Psychology of management

Dyads 
Triads 
Small groups 
Large groups 
- two people 
- danger of not finding 
common decision 
- false consensus 
- three people 
- two against one 
- conflicts 
- tension 
- ideal size 5 – 7 
people 
- uneven number of 
members decreases 
a possibility of 
going into a 
deadlock 
- good opportunity for 
interaction of group 
- more than 15 people 
- weak opportunity for 
interaction of group 
members 
- decrease in unity level 
- decrease in satisfaction 
level 
- intensifying of formal 
component 

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71 
members 
- unity 
- dependence of work 
quality work quality on 
the nature of tasks 
 
Group classification by the nature of forming 
Formal groups
are stipulated by an organization’s structure for performing specific tasks. 
Among formal groups it is possible to distinguish the groups functioning on a considerably 
permanent basis, and temporal groups, formed for the period of performing certain tasks. 
Informal groups
are created to satisfy social needs and communication. For example, a 
group of employees who have graduated from the same university, or a group of colleagues 
having united for participation in sport competitions. 
Informal groups can be horizontal, consisting of people of similar status, performing at 
work similar functions, or vertical, consisting of people who are at different steps of the 
organizational ladder. To such groups relate, for instance, groups of old-time workers uniting on 
interests. 
Casual
informal groups embrace both the vertical and the horizontal of an organization 
and appear around any community of interests. These groups may develop to such an extent that 
they are capable of overcoming the organization’s rules or increase the power of its members. 
They can also consist of people who like and trust each other, and possibly communicate outside 
work-place, as, for example, theater-goers or who are neighbours. 
Informal groups can be very effective and very strong, which, possibly, explains why 
many managers pat attention to them. Effectively working managers gain support from informal 
groups and their leaders in order to decrease their possible danger or to reinforce his/her position 
and strengthen his/her place in organization. 
Group control is of great importance in modern management. Since organizations of any 
size consist of groups, a manager needs to have a good knowledge in the peculiarities of 
appearing and development of formal and informal groups. A modern manager must understand 
the importance of informal groups’ existence. (S)he should try to provide close interaction 
between formal and informal organization as