity. Membership in
excess of 12 results in increased conflict and greater potential of sub-groups forming.
Seven members is considered to be optimal for most teams. David Cooperider sugest that
the larger group, the better. This is because the larger groups is able to adress concerns of
the whole system. So while it may not be effective at solving a given task - cooperider
asks us to consider the relevance of that task. "effectve at what?"
Regarding composition, all teams will have an element of homogeneity and
heterogeneity. The more homogeneous the group, the more cohesive it will be. The more
heterogeneous the group, the greater the differences in perspective and increased
potential for creativity, but also the greater potential for conflict.

Team members normally have different roles, like team leader and agents. Large teams
can sub-divide into sub-teams according to need.
Many teams go through a life-cycle of stages, identified by Bruce Tuckman as: forming,
storming, norming, performing and adjourning.
Types of Teams
 Independent and Interdependent Teams
Of particular importance is the concept of different types of teams. A bright line is

usually drawn between "independent" and "interdependent" teams. To continue the sports
team example, a football team is clearly an interdependent team: no significant task can
be accomplished without the help of essentially all team members; team members
typically specialize in different tasks (running the ball, goal kicking & scrum feeding),
and the success of every individual is inextricably bound to the success of the whole
team. No Rugby player, no matter how talented, has ever won a game by playing alone.
On the other hand, a tennis team is a classic example of an independent team: matches
are played and won by individuals or partners, every person performs basically the same
actions, and whether one player wins or loses has no direct effect on the performance of

the next player. If all team members each perform the same basic tasks, such as students
working problems in a math class, or outside sales employees making phone calls, then it
is likely an independent team. They may be able to help each other — perhaps by
offering advice or practice time, by providing moral support, or by helping in the
background during a busy time — but each individual's success is primarily due to each
individual's own efforts. Tennis players do not win their own matches merely because the
rest of their teammates did, and math students do not pass tests merely because their
neighbors know how to solve the equations.
Coaching an 'interdependent" team like a football team necessarily requires a different
approach from coaching an "independent" team because the costs and benefits to
individual team members — and therefore the intrinsic incentives for positive team
behaviors — are very different. An interdependent team benefits from getting to know
the other team members socially, from developing trust in each other, and from
conquering artificial challenges (such as offered in outdoors ropes courses).
Independent teams typically view these activities as unimportant, emotion-driven time

wasters. They benefit from more intellectual, job-related training. The best way to start
improving the functioning of an independent team is often a single question, "What does
everyone need to do a better job?"
 Self-managed Teams
Normally, a manager acts as the team leader and is responsible for defining the goals,
methods, and functioning of the team. However, interdependencies and conflicts between
different parts of an organization may not be best addressed by hierarchical models of
control.
The main idea of the self-managed team is that the leader does not operate with positional
authority. In a traditional management role, the manager is responsible for providing
instruction, conducting communication, developing plans, giving orders, and disciplining
and rewarding employees, and making decisions by virtue of his or her position. In this
organizational model, the manager delegates specific responsibility and decision-making

authority to the team itself, in the hope that the group will make better decisions than any
individual. Neither a manager nor the team leader make independent decisions in the
delegated responsibility area. Decisions are typically made by consensus in successful
self-managed teams, by voting in very large or formal teams, and by hectoring and
bullying in unsuccessful teams. The team as a whole is accountable for the outcome of its
decisions and actions.
Self-managed teams operate in many organizations to manage complex projects
involving research, design, process improvement, and even systemic issue resolution,
particularly for cross-department projects involving people of similar seniority levels.
While the internal leadership style in a self-managed team is distinct from traditional
leadership and operates to neutralize the issues often associated with traditional
leadership models, a self-managed team still needs support from senior management to
operate well.
Self-managed teams may be interdependent or independent. Of course, merely calling a
group of people a self-managed team does not make them either a team or self-managed.
As a self-managed team develops successfully, more and more areas of responsibility can
be delegated, and the team members can come to rely on each other in a meaningful way.
Project Teams
A team used only for a defined period of time and for a separate, concretely definable
purpose, often becomes known as a project team. Managers commonly label groups of
people as a "team" based on having a common function. Members of these teams might
belong to different groups, but receive assignment to activities for the same project,
thereby allowing outsiders to view them as a single unit. In this way, setting up a team
allegedly facilitates the creation, tracking and assignment of a group of people based on
the project in hand. The use of the "team" label in this instance often has no relationship
to whether the employees are working as a team.
 Sports Teams

A sports team is a group of people which play a sport together. Members include all
players (even those who are waiting their turn to play) as well as support members such
as a team manager.
 Virtual Teams
A virtual team consists of members joined together electronically, with nominal in-person
contact. Virtual teaming is made possible with technology tools, especially the Internet.
This allows teams to be formed of players otherwise unavailable. Research can be
performed using input from the best minds around the world. Work projects can be
completed by spreading the workload among long-distance players. Many businesses
build their competitive edge on the capabilities and efficiencies of virtual teams.
VIRTUAL TEAM
A Virtual Team — also known as a Geographically Dispersed Team (GDT) — is a

group of individuals who work across time, space, and organizational boundaries with
links strengthened by webs of communication technology. They have complementary
skills and are committed to a common purpose, have interdependent performance goals,
and share an approach to work for which they hold themselves mutually accountable.
Geographically dispersed teams allow organizations to hire and retain the best people
regardless of location. Members of virtual teams communicate electronically, so they
may never meet face to face. However, most teams will meet at some point in time. A
virtual team does not always mean teleworker. Teleworkers are defined as individuals
who work from home. Many virtual teams in today's organizations consist of employees

both working at home and small groups in the office but in different geographic
locations.
Why virtual teams?

Best employees may be located anywhere in the world.
Workers demand personal flexibility.
Workers demand increasing technological sophistication.
A flexible organization is more competitive and responsive to the marketplace.
Workers tend to be more productive; i.e., they spend less time on commuting and travel
The increasing globalization of trade and corporate activity.
The global workday is 24 vs. 8 hours.
The emergence of environments which require inter-organizational cooperation as well as
competition.
Changes in workers' expectations of organizational participation.
A continued shift from production to service/knowledge work environments.
Increasing horizontal organization structures characterized by structurally and
geographically distributed human resources.
Benefits of virtual teams:

Some members of virtual teams do not need to come in to the workplace, therefore the
company will not need to offer those workers office or parking space.
Reduces traveling expenses for employees.
It allows more people to be included in the labor pool.
It decreases both air pollution and congestion because there is less commuting.
It allows workers in organizations to be more flexible.
By working in virtual teams, physical handicaps are not a concern.
Problems with virtual teams

Misunderstanding in communications is the leading complaint among members of virtual
teams.
Working on a project over the virtual workspace causes lack of project visibility.
Difficulty contacting other members. (i.e. email, instant messaging, etc.)
Differences in time zones.
It can be difficult for team members to obtain the meanings of text-based messages.
Tips to ease communication problems for team members:

Allow the team members to get to know each other by arranging occasional face to face
meetings. This can also be accomplished using webcams and video conferencing which
may or may not necessitate that all team members use the same hardware and/or software
applications.
Allow team members to get an idea of where the overall project is going. This way each
member will know how they fit into the project.
Create a code of conduct. This will avoid delays and will make sure that requests are
answered in a timely fashion.
Do not allow team members to disappear. Have a calendar for each team member so that
everyone's schedule is available to view.
Develop trust among the team.
Store charts, diagrams, etc. on the internet so that the whole team can see them.
Who are the members of virtual teams?
Members can either be stable or change on an ongoing basis.
Members can be in the same company or from various companies.
Members can live in the same community or in different countries.
Basic types of virtual teams
Networked Teams consist of individuals who collaborate to achieve a common goal or
purpose; membership is frequently diffuse and fluid.
Parallel Teams work in the short term to develop recommendations for an improvement
in a process or system; the team has a distinct membership.

Project or Product-Development Teams conduct projects for users or customers for a
defined period of time. Tasks are usually nonroutine, and the results are specific and
measurable; the team has decisionmaking authority.
Work or Production Teams perform regular and ongoing work usually in one function;
the team has clearly defined membership.
Service Teams support customers or the internal organization in typically a
service/technical support role around the clock.
Management Teams work collaboratively on a daily basis within a functional division of
a corporation.
Action Teams offer immediate responses activated in (typically) emergency situations.
Reasons for virtual teams in the workplace:

-Allows for people in different parts of the world to come together to work on a project.
-Creates alliances and mergers between organizations.
-Extends the market to different geographical locations.
-Reduces costs for an organization.
Nine key steps to developing virtual teams:

 Secure a project-based idea conducive to collaboration.
 Build a business plan to include the team vision, purpose and goal.
 Identify critical players to support the project.
 Select people who can contribute their core competencies to the project.
 Enlist their service.
 Establish an initial meeting with members to lay down the groundwork,set
guidelines and processes.
 Strategically align all members to the projects goal.

 Set a timeline.
 Monitor activities and progress.
Critical success factors of virtual teams

The existence of availability standards.
Ample resources to buy and support state-of-the-art reliable communication and
collaboration tools for all team members.
The existence of corporate memory systems such as lessons learned databases.
The existence of written goals, objectives, project specifications, and performance
metrics; results orientation.
Managers and team members with a better-than-average ability to accurately estimate.
A lower-than-normal ratio of pushed to pulled information.
Team communication is prioritized by the sender.
Human resource policies, reward/recognition systems as well as career development
systems address the unique needs of virtual workers.
Good access to technical training and information on how to work across cultures.
Training methods accommodate continual and just-in-time learning.
There are standard and agreed-on technical and "soft" team processes.
A "high trust" culture; teamwork and collaboration are the norm.
Leaders set high performance expectations; model behaviors such as working across
boundaries and using technology effectively.
Team leaders and members exhibit competence in working in virtual environments.
Team-building key for virtual workplace

Darleen DeRosa’s studies focused on the lack of team building in a virtual workplace.
DeRosa earned her PhD in organizational psychology; she has invested four years of
graduate school at the masters and PhD levels obtaining her degree. As part of Right
Management Consultants, she conducted this study because she feels that even though

organizations have invested so much time and money into virtual teams, organizations
are missing the foundation for virtual workplaces; support.
DeRosa’s study included surveying and interviewing 10 different major international
firms; two thirds agreed that the performance of virtual teamwork is “important or very
important” to the fundamental success of their business. Of 21 virtual teams, sixty-five
percent claimed that they’d had never participated in an effective team building session,
thirty-six percent said they had never met their team members face to face. Teams that
had been together for less than a year were more productive and performed substantially
better than teams that had been together for more than a year. An overall observation is
that productivity and performance decreases over time.
A recent study by the Gartner Group; an American research company, stated that by
2008, 41 million corporate employees will operate in a virtual workplace at least one day
per week.
Having employees working in a virtual workplace poses some concerns and challenges,
most of which would be eliminated by working in a physical office. Most of these
challenges stem from the lack of face-to-face interactions among team members. Darleen
DeRosa discovered seven key challenges that employees are faced with when working in
teams in a virtual workplace. Here are the challenges that she has identified in her
research:
• Companies must compensate for the lack of human contact, and find appropriate ways
to support team spirit, trust and productivity.
• Leaders must be especially sensitive to interpersonal, communication and cultural

factors.
• No trust, no team. Trust is a top factor in determining virtual team success. But
interpersonal trust, compared to task-level trust (a faith that team members will do their
job) is more difficult to achieve in a virtual environment.
• Team building pays off. Virtual teams that invest time in team building perform better
than those that don't.

• Team performance tends to drop off after one year. Attention must be paid to
interpersonal, communication and cultural factors to prevent a "peak-and-decline"
syndrome.
• Technology makes virtual teaming possible, but isn't a perfect substitute for human
interaction. Teams must be careful to use the appropriate technology for various tasks.
• While meeting in person requires time and expense, virtual teams that meet once or
twice a year perform better overall than those that don't meet. To help make an easy
transition from a physical office to virtual workplaces for employees, organizations have
created “virtual water coolers” and chat rooms to encourage employee interaction and
communication.
DeRosa has concluded that companies are not optimizing their virtual workplaces. There
is an enormous potential for increased productivity and performance, however
organizations have failed to build the foundation for making an easy move to virtual
workplaces. People tend to be more receptive to face-to-face interactions. A virtual
workplace eliminates this human contact. As a result, in order to build the foundations for
a successful workplace, organizations have to find a way to replace human contact with
an equivalent interaction. Increased productivity and performance should be the driving
forces for finding that replacement and endorsing the movement to virtual workplaces.
Aiding Software for Virtual Teams
Virtual teams are often spread all over the globe, ranging from different offices to
different cultures; so how is it that they can remain on track with objectives and come
together to achieve goals to contribute to the organization? The answer is that they use
collaborative technology--in particular they use software that allows virtual teams to be
as efficient as same-location teams.
Software that aids virtual team functioning can be separated into two main categories--
software that provides ease of communication and software that provides task and
document organization.

Software that improves the ease of communication often includes features such as
presence awareness, instant messaging, and web conferencing. These tools allow team
member to be accessible to their teams 24 hours a day. Members can have real time
conversations and do not have to follow lengthy correspondence as dispersed teams have
had to in the past, which leads to greater efficiency.
Software applications that organize team tasks and documents also improve their teams'
efficiency. These programs consist of a central location where all members can access
important documents to the team, track progress made, assign tasks, and even provide
calendars with key dates and timelines to keep all members current.
There are many software programs for virtual teams, such as Lotus software by IBM,
NetMeeting by Microsoft, Facilitate.com by Facilitate.com, Thinktank by GroupSystems,
and many more. Software of this type is a fast-developing area, so organizations should
look often for software programs that suit the size and functionality of their teams.
Today we find all kinds of teams in society, and they generally fall into one of two
primary groups: permanent teams and temporary teams. Here are some of the common
types:
1. Task Force - a temporary team assembled to investigate a specific issue or problem.
2. Problem Solving Team - a temporary team assembled to solve a specific problem.
3. Product Design Team - a temporary team assembled to design a new product or

service.
4. Committee - a temporary or permanent group of people assembled to act upon some

matter.

5. Work Group - a permanent group of workers who receive direction from a designated
leader.
6. Work Team (also called Self-Directed Work Team or Self-Managed Work Team) - an
ongoing group of workers who share a common mission who collectively manage
their own affairs within predetermined boundaries.
7. Quality Circle (today also under various other names) - a group of workers from the
same functional area who meet regularly to uncover and solve work-related problems and
seek work improvement opportunities.
The name of the group or team type is less important than the purpose for which it exists.
These names simply give us a common language to help us define team types.
BASIC IMPORTANT ELEMENTS OF A TEAM

Team building
The term 'team building' can refer generally to the selection and motivation of teams, or
more specifically to group self-assessment in the theory and practice of organizational
development.
When a team in an organizational development context embarks upon a process of self-
assessment in order to gauge its own effectiveness and thereby improve performance, it
can be argued that it is engaging in team building, although this may be considered a
narrow definition.
The process of team building includes, (a) clarifying the goal, and building ownership
across the team and (b)identifying the inhibitors to teamwork and removing or
overcoming them, or if they cannot be removed, mitigating their negative effect on the
team.
To assess itself, a team seeks feedback to find out both:
its current strengths as a team
its current weaknesses
To improve its current performance, a team uses the feedback from the team assessment
in order to:
identify any gap between the desired state and the actual state
design a gap-closure strategy
TEAMWORK

Teamwork is the concept of Nicole B. performing manual labor in the tool room while
wearing a new outfit.
Projects require that people work together, so teamwork has become an important
concept in organizations. Effective teams are an intermediary goal towards getting good,
sustainable results. Industry has seen increasing efforts through training and cross-
training to help people to work together more effectively and to accomplish shared goals,
whether colleagues are present or absent.
Americans think that 'being a team player' was the most important factor in getting ahead
in the workplace. This was ranked higher than several factors, including 'merit and
performance', 'leadership skills', 'intelligence', 'making money for the organization' and
'long hours'.
~We need to listen to other people's ideas. When people are allowed to freely express
their ideas, these initial ideas will produce other ideas. ~We need to ask questions,
interact, and discuss the objectives of the team. ~We need to treat others with respect and
to support their ideas. ~We need to help one's coworkers, which is the general theme of
teamwork. We need to share with the team to create an environment of teamwork ~All
members of the team are encouraged to participate in the team. ~For a team to work
effectively it is essential team members acquire communication skills and use effective
communication channels between one another e.g. using email, viral communication,
group meetings and so on. This will enable team members of the group to work together
and achieve the teams’ purpose and goals.
Team development

The forming-storming-norming-performing model takes the team through four stages of

team development and maps quite well on to many project management life cycle
models, such as initiation - definition - planning - realisation.
As teams grow larger, the skills and methods that people require grow as more ideas are
expressed freely. Managers must use these to create or maintain a spirit of teamwork
change. The intimacy of a small group is lost, and the opportunity for misinformation and
disruptive rumors grows. Managers find that communication methods that once worked
well are impractical with so many people to lead. Specifically, leaders might encounter
difficulties based on Daglow's Law of Team Dynamics: "Small teams are informed.
Team roles
Meredith Belbin (1993) basing on his research proposed nine roles that successful
teams should have:
Coordinator
This person will have a clear view of the team objectives and will be skilled at inviting
the contribution of team members in achieving these, rather than just pushing his or her
own view. The coordinator (or chairperson) is selfdisciplined and applies this discipline
to the team. They are confident and mature, and will summarise the view of the group
and will be prepared to take a decision on the basis of this.
Shaper
The shaper is full of drive to make things happen and get things going. In doing this they
are quite happy to push their own views forward, do not mind being challenged and are
always ready to challenge others. The shaper looks for the pattern in discussions and tries
to pull things together into something feasible which the team can then get to work on.
Plant

This member is the one who is most likely to come out with original ideas and challenge
the traditional way of thinking about things. Sometimes they become so imaginative and
creative that the team cannot see the relevance of what they are saying. However, without
the plant to scatter the seeds of new ideas the team will often find it difficult to make any
headway. The plant’s strength is in providing major new insights and ideas for changes in
direction and not in contributing to the detail of what needs to be done.
Resource investigator
The resource investigator is the group member with the strongest contacts and networks,
and is excellent at bringing in information and support from the outside. This member
can be very enthusiastic in pursuit of the team’s goals, but cannot always sustain this
enthusiasm.
Implementer
The individual who is a company worker is well organised and effective at turning big
ideas into manageable tasks and plans that can be achieved. Such individuals are both
logical and disciplined in their approach. They are hardworking and methodical but may
have some difficulty in being flexible.
Team worker
The team worker is the one who is most aware of the others in the team, their needs and
their concerns. They are sensitive and supportive of other people’s efforts, and try to
promote harmony and reduce conflict. Team workers are particularly important when the
team is experiencing a stressful or difficult period.
Completer

As the title suggests, the completer is the one who drives the deadlines and makes sure
they are achieved. The completer usually communicates a sense of urgency which
galvanises other team members into action. They are conscientious and effective at
checking the details, which is a vital contribution, but sometimes get ‘bogged down’ in
them.
Monitor evaluator
The monitor evaluator is good at seeing all the options. They have a strategic perspective
and can judge situations accurately. The monitor evaluator can be overcritical and is not
usually good at inspiring and encouraging others.
Specialist
This person provides specialist skills and knowledge and has a dedicated and single-
minded approach. They can adopt a very narrow perspective and sometimes fail to see
the whole picture.
Finisher
A person who sticks to deadline and likes to get on with things. Will probably be irritated
by the more relaxed member of the team.
What are different methods for team decision making?

Many types of decision making models can be studied and used by teams. Understanding
decision making models allows teams to make intentional choices about which model
might be most appropriate for the various decisions that they confront.
Individuals benefit from understanding decision models by becoming aware of how

cognitive and affective biases can both positively and negatively impact how we work to
influence our team on making a decision. Being aware of our biases can limit any
negative impact from our biases. The models below describe how we work to affect and
manipulate the team decision-making process, sometimes in productive ways and at times
in detrimental ways for team decisions.
As a team, understanding decision-making models so that the team can make the best
decision is valuable. The “best decision” is described as a decision that (1) would not
have been thought of by an individual alone, (2) is a sound solution to the problem, (3) is
a decision based upon input, as unbiased as possible, from each team member, and (4)
addresses the team’s goal for the decision-making process.
Johnson and Johnson describe seven methods/processes that a team might use to make a
decision.5 Each method, along with its strengths and weaknesses, is discussed below.

Method 1. Decision made by authority without group discussion
Process: The designated leader makes all decisions without consulting group members.
Strengths Weaknesses
• Takes minimal time to make decision • No group interaction
• Commonly used in organizations (so we are • Team may not understand decision or be
familiar with method) unable to implement decision
• High on assertiveness scale • Low on cooperation scale
Appropriate Times for Method 1

• Simple, routine, administrative decisions; little time available to make decision; team
commitment required to implement the decision is low.
Method 2. Decision by expert

Process: Select the expert from group, let the expert consider the issues, and let the expert
make decisions.
• Useful when one person on the team has • Unclear how to determine who the expert is
the overwhelming expertise (team members may have different opinions)
• No group interaction
• May become popularity issue or power issue

• Result is highly dependent on specific expertise, clear choice for expert, team
commitment required to implement decision is low.
Method 3. Decision by averaging individuals' opinions

Process: Separately ask each team member his/her opinion and average the results.
• Extreme opinions cancelled out • No group interaction, team members are

not truly involved in the decision
• Opinions of least and most knowledgeable
• Error typically cancelled out
members may cancel
• Group members consulted • Commitment to decision may not be strong
• Useful when it is difficult to get the team
• Unresolved conflict may exist or escalate
together to talk
• Urgent decisions can be made • May damage future team effectiveness

• Time available for decision is limited; team participation is required, but lengthy
interaction is undesirable; team commitment required to implement the decision is low.
Method 4. Decision made by authority after group discussion

Process: The team creates ideas and has discussions, but the designated leader makes the
final decision. The designated leader calls a meeting, presents the issue, listens to
discussion from the team, and announces her/his decision.

• Team used more than methods 1–3
• Team is not part of decision
• Listening to the team increases the

• Team may compete for the leader’s
accuracy of the decision
attention
• Team members may tell leader “what
he/she wants to hear”
• Still may not have commitment from the
team to the decision

• Available time allows team interaction but not agreement; clear consensus on authority;
team commitment required to implement decision is moderately low.
Method 5. Decision by minority

Process: A minority of the team, two or more members who constitute less than 50% of
the team, make the team’s decision
• Method often used by executive
• Can be railroading
committees
• Method can be used by temporary • May not have full team commitment to

committees decision
• Useful for large number of decisions and • May create an air of competition among
limited time team members
• Still may not have commitment from team
• Some team perspective and discussion
to decision

• Limited time prevents convening entire team; clear choice of minority group; team
commitment required to implement the decision is moderately low.
Method 6. Decision by majority vote

Process: This is the most commonly used method in the United States (not synonymous
with best method). Discuss the decision until 51% or more of the team members make the
decision.
• Useful when there is insufficient time to

• Taken for granted as the natural, or only,
make decision by consensus
way for teams to make a decision
• Useful when the complete team-member • Team is viewed as the “winners and the
commitment is unnecessary for losers”; reduces the quality of decision

implementing a decision
• Minority opinion not discussed and may
not be valued
• May have unresolved and unaddressed
conflict
• Full group interaction is not obtained

• Time constraints require decision; group consensus supporting voting process; team
commitment required to implement decision is moderately high.
Method 7. Decision by consensus
Process: Collective decision arrived at through an effective and fair communication

process (all team members spoke and listened, and all were valued).
• Most effective method of team decision
• Takes more time than methods 1–6
making
• Takes psychological energy and high
• All team members express their thoughts degree of team-member skill (can be negative
and feelings if individual team members not committed to
the process)

• Team members “feel understood”
• Active listening used

• Time available allows a consensus to be reached; the team is sufficiently skilled to
reach a consensus; the team commitment required to implement the decision is high.
Method 7 takes well-practiced communication skills by all team members. Review prior
section on environments for decision making and other minidocuments on effective
communication and conflict management.
These seven methods/strategies for decision making all have strengths and challenges.
However, repeatedly, Method 7 (Decision by consensus) has positive long-standing
results regarding team decision making.
Special Techniques to Improve Team Decision Making
There are no sure fire ways to prevent a group from experiencing the imprecise, and at
times, chaotic process of decision making. There are some techniques that can help
groups.
Getting Started:
Before starting a team should get acquainted, express expectations of the group, evolve
shared goals. Starting with some "small wins" might help. Make sure adequate time is
given to examine the problem. Before carrying out a task, it is helpful to ask, "What's the
best way to organize ourselves to gather all of this information?" It can also help to take a

little time at the end of each meeting to talk about how effectively the team organized
itself.
Mapping the Key Outsiders:
Make sure all the critical links to external contacts are maintained. these may include to
management, other teams, key customers, suppliers, competitors, etc. A group might
create a "map" of these key outsiders
Structuring Decision Making: Several techniques are used here
Brainstorming: this can help generate creative alternatives. In brainstorming, members

are encouraged to spontaneously throw out as many ideas as possible, no matter how
wiled, and to suspend criticism and evaluation, opening new avenues of thought.
Consensus Mapping: this technique is used when a team is having difficulty agreeing on
the problem. Each member of a team writes down key dimensions of a problem as he or
she sees it on individual Post-It notes. Members then cluster and re-cluster the notes on a
wall, until there is agreement
Nominal Group Technique:- individuals silently generate ideas in writing and then
record ideas round-robin one at a time, adding ideas and building on others; each idea is
discussed for clarification and pros and cons; there is preliminary voting and discussion
and then final ranking. there are many variations of this method

Overcoming Conformity: Given the many tendencies in a group to conform, a group

may appoint a "devil's advocate." This person may probe and question the majority rule,
try to find flaws in the team logic, and may champion unpopular views
Making Decisions Fast and Well: Given the time pressures we are under, many teams
fail to gather sufficient data
Mixed Scanning: Like in medicine, here a group tries one approach, tests the results, and
then revises the analysis
Hedging bets: have other possibilities if the dominant one fails
Scenario construction: generate possible scenarios
Obstacles to effective Teams
A Weak Sense of Direction
Nothing undermines enthusiasm for teams as quickly as the frustration of being an

involuntary member of a team with no focus when members aren't sure of their purpose,
goals, and approach weak leadership
Infighting

While Effective teams don't have to be made up of people who like each other but there
must be respect for each other misdirected energy to bickering and undermining
colleagues members must be willing to set aside petty differences
Shirking of Responsibilities
When member avoid taking responsibility for both process or running of a group and for
specific assignments a teams becomes a "pseudo team"; i.e., team in name but
consistently underperforming
Lack of Trust
If trust is lacking, members are unable to depend on each other.
Critical Skill Gaps
When skills are lacking, teams flounder, members have trouble communicating with each
other, destructive conflicts result, decisions aren't made, and technical problems
overcome the group
Lack of External Support
Teams exist in a larger organization and rely on that organization for resources If outside
resources like formal rules, regulations, budgeting procedures, compensation systems,
selection procedures, and poor leadership, the group may suffer
Keys To Creating Effective Teams:
• Create clear goals: Members must understand what their goals are and believe
they are important; these goals must be important enough to cause members to
sublimate their own personal concerns. Members need to know what they expect
to accomplish, and understand how they will work together to achieve those
goals.

• Encourage Teams to Go for Small Wins: Building effective teams takes time
and teams should aim for small victories before the big ones. This can be done by
setting attainable goals and using these short term goals to build cohesiveness,
confidence
• Build Mutual Trust: Trust is a fragile thing in a group; it takes a long time to
build up and can be destroyed very quickly. To build trust it is important to keep
team members informed. Try to create a climate of openness where people feel
free to discuss problems without fear of retaliation. Be candid about your own
problems and limitations. Be available and approachable; be respectful and listen
to team members' ideas. Be fair. objective, consistent, and dependable.
• Ensure Mutual Accountability and a sense of common purpose: For a team to
be a real team, all members must feel accountability-for both successes and
failures. There must be mutual accountability.
• Provide the Necessary External Support: If team success is dependent on
resources from the greater organization, it is important to make sure those
resources are there.
• Training: Team members and the team itself may need some training to build
skills. The training may be in problem solving, communication, negotiation skills,
conflict-resolution skills, and group processing skills.
• Change the Team's Membership: At times it may be necessary to change the
composition of a group if that is possible.
When team and the aspects related to a team are discussed team coach is one of the most
important element for building an effective team hence the role of a coach is vital which
is discussed below:-

The Role of a Coach in a Team
• provide direction and vision

• increase the capabilities of the team and team members
• help with problems and breakdowns
• create a supportive and results oriented climate
• provide resources and information
• manage boundaries
• remove barriers
• challenge: push members out of their comfort zone
• do what the team is not ready and able to do
TEAM VERSUS GROUP

INTRODUCTION

Many people used the words team and group interchangeably, but there are actually a
number of differences between a team and a group in real world applications. A number
of leadership courses designed for the corporate world stress the importance of team
building, not group building, for instance. A team's strength depends on the commonality
of purpose and interconnectivity between individual members, whereas a group's strength
may come from sheer volume or willingness to carry out a single leader's commands.
It is often much easier to form a group than a team. If you had a room filled with
professional accountants, for example, they could be grouped according to gender,
experience, fields of expertise, age, or other common factors. Forming a group based on a
certain commonality is not particularly difficult, although the effectiveness of the groups
may be variable. A group's interpersonal dynamics can range from complete
compatibility to complete intolerance, which could make consensus building very
difficult for a leader.
A team, on the other hand, can be much more difficult to form. Members of a team may
be selected for their complementary skills, not a single commonality. A business team
may consist of an accountant, a salesman, a company executive and a secretary, for
example. Each member of the team has a purpose and a function within that team, so the
overall success depends on a functional interpersonal dynamic. There is usually not as
much room for conflict when working as a team.
The success of a group is often measured by its final results, not necessarily the process
used to arrive at those results. A group may use equal parts discussion, argumentation and
peer pressure to guide individual members towards a consensus. A trial jury would be a
good example of a group in action, not a team. The foreperson plays the leadership role,
attempting to turn 11 other opinions into one unanimous decision. Since the jury
members usually don't know one another personally, there is rarely an effort to build a
team dynamic. The decision process for a verdict is the result of group cooperation.
A team, by comparison, does not rely on "groupthink" to arrive at its conclusions. An

accident investigation team would be a good example of a real world team dynamic. Each

member of the team is assigned to evaluate one aspect of the accident. The team's expert
on crash scene reconstruction does not have to consult with the team's expert on forensic
evidence, for example. The members of a team use their individual abilities to arrive at a
cohesive result. There may be a team member working as a facilitator for the process, but
not necessarily a specific leader.
Group building can literally take only a few minutes, but team building can take years.
Individual members of a group often have the ability to walk away from the group when
their services or input become unnecessary. A team member's absence can seriously
hamper the abilities of other team members to perform effectively, so it is not uncommon
for individual members to form an exceptionally strong allegiance to the team as a whole.
Although the term “team” is frequently used for any group, especially to get individuals
to work together and to motivate them, some team experts make a distinction between
teams and traditional work groups. For example, the authors of a recent books on the use
of a teams for creating high-performance organizations note that the difference between a
work group and a team relates to performance results. They note:
A working group’s performance is a function of what its members do as individuals. A

team’s performance includes both individual results and what is commonly known
“collective work-products”. A collective work-product is what two or more members
must work on together. It reflects the joint, real contribution of team members.
There are specific differences between work groups and teams:
1. The work group has a strong, clearly focused leader; the team has shared
leadership roles.
2. The work group has individual accountability; the team has individual and mutual
accountability.
3. The work group’s purpose is the same as the organisation’s; the team has a
specific purpose.
4. the work group has individual work-products; the team has collective work-
products.

5. the work group runs efficient meetings; the team encourages open-ended, active
problem-solving meetings.
6. the work group measures effectiveness indirectly( for example, financial
performance of the overall business); the team measures performance directly by
assessing collective work-products.
7. the work discusses, decides, and delegates; the team discusses; decides and does
real work.
The purpose of assembling a team is to accomplish bigger goals than any that would be
possible for the individual working alone. The aim and purpose of a team is to perform,
get results and achieve victory in the workplace and marketplace. The very best
managers are those who can gather together a group of individuals and mould them into a
team.
Here are ten key differentials
• Understandings. In a group, members think they are grouped together for

administrative purposes only. Individuals sometimes cross purpose with others.
In a team, members recognise their independence and understand both personal
and team goals are best accomplished with mutual support. Time is not wasted
struggling over "Turf" or attempting personal gain at the expense of others.
• Ownership. In a group, members tend to focus on themselves because they are

not sufficiently involved in planning the unit's objectives. They approach their job
simply as a hired hand. "Castle Building" is common. In a team, members feel a
sense of ownership for their jobs and unit, because they are committed to values
based common goals that they helped establish.
• Creativity and Contribution. In a group, members are told what to do rather

than being asked what the best approach would be. Suggestions and creativity are
not encouraged. In a team, members contribute to the organisation's success by
applying their unique talents, knowledge and creativity to team objectives.

• Trust. In a group, members distrust the motives of colleagues because they do
not understand the role of other members. Expressions of opinion or disagreement
are considered divisive or non-supportive. In a team, members work in a climate
of trust and are encouraged to openly express ideas, opinions, disagreements and
feelings. Questions are welcomed.
• Common Understandings. In a group, members are so cautious about what

they say, that real understanding is not possible. Game playing may occur and
communication traps be set to catch the unwary. In a team, members practice
open and honest communication. They make an effort to understand each other's
point of view.
• Personal Development. In a group, members receive good training but are

limited in applying it to the job by the manager or other group members. In a
team, members are encouraged to continually develop skills and apply what they
learn on the job. They perceive they have the support of the team.
• Conflict Resolution. In a group, members find themselves in conflict situations

they do not know how to resolve. Their supervisor/leader may put off
intervention until serious damage is done, i.e. a crisis situation. In a team,
members realise conflict is a normal aspect of human interaction but they view
such situations as an opportunity for new ideas and creativity. They work to
resolve conflict quickly and constructively.
• Participative Decision Making. In a group, members may or may not

participate in decisions affecting the team. Conformity often appears more
important than positive results. Win/lose situations are common. In a team,
members participate in decisions affecting the team but understand their leader
must make a final ruling whenever the team cannot decide, or an emergency
exists. Positive win/win results are the goal at all times.

• Clear Leadership. In a group, members tend to work in an unstructured

environment with undetermined standards of performance. Leaders do not walk
the talk and tend to lead from behind a desk. In a team, members work in a
structured environment, they know what boundaries exist and who has final
authority. The leader sets agreed high standards of performance and he/she is
respected via active, willing participation.
• Commitment. In a group, members are uncommitted towards excellence and

personal pride. Performance levels tend to be mediocre. Staff turnover is high
because talented individuals quickly recognise that
(a) personal expectations are not being fulfilled

(b) they are not learning and growing from others and
(c) they are not working with the best people.
In a team, only those committed to excellence are hired. Prospective team members are
queuing at the door to be recruited on the basis of their high levels of hard and soft skill
sets. Everyone works together in a harmonious environment

Conflict management
Conflict may be defined as a struggle or contest between people with opposing needs,
ideas, beliefs, values, or goals.
Conflict management is the process of planning to avoid conflict where possible and
organizing to resolve conflict where it does happen, as rapidly and smoothly as possible.
For any organization to be effective and efficient in achieving its goals, the people in the
organization need to have a shared vision of what they are striving to achieve, as well as
clear objectives for each team / department and individual. You also need ways of
recognizing and resolving conflict amongst people, so that conflict does not become so
serious that co-operation is impossible. All members of any organization need to have
ways of keeping conflict to a minimum - and of solving problems caused by conflict,
before conflict becomes a major obstacle to your work. This could happen to any
organization, whether it is an NGO, a CBO, a political party, a business or a government.
Common causes of conflict
Causes or sources of organisational conflict can be many and varied. The most common
causes are the following:
• scarcity of resources (finance, equipment, facilities, etc)

• different attitudes, values or perceptions
• disagreements about needs, goals, priorities and interests
• poor communication
• poor or inadequate organisational structure
• lack of teamwork
• lack of clarity in roles and responsibilities

Conflict between individual
People have differing styles of communication, ambitions, political or religious views

and different cultural backgrounds. In our diverse society, the possibility of these
differences leading to conflict between individuals is always there, and we must be alert
to preventing and resolving situations where conflict arises.
Conflict between groups of people
Whenever people form groups, they tend to emphasise the things that make their group
"better than" or "different from" other groups. This happens in the fields of sport, culture,
religion and the workplace and can sometimes change from healthy competition to
destructive conflict.
Conflict within a group of people
Even within one organisation or team, conflict can arise from the individual differences
or ambitions mentioned earlier; or from rivalry between sub-groups or factions. All
leaders and members of the organisation need to be alert to group dynamics that can spill
over into conflict.
How to identify signs and stages of conflict?
"Disputes of right" and "disputes of interest"
Especially in the workplace, two main types of disputes have been noted (although these
two types may also happen in other situations).

These are:
• "disputes of right", where people or groups are entitled by law, by contract, by

previous agreement or by established practice to certain rights. Disputes of right
will focus on conflict issues such as employment contracts, legally enforceable
matters or unilateral changes in accepted or customary practices. A dispute of
rights is, therefore, usually settled by legal decision or arbitration and not by
negotiation.
• "disputes of interest", where the conflict may be a matter of opinion, such as
where a person or group is entitled to some resources or privileges (such as access
to property, better working conditions, etc). Because there is no established law or
right, a dispute of interest will usually be solved through collective bargaining or
negotiation.
Stages of conflict
The handling of conflict requires awareness of its various developmental stages. If

leaders in the situation can identify the conflict issue and how far it has developed, they
can sometimes solve it before it becomes much more serious. Typical stages include:
• where potential for conflict exists - in other words where people recognise that
lack of resources, diversity of language or culture may possible result in conflict if
people are not sensitive to the diversity.
• latent conflict where a competitive situation could easily spill over into conflict -
e.g. at a political rally or in the workplace where there are obvious differences
between groups of people.
• open conflict - which can be triggered by an incident and suddenly become real
conflict.
• aftermath conflict - the situation where a particular problem may have been
resolved but the potential for conflict still exists. In fact the potential may be even

• greater than before, if one person or group perceives itself as being involved in a
win-loose situation.
Signs of conflict between individuals
In the organisation leaders and members should be alert to signs of conflict between
colleagues, so that they can be proactive in reducing or resolving the conflict by getting
to the root of the issue. Typical signs may include:
• colleagues not speaking to each other or ignoring each other

• contradicting and bad-mouthing one another
• deliberately undermining or not co-operating with each other, to the downfall of
the team
Signs of conflict between groups of people
Similarly, leaders and members can identify latent conflict between groups of people in
the organisation or the community and plan action before the conflict becomes open and
destructive:
• cliques or factions meeting to discuss issues separately, when they affect the
whole organisation
• one group being left out of organising an event which should include everybody
• groups using threatening slogans or symbols to show that their group is right and
the others are wrong
How to manage and resolve conflict situations?

Collective bargaining
Especially in workplace situations, it is necessary to have agreed mechanisms in place for

groups of people who may be antagonistic (e.g. management and workers) to collectively
discuss and resolve issues. This process is often called "collective bargaining", because
representatives of each group come together with a mandate to work out a solution
collectively. Experience has shown that this is far better than avoidance or withdrawal,
and puts democratic processes in place to achieve "integrative problem solving", where
people or groups who must find ways of co-operating in the same organisation, do so
within their own agreed rules and procedures.
Conciliation
The dictionary defines conciliation as "the act of procuring good will or inducing a
friendly feeling". South African labour relations legislation provides for the process of
conciliation in the workplace, whereby groups who are in conflict and who have failed to
reach agreement, can come together once again to attempt to settle their differences. This
is usually attempted before the more serious step of a strike by workers or a lock-out by
management is taken; and it has been found useful to involve a facilitator in the
conciliation process. Similarly, any other organisation (e.g. sports club, youth group or
community organisation) could try conciliation as a first step.
Three methods of resolving situations that have reached the stage of open conflict are
often used by many different organisations. It is important to understand these methods,
so that people can decide which methods will work best for them in their specific conflict
situation:

• Negotiation: this is the process where mandated representatives of groups in a
conflict situation meet together in order to resolve their differences and to reach
agreement. It is a deliberate process, conducted by representatives of groups,
designed to reconcile differences and to reach agreements by consensus. The
outcome is often dependent on the power relationship between the groups.
Negotiations often involve compromise - one group may win one of their
demands and give in on another. In workplaces Unions and management
representative usually sue negotiations to solve conflicts. Political and community
groups also often use this method.
• Mediation: when negotiations fail or get stuck, parties often call in and
independent mediator. This person or group will try to facilitate settlement of the
conflict. The mediator plays an active part in the process, advises both or all
groups, acts as intermediary and suggests possible solutions. In contrast to
arbitration (see below) mediators act only in an advisory capacity - they have no
decision-making powers and cannot impose a settlement on the conflicting
parties. Skilled mediators are able to gain trust and confidence from the
conflicting groups or individuals.
• Arbitration: means the appointment of an independent person to act as an
adjudicator (or judge) in a dispute, to decide on the terms of a settlement. Both
parties in a conflict have to agree about who the arbitrator should be, and that the
decision of the arbitrator will be binding on them all. Arbitration differs from
mediation and negotiation in that it does not promote the continuation of
collective bargaining: the arbitrator listens to and investigates the demands and
counter-demands and takes over the role of decision-maker. People or
organisations can agree on having either a single arbitrator or a panel of
arbitrators whom they respect and whose decision they will accept as final, in
order to resolve the conflict.
Case study
Company profile

Kshitij investment advisory company limited is part of the real estate asset management
business promoted by future capital holdings. (future groups). Future group which was
earlier known as PANTALOON RETAIL INDIA LIMITED (PRIL) started operations in
the year 1987. its headquarter is situated in Mumbai. Its first outlet opened in the year
1997 in kolkata camac street .
The different formats of future groups are :
• Retail organization (pantaloon, big bazaar)
• Joint ventures
• Blue sky, collection i , E-zone, depot, etc
Kshitij investment advisory company limited is a 430 million us$ fund. There are two
funds in kshitij:
• Domestic fund (kshitij venture capital) fund comprises of 80 million us$.
• International fund (horizon fund) comprises of 350 million us$.
INVESTORS
The investors for the kvc fund are :
• Corporate-49%
• HNI -23%
• Banks -18%
• Financial institutions-10%
Investors for horizon are all foreign investors.
This fund will focus on developing retail oriented real estate in India. It has been
constituted as a private trust under the Indian Trust Act, 1882. and has been registered
with SEBI
The entire portfolio of malls managed by Kshitij will be branded as
“KSHITIJ RETAIL DESTINATIONS”

Kshitij is just a 2 year old enterprise a sister company of Future Groups. It is indeed a
new organization but a learning institute for all its employees as “change is constant” is
their motto. They are an organization who are open to all sort of suggestion and ideas.
They give complete freedom to their staff and employees for creativity and encourage
change wherever necessary. This is an organization who is open for experimenting new
things. As retail industry and malls which are emerging at a faster pace kshitij has a lomg
way to go. It is new but the rate at which it is growing is amazing. It has a very
professional approach an enterprise who takes every challenge as an opportunity and
makes it worth.
MISSION
“ To create quality retail infrastructure for consumers and value to investors. It is only
through quality retail real estate that organized retail in India can grow to its true
potential. By partnering with us, we offer the Indian retailer the opportunity of a pan
Indian presence and growth.”
PRIME PURPOSE OF KSHITIJ
• To manage the real estate portfolio the fund by providing professional investment
advise.
• The team comprises of professionals with relevant expertise in retail real estate,
project execution and infrastructure finance.
• KIACL------- kshitj domestic fund
Horizon international fund.

LIFE CYCLE OF THE ORGANISATION

 ACQUISITION
 PROJECT EXECUTION
 LEASING
 MALL MANAGEMENT
 EXIT
HUMAN RESOURCE IN KSHITIJ
Vision
“human beings as the most valuable asset”
HR APPROACH AT KSHITIJ
 ATTRACT
• Robust recruitment machinery
• Attract talent from dynamic job market
• Employee referral program
• Campus campaigns
 MOTIVATE
A:
• Job description
• Organization structur
• Compensation structures
• Career pathing

B:
• Induction
• Performance management systems
• Appropriate communication channels
• Rewards and recognitions
• Career pathing
 EXCITE
• Celebrations
• Knowledge series and library
• Employment investment committee- SPICE
 DEVELOP
• Skill enhancement for present role
• Competency
• Leadership development
COMPETENCIES REQUIRED IN THE JORNEY

Business acumen
Process orientation
Resource optimization
Execution expertise
Open communication
Customer focus
Team leadership
Employee well being

Interpersonal relations in kshitij

As mentioned earlier this is a 2 year old firm. They work with change in their mind as to
constantly improve on their working and benefit the people. The employees at all the
levels share a very formal yet a comfortable professional relation.
There are various bands(levels)in the organization.
The lowest level is management trainee followed by:
Band 1 (coordinator)
Band 2 (specialist)
Band 3 (mid management)
Band 4 (management advisory)
Band 5 (strategic)
Thus the highest level being the post of hod’s and departmental heads.
It is very interesting to notice about the interpersonal relations in this organization is that
there are briefing sessions in the organization on every alternate Saturday to share the
updates about the market and also so that any and every individual has the updates about
what is happening in as well as out the organization.the people are given a lot of attention
at all the levels whoever is lacking behind in performing best or up to the mark the areas
are identified on that basis the employees are sent for training.
Interpersonal relations in teams and groups in kshitij
Kshitij has a mixture of both the set of teams and groups i.e. formal and informal
respectively in its organization .
Groups
There are informal groups like people of the same post or hierarchy share common
attributes i.e. they like to spend time with each other whenever they have a free time or
even during the lunch breaks, coffee breaks etc.
The formal groups comprises of the mixture which cannot be termed as groups in general
but departmentalization of the functions and affairs is done in which falls various small
teams and groups for example:

Business development department
There is a team for good networking and communications .
A team for identifying cities and locations.
Land acquisitions and market dtudies etc.
Then there are departments for funds and investment, project, leasing, corporate
communications, administration, information technology.
Teams
Teams on the other hand are dominating over here as major work is allotted to teams. The
most important team is the
Corporate team which comprises head from mall management, chief marketing officer,
general manager finance.
A team of 15 people approximately works for the life cycle of the mall i.e. from the space
identification to mall management. The work among the teams is divided among
themselves so there is no groupism as such
For the motivation of the employee to encourage them to always do the things in an
extra-ordinary way there is a team which is known as :-
EMPLOYEE INVOLVEMENT COMMITTEE

SPICE
Smart program for intelligent and cultured employees.
Objectives of spice :-
Learning through fun
-this activity includes monthly events but they are not just mere celebrations there is a
formal attitude towards it i.e. they work on a theme for example for the month of October
they work on freedom fighters theme, as it is Gandhi jayanti on 2nd of October so they
dress up like freedom fighters share different experiences and this also helps for building
team spirit as there is belonging towards the organistion and effective communication
takes place.

Enriching the mind/body/soul

Knowledge series this is carried out on every alternate Saturday it is like sage wisdom
share different practical stories and share your view point.
Sense of belonging
Celebrate festivals –they do the celebration of different festivals.
SPICE TEAM ( members)
There are around 13 members in the team from various departments like legal,
administration,leasing, projects, IT, HR etc the responsible members from these
departments form a team for the defined objective.
This is the picture of a team and group working in kshitij.
Conflict management
Ther are no major conflicts which have happened in these 2 years and neither do they
have hampered the organisatioal culture.
If at all the conflicts take place they are resolved internally or if has blown out of
proportion the they use techniques such as brainstorming, group discussions,briefing etc.
Kshitij has many new opportunities for itself as its just 2 year old, a long way to go. It has
its upcoming projects coming in India i.e.56 malls across nations. The HR department is
working on the groups and teams and how to train more efficiently and effectively. the
only threat is retail is in boom so many new as well as old companies are playing in this
market. But from my study and the given facts for a company who is already dealing
internationally it is not at all impossible to go way ahead in this field and explore new
horizons.

Conclusion :-
When does a group become a team? What are the distinguishing characteristics of a team
that are different from a group? The behaviors of a real team are decidedly different from
a group.
We believe the best definition of a team is from the book Wisdom of Teams. "A team is
a small group of people with complementary skills and abilities who are committed to a
common goal and approach for which they hold each other accountable." Let's pick
this definition apart. The best size for teams is 7-12 individuals. Larger teams require
more structure and support; smaller teams often have difficulty meeting when members
are absent. Members have skills and abilities that complement the team's purpose. Not all
members have the same skills, but together they are greater than the sum of their parts.
On teams, members share roles and responsibilities and are constantly developing new
skills to improve the team's performance. Teams identify and reach consensus on their
common goal and approach, rather than looking to a leader to define the goal and
approach. Most importantly, teams hold their members accountable. What does this mean
in practical terms? When they experience conflict with a member, they speak to that
member directly rather than to a supervisor. When a member isn't performing to the level
required, the team addresses the performance problem.
Now let's look at how a group functions. A group can be defined as a small group of
people with complementary skills and abilities who are committed to a leader's goal
and approach and are willing to be held accountable by the leader . A group supports
the leader's goals and the leader-dominated approach to goal attainment. A group drives
individual accountability rather than shared accountability. Leadership is predominantly
held by one person rather than the shared, fluid leadership on a team. In a group, the
dominant viewpoint is represented; in a team, multiple, diverse viewpoints are
represented. Decisions in a group are made by voting or implied agreement; decisions on
a team are typically made by consensus.

So, would it be right to say that teams are good and groups are bad?
Absolutely not.
A better question to ask is: when do you use a group and when do you make the extra
effort to develop a team? Let's face it, groups are far easier to create than teams, so it
makes sense to be a group when the following exist: the decisions and process are already
determined, buy-in is not necessary, time is a critical factor and there is split or minimal
management support for teaming. To form the group, identify a strong, effective leader
and empower the person to recruit group members, formulate the goal and approach and
drive decision making. This approach would be practical for short-term projects with
outcomes already defined.
Teaming, on the other hand, should be used when you need broad buy-in for the best
results, when no one person has the answer and when shared responsibility is important
to the success of the goal. To achieve a real team is difficult and time-consuming. There
is no magic bullet that will transform a group into a team overnight. It takes time to
develop the skills to work well together and understand how to solve problems and make
decisions effectively.


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Interpersonal Relations

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Interpersonal Relation

M.L. DAHANUKAR COLLEGE OF COMMERCE 1

A number of relations exist in organizations.

Interpersonal relationships are social associations, connections, or affiliations between

M.L. DAHANUKAR COLLEGE OF COMMERCE 2

EVOLUTION OF INTERPERSONAL RELATIONS

M.L. DAHANUKAR COLLEGE OF COMMERCE 3

STAGES OF FORMATION OF INTERPERSONAL RELATIONS

The formation of interpersonal relations in an organization has basically four important

M.L. DAHANUKAR COLLEGE OF COMMERCE 4

Types of interpersonal relationships

Family communication patterns establish roles,

M.L. DAHANUKAR COLLEGE OF COMMERCE 5

In today’s workplace, task or technical proficiency is not enough to achieve success. In

Interpersonal skills are goal-directed behaviors used in face-to-face interactions, which

John Hayes suggests techniques for improving management performance in a number of

M.L. DAHANUKAR COLLEGE OF COMMERCE 6

Interpersonal skills refers to mental and communicative algorithms applied during

Now as interpersonal skills is known let us put light on professional relations.

• Superior- subordinate relations

M.L. DAHANUKAR COLLEGE OF COMMERCE 7

Interpersonal relations in a group

M.L. DAHANUKAR COLLEGE OF COMMERCE 8

THE NATURE OF GROUPS

M.L. DAHANUKAR COLLEGE OF COMMERCE 9

M.L. DAHANUKAR COLLEGE OF COMMERCE 10

Groups can be either formal or informal.

Command and task groups are dictated by formal organization.

Interest and friendship groups are informal alliances.

• COMMAND GROUP:- a command group is determined by the organization

M.L. DAHANUKAR COLLEGE OF COMMERCE 11

• INTEREST GROUPS:-People who may or may not be aligned into common

• FRIENDSHIP GROUPS:- Groups often develop because the individual

M.L. DAHANUKAR COLLEGE OF COMMERCE 12

M.L. DAHANUKAR COLLEGE OF COMMERCE 13

in different ways by different theorists, a recent comprehensive review of the coalition

M.L. DAHANUKAR COLLEGE OF COMMERCE 14

OTHER TYPES OF GROUPS

M.L. DAHANUKAR COLLEGE OF COMMERCE 15

THE DYNAMICS OF GROUP FORMATION

WHY GROUPS ARE FORMED?

M.L. DAHANUKAR COLLEGE OF COMMERCE 16

Status:- inclusion in a group that is viewed as important by others provides recognition

Theories of group formation

M.L. DAHANUKAR COLLEGE OF COMMERCE 17

M.L. DAHANUKAR COLLEGE OF COMMERCE 18

Common attitudes and values

Still another theoretical approach to group formation receiving considerable attention in

M.L. DAHANUKAR COLLEGE OF COMMERCE 19

5. ADJOURNING: this represents the end of the group, which is ongoing,

Practicalities of group formation.

M.L. DAHANUKAR COLLEGE OF COMMERCE 20

HOW GROUPS ARE FORMED?

Rarely do participants in an organization belong to just one group.

M.L. DAHANUKAR COLLEGE OF COMMERCE 21

The group becomes an organization

Suboptimisation : Group Goals

M.L. DAHANUKAR COLLEGE OF COMMERCE 22

Here is one example:

GROUP DECISION MAKING

M.L. DAHANUKAR COLLEGE OF COMMERCE 23

Basic Steps in Group Decision Making

3. Proposing and Evaluating Solutions: generate a list of alternative solutions and