Chapter 10 Understanding Groups and Managing Work Teams What is the difference between formal and informal groups (with examples)? How do groups form, storm, norm, and perform? Consider this scenario to address forming, storming, norming and performing of a group: The first-line managers of ELH Inc. were sent on a retreat to Silver Falls for their inaugural strategic planning meeting. Few people knew each other, but their task was clear: design a new performance appraisal system for subordinates that would be effective and usable. The first day, little was accomplished except for the jockeying to see who the official leader would be./Finally, Jim seemed to wrangle control and helped provide the first real direction for the group. By the second day, the group seemed to begin working well. They spent the morning determining group standards with respect to how they would make decisions within the group and how to manage the idea-generation process. On the third and fourth days, the managers got down to work and moved amazingly quickly, with ideas flowing freely. By the end of the fourth day, they had a workable system developed, and they felt satisfied. That night they all signed off on a new document to be presented to the regional manager the next day. They all felt a twinge of regret at having to break up the group and return to normal work life. What did groundbreaking theorist Solomon Asch contribute to our understanding of groups and teams in business? What is the difference between large and small group performance in business? What is social loafing and how do business managers address it? What are group norms in business management? How do groups and teams differ in their goals and efforts for problem solving