Hawthorne Studies

A series of experiments were conducted by Mayo and Roethlisberger in an electricity factory

called the Western Electric company at their Hawthorne plant known as Hawthorne Works, at
Illinois, in USA, on factory workers between 1924 and 1932. These studies are known as
Hawthorne Studies. Initially, the study focused on effect of lighting on productivity and later
was enhanced to study the social effects.

Hawthorne studies reflected the scientific management tradition of seeking greater efficiency
by improving the tools and methods of work:

1. In the first set of studies, no correlation was found between changes in lighting conditions
and individual work performance. In fact, performance nearly always went up with any
change--brighter or darker--in illumination.

Lighting: Two things emerged from the initial studies: (1) the experimenter effect, and (2) a
social effect. The experimenter effect was that making changes was interpreted by workers as
a sign that management cared, and more generally, it was just provided some mental
stimulation that was good for morale and productivity. The social effect was that it seemed
that by being separated from the rest and being given special treatment, the workers
developed a certain bond that also increased productivity. Hence the increase in productivity
was attributed to the attitude of workers towards each other, their feeling of togetherness and
to the attention paid to the workers by the researches that made them feel important which
resulted in improvement in their work performance. This is known as Hawthorne effect.

2. In the second set of studies, the concept of the Hawthorne effect emerged. The Hawthorne
effect refers to the possibility that individuals singled out for a study may improve their
performance simply because of the added attention they receive from there searchers, rather
than because of any specific factors being tested in the study.

3. The third set of studies centred on group production norms and individual motivation.

4. Although simplistic and methodologically primitive, the Hawthorne studies established the
impact that social aspects of the job (and the informal group) have on productivity.

Bank Wiring Room: Detailed observation between the men revealed the existence of informal
groups or "cliques" within the formal groups. These cliques developed informal rules of
behavior as well as mechanisms to enforce them. The results show that workers were more
responsive to the social force of their peer groups than to the control and incentives of
management. Just as management tried to control worker behavior by adjusting piece rates,
hours of work, etc., the workers responded by adjusting management toward goals that were
not necessarily economically rational.

5. Human Relations Movement: This movement was an attempt to equip managers with the
social skills they need
Contributions of the Hawthorne Experiment to Management

Elton Mayo and his associates conducted their studies in the Hawthorne plant of the western
electrical company, U.S.A., between 1927 and 1930. According to them, behavioral science
methods have many areas of application in management. The important features of the
Hawthorne Experiment are:

 A business organization is basically a social system. It is not just a techno-economic

system.
 The employees can be motivated by psychological and social wants because his
behaviour is also influenced by feelings, emotions and attitudes. Thus economic
incentives are not the only method to motivate people.
 Management must learn to develop co-operative attitudes and not rely merely on
command.
 Participation becomes an important instrument in human relations movement. In order
to achieve participation, effective two-way communication network is essential.
 Productivity is linked with employee satisfaction in any business organization.
Therefore management must take greater interest in employee satisfaction.
 Group psychology plays an important role in any business organization. We must
therefore rely more on informal group effort.
 The neo-classical theory emphasizes that man is a living machine and he is far more
important than the inanimate machine. Hence, the key to higher productivity lies in
employee morale. High morale results in higher output

https://www.mbaknol.com/management-principles/elton-mayos-hawthorne-experiment-and-
its-contributions-to-management/

Organizational structure

The organizational structure of, for example, a company is a system used to define its
hierarchy. Each employee’s position is identified, including their function and who they
report to within the firm. It is the way in which a company or organization is organized,
including the types of relationships that exist between the directors, managers and employees.

The organizational structure outlines how activities including task allocation, supervision and
coordination are directed towards its individual aims. It is also a ‘viewing glass’ or perspective
through which employees may see their organization and its environment. Let's take a look at
some of the most common organizational structures.

The Hierarchy, Flat, & Flatarchy

Almost all organizations have some form of a hierarchy in its organizational structure.
The hierarchical structure is linear in nature as authority, information, and tasks flow from
the top down. Generally, there is a top executive that filters information to subordinate
employees without regard to the employee's ability to contribute or improve work processes.
This type of structure is good for maintaining authority, but does not allow for free thinking,
work efficiency, or collaboration.
The flat structure is totally opposite from the hierarchy. This structure doesn't implement
titles, seniority, or job descriptions and allows for employees to freely contribute to the work
as they feel necessary. Flat structures are most common in start-ups and small to mid-size
businesses. However, most organizations that start off with a flat structure eventually end up
taking some form of a hierarchy. As the business grows, it becomes less practical as the need
for streamlined processes increases.
The flatarchy structure is a hybrid of a hierarchy and flat structure. Organizations that
operate under a flatarchy have linear authority and specialized teams that allow for creativity
and innovation. This type of structure is common when an organization is developing a new
product, service, or business process that requires input from different individuals from
different parts of the organization. Although this structure doesn't reassign job duties or titles,
it allows the organization to effectively address market and industry changes without having
to restructure the organization's personnel.
Organisation as a system

What is a system?
A system is made up of separate components which all work together to achieve a task. If you
take away or change a component it affects the whole system.
So, for example, a car is a system. It is a collection of components which put together in a
particular way, will transport you. Individually these components cannot achieve much if
anything - a spark plug or petrol tank on its own will not take you far. Similarly, if one
component is faulty or stops working then this can have a massive impact on the whole
system. If you've ever experienced a flat tyre, you'll know this.

The organisation as a system

In the same way, you could view the organisation as a system - made up of components
which work together to achieve an overall goal. These components can be defined in any
number of ways, but you could see them as different functions. So, for example, the HR team
could be one component. The service delivery staff another component. The volunteers
another and so on.
All these different functions are dependent on each other. A great HR team on its own does
not make a great organisation in the same way that a petrol tank on its own does not make a
car. You may have a great team of staff delivering services, but if your finance processes and
procedures stop working the whole organisation suffers.

Organization system can be “closed” or “open” system. Closed systems have boundaries that
cannot be penetrated by outside forces. Whereas, open system have boundaries that can be
penetrated by outside forces like PESTEL forces. Hence in Systems Theory, a system is
defined in two ways:

Externally, by its purpose. Each system has a role that it plays in the higher-level system in
which it exists. Using the auto company example we can say that the auto company is a
system whose role is to provide cars to the next higher-level system, the auto market. The
auto market in turn has its multiple roles that it plays in the next higher-level systems of
transportation and national economy and so on.
Internally, by its subsystems and internal functions. Each system is made up of components
and sub-systems that interrelate and contribute to the overall purpose of the parent system. In
the auto company those components might consist of engineering, production, marketing,
finance, human resources and sales all of which should be supporting the system’s purpose of
providing cars to the higher system, the auto market.

Implementing change
So, what does that mean when you are implementing change? Well, if you decide to change
the tyres, or swap the spark plugs, it might seem relatively minor but it will affect the whole
performance of your car. When you are planning organisational change consider how those
small changes to components might affect the ability of the whole organisation to achieve its
goals. For example, changing the working hours of your administrative staff might not seem a
huge change but think through the implications as it could have big changes to the
organisation as a whole.
Influence process
Leadership is often described as an influence process. We say that leaders influence people to
do things that they might not do otherwise. But what exactly does it mean to say that
leadership is a form of influence?
Influence is defined as the force one person exerts on another person to induce a change in
the targeted individual. Influencing can change a person's behavior, attitude, goals, opinions,
needs and values. Influence is a necessary part of leadership. It is concerned with how the
leader affects followers. Influencing others is a transferable skill business persons take with
them from job to job in the business world. Managers want to convince employees to work
hard, and salesmen need to convince clients their product is the best purchase choice, for
example.
Influencing skills require a business person to take others’ perspectives into account. It
involves getting people to change their minds about a topic and to act in a certain way by
acknowledging their opinions. Influencing people is about getting something done instead of
complaining that it is a certain way. People like being around those who can influence others.
Influencing people makes almost any job easier, whether you want to convince investors to
buy into your invention or want to heal relationships with injured stakeholders. It enables
your organization to move toward its goals in a positive way.

Various types of influence processes and the factors affecting them

Leaders use variety of influence process to alter the behavior of people. The influence
process changes according to the demands of the situation. Influence processes refer to the
five ways leaders shape organizational variables including people and resources. The five
influence processes are direct decisions, allocation of resources, reward system, selection and
promotion of other leaders and role modelling. Each will be discussed in detail in the
following paragraphs:

Direct decisions: Direct decisions provide the leaders the ability to influence the choices of
their followers. This ability to influence comes with the control leaders have in formulating
mission and vision aspects of an organization. The most important aspect giving power to
leader in the organizational structure is their ability to influence the variables affecting their
followers through direct decisions. Leaders' ability to make decisions influencing
organizational structure give them the power to dictate decision making in the organization
and set overall direction of the organization.

Allocation of resources: Leaders make use of their power over various organizational
resources such as human, money and technological resources to significantly impact the way
work is carried out in an organization. For example if a department is in serious need of funds
a leader has the power to grant additional money to the department in addition to the portion
allocated to the department in the annual budget.

Reward system: Leader can make use of their power to reward to influence the actions and
behaviours of their employees. A leader can offer monetary incentive to followers in case the
followers conform to certain behavioural standards and achieve goals necessary for meeting
the overall organization objective.

Selection and promotion of other leaders: Leaders can also influence their followers by
making use of their power to promote the leaders who meet individual as well as
organizational goals and objectives.

Role modelling: Finally one of the most important ways leaders can mould the behaviour
and opinion of their followers is by acting as a role model. Followers always follow the path
leader is taking. If a leader possesses high moral and ethical standard there are greater
chances that their followers will also have high ethical and moral standards.

Group and its dynamics

A group may be defined as set of people who have the same interests or objectives and who
organize themselves to work together and strive towards a common goal.

According to Shaw, “Group is defined as two or more persons who are interacting with each
other in such a manner that each person influences and is influenced by each other.”

A group is characterized by the following features:

 a common motive or goal and shared attitudes

 a hierarchical group structure i.e., clearly defined role for each member
 standard norms of behavior
 Influence of interaction with each other.

Types of Groups: Groups can be classified in many different ways on various bases.
Following are the basic groups:

1. Formal Groups: Formal groups are created as part of organisation structure to accomplish
organisational tasks. A work group in a plant is the example of formal group. They are bound
by hierarchical authority in the organisation. They have to follow rules, regulation and policy
of the organisation. These groups are required by the system. The organisation provides a
system of rules and regulation for attaining organisational objectives.

According to A.L. Stencombe, “a formal group is said to be any social arrangement in which
the activities of some persons are planned by others to achieve a common purpose”.

Formal groups help in achieving goals without any difficulty. They facilitate coordination of
activities and help in forming logical relationship among people and positions. They create
group unity. Leonard R Sayles has subdivided formal group into command group and task
group.

(a) Command Group: Command group consists of subordinates who are directly
responsible to a supervisor. Command groups are structured by the organisation. The
subordinates working in enforcement department of a town planning authority are reporting
to and directly responsible to the enforcement officer. This group is responsible for removal
of encroachment on public land. There is a specific department established for the purpose
and is busy throughout with its activities.

(b) Task Group: Task group is formed to complete a project. This type of group is also
known as task force. The job of the group is to complete the task within allotted time period.
If one task is completed they are allotted new task to work with. Project teams, quality
circles, audit teams are the examples of task group.

(c) Functional group: A functional group is created by the organization to accomplish

specific goals within an unspecified time frame. Functional groups remain in existence after
achievement of current goals and objectives. Examples of functional groups would be a
marketing department, a customer service department, or an accounting department.

In contrast to formal groups, informal groups are formed naturally and in response to the
common interests and shared values of individuals. They are created for purposes other than
the accomplishment of organizational goals and do not have a specified time frame. Informal
groups are not appointed by the organization and members can invite others to join from time
to time. Informal groups can have a strong influence in organizations that can either be
positive or negative. For example, employees who form an informal group can either discuss
how to improve a production process or how to create shortcuts that jeopardize quality.
Informal groups can take the form of interest groups, friendship groups, or reference groups.

2. Informal Groups: Informal groups exist within the formal organisations and arise because
of individuals’ social needs and desire to develop and maintain relations with people.
Working at a plant or office leads to formation of informal groups. They work together and
this leads to their interaction. Through interaction groups are formed. These groups are
spontaneous and emotional. Keith Davis has defined informal group as, “the network of
persons and social relations which is not established or required for formal organisation.”

These are the groups formed by the employees themselves at the workplace while working
together. The organisation has not taken any active interest in their formation. According to
M. Dalton, “informal groups are cliques.” Cliques are a group of people of different
organisation levels coming together with a common interest. Cliques are horizontal, vertical,
and random. Horizontal Cliques comprise people from the same rank and work area. Vertical
Cliques consist of people of different organisation levels. Random Cliques are made up of
employees from both horizontal and vertical lines coming together with a common interest.

Informal groups are very effective and powerful. Some managers view them harmful and
disruptive to the interest of the organisation. They suspect their integrity and consider as a
virtual threat. Some managers seek their help in getting the task completed quickly. They do
not consider them as threat. The strength of these informal groups can be utilized for
accomplishment of organisational objectives.

Informal groups are of following types:

(a) Interest Group: A group of employees coming together for attaining a common purpose.
Employees coming together for payment of bonus increase in salary, medical benefits and
other facilities are the examples of interest group. The people with common interest come
together.

(b) Membership Group: A group of persons belonging to the same profession knowing
each other e.g. teachers of the same faculty in the university.

(c) Friendship Group: A group outside the plant or office, having similar views, tastes,
opinions, belonging to same age group. They form clubs and associations based on the
friendship.

(d) Reference Group: It is a primary group where people shape their ideas, beliefs, values
etc. They want support from the group. Family is an important reference group. A team of
players playing a game is a reference group.

Important purposes behind group formation

Group formation has certain objectives. The purpose behind group formation may be task
achievement, problem-solving, proximity or other socio-psychological requirements. Group
formation is based on activities, interactions and sentiments.
1. Task accomplishment: The basic purpose of group formation is the achievement of
certain objectives through task performance.

Individuals come closer in order to understand the tasks and decide on the procedures of
performance.

In any organization, task accomplishment is the reason for which different groups such as an
engineering group; marketing group, foreman’s group and personnel group are formed for
achievement of the organizations’ goals.

When an organization faces some procedural difficulties, concerned groups discuss them and
evolve new techniques of production, marketing and other functions.

2. Problem Solving: When people foresee or face certain problems, they unite to solve the
problems. Unity has strength.

A group provides strength to members who are willing to challenge any problem. Group
behaviour gives more strength to come down heavily on problems.

3. Proximity: People form groups because of proximity and attraction towards each other.
The group formation theory is based on propinquity, which means that individuals affiliate
because of spatial or geographical proximity.

They interact frequently with each other on many topics, because this interactive
communication is rewarding.

4. Socio-psychological Factors: Sentiments and action-uniformities bring people closer.

They also form groups for safety, security and social achievements.

People cooperate with members of the group on social as well as economic grounds to reach
satisfactory levels.

People form groups basically for activities, interaction and due to sentiments. People living in
proximity frequently discuss their problems.

They try to reduce their tensions and achieve satisfaction. Individuals interest each other only
when they have common attitudes and sentiments.

People with diverse attitudes form groups under certain compulsions to meet unexpected
problems.

Employees form unions to ensure the safety and security of jobs. Outside the factory, they
form groups for religious, social, cultural and political activities.
Why Do People Join Groups
There is no particular reason answering why individuals join groups. Group helps individual
to feel stronger, have fewer self-doubts, and be more contrary to threats.
The following points help us understand the need of joining a group by individuals −
  Security mirrors strength in numbers. Status pinpoints a prestige that comes from
belonging to a specific group. Inclusion in a group is considered as important
because it provides recognition and status.

 Self-esteem transmits people's feelings of self-worth. Membership can sometimes

raise feelings of self-esteem like being accepted into a highly valued group.

 Affiliation with groups can meet one's social needs. Work groups significantly
contribute to meet the need for friendships and social relations.

 Groups represent power. What mostly cannot be achieved individually becomes

possible with group effort. Power might be aimed to protect themselves from
unreasonable demands. Informal groups provide options for individuals to practice
power.

 People may join a group for goal achievement. Sometimes it takes more than one
person to accomplish a particular task.
Individual & Group Behavior

Organizational behavior is the study of both group and individual performance and action
within an enterprise. This field of study scans human behavior in the working atmosphere.

It determines its effect on job structure, performance, communication, motivation, leadership,

decision making abilities etc. The way an individual behaves and behavior as a group have
two perspectives − internal and external.

Behavior Analysis at Different Levels: Behavior as an individual or in a group is always

analyzed by everyone in the organization. It is analyzed at three different levels −

 Individual level of analysis

 Group level of analysis
 Organizational level of analysis

Individual Level of Analysis: Organizational behavior, at this level of analysis massively

draws upon psychology, engineering, and medicine. At the individual level of analysis,
organizational behavior includes the study of learning, perception, creativity, motivation, and
personality.

In addition, it also includes the study of turnover, task performance and evaluation,
coordinated behavior, deviant work behavior, ethics, and cognition.

For example − Ram joins a company as an intern and is very open to learning new things but
as time passes and he gets promoted his attitude towards his interns becomes rude. This is a
fine example of individual level of analysis.
Group Level of Analysis: Organizational behavior, at this level of analysis, draws upon the
sociological and socio-psychological discipline. At the group level of analysis, organizational
behavior includes the study of group gesture, intra-group and intergroup dispute and
attachment.

It is further extended to the study of leadership, power, norms, interpersonal communication,

networks, and roles.

An example of this level of analysis − Board of directors of company X decide to give bonus
to their workers as they have really worked hard on a certain project.

Organizational Level of Analysis

Organizational behavior, at this level of analysis draws upon sociology and political science.
At this level of analysis, organizational behavior includes the study of organizational culture,
structure, cultural diversity, inter-organizational cooperation and coordination.

It further includes the study of dispute, change, technology, and external environmental
forces. Some other fields of study that adds to the interest of organizational behavior are
ergonomics, statistics, and psychometrics.

To have a clear understanding on the topic and avoid any kind of confusion let’s look at an
example at different levels and try to analyze it.

Rohit is interested in becoming a singer as he is interested in music and feels he can do better
in this field. While his parents force him to pursue his job as a software engineer, as
according to his father’s perception a software job pays well and is far better than struggling
to become a singer.

In this case, we see Rohit and his father have a clash of opinions, hence this is a case of
individual level of analysis.

Extending this example further, if Rohit seeks help from his friends on this matter his friends
will support him as they have the same mindset support the idea of following their own
dreams, struggling and achieving their goal. Meanwhile Rohit’s father’s friend circle might
find the idea of pursuing singing as a career insane and support his father’s decision of opting
for a software.

Theories of Leadership

The researches carried out by many behavioural scientists to find out what makes a leader
effective have resulted in various theories of leadership. In this section, however, we shall
discuss only three categories of theories of leadership:

Trait Theory: The trait theory seeks to determine the personal characteristics or traits of a
successful leader. A successful leader is supposed to have the following traits: good
personality, intellectual ability, initiative, imagination, emotional stability, desire to accept
responsibility, flexibility, honesty, sincerity, integrity, ability to make quick decisions,
courage, reliability, persuasive power, etc. To determine the personality traits of a successful
leader, studies were conducted by selecting successful leaders and find out their traits. It was
presumed that persons possessing these traits could become successful leaders.

But this theory suffers from many limitations. They are:

1. It emphasises mainly personal traits and does not consider the environment or situation in
which they have to be applied.

2. It assumes that leadership is an in-born quality and cannot be acquired.

3. There is no common list of traits found in all successful leaders.

4. There is no objective criteria to measure individual traits of leaders.

In spite of the limitations, the trait theory of leadership is not completely invalid. Their theory
indicates that a leader should have certain personal traits. This helps the management to
develop such qualities in a leader through its various programmes of training and
development.

Behavioural Theory of Leadership: In this approach, the emphasis is on the actual

behaviour and action of the leaders and not on their traits or characteristics. In other words,
this approach emphasises that strong leadership is the result of effective role behaviour.

This approach states that the leader uses three skills to lead his followers. These skills are:
technical (refers to a person's knowledge of the process of technique), human (refers to ability
to interact with people and conceptual (refers to manager's ideas which enable a manager to
set up models and design plans).

This approach assumes that a particular behaviour of a manager will make him a good leader
while its opposite would discard him as a leader. Determining goals, motivating employees
for achieving the goals, effective communication ability to interact effectively, building team
spirit, etc. are the functional behaviour of a successful leader.

This theory emphasises the point that the favourable behaviour of a leader provides greater
satisfaction to the followers and they recognise him as their leader. However, one limitations
of this approach is that a particular behaviour and action of a leader may be relevant and
effective at a particular point of time while at another, it may be irrelevant and ineffective.
Thus, in this approach, the 'time' factor which is a vital element has not been considered.

Situational Theory: According to this theory, leadership is affected by a situation from

which a leader emerges and in which he works. In other words, the situation — the group, the
problem and its environment — will affect the type of leadership. An important aspects of
this theory is the interaction between the group and its leader and the people tend to follow
the person who is capable of fulfilling their desires.

The leader recognises his followers' desires and follows such methods (depending on the
situation) which satisfy them. The main trust of the situational theory is that the leadership
style may be effective under one situation and ineffective under the other. In other words,
situational theory emphasises that there is no one best style of leadership universally
applicable to all situations and that the leader has to change his style of leadership from
situation to situation. If the leader adopts the same style under all situations, he may not be
successful. For example, Winston Churchill was the most effective and successful Prime
Minister of Britain during the period of the Second World War, but he was a flop afterwards
when the situation changed.

Though this theory states leadership ability of an individual in a given situation and measures
his leadership potentialities, it is silent on the point whether this individual will fit in another
situation.

Theories of personality

Trait Theory

English-language dictionary alone contained more than 4,000 words describing different
personality traits. He categorized these traits into three levels:

Cardinal Traits: These are traits that dominate an individual’s whole life, often to the point
that the person becomes known specifically for these traits. Cardinal traits are powerful, but
few people have personalities dominated by a single trait. Instead, our personalities are
typically composed of multiple traits.

People with such personalities can become so well-known for these traits that their names are
often synonymous with these qualities. Consider the origin and meaning of the following
descriptive terms: Machiavellian, narcissistic, Don Juan, Christ-like, etc.

Allport suggested that cardinal traits are rare and tend to develop later in life.

Central Traits: These are the general characteristics that form the basic foundations of
personality. These central traits, while not as dominating as cardinal traits are the major
characteristics you might use to describe another person.

Terms such as "intelligent," "honest," "shy," and "anxious" are considered central traits.
Loyalty, kindness, agreeableness, friendliness, sneakiness, wildness, or grouchiness

Secondary Traits: These are at the bottom of the hierarchy and are not quite as obvious or
consistent as central traits. These are the traits that are sometimes related to attitudes or
preferences. They often appear only in certain situations or under specific circumstances.
Some examples would be getting anxious when speaking to a group or impatient while
waiting in line.

Important of Personality at work place

The importance of personality and how it complements an organization, varies by role and
industry. For managers and business leaders, having the ability to motivate and encourage
your colleagues while also understanding their shortcomings, is critical to an organization's
success. For employers, having the ability to communicate effectively with staff and remain
flexible toward change is imperative to driving an organization forward. In both instances, a
manager's ability to build and sustain relationships with colleagues is integral to the
organization's success. More often than not, personality dictates how you're able to build and
sustain such relationships, and is thus an important element to any organization.

The key toward understanding how important personality is to your organization is to step
back and analyze how you interact with your work. Do you frequently find yourself working
with others to accomplish a task? Do you work in a cubicle with little to no interaction with
colleagues? Consider the effect your personality has in your line of work, and then examine
how your personality either advances or impedes you from accomplishing your goals. If you
find that personality does indeed play an important role in your organization, consider how
your skill sets have helped you build and sustain relationships with your colleagues. It may
seem daunting at first, but taking the time to understand how your personality affects those
around you is the most important step toward understanding the importance of personality in
your organization.

Group Dynamics

Group Dynamics is concerned with the personal interrelationships among members of a

group. It study the nature of human groups, their development, and their interactions with
individuals, other groups, and larger organizations.

Group dynamics concern how groups are formed, what is their structure and which processes
are followed in their functioning. Thus, it is concerned with the interactions and forces
operating between groups.

Types of Groups:

One way to classify the groups is by way of formality – formal and informal. While formal
groups are established by an organization to achieve its goals, informal groups merge
spontaneously. Formal groups may take the form of command groups, task groups, and
functional groups.
1. Command Groups: Command groups are specified by the organizational chart and often
consist of a supervisor and the subordinates that report to that supervisor. An example of a
command group is a market research firm CEO and the research associates under him.

2. Task Groups: Task groups consist of people who work together to achieve a common
task. Members are brought together to accomplish a narrow range of goals within a specified
time period. Task groups are also commonly referred to as task forces. The organization
appoints members and assigns the goals and tasks to be accomplished.

Examples of assigned tasks are the development of a new product, the improvement of a
production process, or designing the syllabus under semester system.

Other common task groups are ad hoc committees, project groups, and standing committees.
Ad hoc committees are temporary groups created to resolve a specific complaint or develop a
process are normally disbanded after the group completes the assigned task.

3. Functional Groups: A functional group is created by the organization to accomplish

specific goals within an unspecified time frame. Functional groups remain in existence after
achievement of current goals and objectives. Examples of functional groups would be a
marketing department, a customer service department, or an accounting department.

In contrast to formal groups, informal groups are formed naturally and in response to the
common interests and shared values of individuals. They are created for purposes other than
the accomplishment of organizational goals and do not have a specified time frame. Informal
groups are not appointed by the organization and members can invite others to join from time
to time.

Informal groups can have a strong influence in organizations that can either be positive or
negative. For example, employees who form an informal group can either discuss how to
improve a production process or how to create shortcuts that jeopardize quality. Informal
groups can take the form of interest groups, friendship groups, or reference groups.

i. Interest Group: Interest groups usually continue over time and may last longer than
general informal groups. Members of interest groups may not be part of the same
organizational department but they are bound together by some other common interest.

The goals and objectives of group interests are specific to each group and may not be related
to organizational goals and objectives. An example of an interest group would be students
who come together to form a study group for a specific class.

ii. Friendship Groups: Friendship groups are formed by members who enjoy similar social
activities, political beliefs, religious values, or other common bonds. Members enjoy each
other’s company and often meet after work to participate in these activities. For example, a
group of employees who form a friendship group may have a yoga group, a Rajasthani
association in Delhi, or a kitty party lunch once a month.
iii. Reference Groups: A reference group is a type of group that people use to evaluate
themselves. The main objectives of reference groups are to seek social validation and social
comparison. Social validation allows individuals to justify their attitudes and values while
social comparison helps individuals evaluate their own actions by comparing themselves to
others. Reference groups have a strong influence on members’ behavior. Such groups are
formed voluntarily. Family, friends, and religious affiliations are strong reference groups for
most individuals.

Stages of group development

There are various viewpoints on group development. However, it is commonly accepted that
there are five distinct stages of group formation. These stages are: (i) Forming (ii) Storming
(iii) Norming (iv) Performing (v) Adjourning

(i) Forming: Before the group formation takes place, i.e. at the time of prestage, all
individuals are distinct, but they do feel the need to have a group. When these individuals
come together, they test the climate and behaviour of other people to see if making a group
can be useful or not. The group does not have a defined purpose, structure or leadership. It is
only at the end of this stage that the individuals begin to think themselves as a par of the
group.

(ii) Storming: This is the stage of intergroup conflict, wherein the individuals do recognize
the existence of the group, but do not readily accept the group bondages in the form of rules,
regulations etc. There can be a leadership vacuum as well. However, this stage is the stepping
stone to achieving an order. Towards the end of this stage, some acceptability of rules and
group norms is achieved and leadership hierarchies start emerging.

(iii) Norming: In this stage, close relationships start developing and the group begins to show
signs of cohesiveness. The group members develop a strong sense of group identity and
comradeship, leading to further cementing the group ties. The rightful conduct of the
members is also defined in this stage.

(iv) Performing: When the group becomes fully functional and accepted, then it is said to be
in the stage of performing. The group members know each other and their roles and perform
the duties assigned to them. The group begins to play a meaningful role towards the
achievement of its objectives.

(v) Adjourning: Not all groups are permanent. Some of them attain existence to achieve a
particular purpose and once it is achieved, the group gets adjourned. The group gets
disbanded and loses is existence.

Interpersonal Dynamics

"Interpersonal dynamics" refers to the way in which a person's body language,

facial expression and other nonverbal mannerisms support a verbal message in
one-on-one, or interpersonal, communication. Accomplished professionals and
leaders recognize the profound impact interpersonal dynamics have in
motivating or persuading other people, and they work to develop effective
nonverbal communication skills, explains About.

Posture, body movement and hand gestures are among the primary body
language factors that contribute to interpersonal dynamics. A dynamic
communicator stands tall, but relaxed, moves their body naturally and calmly
and uses natural hand gestures to highlight certain points or to support action
words. A smile, eye contact and a relaxed facial expression convey confidence.
When a listener senses confidence from a message sender, it increases the
likelihood he will buy into the message. Vocal expression is another nonverbal
factor of interpersonal dynamics. An assertive tone, good volume, a relaxed
pace, emphasis and inflection all impact a message. A person can change the
entire construct of a sentence just by adjusting the points of inflection.

Another important element of interpersonal dynamics is the relationship

between a person's words and nonverbal messages. Honest, clear and well-
received communication occurs when words and body language closely match.
When they don't, a listener may infer that a speaker is uncertain or dishonest.