What is 'Group Dynamics'? What problems are created by informal groups in an organisation?

 In order to fulfill their social needs, workers form small groups on the job itself. Management can use groups successfully for the accomplishment of organizational objectives. Groups may help to achieve the organization’s goals.

Group Dynamics:

The social process by which people interact face-to-face in small gathering is called group dynamics. Group dynamics is concerned with the interaction of individuals in a face-to-face relationship. It focuses on team work wherein small groups are constantly in contact with each other and share common ideas to accomplish the given tasks. Each group chooses its leader who may effectively coordinate the group efforts towards the tasks.

The members of a group are inter-dependent and are aware that they are part of the group. Groups are useful for an organization as they provide norms of behavior for its members. They provide understanding, companionship, support, relation and friendship.

Type of groups:

There are two types of groups in each organization namely

• Formal groups– Formal groups are a part of the organizational structure. They are created deliberately by the management to perform the assigned duties. For examples work group, task force, committee, and quality team. The formal groups are integral parts of the official organization.
• Informal groups – Informal groups arise spontaneously in the organization because of social interaction between the people. They are created by individuals rather than management. They are based on common interest, language, taste, caste, religion, background etc.

Problem created by informal groups:

Informal groups have dysfunctional aspect too. They may create the following problems for the organization

• Negative attitude of informal leaders – The informal leader may turn out to be a trouble for the organization. They may work against the policies of management to increase their influence and also may induce the followers to work against the interests of the organization. If such a leader is promoted, then he may turn out to be a work shirker and an arrogant and autocratic boss.
• Resistance to change – Informal groups usually have a tendency to resist changes. Change requires group members to make new adjustments and acquire new skills. Sometimes groups react violently to the proposed changes by the management. This creates obstructions in implementing new ideas for organization’s survival and growth in the changing environment.
• Rumor – Informal communications may give rise to rumors. It is not desirable from organization’s point of view. Rumors against the organization may be plain maliciousness, employer anxiety, and insecurity due to poor communication in the organization. Rumors also serve as a means of wish fulfillment for some employees.

To avoid unnecessary conflict with informal group creating disturbance, the manager should build favorable relationship with informal leaders. He can consult leaders and seek their advice on technical matters and human relation problems. The communication with management and leaders should be encouraged.