In order for a crowd to become a group, conditions such as common goals, common norms, and common feelings of being a group are required. The minimum requirement for a crowd to become a group is interaction. Accordingly, the group is defined as “more than one person who are in interaction with each other”. These kinds of groups are temporary, because their members’ common goals and characteristics are limited. But as long as there is interaction, it is possible to call it as a group. The minimum requirement for a crowd to become a group is interaction.

The most important reasons for constituting a group are as follows:

• The willingness of individuals to be close to each other,
• Sharing common interests and common values,
• Economic reasons,
• Security,
• Gaining social respect,
• Desire of self-actualization,
• Attraction of group activities,
• Goals of the group.

In addition, common factors such as having similar political view, being from the same geographical region, being graduated from the same school, having the same regional culture are also reasons for gathering in groups

A group, that is formed through division of labor is called a formal group.  In formal groups, group members become an element of group structure by coming together in accordance with the system created by the organization. In formal groups, the structure of the group has been clearly defined, and the powers, duties and roles of each member in the group have been clearly and explicitly stated.

Formal groups have certain common characteristics:

• They are task oriented.
• They tend to be permanent.
• They have a formal structure.
• They are consciously organized by management to achieve organizational goals.
• Their activities contribute directly to the organization’s collective purpose.

Informal group is a collection of individuals who become a group when they develop interdependencies, influence one another’s behavior, and contribute to mutual need satisfaction.  Informal groups are natural occurrences that emerge in order to fulfil he need for social relations. They are formed according to people’s common interests, friendship associations, social needs and common expectations

Informal groups provide some advantages to their members. First, they integrate and reinforce the social values that keep the group together. Second, they provide social satisfaction to their members. Third, informal groups easily guide their members by giving them more information. And finally, informal groups guide their members, teach group norms, standardize their behaviors, and clarify what they can expect from other people. Informal groups satisfy the sense of belonging, the idea that we can be wanted, needed and included for what we are, in a way that formal group may not. These informal groups can also satisfy a range of other needs. They can:

• Reduce feelings of insecurity and anxiety, provide social support to each other.
• Fulfil affiliation needs for friendship, love and support.
• Help to define our sense of identity and maintain our self-esteem.
• Provide guidelines on generally acceptable behavior.

This model consists of five stages: forming, storming, norming, performing, and adjourning. Each stage has different implications.

Punctuated equilibrium is an alternate theory for five stages model. According to this model, groups do not go through linear stages but that group formation depends on the deadlines for the task at hand.

Everything starts with the group direction when the members first meet. In this first stage, members get to know each other and engage in norming activities. They focus on development of socio-emotional roles. When the deadline approaches, the group performance changes radically. This is the occurrence of punctuation. Almost in all group development process, transition occurs exactly halfway between the first meeting and deadline. After the transition process, group starts to adopt new perspectives. They execute the plans created during transition. This model contrasts with five stages model, and identifies the development of groups working on a specific task with a deadline.

Participants-students were paid for the experiment and Zimbardo assigned them as prisoners or guards. They quickly learned their roles and very much adopted the personality of a prisoner or guard. Especially the guards embraced the role so hard that the experiment had to be concluded after six days due to some pathological issues. This experiment clearly reveals that individuals easily learn the stereotyped roles and adopt them.

According to social psychologists, conformity, compliance, and obedience are three major categories of social influence. Conformity is a change in one’s behavior due to the real or imagined influence of other people. It is a behavior change designed to match the actions of others. People will conform when the situation is ambiguous, when the situation is a crisis, and when other people of the group are experts.

Groupthink is an agreement-at-any-cost mentality that results in ineffective group or team decision making and poor decisions. It is associated with norms, and focusing too much attention on consensus. Many significant ideas may not be seriously considered. Initial conditions that lead to groupthink, its characteristics, and the types of defective decision making that result from it are shown in Figure 5.5. Groupthink does not necessarily end up with a poor decision but definitely increases the possibility of it. When good judgment and discussion are suppressed, the group might still have a chance. Nevertheless, to increase the possibility of a good decision, managers need to limit groupthink.

Characteristic of Groupthink:

• Illusion of invulnerability
• Collective rationalization
• Belief in inherent morality of the team
• Stereotypes of other groups
• Direct pressure on dissenters
• Self-censorship
• Illusion of unanimity
• Self-appointed ‘‘mind guards’’

This method is developed by Dalkey and Helmer (1963). Contrary to brainstorming and nominal group technique, in Delphi method, group members are not required to be face to face. Usually group members respond to a survey form without gathering. Then, group members receive a second survey form to rank the items generated and summarized from the first round. They are asked to rank the items considering the priorities. In some cases, another round is needed for clarification and consensus. Finally, the list of remaining items, ratings, minority opinions, and items achieving consensus are distributed to the panelists. This round offers a final chance for participants to review their judgments. Delphi method might be considered especially if the group members are dispersed. Before starting the Delphi method, one should carefully consider the selection of the subjects and the time frames for conducting and completing the process.

Even though the distinction between groups and teams is sometimes ambiguous and arbitrary, we need to underline the differences between both. A total commitment to goals and accountability of the team distinguish itself from the immature groups. Teams can be defined as: “two or more people with work roles that require them to be interdependent, who operate within the organization, performing tasks relevant to the organization’s mission, with consequences that affect others inside and outside the organization, and who have membership that is identifiable to those on the team and those not on the team”.

Virtual team members can work anywhere and at any time. They can be recruited for their competencies, not just for the physical location. Members with physical handicaps that limit travel can participate. Expenses associated with travel, lodging, and leasing or owning physical space may be reduced. Children of the new century are pretty happy with that freedom of communication, and are easily adopting this virtual environment. Think about the high-tech or software development companies in Palo Alto. They have brilliant and highly qualified employees from India, Turkey, Pakistan, USA, and Finland. They can work together on several tasks like customer requests, complaint management, and new software development without meeting face to face on three dimensions.

When used appropriately, teams can bring great performance benefits to organizations. Teams can create synergy for several reasons, including greater goal commitment, a greater variety of skills and abilities applied to task achievement, and a greater sharing of knowledge. Nevertheless, teamwork can also cause poorer performance than members working alone. To get the most out of the teams, they need to be composed and managed carefully.

Information is one of the key points of creating effective teams. Management’s willingness to share information with the teams will result in success. Otherwise, failure is inevitable. Empowering the team members to make decisions and act autonomously will increase the success rates of the teams. However, the amount of authority given is also important. In some cases, too much authority might be dangerous for the team involvement. A sudden high level of authority might cause trouble during the process.

Diversity is a very important and growing need in todays’ organizations and team composition. First important advantage of diverse teams is that in some cases, they make better decisions than homogeneous teams. Individuals with different backgrounds or demographic qualities tend to see a problem or opportunity from different angles. A report McKinsey has completed in 2015 has indicated that gender diversity and ethnic diversity are accountable for financial return. Another advantage is that diverse team members have a wider pool of technical abilities and skills. That should help them to fix different problems smoothly. They also represent more components of the organization, this will turn into a belief in stake holders or other departments that they have a voice in the group. Therefore, we can easily conclude that diverse teams stir constructive debates which in turn diminish groupthink.

Adjourning stage is about the termination of the group activities. Temporary groups have to end their lives in a professional manner. This stage might be characterized by positive emotions of joy and achievement, yet it might be a cause of disappointment or anger. This isn’t always a planned stage and may be rather unexpected. A planned conclusion is a better opportunity for goodbyes and recognition of achievements.