Exploring Group Dynamics' Impact on Business Performance

A Business Environment: The Power of Groups


A business environment is a social one. In business, there exist groups formed on professional bonds that relate to each other in different ways. Groups are an essential and common organizational entity in any business. They make it easy to run a business, and they benefit the company in multiple ways. Groups help an organization or business pull the strengths of each and in the process achieve tasks more effectively.


The Importance of Groups in Business


A group in business refers to individuals who come together to complete a common task or achieve a given goal. The use of groups also helps train new managers and executives since the process of creating and using groups helps to discover the strengths and weaknesses of each. Groups are also crucial in improving communication and coordination. When a business has a good flow of information, the decision-making process is fast and effective. A company organized in groups has employees with better relations. The product of good relationships in business is good coordination and efficiency. Groups help a business have employees with discipline (Kaplan, 2018). In a large firm, the effectiveness of each employee could be hard to monitor; if they are placed in groups, it is easier to find who is responsible for what.


The Dynamics of Groups in Business


Due to the importance of groups in an organization, it is important to study and understand how people in a group are expected to relate to each other. The process of relating to people in a business is a social and psychological process that requires a level of professionalism. The professionalism practiced in a specific group in business is referred to as the group dynamics. Therefore, group dynamics in business refers to the attitudes and behavior of people in a business group.


The Stages of Group Development


The theory of Bruce Tucker on group development is important in explaining how groups are formed. To understand the dynamics of a group, first, it is crucial to understand how the groups are formed. Bruce Tucker, a psychologist, suggested a process any group goes through. The process involves five stages. The stages include the forming of the group, storming, norming, performing, and adjourning. Each stage a group goes consists of characteristics that contribute to the way the group members relate ("5 Stages of Team Development", 2018).


The Forming Stage: Initial Interaction


The forming stage, when the group is initialized, is a crucial phase. Here, the group members get to know each other. It may be characterized by group shyness since individuals are beginning to know each other. In a business environment, this phase could be described by politeness, and the members are pleasant to each other. As an effort towards understanding each other, group members should discuss their strengths and weaknesses. Having this discussion will allow the members to be open with each other and make the group more productive. The project goals and the timeline could be discussed in this stage. The move will help the group become more focused and planned. The ground rules and individual responsibilities that each member should remember through the lifetime of the group’s existence should be discussed in this stage. The discussion not only makes the group dynamics better, but it also helps the group members plan and get into the teamwork mentality. The first stage is meant to help the individuals familiarize themselves with each other, and the roles or responsibilities of the group.


The Storming Stage: Overcoming Challenges


In the second phase, known as the storming phase, each’s personality kicks in. The pressure brought by the weight of the task at hand puts the members in frustration. It is in this phase that members start to notice each group member’s flaws and weaknesses. There are those members that are slow in completing tasks or are poor in working as a team. During this phase, good leadership and interpersonal relationship play a significant role. This stage can determine a group’s success. If the group’s dynamic at this stage is weak, the group might fall out or make the work progress slow down. The group members may argue if their ideas are different. They might question the authority or approach towards completing a task. The group leader needs to be strong. They should help the group resolve conflicts and stick to the group’s goals and meet the deadline. If the issues in this phase are ignored or avoided, the group’s dynamic could be ruined. This stage is crucial, and if the arguments are resolved successfully, the group will achieve more effectively.


The Norming Stage: Working in Unity


The norming stage is the third stage. In this stage, the group starts working together with each’s strengths and weaknesses in mind. The group’s dynamic is founded at this time. The group begins to work in a groove where each pulls their weight to complete tasks. Each appreciates the skills of other group members, and even though the norming stage may overlap with the storming stage, the members of the group have learned to deal with the issues. The stage of the lifetime of a group helps the group dynamic and the success of the group. This is the best stage to observe if you want to know the dynamics of the group.


The Performing Stage: Coherence and Concentration


The next stage is the performing stage. Here, the group is more coherent, and the main concentration is the task they should perform. The members have gained confidence in themselves and each other. The group dynamic has been formed, and they understand each other correctly. Each member plays their role contributing towards the task.


The Adjourning Stage: Closure and Reflection


The adjourning stage is the final stage. Here, the group is familiar with each other and have grown closer, and the group dynamic is at its best.


Theories on Group Development


Why groups develop is as crucial as how groups develop (McMillan & Barnett, 2018). Several theories try to suggest why groups develop. George Homans worked on a classic theory that attempts to explain how groups are formed. In his theory, he indicates that activities, interactions, and sentiments establish groups. He argued that as individuals interact and share more activities, they develop attitudes towards each other. His theory dwells on the psychology of instrumental behavior. The theory was referred to as the social exchange theory; it was all about the reactions and decisions that human beings make in relationships. He concentrated on two properties that he believes are key in forming the group dynamic. These properties are self-interests and interdependence of the group members. Human beings look out for their gains when two people who each have value to each other meet, their interaction forms and the attitudes they have towards each other are gradually born. If the dependence on each other has a positive outcome, the attitudes towards each are excellent. If the relationship is one-sided, the attitudes are bad. This theory focuses on the human element of social interactions.


The Social Identity Theory: Sense of Belonging


The next theory is the social identity theory. This theory suggests that an individual gets a sense of identity depending on the members of the group (Ashforth & Mael, 1989). The perception of oneness in a group of people allows for an individual to be more interactive and offer more in a group setting. When an individual feels that they fit in a group, they are more comfortable, and the dynamic of the group is positive. The theory suggests that the formation of the group largely depends on the distinctiveness and the prestige of the group. Individuals are more motivated to contribute to a group they identify more within the business.


Formal and Informal Groups in Business


Groups can either be formal or informal. In a business setting, the groups are formal. Formal groups can further be categorized into command groups, task groups, and functional groups. Informal groups are categorized into interest groups, referral groups, and friendship groups. They are formed without a specific time frame. Members who have a similar interest form an interest group. They all have similar objectives and goals. Friendship groups, on the other hand, are formed when individuals bond over the same social activities. The social events could be similar hobbies, political beliefs, or religious values.

Reference

groups are created by individuals who want to evaluate themselves. They are formed with the purpose of comparison and validation socially.


The formal groups are the main focus of this essay. They differ from informal groups in that, the dynamics of formal groups is more professional than those of a friendly group. Informal groups have members who interact on a personal and casual manner. Formal groups, on the other hand, are more official and there is minimal to no personal level interactions. The dynamics of formal groups could depend on why the group was formed in the following ways.


If a group is a task group is formed, the members of the group strive to achieve a common goal. The relationship and attitudes of the individuals towards each other will be affected by their attitude towards the task. If the task is easily understood and worked on professionally, the attitude will be positive. Personal interactions won’t matter as much if the task progress is good. Task groups mostly have a short lifespan and end once the task is completed.


Functional groups are created to accomplish specific goals in a given timeframe. Unlike task groups, they remain in existence even after the completion of the goal. This functional groups can grow to form departments in a business. They include marketing, customer service, and accounting groups. Formal groups are created to complete and achieve an organization’s objectives.


The group dynamics of a formal group in business are affected by the group structure. The group structure depends on a few factors. These factors include the group’s size, norms, role, and cohesiveness. The group structure can be defined as the pattern of relationships among the group members. The structure of a group determines how the group is held together. The structure assures that a group achieves its objectives. A well-structured group has a positive dynamic.


The group size affects its dynamic. In a group, it is essential for each to participate and be involved in the activities of the group actively. Small business groups are useful since each member has an opportunity to contribute. The average size of a small group is 2-10 people. The small group allows the members to interact and offer something that adds to the task or objective assigned to them. Large groups could make an adverse group dynamic scenario where an individual could feel like they do not participate enough or other group members do not recognize their efforts. The group size determines not only participation, but it also defines the satisfaction each member gets from participating and being involved in the group activities. As the group increases, satisfaction increases to a certain point. A group is satisfied when people increase because of the contribution to the group’s goals increases. When the number gets unmanageable though, then satisfaction and the general group dynamic shifts to the negative. Members need to feel they are valued to make sure that the dynamic stays positive. For a group to be more cohesive, the members need to identify with one another.


Group roles in a formal environment may be assigned at the formation of the group; some functions, however, develop as the group grows to meet the needs of the group. A group where members feel more assertive and fit into the roles, they are assigned to be more coherent. Members who feel that the roles were fairly and equally divided will relate better to each other and improve the groups dynamic. The functions can be divided into categories depending on the nature and demands of both the objective of the group and the skill of the individuals that form the group. Roles can be work, maintenance or blocking in nature. Work roles are task dependent and are assigned to make sure the objective of the group is reached. Work roles involve a variety of specific roles that are crucial in making sure an idea is actualized. The roles may include initiating, informing, clarifying, summarizing, and testing. Each in the group picks or is assigned to a task according to their strengths.


The group structure also involves having group norms. These are the expected behaviors in a group. A formal group should have boundaries on what behavior is accepted or rejected. This helps the group remain coherent and facilitate the survival of the group. If every member understands the norms of a group, the group dynamic is positive. Each member should act in a way that will not make other individuals uncomfortable. The norms make sure that the group remains professional and allows for each to perform the task in a friendly and professional manner. Groups spend a lot of time together; it is only reasonable that the group members have rules of engagement. Norms are important in emphasizing the level of commitment, motivation, and performance hence ensure that the group standards are met. Performance norms could be created in a business group to ensure that each has rules they have to meet. The norms guarantee that the group is productive. Norms can at times come between performance levels. When rules limit a person's skills, it might make them feel like they are not contributing enough. This is a challenge if the organization is racing towards a deadline. Norms are however more beneficial than they are harmful and improve the group’s dynamic. The more the members agree and respect the rules set, the better the group’s dynamics.


 Group cohesiveness determines the group dynamics. Individuals in the group need to bond and be willing to remain in the group. The success of a group depends on how the members feel while in the group. If a group is trying to join where any new member needs to offer a new skill or meet a specific requirement, the group grows more cohesive. Competition in the group affects the dynamic of the group negatively. However, if two or more groups are competing against each other, the game makes the group more cohesive, and this affects the group’s dynamic positively. If a group is faced with a serious external threat to its survival, it becomes more coherent if it survives the test. This makes individuals in a group proud of being in the group and proud of their fellow members. This improves the group’s attitude towards each other. A more cohesive group increases performance, satisfaction and reduces absenteeism. The closer a group is, the more confident it is. Confidence could be an issue to an organization since a confident group could have groupthink. Groupthink could make a group make decisions that are careless or unrealistic. The dynamics of a coherent group are better than one that is not coherent.


Forming groups is more than getting individuals with the relevant skills to work on a given task. The group needs to take time and grow more coherent, and the members need to feel comfortable around each other. The bond created by the members is essential in making the group more work friendly. In a business setting, the group should be more professional than casual. The human factor plays a role no matter how professional a group is. Human emotions and social factors play a significant role. The group needs to learn how to resolve conflicts and grow more cohesive. Depending on the type of group, an organization should focus on making the group more comfortable. This improves the group’s dynamics and makes the group more productive. It is also important to motivate a group at work, by making use of social group activities and competitions, the group will improve their attitudes towards each other. When the group members have positive attitudes towards each other, they will have a positive attitude towards the tasks they achieve. Having groups with good dynamics help an organization become more productive on all levels. Group activities in the company help members grow out of their comfort zones and take up challenging tasks in a social manner. The activities allow the business to identify the strengths and weakness of its employees. By doing this, the organization makes informed decisions on who to give executive positions in the event of an opening. A successful workgroup with good dynamics can be formed into a faculty. An organization can, therefore, deal with problems quickly. The role of groups in a business could be beneficial if the dynamics of the groups that are created are pushed towards the positive side.


References


             5 Stages of Team Development. (2018). Retrieved from https://toggl.com/stages-of-team-development/


Ashforth, B., & Mael, F. (1989). Social Identity Theory and the Organization. Academy Of Management Review, 14(1), 20-39. doi: 10.5465/amr.1989.4278999


McMillan, A., & Barnett, T. (2018). Group Dynamics - organization, levels, examples, type, company, Group development, Group types. Retrieved from https://www.referenceforbusiness.com/management/Gr-Int/Group-Dynamics.html


Kaplan, R. (2018). Importance of Groups in an Organization. Retrieved from http://www.businessmanagementideas.com/organisation/importance-of-groups-in-an-organization/2073

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