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

Type of groups – There are two types of groups in each organization namely

1. Formal groups – This type of group are a part of the organization srructure. They are created deliberately by the management to perform the assigned duties. For example, work group, committee, quality team, and task force. These formal groups are integral parts of the official organization.
2. Informal groups – This tyoe of group aruse spontaneously in organizations due to social interaction between people or employers in big companies. Informal groups are created or made by people rather than management, which is based on language, caste, background, religion, common interest, taste,.location, and many more.

Problem created by informal groups – This type of group may dysfunctional asiect too and may create several issues or problems for companies are given below

1. Resistance to change – Generally, imformal groups have a tendency to resist changes. Change requires group members to make new adjustments and acquire new skills. Sometimes groups react violently to be proposed changes by the management. This creates obstructions to implement new ideas for the survival and growth of organization or company in the changing environment.
2. Negative attitude of informal leaders – Informal leaders may turn into out to be a troubleshooter for companies or organizations. They may work against the polocies of management to increase his influences and also may imduce followers to work against the interests of companies or organizations. If such a leader is promoted in the company then he may turn out to be a work shirker and an autocratic and arrogant boss, which is not good for organization.
3. Rumor – Informal communications may give rise to rumors in any company. It is not desirable from organization’s point of view and also harmful for the company. Rumor against the organization can be plain maliciousness, insecurity, and employer anxiety because of poor communications in the company. Rumors also serve as a means of wish fulfilment for several employees or workers in the company.

To avoid unnecessary conflict with informal groups, which creates disturbance in organizations, the managers should build favorable relationship with informal leaders. They can consult leaders and seek their advice on technical matters and human relation problems or issues. The communication with management and informal leaders should be encouraged.