MBA522 Discussion 3 Wk 3

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Chapter 7: Teams

Teams and Teamwork in Contemporary Organizations

A team is a collection of people brought together to apply their individual skills to a common project or goal.

Neck, Organizational Behavior. © SAGE Publications, 2017.

There is no doubt that teams and teamwork play a critical role in the success of 21st century organizations. The most successful organizations value and understand the nature of teams and create a productive environment where teams flourish. A team is a collection of people brought together to apply their individual skills to a common project or goal. Regardless of the type of organization, most employees work in some form of a team in today’s workplace. Compared to a few decades ago, teamwork has become quite commonplace in contemporary organizations. But what has caused this dramatic shift to team structures?

Teams and Teamwork in Contemporary Organizations

Why Are Teams Important?

Restructuring and downsizing

Greater efficiency and productivity

Collaboration

Decision making

Creativity and innovation.

Neck, Organizational Behavior. © SAGE Publications, 2017.

Organizational restructuring and downsizing have brought leaner, more efficient and more productive structures to many companies. Rather than viewing lay-offs as a negative, companies perceive a trimmer organization as an optimal way for employees to collaborate more intensely, to become more engaged in the decision-making processes, and to contribute their own ideas and initiatives. In addition, employees have become more empowered through decentralization, the distribution of power across all levels of the organization. Employees are encouraged to be creative and innovative and given more freedom to make decisions.

Teams and Teamwork in Contemporary Organizations

Teams versus Groups

Groups consist of three or more people who work independently to attain organizational goals.

Teams consist of a number of people, who use their complementary skills to collaborate in a joint effort.

Neck, Organizational Behavior. © SAGE Publications, 2017.

The terms “teams” and “groups” are often used interchangeably, but there are subtle differences between them. A group usually consists of three or more people who work independently to attain organizational goals. For example, in a small business, there might be three people in the marketing department; one might be focused on sales, another on branding; and a third on the administration associated with those tasks. In contrast, teams consist of a number of people, usually between 3 and 7, who use their complementary skills to collaborate in a joint effort. Teams with fewer than 3 people tend not to derive the benefits of a collaborative team, and teams with more than 7 tend to have communication and control issues. In this chapter we focus on teams.

Teams and Teamwork in Contemporary Organizations

Are Teams Effective?

The effectiveness of work teams depends on how well they are managed and treated within the organization.

Neck, Organizational Behavior. © SAGE Publications, 2017.

The effectiveness of work teams depends on how well they are managed and treated within the organization. A well-run team is usually productive, innovative, loyal, and adaptable. Organizations that consistently nurture teams tend to experience reduced turnover and absenteeism. However, teams can certainly fail if they are mismanaged, and if they are not implemented properly, they can actually cause more harm than good.

Teams and Teamwork in Contemporary Organizations

Types of Teams

A virtual team is a group of members who are in different locations and work together through email, video-conferencing, instant messaging, and other electronic media.

Neck, Organizational Behavior. © SAGE Publications, 2017.

The technological revolution has turned the original concept of what a team means on its head. Many global companies now operate in virtual teams, whose members are in different locations and work together through email, video-conferencing, instant messaging, and other electronic media. Virtual team members have great flexibility because they are able to work anywhere, including their own homes. Organizations value the virtual team model because it saves on travel costs by eliminating in-person meetings and allows for greater sharing of information between employees from different countries. However, there are a few disadvantages to working in a virtual team. Time differences between countries can cause confusion, lack of face-to-face contact can result in miscommunication, and cultural differences can also be the reason for misunderstandings.

Teams and Teamwork in Contemporary Organizations

Types of Teams

A self-managed team is a group of workers who manage their own daily duties under little to no supervision.

Neck, Organizational Behavior. © SAGE Publications, 2017.

Other types of teams include self-managing teams, problem-solving teams, and cross-functional teams. A self-managing team is a group of workers who manage their own daily duties under little to no supervision. Systems engineering and management company, Semco, is comprised of highly effective self-managing teams, where team members are expected make decisions without consulting higher management.

Teams and Teamwork in Contemporary Organizations

Types of Teams

A problem-solving team consists of a small group of workers who come together for a set amount of time to discuss and resolve specific issues.

Neck, Organizational Behavior. © SAGE Publications, 2017.

Small teams at global design firm IDEO use design thinking to solve complex problems.

Teams and Teamwork in Contemporary Organizations

Types of Teams

A cross-functional team is a group of workers from different units with various areas of expertise to work on certain projects.

Neck, Organizational Behavior. © SAGE Publications, 2017.

Finally, a cross-functional team, is comprised of a group of workers from different units with various areas of expertise to work on certain projects. The cross-functional model can be effective in both large and small companies. For example, small business Reprint Management Services of Lancaster, Pennsylvania, successfully uses cross-functional teams to manage special projects.

A Model of Team Effectiveness: Context and Composition

Figure 7.1: A Model of Team Effectiveness

SOURCE: Figure adapted from Hackman, J. R. “The Design of Work Teams.” In Handbook of Organizational Behavior, edited by J. W. Lorsch, 315−342 (Englewood Cliffs, NJ: Prentice-Hall, 1987); McGrath, J. E. Social Psychology: A Brief Introduction (New York: Rinehart and Winston, 1964); Resick, C. J., M. W. Dickson, J. K. Mitchelson, L. K. Allison, and M. A. Clark. “Team Composition, Cognition, and Effectiveness: Examining Mental Model Similarity and Accuracy.” Group Dynamics: Theory, Research, and Practice 14, no. 2 (June 2010): 174−191; Doolen, Toni L., Marla E. Hacker, and Eileen M. Van Aken. “The Impact of Organizational Context on Work Team Effectiveness: A Study of Production Team.” IEEE Transactions on Engineering Management 50, no. 3 (August 2003): 285−296.

There are many teams but not all of them are effective. Effective teams in an organization are characterized by their ability to improve quality, reach goals, and change processes. One classic way of understanding teams and their effectiveness is to consider teams in terms of the contextual influences that affect their functioning, their composition, the processes they use, and the outcomes they achieve. Figure 7.1 shows how these factors influence team effectiveness.

A Model of Team Effectiveness: Context and Composition

Team Contextual Influences

Team Resources

Task Characteristics

Organizational Systems & Structures

Neck, Organizational Behavior. © SAGE Publications, 2017.

There are three main contextual influences: team resources, task characteristics, and organizational systems and structures. A team’s resources are important for effective teams because they equip the team members with the tools to successfully perform their roles. Resources consist of the equipment, materials, training, information, staffing, and budgets the organization supplies to support the team’s goals. Tasks are the specific steps the team must perform to achieve its goals. They can be structured or unstructured, complex or simple, and characterized by more or less interdependence among the members. Interdependence is the extent to which team members rely on each other to complete their work tasks.15 There are three levels of interdependence: Pooled interdependence, Sequential interdependence, and Reciprocal interdependence.

A Model of Team Effectiveness: Context and Composition

Figure 7.2: Levels of Task Interdependence

Neck, Organizational Behavior. © SAGE Publications, 2017.

There are three levels of interdependence. Pooled Interdependence occurs when each team member produces a piece of work independently of the others. Sandwich fast-food restaurant Subway is an example of pooled interdependence. While each restaurant unit is a part of the overall Subway organization, the units work independently of each other. Sequential Interdependence takes place when one team member completes a piece of work and passes it on to the next member for his or her input, as on an assembly line. Car manufacturer Toyota’s production system is partly based on sequential interdependence. Reciprocal Interdependence happens when team members work closely together on a piece of work, consulting with each other, providing each other with advice, and exchanging information. For example, the teams at Parkland Memorial Hospital rely on reciprocal interdependence to manage the intense coordination of the different services provided to patients and the movement between those services.

A Model of Team Effectiveness: Context and Composition

Team Composition

Four qualities of a team:

Size

Skills and abilities

Personalities

Diversity

Neck, Organizational Behavior. © SAGE Publications, 2017.

Typically, a team is characterized by four qualities: its size, skills and abilities, personalities, and diversity of its members. The appropriate size of a team depends on the task the team needs to perform. In general, teams tend to consist of four to seven members. Next a team should have complementary skills and abilities. A team should be built and attention given to the strengths of the team members. In terms of personality, teams typically need a balance between extraverts and introverts. Having too many extraverts can mean too much talking and not enough listening, and having too many introverts can mean very little communication between the team members. Generally, people who are agreeable and conscientious are effective team members. Ensuring diversity on a team can be a challenge. While diversity includes differences in religion, gender, age, and race, it also includes different and unique personality characteristics such as introverts and extroverts.

A Model of Team Effectiveness: Context and Composition

Figure 7.3: Attraction-Selection-Attrition Model

Neck, Organizational Behavior. © SAGE Publications, 2017.

The attraction-selection-attrition (ASA) model introduced by Benjamin Schneider is a psychological theory which states that people are functions of three interrelated dynamic processes: attraction, selection, and attrition, all of which influence organizational culture. For example, new employees are attracted to a team because of a perceived similarity in values, interests, and goals. New hires are selected based on how well they fit in to an organization. Over time, attrition occurs when employees feel they do not fit in, causing them to leave the organization.

A Model of Team Effectiveness: Processes and Outcomes

Figure 7.4: The Tuckman Model of Team Development

Neck, Organizational Behavior. © SAGE Publications, 2017.

SOURCE: Tuckman, Bruce. “Developmental Sequence in Small Groups.” Psychological Bulletin 63 (1965): 384−399.

When teams first come together they go through a number of stages in the process of becoming a team. In his original model of group development in 1965, psychologist Bruce Tuckman named the stages “forming, storming, norming, and performing” (Fig. 7.2). Forming – In the first stage of group development the members meet for the first time, get to know each other, and try to understand where they fit within the team structure. During this period, team members will be polite to each other and tend to avoid conflict. Storming – After a period of time, tensions may arise between members and different personalities might clash, leading to conflict within the team. Norming - The team members resolve the conflict and begin to work well together and become more cohesive. Performing – The team becomes invested in achieving its goals and operates as a unit. At this stage, there is high loyalty and trust between members. Adjourning – when individuals either leave the team or have no reason to be in further contact with their team mates – successfully completing a group project, for example. Twelve years later, Tuckman created a fifth stage called “adjourning”.

A Model of Team Effectiveness: Processes and Outcomes

Team Norms

Norms refer to the informal rules of behavior that govern the team.

Neck, Organizational Behavior. © SAGE Publications, 2017.

Norms refer to the informal rules of behavior that govern the team. These can include things such as the length of a lunch hour, attention to detail, or dress code.

A Model of Team Effectiveness: Processes and Outcomes

Team Cohesion

Cohesion is the degree to which team members connect with each other, within the purchasing team.

Teams are also distinguished by their level of cohesion or the degree to which team members connect with each other, within the team. In most cases, cohesiveness is essential for team effectiveness because it encourages members to work together to reach the same goal. However, too much cohesion can lead to lack of accountability and decision-making.

A Model of Team Effectiveness: Processes and Outcomes

Synergy: Process Gains and Losses

Synergy is the interaction that makes the total amount of work produced by a team greater than the amount of work produced by individual members working independently.

Synergy refers to the interaction that makes the total amount of work produced by a team greater than the amount of work produced by individual members working independently.

A Model of Team Effectiveness: Processes and Outcomes

Synergy: Process Gains and Losses

Figure 7.5: A Model of Process Gains and Losses

SOURCES: Based on Miner, Frederick C. “Group versus Individual Decision Making: An Investigation of Performance Measures, Decision Strategies, and Process Losses/Gains.” Organizational Behavior and Human Performance 33, no. 1 (February 1984): 112−124; Steiner, Ivan D, “Models for Inferring Relationships Between Group Size and Potential Group Productivity,” Behavioral Science 11, no. 4 (1966): 273−283.

Process gains, which are the degree to which certain factors contribute to team effectiveness. Process gains include: a sense of shared purpose, plans, and goals; the confidence team members have in their own abilities to achieve objectives; a shared vision of the way the work should be carried out; and constructive task-focused conflict, which can help teams with their problem-solving and decision-making. Brian concludes that the purchasing team members have the skills to complete their tasks but do not share a vision of how these tasks should be performed. Process losses, the factors that detract from team effectiveness. Process losses include: social loafing, which is the reduced effort people exert in a group compared to the amount they supply when working independently; personality clashes or unproductive conflict; and the inability to focus on certain tasks.

A Model of Team Effectiveness: Processes and Outcomes

Actual Group Effectiveness

Social facilitation

Favorable outcomes

There are two factors which contribute to actual group effectiveness. The first factor is social facilitation, which occurs when individuals perform tasks better in the presence of others. However, social facilitation applies to simple rather than complex or novel tasks. For example, you may play soccer better when people are watching, but you might not be able to cook a meal as easily in front of an audience!

Another factor that contributes to group effectiveness is the number of favorable outcomes a team engineers. Effective teams usually produce high-quality goods and services, a satisfied customer base, a capacity to consistently work well together, and a high degree of team member satisfaction.

Team Decision Making

Groupthink is a psychological phenomenon in which people in a cohesive group go along with the group consensus rather than offering their own opinions.

Groupthink is a psychological phenomenon in which people in a cohesive group go along with the group consensus rather than offering their own opinions. Groupthink is a major disadvantage to team decision-making, because the team members are more concerned with preserving harmony in the group than with risking opinions that may cause conflict or offense. Being in this kind of group confers an illusion of immunity, an “us against the world” view that the group members know better than outsiders even given evidence to the contrary.

Team Decision Making

Team Decision Approaches

Brainstorming is generating creative, spontaneous ideas from all members of a group without making any initial criticism or judgment of them.

Brainstorming is generating creative, spontaneous ideas from all members of a group without making any initial criticism or judgment of them. “I think that’s a great idea!” he says. “What do you think?” he addresses the rest of the group, who nod in response. “We’d like to hear all your ideas. The more imaginative and creative, the better. We’re looking for original solutions here.”

Team Decision Making

Team Decision Approaches

The Nominal Group Technique is a structured way for team members to generate ideas and identify solutions.

The Nominal Group Technique is a structured way for team members to generate ideas and identify solutions. Each member is asked the same question in relation to a work issue and requested to write as many answers as possible. Answers are read aloud and recorded for discussion. Then the ideas are put to the vote. No criticism or judgment of any ideas is allowed.

Team Decision Making

Team Decision Approaches

The Delphi technique is a method of decision-making in which information is gathered from a group of respondents within their area of expertise.

The Delphi technique is a method of decision-making in which information is gathered from a group of respondents within their area of expertise. 34. Questionnaires are sent to a select group of experts, whose responses are collated and reviewed, and then a summary is returned to the group with a follow-up questionnaire. Again, the experts provide their answers. The process continues until the group agrees on a common answer and a decision is reached.