Материал: Management-and-Organization-Behavior

Besides the theoretical explanations for group formation discussed above, employees in an organization may form a group for economic security or social reasons. Economically, workers may form a group into work on a project that is paid for on a group incentive plan or form a union to demand higher wages. Joining a group provides the individual with a united front in combating indiscriminate and unilateral treatment.

Reasons for Formation of Groups

Companionship. The need for relationship with other people is one of the strongest and most constant of human drives. Many research studies have indicated that the employees who have no opportunity for close social contacts find their work unsatisfying and this lack of satisfaction often reflects itself in low productivity and high rate of absenteeism and turnover. Elton Mayo observed that the employees in a textile plant who worked on isolated jobs were highly dissatisfied and consistently failed to meet production standards and staggered rest period helped a little. But when the company permitted these workers to take rest period as a group, production and satisfaction both increased.

Sense of identification. Workers get identity in small groups and so small groups tend to enjoy high morale. Employees working in large departments where everybody does the same type of job, find it hard to form stable social groupings compared to those working in small groups.

Source of Information. Informal group is a source of information to its members. Informal communication is very fast. A piece of information available to a member will reach nearly all the members of the group instantly. The group may develop a special code or language for speedy communication. Psychological barriers to communication are also overcome by the group.

Job satisfaction. The group’s solution to a problem may be different from what management expects and it may even be more efficient. Shortcuts are evolved and informal channels of communication are established to cut across department boundaries. Many jobs which appear superficially dull and routine are made interesting by the group and spontaneity is encouraged and protected by the group.

Protection of members. Groups help protect their members from outside pressures. Groups often resist management’s demands for additional output, increased working hours, and higher quality. Group members often agree on the level of output that each will put forth so that no member may outperform the others.

Outlet for frustration. An individual at times, feels tremendous stress in life and gets frustrated. If he shares his feelings and anxieties with someone, his tension is released to a great extent. The social relations provide

255

an important outlet for frustration. An informal group serves as a safety valve which helps release tension and frustration and checks the mental breakdown of the individual.

Perpetuation of cultural values. Sometimes, groups are formed by individuals belonging to a common cultural background. Such people can preserve their cultural identify and also feel a sense of security by associating with those pursuing the same cultural values and social norms. Maintenance of cultural values will also provide them psychological satisfaction.

Generation of new ideas. Informal groups are a breeding ground for new ides as they provide a supportive environment in which the members can engage themselves in creative thinking. New product teams, task force, quality circles, etc. are important examples in this regard.

Importance of Small Groups to the Organisation

Filling in gaps in manager’s abilities: Informal organization may act to fill in gaps in a manager’s abilities. For example, if a manager is weak in planning, one of his subordinate may help him informally in such a situation. Solving work problems: Informal organization helps in solving the work problems of members. It allows them sharing job knowledge and taking decisions which affect a number of jobs.

Better coordination: Informal groups evolve short-cuts and eliminate red tapism. They facilitate smooth flow of information and quick decision making. All these ensure better coordination among various individuals and departments.

Channel communication: Informal groups act to fill up the communication gaps which arise in the organization. Informal communication cuts across the hierarchical and departmental boundaries and transmits information with greater speed. Informal communication can be of great use to the organization, if it is handled by the management properly.

Restrain managers: Informal groups do not allow the managers to across their limits. They restrict them from acquiring unlimited power and from using their power injudiciously.

Better relations: A manager can build better relations with his subordinate through informal contacts. He can consult the informal leaders and seek their cooperation in getting the things done from the workers.

Norms of behavior:. Informal groups develop certain norms of behaviour which differentiate between good and bad conduct and between legitimate and illegitimate activities. These bring discipline and order among

256

the employees.

Satisfied workforce: Cohesive informal groups provide satisfaction to the workers. As a result, labour turnover and absenteeism are reduced and organization’s productivity is increased.

Developing future executives: Informal groups recognize talented workers as their leaders. Such leaders can be picked up by the management to fill vacancies at the junior executive level in the future.

Problems Created by Informal Groups

Negative attitude of informal leaders: The informal leaders may turn out to be a troublemaker for the organization. In order to increase his influence, he may work against the policies of management and manipulate the behavior of his followers. Thus, he can be a source of conflict between the management and the workers. He may induce the followers to work against the interests of the organization. If such a leader is promoted to the rank of an executive, he may turn out to be a work shirker and an arrogant and autocratic boss.

Conformity: The informal group exerts strong pressure on its members for conformity. The members may become so loyal to their group that following the group norms becomes a part of their life. This implies that members become subject to willful control of the group leader who may lead the group towards selfish ends.

Resistance to change: Informal group generally have a tendency to resist change. Change requires group members to make new adjustments and acquire new skills. But groups want to maintain status quo. Sometimes, groups react violently to the proposed changes being brought by the management

Rumor: Informal communication may give rise to rumors. This is not desirable from organization’s point of view. Rumors originate for a number of reasons. Maliciousness, employee’s anxiety and insecurity are the prominent reasons.

Role Conflict: Every member of the informal group is also a member of the formal organization. Sometimes, there may be role conflict. In such a situation, group members may conform to their social norms. And if an individual member wants to follow the formal instructions of his boss, he may be snubbed by the informal leader and compelled to conform informal group norms.

257

Dealing with Informal Groups

The management cannot wish away the existence of informal organization or groups. The only option left with management is to identify groups with their own dynamics, leadership, goals and cultural moorings and manage the same so that the informal organization aids management in the realization of organizational goals.

-- A manager can build favorable relationships with informal leaders in several ways:

-- He can consult the leaders and seek their advice on technical matters and human relationship problems

-- He can request their assistance and cooperation in indoctrinating new members and training them to become competent workers in their job assignments

-- Open, two-way communications can be encouraged on a continuous basis for mutual benefit

-- A manager must be careful not to reduce the status of the leader in the eyes of his constituents, and especially careful not to show favoritism or partiality.

Review Questions

1.Explain the various types of groups and how they are formed in the organizations.

2.Take a few examples of groups you are familiar with in your own operational area and explain their positive /negative contribution for the achievement group goals.

3.Present any one theory of group formation and examine its relevance to the present day organizations.

4.As a manager how do you take advantage of the groups in your department or division?

***

258

Lesson – 21 : Leadership

Objectives

After reading this lesson, you should be able to:

ӹӹUnderstand Different Styles Of Leadership;

ӹӹFamiliarize With Popular Theories On Leadership; And

ӹӹAdopt The Right Leadership Style Based On The Exigencies Of The Situation.

Lesson Outline

ӹӹMeaning, Definition & Nature Of Leadership.

ӹӹLeadership Traits And Functions

ӹӹManagerial Skills Of A Leader

ӹӹLeadership & Management

ӹӹTheories Of Leadership

ӹӹEffectiveness Of Leadership

ӹӹMeasures For Developing Leaders

ӹӹReview Questions

Leadership is a process of exercising influence over an individual or a group. Effective leadership is necessary for inspiring the people to work for the accomplishment of objectives. It provides a cohesive force which holds the group intact and develops a spirit of cooperation. Chester Bernard viewed leadership as the quality of behavior of individuals whereby they guide people and their activities. A leader interprets the objectives of the people working under him and guides them towards achievement of those objectives. He also creates and sustains enthusiasm among them for superior performance. In the

words of Louis A. Allen, “A leader is one who guides and directs other people. He gives the efforts of his followers a direction and purpose by influencing

their behavior”. Managers at all levels must perform leadership function in order to lead the subordinates towards organizational goals.

Leadership is the process of influencing the subordinates so that they cooperate enthusiastically in the achievement of group goals. In other words, leadership is the process by which an executive imaginatively directs, guides, and influences the work of others in choosing and attaining specified goals by mediating between the individuals and the organization in such a manner that both will obtain maximum satisfaction.

259