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Shared goals
Group
There isinteraction
Among members
Group
Formal Informal
Command Interest
Task Friendship
The people often join groups since the groups give the members a stability and
enhances their achievement capacity. The main reasons to join a group are:
Goal achievement
Four are:
Norms
Roles
Status
Cohesiveness
Set of beleifs, feelings, and attitudes
commonly shared by group members. These
are also referred to as rules or standards of
behaviour that apply to group members.
Norms serve three functions namely
Predictive- basis for Relational- some
understanding the norms define
behaviour of others relationships
Control- regulate
the behaviour of
others
Represents characteristics of group
Basis for predicting and controlling behaviour of others
Related to behaviours considered important for their grp
They are applied to all memebrs.
-various parts played by group members.
SOCIAL TASK
Low
Cohesiveness
- Unity
- Negative Feelings
- Interactive
- More Problems
- Positive Feelings
- Less Productive
- Ability to Cope with Problems
- More Productive
Balance Theory:
Propounded by “ Theodore New-Comb” which states that- “
Persons are attracted with one another on the basis of similar
Changes
Rigidity or flexibility
Continuous process
The groups operate on a common task and common attitudes. The
group dynamics is concerned with the interaction between the group
members in a social situation. This is concerned with the gaining in the
knowledge of the group, how they develop and their effect on the
individual members and the organization in which they function.
The group dynamics is essential to study since it helps to find
how the relationships are made within a group and how the forces act
within the group members in a social setting. This helps to recognize the
formation of group and how a group should be organized, lead and
promoted.
In 1980 , Richard semler joined SEMCO , founded by his father 27 years
earlier, having 100 employees and manufacturing hydraulic pumps for
ships, producing about $4million in revenue and tottered on the edge of
bankruptcy.
For the next 2 years, top managers constantly sought bank loans and
fought off rumors that the company was about to sink.
They also travelled 4 continents that enabled the company to reduce its
cyclical marine business to 60% of total sales.
Today SEMCO has many factories producing range of products
like marine pumps, digital scanners, commercial dishwashers, truck
filters and mixing equipment for substances ranging from bubble gum to
rocket fuel.
Customers include Alcoa,saab,general motors and SEMCO is regarded as
one of the best company in Brazil to work for by press.
The company’s survival and ultimate success is due largely to a major change in its
management approach.
SEMCO emphasized on 3 fundamental values- democracy , information , profit
sharing. These values helped in gaining confidence on work groups as a primary
mechanism for managing the company.
After some experimentations SEMCO found that they need 150 employees per
factory and all are divided into 10 member group given a major responsibilities for
outcomes associated with their areas.
Costs rose up because of duplication of effort and lost economies of scale. within a
year sales got doubled ,inventory dropped from126 to 46 days,8 new products
appeared that had been tied up in R&D for 2 years and the product rejection rate at
inspection dropped from 33 to 1% and increased productivity enabled the company
to reduce the workforce by 32& through attrition and early retirement.
At SEMCO once the members of a group agree on a monthly production schedule,
they meet it . At end of the month every body has done their work allotted except
for motors that had not yet arrived, despite repeated phone calls to the supplier.
finally 2 employees went to the supplier’s plant and got delivery on the last day of
the month and every one sat for the whole night till mng 4.45 and completed the
assignment ( meat slicers)
work groups have access to important information like Balance Sheet,P&L analysis,
cash flow statements for his or her division every month.
All workers voluntarily attend monthly classes so that they can learn to read and
understand the numbers.
Another factor is that although top level managers are strict about meeting the financial
targets, workers have wide latitude in determining the necessary actions and carrying
them out.
Profit sharing plan, twice a year employees receive about 25% of the after tax profits
for their division.
Employees vote on how to disburse the funds, which are visually distributed equally.
A survey was conducted by college graduates by Brazilian magazine found that 25% of
men and 13% of women cited SEMCO as the company they most wanted to work for.