Groups Can Serve Purposes for Both the Individual and the Organisation. Discuss the Positive and Negative Impacts of Groups Within the Organisation.

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Groups Can Serve Purposes for Both the Individual and the Organisation. Discuss the Positive and Negative Impacts of Groups Within the Organisation.

To explore the impacts that groups have on both the individual and the organisation it is first necessary to define a formal and informal group and identify why people feel the need to gather into groups. What are the social and psychological impacts of the group upon the individual? Furthermore, we need to investigate the characteristics of group formation and the power the group exerts upon the individual. In addition, it is essential to investigate how an individual’s self-perception is measured in relation to the group to which they belong and how the group membership enhances our self-esteem. And finally, what makes an effective group and what are the dangers if it becomes too cohesive in times of crisis?

Formal groups are a collection of people that work together for the benefit of the organisation. They are created consciously by the organisation to achieve a collective purpose, usually to get work done, generate ideas and solve problems. Conversely, informal groups emerge spontaneously within the formal work group. They function in conjunction with the formal group. They develop during interactions as people talk, joke and make friends. (Buchanan and Huczynski 1997:p189)

 Many people belong to many different types of groups from the informal group of friends or the family group to the more formal group of work colleagues. Charles Handy (1993 p150) defined a group as “any collection of people who perceive themselves to be a part of a group” and this collective sense of belonging is the essential feature of a group. Schein (1998, by Brooks, 1999, p75) added to Handy’s definition from a psychological perspective. He described a group as any number of people who interact with one another and are psychologically aware of one another. This definition enables us to exclude aggregates of people who are simply gathered together without a meaningful purpose. (Buchanan et al, 1997:p189) This bring us to the question of why do people gather into groups?

Being a member of a group, both in and out of the work place, satisfies various individual needs and purposes. Both the formal and informal group can serve to satisfy these needs. However, formal groups tend to satisfy the needs of the organisation. Rarely does the organisation consider the individual social needs of the employee. (Buchanan et al, 1997:p189) Firstly, we need to consider social purpose of the group on the individual.

According to Handy (1993) group membership can provide security and protection. For example, being a member of a trade union can reduce insecurity when an employee feels his job is under threat. In addition, regular interaction with a set of people to whom we are familiar fulfils the human need of affiliation and social contact. (Handy, 1993, p153)

In addition, groups are also the means in which we establish our self-concept.  As humans we learn to understand our own human nature from our social interactions and relationships. We learn to define ourselves and our roles by comparing ourselves to others with whom we have a relationship. (Handy, 1993, p153) For example, a person who is asked “who are you?” will probably express themselves in the terms of the groups to which one belongs.

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Furthermore, groups are the means in which we seek support to accomplish our individual objectives. However, it is worth remembering that these objectives may not always be the same as the organisations objectives. (Handy, 1993, p153)

Finally, being a member of a group enables us to share in a common activity or purpose. For example, the purpose of an informal group may be to play a game or a formal group may need to complete an organisational productivity task. (Handy, 1993, p153) Therefore, groups exist to perform a task that cannot be achieved by a single individual.

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