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Individual and Group Decision Making
Which is better—individual or group decision-making? This is not an easy question to answer.
Generally speaking better-quality decisions come from groups. This is because groups contain people
with a variety of experiences and information that can be pooled together and these diverse views can
be examined by all of the group members. Individuals are also more committed to the �nal decision
because of their participation in the decision-making process. However, individual decision-making is
usually faster, and when deadlines lead to time constraints group decision-making may not be an
available option.
In a typical work group, jobs are allocated to the members on an individual basis and they carry
individual responsibility and authority. In contrast with a work group, a work team has collective or
joint responsibility and authority. The work group meets primarily to share information and make
decisions while the work team meets for a collective and coordinated effort to perform tasks.
Work teams are useful for various kinds of activities, such as in manufacturing, services, and contract
negotiations. Their increasing popularity is an indication of their effectiveness. The most common
types of work teams are problem solving teams, cross-functional teams, self-managed teams, and
virtual teams.
Since the 1970s, strong competition from manufacturers in countries including Japan, Germany, and
South Korea has led American companies to make a concerted effort to improve quality. With the
success ofquality circlesin Japan, American companies have begun to recognize that employee
involvement through work teams is important for quality management. While not all companies are
enthusiastic about the use of work teams, evidence does suggest that they are becoming more popular.
Teams have become increasingly prominent in the workplace. A team-oriented organizational
structure means companies or divisions rely on small work groups or teams to manage various
products or tasks. Work teams offer some bene�ts because of the collaboration of several employees,
but challenges also exist when work teams replace more individualized work.
AdditionalMaterials
Individual and Group Decision Making, Work Teams, Quality Management and Teams
(media/week3/SUO_MGT3002%20W3%20L2.pdf?
_&d2lSessionVal=BeqKM5XygMKLELT7BmtXMifLe&ou=89692)

https://myclasses.southuniversity.edu/content/enforced/89692-17104265/media/week3/SUO_MGT3002%20W3%20L2.pdf?_&d2lSessionVal=BeqKM5XygMKLELT7BmtXMifLe&ou=89692
Communication in Business
Communication is a workplace factor that can both create and solve problems. In the following
section, you will learn about the functions and purposes of communication in an organization.
Communication has four principal functions in an organization—control,motivation,emotional
expression, andinformation. Communication performs a control function in matters concerning
organizational structure, roles, and guidelines that are necessary for people to function within the
organization. For example, instructions and feedback help to in�uence and direct employee behavior.
In order to communicate, the source or sender transmits a message whose information has to be
translated into a language. This process is known as encoding and the �nal message is the output of the
process. The message is then transmitted through a channel or medium which may be either formal or
informal. Formal channels of communication are used by organizations while informal channels are
personal and social. The receiver needs to decode the message in order to comprehend it. Decoding is
the reverse of the encoding process.
Organizations generally use vertical and lateral communications. Vertical communications �ow
between hierarchical levels where downward communications are sent by higher levels to lower levels.
For example, managers send instructions, assign goals, inform about policies, and give feedback about
performance to their subordinates. In response, subordinates send progress reports, report problems,
and give feedback through the same vertical channels. Lateral communications permit employees to
share, discuss, and jointly analyze information and data.
Communication is an aid used in everyday life, be it personal or business. In the business world, good
communication is important for the daily operation of the company, but can also affect sales and
pro�tability. Without good business communication, the internal and external structure of a business
can face numerous challenges that can ultimately lead to its demise.
AdditionalMaterials
Communication in Business(media/week3/SUO_MGT3002%20W3%20L3.pdf?
_&d2lSessionVal=BeqKM5XygMKLELT7BmtXMifLe&ou=89692)

https://myclasses.southuniversity.edu/content/enforced/89692-17104265/media/week3/SUO_MGT3002%20W3%20L3.pdf?_&d2lSessionVal=BeqKM5XygMKLELT7BmtXMifLe&ou=89692

Individual and Group Decision Making work Teams,
Quality Management and Teams

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Which is better—individual or group decision-making? This is not
an easy question to answer. Generally speaking better-quality
decisions come from groups. This is because groups contain
people with a variety of experiences and information that can be
pooled together and these diverse views can be examined by all of
the group members. Individuals are also more committed to the
final decision because of their participation in the decision-making
process.
However, individual decision-making is usually faster, and when
deadlines lead to time constraints group decision-making may not
be an available option. Furthermore, in groups the pressures of
conformity and dominance by individual members may hinder the
other members’ efforts to pool their knowledge and ideas together.
As a result, individual decision-making may appear to be more
efficient in these situations while the group decision-making
process may appear clumsier.
There are two kinds of phenomena, groupthink and groupshift,
that are common in group decision-making processes. These
phenomena can significantly affect the quality of decisions.
Thus, members may withhold minority, unpopular, or unpleasant
views as a result of invisible group pressures. These members may
seek acceptance and concurrence in the group. Some people have
referred to groupthink as a disease because it can limit effective
decision-making, which can lead to disastrous consequences.
For example, the groupthink phenomenon in NASA’s decision-
making processes has been linked to the Challenger space shuttle
disaster. Key decision-makers ignored warning signs as they felt
pressured to conform to the belief that NASA does not make

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mistakes. Some of them minimized their concerns as “probably not
very important,” and some thought that their associates would label
them as paranoid if they brought attention to these problems.
For example, if the initial position is conservative, the final shift is
usually toward more cautious decisions; however, the shift is more
often toward high risk. Thus, the group ultimately makes higher-risk
decisions than the individuals would on their own; group members
may feel emboldened to take more risky and unrealistic decisions
because the blame will be spread among all of the decision-
makers if they fail.
Both groupshift and groupthink are problems that need to be
recognized so that the group can move toward a more realistic
level of discussions, analyses, and decision-making. Many
companies actively encourage dissenting and uncommon views as
a way of preventing groupthink and groupshift.
In a typical work group, jobs are allocated to the members on an
individual basis and they carry individual responsibility and
authority. In contrast with a work group, a work team has collective
or joint responsibility and authority. The work group meets primarily
to share information and make decisions while the work team
meets for a collective and coordinated effort to perform tasks.
Work teams are useful for various kinds of activities, such as in
manufacturing, services, and contract negotiations. Their
increasing popularity is an indication of their effectiveness. The
most common types of work teams are problem solving teams,
cross-functional teams, self-managed teams, and virtual teams.
Problem-solving teams meet to share information and ideas and
develop suggestions for improvement. Quality circles are the most
common example of a problem-solving team. These are teams of

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eight to ten people of the same work group who meet periodically
to discuss quality problems and try to find solutions for them.
Cross-functional teams are multi-disciplinary teams that are
created with members from various departments to address
specific jobs and problems. A task force is a common example of a
temporary cross-functional team.
Perhaps the most successful teams have been the self-
managed work teams, also referred to as semi-autonomous work
teams. These have been used, principally in manufacturing, to
replace traditional assembly-line operations.
A newly emerging work team called a virtual team uses computer
technology to connect team members. Individual team members
do not have face-to-face contact, but collaborate online through
computer networks when dealing with tasks. The members may be
from the same organization or from completely different companies
and settings. For example, a virtual team operating from different
parts of the globe may successfully design an online course
without ever having a face-to-face meeting. Another good example
of successful virtual teams is the game mod team, where people
across the globe come together through the Internet to develop
different components of a computer game. Each member of this
team tries to contribute his or her best work, as the game mod is a
portfolio of his or her strengths. Game manufacturers recruit
talented game developers from these mods.
On the assembly line a complex task is divided into a number of
simple jobs that can be performed using limited but specialized
skills. The planning, scheduling, and allocation of these jobs are
done by supervisors and managers. Employees perform the
individual jobs that result in the assembly of the parts into the final
manufactured unit.

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In contrast, self-managed work teams handle a complete job and
operate with some degree of authority; they can schedule tasks,
allocate and rotate jobs among themselves, and deal with
problems as they arise. This approach involves multi-tasking,
unlike the specialized skills needed by workers on an assembly
line. For example, one of General Electric’s aircraft manufacturing
plants allocates the entire job of assembling an aircraft engine to a
work team.
Many projects have been successfully achieved with self-managed
teams, particularly in areas like manufacturing, vendor relations,
and management. However, there have also been reports of
companies that have been disappointed with the results, indicating
that these teams are only effective in certain situations. Further
studies are needed to identify the kinds of situations in which these
teams are most effective.
Since the 1970s, strong competition from manufacturers in
countries including Japan, Germany, and South Korea has led
American companies to make a concerted effort to improve quality.
With the success of quality circles in Japan, American companies
have begun to recognize that employee involvement through work
teams is important for quality management. While not all
companies are enthusiastic about the use of work teams, evidence
does suggest that they are becoming more popular.
This is a more hands-on approach to dealing with quality issues
than more traditional methods. Employees on the factory floor
possess a great deal of practical knowledge, which when applied
through a team approach can solve many quality problems and
increase efficiency. To implement this strategy, a company needs
to create small groups of employees that address quality issues of
products that they are manufacturing. These teams can share

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ideas on quality issues and analyze and develop suggestions that
they can then implement.
For these groups and teams to operate effectively, the members
need to communicate with each other. The following section will
look at methods of communication and their associated problems.

Types of Groups, Group Development, Behavior, and
Structure

© 2016 South University

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Types of Groups

It is widely recognized that the group is an important sociological
unit for any analysis of organizational behavior. Groups can
establish hierarchy, status, roles, norms, practices, and traditions.
Thus, an understanding of these aspects of group dynamics is
necessary to explain the behavior of people in groups so that they
can be directed toward achieving the organization’s goals.
Groups may be formal or informal, as follows:
In organizations, a variety of large and small formal groups are
defined by the structure of the organization—for example
departments, divisions, and sections. Formal groups are created
by the organization and can be categorized into command groups
and task groups. A command group is a group that is created with
a hierarchy and a designated leadership. A task group is created to
address specific jobs which are usually temporary and often
includes a cross-section of the organizational hierarchy. For
example, an enquiry committee may contain members from
different departments.
To illustrate the different types of formal groups within an
organization, we can look at a company engaged in creating online
courses. Like most companies it will have a command group with a
formal hierarchy headed by the CEO of the organization. The
heads of the various departments will report to the CEO. One of
these departments would develop the content for online courses
and this department would have a variety of temporary projects
which would be headed by project managers. The command

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group, consisting of the company and its departments is different
from the task groups, which carry out temporary projects that have
definite beginnings and ends. Because the company mandates
both types of groups, they are formal groups.
Informal groups develop through association, affiliation, and
friendship, and may take the form of interest groups or friendship
groups. In an interest group people get together for a specific
purpose. For example, a group of people may organize a farewell
party for a retiring colleague or they may contribute toward the
purchase of lottery tickets to share in the winnings. People with
common characteristics may form friendship groups based on
social or ethnic background, political affiliation, or support for a
favorite sports team.
Informal groups may also develop on the basis of social
background, region of origin, ethnic origin, and common interests.
Examples of regional origin would be people who are originally
from the Midwest, the New England region, the southern states, or
the West Coast. Examples of ethnic origin would be people who
are of German, Korean, African, or Chinese descent. These
informal groups develop naturally, based on a desire for social
interaction within a familiar and comfortable environment.

Group Development

How do groups develop and evolve? While the organization may
define the formal group by setting its goals and selecting its
members, the way in which the group actually operates and
performs depends more on the processes of the group’s
development.

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The most widely accepted model of group development is the five-
stage model, which defines the stages
as forming, storming, norming, performing, and adjourning.
You should already be familiar with these stages of group
development from the Principles of Management course, so we
can now look at each of the stages in more detail. To illustrate
these stages of group development, we can examine the case of a
new group of students who have joined a Yoga class.
At the initial forming stage the new students will probably have
many questions: What kind of class will this be? Will I actually be
able to learn Yoga? Will I make a fool of myself? Is the teacher
knowledgeable? Who are these other people? How will we get
along? Do any of them know more than me? How will the instructor
teach us?
These questions reflect some of the uncertainties and anxieties
that a new student may have about the group, his or her own
position within the group, and the roles of other students within the
group. They also represent the individual’s uncertainties about the
relationships and bonds that may or may not develop with other
students. The role of the teacher may be to break down barriers
and to help the students get to know each other better by
introducing themselves to the rest of the group.
The basic process in the forming stage involves the clarification of
the individual’s place and role within the group, and more
importantly, familiarity with the other students and the teacher.
Group Behavior

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Once the forming stage is complete the individual should have
attained at least some degree of familiarity with the other students.
The storming stage now begins, as the students begin to address
their initial unanswered questions. Disputes, disagreements, and
conflicts may result, as some students may be perceived as trying
to dominate the group, perhaps by showing off their existing level
of familiarity with Yoga or by trying to get more attention from the
teacher. The resentments of other students may be a source of
these disputes and conflicts.
As its name implies, the storming stage can be intense although
this is a completely “natural” process. Every group needs to
develop its own social hierarchy as well as the informal roles that
run parallel to the formal structure. This stage should culminate in
a definite hierarchy and an understanding of individual roles within
the group. Students assign a higher status and a positive value to
other students who have exhibited greater skill at learning the
methods and practices of Yoga, and the more skilled students may
start to help others without the other students feeling incompetent.
Some students may also help the teacher to mediate and counsel
in order to generate cooperation and collaboration.
Once the class is comfortable with the new group structure, the
group enters the norming stage in which norms of behavior are
established. Usually the teacher will outline the class structure to
the students so that they know what to expect from the class. In
addition, the students will establish their own norms of behavior.
For example, these norms may include how members conduct
themselves during discussion sessions; members may decide that
a person who wants to ask a question should raise his or her hand
to be addressed. In this stage, the members of the group settle into
some degree of cohesiveness and cooperation.

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At this point, the students can now focus on the basic goal of the
group which is to learn the techniques and practices of Yoga. This
is now the performing stage where the group is fully functional and
the relationships among students, as well as between students and
teacher, become settled. The students can then focus on the group
goal without distractions; they can learn Yoga and look forward to
future classes.
As the Yoga course draws to a close, the students will become
aware that the class is coming to an end. This is the adjourning
stage and it involves review and feedback where students have the
opportunity to express their experiences of the course and of fellow
students. A successful closure in this stage can result from the
students feeling satisfied that they have learned what they wanted
from the course.
The stages of group development have a very important influence
on the success of the group in terms of its goals. However, as we
will see in the next section, the formal structure that is externally
imposed on the group can also strongly influence the outcome.
Group Structure

We can now look at structural factors that have an influence on
group performance. Some of these factors are leadership, roles,
norms, status, group composition and size. Because leadership
deserves special attention, we will examine this factor in greater
detail later in the course.
The term “role” refers to the set of behaviors that are expected of a
person in the system. Organizations, therefore, need to define
each role in order to clarify their expectations of group members.
However roles also extend to outside of the workplace—for

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example, as father, mother, brother, daughter, husband, or wife
within a family group.
People usually have more than one role in the workplace. For
example, an employee is not simply a member of the company; he
or she may also be a specialist (such as an accountant), a member
of a certain division (such as a consumer products division), and a
designated role-player (such as an accounts manager).
Sometimes people may experience role conflict, a situation where
compliance with one expectation makes compliance with another
very difficult or even impossible. A good example of role conflict
can be found in the situation of a working mother who feels torn
between her responsibilities toward her children and her
organization. Taking her child to an amusement park on his or her
birthday may be as important to her as working on the presentation
that she needs to make to a client the next morning.
Norms are accepted standards of behavior that are shared by the
members of the group. Groups in the workplace generally have
established norms about how to perform various tasks, about their
appearance and presentation, and about their social interactions.
Departure from these norms is usually met with criticism and
resistance and may also lead to conflict. This represents the
group’s efforts to control departure from the norms and to establish
some degree of conformity.
However, there may be occasions when it is necessary to depart
from the norms. Change always involves these departures from
accepted group behaviors. The employee who wants to implement
change needs to handle the pressures of conformity through
dialogue, discussion, experimentation, and feedback with the
group in order to manage group resistance.

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It is important to remember that there is a difference between
departures from the norm that are intended to lead to productive
change, and the more extreme departures which are called deviant
workplace behavior. This covers a range of sometimes illegal but
definitely illegitimate social behavior, which invariably creates
highly undesirable negative effects for organizations and their
members. Wasting resources, sabotage of work, stealing, verbal
abuse, and sexual harassment are examples of this type of
behavior.
When a drill sergeant shouts at the new recruits at an Army
training camp, this is accepted as normal behavior in that setting.
But the same behavior by a supervisor in a civilian business office
would be considered unacceptable workplace behavior. Similarly, if
fellow employees develop a romantic relationship outside of the
workplace, those same affectionate behaviors that they exhibit
while seeing a movie or when going to a restaurant will probably be
inappropriate in the workplace. This is also why workplace
romance is generally discouraged.
Spreading malicious rumors, leaving work early, and showing
favoritism are other common examples of this kind of behavior.

Communication in Business

© 2016 South University

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Communication is a workplace factor that can both create and
solve problems. In the following section, you will learn about the
functions and purposes of communication in an organization.
Communication has four principal functions in an organization—
control, motivation, emotional expression, and information.
Communication performs a control function in matters concerning
organizational structure, roles, and guidelines that are necessary
for people to function within the organization. For example,
instructions and feedback help to influence and direct employee
behavior.

When a manager offers feedback to employees and clarifies the
goals to be achieved, the manager is using the motivating function
of communication. Social interactions also occur in the workplace
where people communicate with each other on a personal level.
This emotional expression helps to strengthen both interpersonal
bonds and group cohesiveness.
Sharing some good news with colleagues and discussing an
upcoming staff party or holiday event are both examples of
emotional expression in communications.
Finally, the most fundamental purpose of communication is to
inform. People in organizations need to disseminate and receive

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information constantly in order to perform effectively. If information
is missing or late, the wrong decisions can be made or the wrong
actions taken.
Memos and e-mails sent out by top management to employees,
new policy announcements, and staff meetings serve as the
informing function in many organizations. However, communication
must be regular and continuous; otherwise employees and
management cannot make effective and informed decisions, which
can result in problems for the company.
In order to communicate, the source or sender transmits a
message whose information has to be translated into a language.
This process is known as encoding and the final message is the
output of the process. The message is then transmitted through a
channel or medium which may be either formal or informal. Formal
channels of communication are used by organizations while
informal channels are personal and social. The receiver needs to
decode the message in order to comprehend it. Decoding is the
reverse of the encoding process.
Finally, there is the feedback loop which indicates to the sender
whether the message has been received and understood. In
response to this feedback, another episode of communication may
begin.

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Organizations generally use vertical and lateral communications.
Vertical communications flow between hierarchical levels where
downward communications are sent by higher levels to lower
levels. For example, managers send instructions, assign goals,
inform about policies, and give feedback about performance to
their subordinates. In response, subordinates send progress
reports, report problems, and give feedback through the same
vertical channels. Lateral communications permit employees to
share, discuss, and jointly analyze information and data.

We communicate most often using an oral or spoken language.
When a communication channel is available, this is the fastest and
simplest method of communication having the advantage of
immediate feedback in the form of clarifications and corrections.
Within an organization, spoken communication can have several
disadvantages. When a message is transmitted through a large

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number of people it can become distorted, people can forget
important details, and the message can be delayed or even lost
when many people are involved. Thus, companies often need to
rely upon written communication to reduce these problems.
However, it is important to remember that while written messages
can be stored for later reference they can also be time-consuming
to write and can sometimes overwhelm an organization.
To be most effective a manager will often use both written and oral
communications. For example, discussions of new company
policies and directives between managers and subordinates can
help all company members to understand them more clearly. The
involvement of employees in this process can also help them to
feel more committed to company policies.
An important part of informal communications in an organization is
the “unofficial” network known as the grapevine. The grapevine is a
very important source of information but it can also be a source of
unfounded rumors. Whether or not the information obtained
through the grapevine is distorted most employees still perceive
this information as reliable.
When a company is in crisis the grapevine becomes more active; it
can also become a source of additional problems. This is because
anxieties and uncertainties may run high, leaving informal
communications more vulnerable to change during transmission.
One of the best ways to deal with these problems is to open more
channels of discussion between management and employees. This
can clarify issues and also reduce doubts and anxieties.
Unfortunately, however, many companies actually close the usual
face-to-face channels during times of crises, thus accentuating the
problems and increasing uncertainty and anxiety among both
employees and managers.

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Apart from oral and written communication, we also communicate
nonverbally through facial expressions, physical distance, body
language, and the tone of our voice. In fact, research has shown
that 60% to 90% of communication is nonverbal.
There are a number of barriers that can reduce the effectiveness of
communication. For example, selective perception may cause a
person to leave out some important aspects of a conversation. This
can reflect the person’s unwillingness to confront unpleasant
realities in the workplace or difficulties with fellow employees.
Companies may subject employees to information overload, which
can cause people to ignore or forget information. Emotions can
also change how a person understands and interprets a message.

These people may experience heightened tensions and anxieties
when involved in any kind of communication. They often limit
communications to the point where they subconsciously leave
others confused or misdirected. In extreme cases, they may
become isolated and may only communicate with people with
whom they feel secure.

$6.00 Discussion
· Bythe due date assigned, respond to the assigned discussion questions and submit your responses to the appropriate topic in thisDiscussion Area.
· Respond to the assigned questions using the lessons and vocabulary found in the reading.
· Support your answers with examples and research and cite your research using the APA format.
· Start reviewing and responding to the postings of your classmates as early in the week as possible.
Respond tooneof the following questions:
· Organizational communication can occur through both formal and informal channels. The informal channel is sometimes called the grapevine and can include rumor and gossip. Should organizational leaders try to stop the grapevine? Propose a research-based plan for a leader’s actions and attitudes about informal communication channels.
· Communication problems can be associated with organizational structure type. For example, vertical or highly centralized organizations are susceptible to certain problems. Highly decentralized organizations are susceptible to certain problems. What should leaders be aware of regarding potential communication problems based on the organization’s structure? How should a leader respond?
· Many people use the terms group and team interchangeably. Should they? Distinguish the terms. Propose key ideas for what it takes to build highly productive team.
· Member roles on a team may be broadly characterized as task roles and social roles. Task roles tend to focus on productivity outcomes. Social roles tend to focus on relational and cohesiveness outcomes. Analyze the relationship between cohesiveness and productivity. Are they compatible goals or in competition with one another? Are task roles or social roles more important to team functioning?

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