GROUP FORMATION

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:

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. It is the collection of employees who report to the same supervisior. The existence of formal groups is represented on organizational charts as departments (such as finance, examination, academic, administrate). The leaders of the command group play an important role in determining the effectiveness of these groups.

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: Giving the task to designing the syllabus under semester system. Other common task groups are ad hoc committees, project groups, and standing committees.

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 an academic department and an accounting department.

Informal Groups

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. Informal groups can take the form of interest groups, friendship groups, or reference groups.

1.    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.

2.    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, or a kitty party lunch once a month.

3.    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.

FACTORS OF GROUP FORMATION

There are various factors, which influence the formation of groups in organisations. Let us learn following important factors of group formation:

• Psychological Factors : After joining the organisation, individual joins a particular group in which he/she finds him/her interest, attitude, personality, perception etc. matching with other individuals within the department or the organisation. As a result, group is formed.
• Social Factors: Individuals also form or join the group based upon their social class, caste, and religion to satisfy their social needs. They do it primarily for satisfying their love, affection and care needs, which initially they feel deprived after leaving their families.
• Security Factors: As an individual, sometimes one can feel insecure over unexpected developments such as sudden health problem, termination, suspension, local problems etc., therefore, everyone likes to be in a group to feel secured to work. Especially in a new place, for a new employee, the security need could be one of the major factors for joining a group.
• Economic Factors: When an individual works in an organisation, he/she gets all types of economic incentives and benefits available within the rules and regulations. Sometimes organisations cannot meet an individual’s accidental or obligatory needs like money for marriage, house construction, medical care and other proposes. So he/she gets associated with those people who help him/her at the time of need.
• Cultural Factors: Individuals come to work from different society and culture. In case the place at which they work are far away from their place of origin, region and culture; they feel like a fish out of water. It may be due to the absence of cultural celebrations. This is one of the reasons for which people coming from same culture, tradition and speaking similar language usually form the group.
• Proximity, Interaction, Interest and Influence: This is one of the common and logical reason for which people form the group in the organisation. Some people have to work together. Due to the similarity of nature of job, they have to interact with each other for this purpose. In course of interaction, interest develops which ultimately influences each other to sit, eat, discuss and share besides working together.

THEORIES OF GROUP FORMATION

There are four theories explaining why people interact and form groups. These are:

• Proximity Theory: Individuals tend to affiliate with one another because of spatial or geographical proximity or nearness. For instance, peasants in a village or students next to each other in class interact more and thus will eventually form a group.
• Activity Theory: When people are involved in similar activities, they tend to generate spontaneous interaction and sentimentality leading to cooperation and problem solving. Commonness in occupational interests makes it possible for people to socialize on a wide range of issues related to the particular activity.
• Exchange/Benefit Theory: It holds that some groups are formed purely on business-like relations. Members will only decide to form, join or continue together on the basis of the gains thereafter. Rewards in this context, will yield gratification while the costs involved include material loss, privileges, anxiety, frustrations or fatigue. The rewards could be tangible or non-tangible e.g power, leadership and prestige.
• Balance Theory: It borders closely with the activity theory except that it would draw on emotional cum-intellectual dimension of the interaction. People are attracted together on the basis of similar attitudes towards life e.g likes and dislikes, beliefs, political ideologies etc.