In any city there are multiple factions to worry about, but the main one will be the guard faction. For Grobb that's:
http://wiki.project1999.com/Da_Bashers
It looks like your best bet to raise it is to repeatedly murdering Bugglegupp or Lynuga (no wolf form required), or else do bone chips or another basic quest in wolf form.
Also, just a note:
http://wiki.project1999.com/Faction%20Tricks has other tricks if wolf form doesn't work (but it sounds like it does).