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Organizations and Teams

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Organizational Behavior:
Managing
People and Organizations,
Ninth Edition
Gregory Moorhead, Ricky W.
Griffin
Chapter 10

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After studying this chapter you should be able to:

Chapter Learning Objectives


Differentiate teams from
groups.

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Identify and discuss the


benefits and costs of teams in
organizations.
Identify and describe various
types of teams.
Describe how organizations
implement the use of teams.
Discuss other essential team
issues.
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Differentiating Teams from Groups


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Team Defined
A small number of people with
complementary skills who are committed to:
a common purpose
common performance goals
an approach for which they hold
themselves mutually accountable
Required skills:
Technical and functional job skills
Problem solving and decision-making skills
Interpersonal skills

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Table 10.1 Differences Between Teams and Traditional Work


Groups
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Reference: Adapted from Jack D. Osburn, Linda Moran, and Ed Musselwhite, with Craig Perrin, SelfDirected Work Teams: The New American Challenge (Homewood, IL: Business One Irwin, 1990), p. 11.

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Differentiating Teams from Groups


(contd)
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True
True Team
Team

Self-Directing
Self-Directing

Self-Managing
Self-Managing

Autonomous
Autonomous

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Differentiating Teams from Groups


(contd)
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Group
Group versus
versus Team
Team
Differences
Differences

Job
Job
categories
categories

Authority
Authority

Reward
Reward
systems
systems

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Differentiating Teams from Groups


(contd)
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Reward
RewardSystems
Systems
for
for Teams
Teams

Skill-based
Skill-based
pay
pay

Gain-sharing
Gain-sharing
systems
systems

Team-bonus
Team-bonus
plans
plans

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Benefits of Teams in
Organizations

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Team-Based
Team-Based
Environment
EnvironmentBenefits
Benefits

Enhanced
Enhanced
performance
performance

Employee
Employee
benefits
benefits

Reduced
Reduced
costs
costs

Organizational
Organizational
enhancements
enhancements

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Table 10.2 Benefits of Teams in Organizations


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Type of Benefit

Specific Benefit

Organizational Examples

ENHANCED
PERFORMANCE

Increased productivity

Ampex: On-time customer delivery rose 98%.

Improved quality

K Shoes: Rejects per million dropped from 5,000 to 250.

Improved customer
service

Eastman: Productivity rose 70%.

Quality of work life

Milwaukee Mutual: Employee assistance program usage


dropped to 40% below industry average.

EMPLOYEE
BENEFITS

Lower stress
REDUCED
COSTS

Lower turnover,
absenteeism

Kodak: Reduced turnover to one-half the industry


average.

Fewer injuries

Texas Instruments: Reduced costs more than 50%


Westinghouse: Costs down 60%.

ORGANIZATIONAL
ENHANCEMENTS

Increased innovation,
flexibility

IDS Mutual Fund Operations: Improved flexibility to


handle fluctuations in market activity.

References: Adapted from Richard S. Wellins, William C. Byham, and George R. Dixon, Inside Teams (San Francisco:
Jossey-Bass, 1994); Charles C. Manz and Henry P. Sims Jr., Business Without Bosses (New York: Wiley, 1993).

Hewlett-Packard: Innovative order-processing system.

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Costs of Teams in Organizations


Managerial
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Managerialrole
role
confusion/frustration
confusion/frustration
Managerial
Managerialsense
senseof
ofloss
loss
of
ofusefulness
usefulness

Difficulties
Difficultiesin
in
changing
changingto
toaa
team-based
team-based
organization
organization

Employee
Employeeresistance
resistance
to
role
changes
to role changes
Cumbersome
Cumbersomeand
andlengthy
lengthy
team
development
process
team development process

Losses
Lossesdue
dueto
topremature
premature
abandonment
of
the
abandonment of theprocess
process
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Types of Teams
Quality
Quality
Circles
Circles

Work
Work
Teams
Teams

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Problem-Solving
Problem-Solving
Teams
Teams

Team
Team Types
Types

Management
Management
Teams
Teams
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Product
ProductDevelopment
Development
Teams
Teams

Virtual
Virtual
Teams
Teams
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Implementing Teams in
Organizations
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Changing to a Team-Based Situation
Planning the Change
Making the decision
Preparing for implementation
Implementation Phases
Start-up
Reality and Unrest
Leader-centered teams
Digital Vision at Getty Images
Tightly formed teams
Self-managing teams

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Implementing Teams (contd)


Changing to a Team-Based
Situation (contd)

Planning the Change

Making the decision

Change leaders competences

13

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Have a strong belief that


employees want to be
responsible for their own work
Be able to demonstrate the
team philosophy
Articulate a coherent vision of
the team environment
Have the creativity/authority to
overcome obstacles as they
surface

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Implementing Teams (contd)


Changing to a Team-Based
Situation (contd)

Planning the Change

Making the decision

Change Process

14

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Leader establishes steering


committee to explore the
organizations readiness for the
team environment and lead it
through the planning and
preparation for the change

Establish a feasibility study

Make a go or no-go decision


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Implementing Teams (contd)


Changing to a Team-Based Situation
(contd)

Planning the Change

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Making the decision


Steps involved in preparing for
implementation:

Clarify the mission

Select the site for the first work teams

Prepare the design team

Plan the transfer of authority

Draft the preliminary plan

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Implementing Teams (contd)


Changing to a Team-Based
Situation (contd)

Planning the Change

Implementation Phases

Start-up

Select and train team members

Identify team boundaries

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Adjust preliminary plan to fit


the particular team situations

Digital Vision at Getty Images

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Implementing Teams (contd)


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Changing to a Team-Based Situation (contd)


Planning the Change
Implementation Phases
Start-up
Reality and unrest: Managers roles

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Provide encouragement

Monitor team performance

Act as intermediaries between teams

Help teams acquire needed resources

Foster the right type of communication

Protect teams from those who want to see them fail

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Implementing Teams (contd)


Changing to a Team-Based
Situation (contd)
Planning the Change
Implementation Phases
Start-up
Reality and unrest
Leader-centered teams

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Encourage strong internal team


leaders
Assist each team in development of
its own sense of identity
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Implementing Teams (contd)


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Changing to a Team-Based Situation
(contd)
Planning the Change
Implementation Phases
Start-up
Reality and Unrest
Leader-centered teams
Tightly formed teams

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Keep communication channels with other teams open

Provide performance feedback

Transfer authority/responsibility to all team members

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Implementing Teams (contd)


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Changing to a Team-Based Situation (contd)
Planning the Change
Implementation Phases
Start-up
Reality and Unrest
Leader-centered teams
Tightly formed teams
Self-managing teams: keeping teams on track

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Continue job-team-interpersonal skill training


Improve support systems for facilitation of team development and
productivity
Improve internal customer/supplier relationships

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Figure 10.1
Phases of Team Implementation

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Essential Team Issues


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Necessities
Necessitiesfor
forTeam-Based
Team-Based
Organizational
Organizational Success
Success

PerformancePerformancebased
basedreasons
reasons
for
forteams
teams

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Proper
Proper
planning
planningof
of
strategies
strategies

Proper
Proper
implementation
implementation
of
ofstrategies
strategies

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Team Implementation
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Implementation Phases

Team Performance

Phase 1: Start-up

Performance is normal

Phase 2: Reality/Unrest

Performance declines due to confusion


and frustration with training and lack of
top management direction

Phase 3: Leader-centered teams

Performance increases due to


increasing familiarity with the team
process and restoration of internal
leadership

Phase 4: Tightly-formed teams

Performance continues to increase

Phase 5: Self-managing teams

Performance peaks as teams mature


and become more flexible

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Importance of Top Management


in Team Implementation
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Makes go or no-go decision for


organizational change to team-based
structure

Based on sound business performance


reasons

Is instrumental in communicating the


reasons for change to the rest of the
organization
Supports the change effort during the
difficult periods
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Figure 10.2 Performance and Implementation of Teams

Reference: Reprinted by permission of Harvard Business School Press. From The Wisdom of Teams:
25 the High Performance Organization by Jon R. Katzenbach and Douglas K. Smith, Boston, MA,
Creating
1993, p. 84. Copyright 1993 by the Harvard Business School Publishing Corporation; all rights reserved.

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