Unit 5: Group Dynamics

5a. Differentiate between the different types of groups while explaining different theories

  • What is an example of a type of group?
  • Why is it important to analyze the different types of groups?
  • How does a type of group compare with group theories?

In business today, we may have formal or informal groups in the workplace. An informal group is typically formed without planning, while a formal group is formed for a purpose. An informal group tends to bond more easily and work well over time. In contrast, a formal group's cohesion may depend on the reason for the group itself or the leader of the group.

Social exchange theory is a concept about relationships using a cost-benefit analysis. For example, are there more costs or benefits in your relationship with an individual? If the benefits outweigh the costs, then the relationship may continue. However, if the cost of the relationship is greater than the benefits received, the relationship may not continue.

The Punctuated-Equilibrium Model, as it relates to organizational behavior, states that a group may progress during a sudden change after a period of no change. This model also states that a group that is small, stable, and supportive of one another may get along better than groups that are not. These theories and models help us better understand group dynamics and how we can propel them forward.

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5b. Differentiate the various structures of groups and their impact on groupthink

  • What is groupthink?
  • What are the various structures of groups?
  • How might a group structure impact groupthink?

The structure of a workplace group may depend on the group's individual roles, norms, and status. These areas should be well-defined when creating a formal workplace group. Depending on how the organizational structure is devised, this may also play a role in the structure of a workplace group.

Groupthink occurs when a group makes decisions in a way that may discourage different thinking. An example of groupthink occurs when one member expresses an idea, like "we should not allow members of a specific religious faith to join our group", and the group accepts the idea without question. The group may want to maintain cohesiveness, so they decide that agreeing is better than arguing the idea.

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5c. Critique how group effort and group decision-making affect groupthink

  • How does group effort affect group decision-making?
  • How does group decision-making affect groupthink?
  • Why is it important to analyze how a group makes decisions?

Groupthink may take over when trying to maintain group cohesion, and normal problem-solving or decision-making may not occur. When this occurs, if one person attempts to shed light on the groupthink idea, they may be expelled. In the workplace, this must be addressed immediately. A manager may need to step in and correct Issues within the group.

In a healthy work group, each team member must participate in decision-making. By allowing open communication and considering each team member's opinions, the group decision-making process allows for potential brainstorming and solving problems together.

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5d. Evaluate basic personality profiles, such as introverts and extroverts, and best practices for managing them

  • What is an example of an introvert in the workplace?
  • What are some best practices for managing a team?
  • How might an extrovert conduct business differently than an introvert?

As a leader, it is important to understand the difference in basic personality profiles, including introverts and extroverts. An introvert may prefer to work alone without interruption and enjoy focused tasks. An extrovert will get along with most people and flourish socially in the workplace but may need to discuss ideas with peers before starting a task.

By understanding the differences between these personality profiles, you may be able to help introverts and extroverts feel more comfortable within the team. As a leader, it will be important that you learn to adjust your leadership style to deal with different types of employees. Understanding each employee's strengths and weaknesses will also be useful so that you may better manage and use these strengths with the team.

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Unit 5 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

  • extrovert
  • formal group
  • groupthink
  • informal group
  • introvert
  • Punctuated-Equilibrium Model
  • social exchange theory
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