Dream Team Should Be A Formal Group Commerce Essay


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Weightage will be given to critical evaluation or reflection on the problem/issue being analyzed.

Q. You have just met with the CEO of X - lent, a medium sized cloth manufacturing company with factories in China and Mexico. X lent sells to several large stores that carry moderately priced clothing in the United States. The CEO is concerned that his customers have expressed increasing dissatisfaction with X- lent responsiveness to their complaints about product quality, the returned- order process, and the overall treatment by the company's employees when there is any kind of customer service problem. The CEO has asked you consulting group to make recommendations for a permanent customer service "dream team," which will develop and oversee plans and policies to address these issues.

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You must develop the recommendations that you will present to the CEO and the top management of X-lent. Your recommendation should address the following issues giving proper justifications as to why you believe recommendation is appropriate and critical.

The type of group should this be? (Formal or informal? Project? Command?) (20)

Best fit characteristics for this team. (20)

Establishment of norms (20)

Need of conformity and cohesion for this team to perform effectively (20)

Assistance by the organization to assist the team in developing its effectiveness. (20)


A group is referred to as a set of two more persons interacting among themselves for the achievement of common goal or group goal. The group goal binds the members together for making effort in the direction of realization of the goal.

A group can be called a team when it is formally formed by the organization. The major difference between group and team is that the group can also be informally formed without any complementary skills and formal efforts of the organization; team is always constituted by the organization.


Formal group:

These groups are formed in order to help the organization to achieve its specific goals. The goals of formal group are determined according to the needs of the organization. For e.g.; DREAM TEAM (quality control group and customer satisfaction or customer grievances group) are the formal groups constituted by an organization. This group is established to accomplish certain goals such as increasing product quality and satisfying the customers.

Types of formal groups:

Command Group:

It is the collection of employees who report to the same supervisor. Command groups are based on the basic reporting relationship in organizations. The existence of formal groups is represented on organizational charts as departments (such as finance, personnel, marketing, sales, or accounting). Command group helps an organization to accomplish variety of tasks.

For e.g. : DREAM TEAM will have a supervisor to whom all the group members will report and this dream team will be connected to different departments in the organization.

The committees:

It is the collection of people who are brought together by the organization to accomplish a specific goal. Once the goal is achieved, the organization disbands the committees. In case such committees are dealing with long term problems, in that case they may not be disbanded but the members in the committees can be changed or rotated on the basis of seniority or other criteria. For e.g.: DREAM TEAM is a group which will be dealing with long term problems of customers and quality therefore this cannot be disbanded but the members in the group can be changed.

The team:

It is a formal group. People work in a group does not mean that they work in a team. A team is formed by the organization for some specific purpose. In a team, there is a high level of interaction among its members. The members of the team work together very intensely to achieve a common goal. For e.g.: DREAM TEAM is a group which is formed by the organization for some specific purposes therefore it is a team.

Informal groups:

Informal groups emerge naturally in the organizations. It is just like the shadow of the formal organization. It is because organizational members perceive that it is difficult for their

organizations to formally fulfill some of the bare needs and feel that membership in a group can help them to achieve their goals and meet their needs. For e.g.: when a group of five employees who go for picnic, movie or booz together to satisfy their common need for affiliation and friendship this is the case of an informal group.


It is properly planned.

It is based on the delegated authority.

It is deliberately impersonal.

The responsibility and accountability at all levels of organization should be clearly defined.

Organizational charts are usually drawn.

Unity of command is normally maintained.

It provides for division of labor.


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When there are more than one individual in a group, there is every possibility of tension, confusion and conflict over the rights, duties and status of the group among its members. For the smooth functioning of the group, every group develops its role, norms, and rules irrespective of its type. Roles and rules are formal requirements to facilitate the smooth functioning of group. Norms on the other hand are unwritten rules and regulations, which govern the behavior and actions of its members. It is the acceptable standards of behavior of a group which is commonly shared by its members. We can only call group effective groups, which control the behavior of its members through its norms and channelize their effort for the attainment of group as well as the organizational goals.

Norms develop when members in a group share a common idea of acceptable behavior, which, monitor each other's behavior in the group.

Group norms are the set of rules governing appropriate behaviour, opinions and attitudes.

Exert considerable influence over group members - indeed continued group membership may depend on their observance.

They drive expected behaviour, maintain group identity and regulate social interaction

Norms can cover such matters as dress code, social behaviours and output limits

Task norms will govern work performance and acceptable quality standards and may diverge from those expected by the formal organization

Maintenance norms promote group cohesion and identity.

They include group rituals as means of defining the group. Relationship norms establish common ways of responding to outsiders i.e set attitudes and behaviour.

The process of acquiring norms is known as socialisation while the strong pressure to abide by the expected norms is termed conformity

Groups develop both positive and negative sanctions to ensure conformity

Following are the norms for the group:

Norms should enable the group to accomplish its goals.

Norms help the group to control and regulate the behavior of its members without external influence.

Norms enable a group to survive in the face of threat and competition from other groups. They protect the group and its members from outside pressure and interference.

Norms help the group and its member to express group's value and give the group a unique identity of its own.

Norms of the group enhance the predictability of group members in terms of performance, appearance etc.


In order to establish or maintain norms every group needs to develop a structure of its own. The structure of the group will enable it to create position and power in the group. The group structure shades and influences the behavior of its members. It facilitates communication with in the group. When the need arises, it is only because of the structure, the group leader will be in a position to control the behavior and activity of its members. When there is meeting of the group, structure enables to maintain discipline and cooperation throughout the meeting. Various structural variables which govern groups are:

Group size: Size of the group is determined by the number of members who constitute a group. The size of the group influences group's overall behavior. The size of DREAM TEAM will be small.

Social Loafing: When individuals work in a group, it sometimes becomes difficult to assess and identify an individual's contribution to group performance by the other group members or by the supervisors under whom they work. For e.g.: in DREAM TEAM the group of workers are jointly responsible for quality control in an organization cannot be individually assigned to particular areas but have to work together. When individuals work in groups, where their performances are not readily observable, there is strong

possibility of social loafing, i.e., the tendency of individuals to exert less effort when they work in a group than when they work alone.

Group composition: The composition of a group is influenced by several characteristics, which are similar among the group members. A homogeneous group is characterized by similarity and a heterogeneous group is characterized by diversity. The performance and goal attainment of homogeneous groups is too high than that of heterogeneous groups. Since group members normally like to get along with each other in homogeneous groups, their motivation and satisfaction level is high.

Group status: Depending upon the tasks performed by a group in an organization; it has its importance and status in an organization. Though it is not expressed but status of a group is implicitly agreed upon. For e.g.; a top management team has a very high status as it not only sets organizational goals but also determines how has the organization to achieve them.

Group roles: The structure of the group specifies the rules of its roles of the members to facilitate the control of behavior. it is the role, which tells the group members about what are they expected to do.

Written Rules: To control the behaviors of its members, to ensure high levels of performance and the attainment of group goals, every effective group need to establish rules. Written rules specify behaviors that are required by group members and behaviors that are forbidden.


The first and the most commonly used criteria for conformity of the group norms is compliance. Conformity within a group entails members changing their attitudes and beliefs in order to match those of others within the group.  Those that conform tend to be obedient and compliant.  In order to conform, the group member must attribute someone as having the legitimacy and credibility to lead or influence the group's behavior.  Without this "leader", conformity toward the group's goals will be less prevalent.  If a member of the group fails to conform to the group's needs, he/she would lose credibility with the rest of the group. A realization is developed among them that the compliance of norm will bring certain benefits and ignoring it will bring certain costs. Groups put tremendous pressures on the members to change their attitude and behavior for the conformity of group norms. Therefore conformity of norms is very essential for the group to perform effectively.

Group cohesion (Togetherness)

The longer a group is together the stronger the cohesiveness. Strong norms and beliefs develop causing the group to 'close ranks' in time of trouble or outside interference

The degree of group cohesiveness is determined by factors such as: The size of the group - small is more cohesive

The degree of mutual dependency - e.g. workers from close knit communities

Incentives attaching to successful task completion. Commonality through gender, faith, skills, experience

The strength of the leader

Cohesive groups will only be effective if their goals are complementary to the organization's

Cohesive groups provide mutual support and social satisfactions and so may be positive in impact

Cohesive groups are protective and pursue their own interests - they may be closed to new entrants.

Cohesiveness is achieved in a group when the group appears to be very attractive to its members, individuals value their group membership and have a strong willingness to remain members of the group. Thus, group cohesiveness is nothing but it is the attractiveness of a group to its members. The cohesiveness of the group affects its performance and effectiveness. Therefore there is a strong need of cohesion for the team to perform effectively.


Assistance by the organization and its different functional departments is necessary for the team to perform effectively. Assistance from all departments will help the team in performing its operations effectively.

Different departments such as:

Finance: It helps in giving the financial assistance to the team to perform its operation effectively. The finance department of a business takes responsibility for organizing the financial and accounting affairs including the preparation and presentation of appropriate accounts, and the provision of financial information for managers.

Marketing: The marketing function carries out marketing research, organizes advertising and product promotion. It helps in giving information about the customer's needs and wants and the problem they are facing with products and services.

Human resource: Deals with all the recruitment, training, health and safety and pay negotiations with unions/workers. It helps in giving assistance regarding how to handle severe clients or customers and how to solve their problem.

Production and operations: Makes sure that the production plans are met on time and products of the right quality are produced. It helps the team in giving information regarding the production and operations of the organization.

All these departments play a significant role in the organization and they all are inter- related to each other. Therefore, their assistance helps in efficient working of the team.

Dream team to be efficient it necessary that there should be assistance by the organization ie X-lent and its employees so that the team can perform its functions efficiently and effectively within an organization.



Ramaswamy.T. (2007). Principles of Management, Mumbai : Himalaya Publishing House Pvt. Ltd


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