Chapter 11 Managing Team Performance 11-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

Overview Definition and Importance of Teams Definition and Importance of Teams Types of Teams and Implications for PM Types of Teams and Implications for PM Purposes and Challenges of Team PM Purposes and Challenges of Team PM Including Team Performance in the PM System Including Team Performance in the PM System Rewarding Team Performance Rewarding Team Performance Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-2

Definition of Team Two or more people InteractInteract Dynamically Dynamically Independently Independently Share common and valuedShare common and valued Goal, Objective, or Mission Goal, Objective, or Mission Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-3

Importance of Teams Increased pressure, including global competition Increased pressure, including global competition Flexibility in flatter organizations Flexibility in flatter organizations Complexity of products and services Complexity of products and services Rapidly changing business environments Rapidly changing business environments Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-4

Performance Management and Teams PM systems should target: PM systems should target: Individual performanceIndividual performance Individual’s contribution to team performanceIndividual’s contribution to team performance Performance of entire teamPerformance of entire team Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-5

General Principles of PM Relating to Teams 1. Design and implement best system possible 2. Consider dangers of poorly implemented system Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-6

Managing for Improved Team Performance Don’t limit team processes with other task or organizational requirements Don’t limit team processes with other task or organizational requirements Provide good team design and organizational support Provide good team design and organizational support Give feedback only on processes that the team members can control Give feedback only on processes that the team members can control Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-7

Types of Teams Classified by Classified by Complexity of taskComplexity of task Membership configurationMembership configuration Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-8

Complexity of Task Ranges From: Routine Routine Well-definedWell-defined Few deviations in how work is doneFew deviations in how work is done Outcomes are easily assessedOutcomes are easily assessed - to - Nonroutine Nonroutine Not defined wellNot defined well No clear specifications on how to do the workNo clear specifications on how to do the work Outcomes are long term and difficult to assessOutcomes are long term and difficult to assess Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-9

Membership Configuration Includes Length of time team expects to work together Length of time team expects to work together Stability of team membership Stability of team membership Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal StaticDynamic

Types of Teams Based on Membership Configuration and Task Complexity Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal Dynamic ° Network Teams Membership Configuration ° Project Teams Static ° Work and Service Teams Routine Non-Routine Task Complexity

Types of Teams Work or Service Teams Work or Service Teams Project Teams Project Teams Network Teams Network Teams Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-12

Work or Service Teams Intact Intact Routine tasks Routine tasks Share similar skill sets Share similar skill sets Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-13

Project Teams Assembled for specific purpose Assembled for specific purpose Tasks outside core product or service Tasks outside core product or service Members from different functional areas Members from different functional areas Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-14

Network Teams Membership not constrained by: Membership not constrained by: Time or spaceTime or space Organizational boundariesOrganizational boundaries Teams may include: Teams may include: Temporary or full-time workersTemporary or full-time workers CustomersCustomers VendorsVendors ConsultantsConsultants Work is extremely nonroutine Work is extremely nonroutine Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-15

Examples of PM Approaches by Type of Team Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal Type of TeamType of PM Approach Work and Service TeamPeer ratings Project teamOngoing measurements Network TeamDevelopment of competencies

Purposes of Team PM Traditional goals of any PM system Traditional goals of any PM system Specific to team performance: Specific to team performance: Make all team members accountableMake all team members accountable Motivate all team members to have a stake in team performanceMotivate all team members to have a stake in team performance Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-17

Challenges of Team PM How do we assess relative individual contribution? How do we assess relative individual contribution? How do we balance individual and team performance? How do we balance individual and team performance? How do we identify individual and team measures of performance? How do we identify individual and team measures of performance? Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-18

Six Basic Principles for Designing a PM System That Includes Team Performance 1. Make sure your team is really a team 2. Make the investment to measure 3. Define measurement goals clearly 4. Use a multi-method approach to measurement 5. Focus on process as well as outcomes 6. Measure long-term changes Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-19

Performance Management Process (Overview/Review) Performance Review Performance Renewal and Recontracting Performance Assessment Performance Execution Performance Planning Prerequisites Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-20

Prerequisites Knowledge of mission Knowledge of mission OrganizationOrganization TeamTeam Knowledge of job to be performed by the team, including KSAs Knowledge of job to be performed by the team, including KSAs Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-21

Prerequisites KSAs needed for most teams: TaskTask ContextualContextual Communication Communication Decision-making Decision-making Collaboration Collaboration Team leadership Team leadership Self-control Self-control Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-22

Performance Planning Results expected of the team Results expected of the team Behaviors expected of team members Behaviors expected of team members Developmental objectives to be achieved by team and its members Developmental objectives to be achieved by team and its members Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-23

Performance Planning Facilitate adaptive learning Facilitate adaptive learning Encourage new behaviors Encourage new behaviors Facilitate generative learning Facilitate generative learning Provide best practices recommendationsProvide best practices recommendations Facilitate transformative learning Facilitate transformative learning Deep learning by, for example, bringing in members of other teams into the team to work temporarilyDeep learning by, for example, bringing in members of other teams into the team to work temporarily  Innovation and change Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-24

Performance Execution Team responsibilities 1. Commit to goal achievement 2. Seek feedback from One anotherOne another SupervisorSupervisor 3. Communicate openly and regularly 4. Conduct regular and realistic peer appraisals Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-25

Performance Execution Supervisor responsibilities 1. Observe and document Team performanceTeam performance Relative contribution of team membersRelative contribution of team members 2. Update team on any changes in goals of the organization 3. Provide resources and reinforcement Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-26

Performance Assessment Types of Assessments Self-appraisals Self-appraisals Peer evaluations Peer evaluations Supervisor evaluation Supervisor evaluation Outsider appraisals (if appropriate) Outsider appraisals (if appropriate) Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-27

Performance Assessment Kinds of Performance to be Assessed Individual task performance Individual task performance Individual contextual performance Individual contextual performance Team performance Team performance Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-28

Dimensions of Team Performance to Assess Effectiveness Effectiveness Efficiency Efficiency Learning and growth Learning and growth Team member satisfaction Team member satisfaction Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-29

Performance Review Two meetings with supervisor or review board Two meetings with supervisor or review board Team meetingTeam meeting Individual meetingIndividual meeting Emphasis on past, present, and future Emphasis on past, present, and future Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-30

Team Meeting Discuss overall team Discuss overall team PerformancePerformance ResultsResults Information comes from: Information comes from: Team membersTeam members Other teams/outsidersOther teams/outsiders Supervisor’s evaluationSupervisor’s evaluation Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-31

Individual Meeting Discuss how individual behavior contributed to team performance Discuss how individual behavior contributed to team performance Information comes from: Information comes from: Self-appraisalSelf-appraisal Peer ratingsPeer ratings Supervisor’s evaluationSupervisor’s evaluation Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-32

Performance Renewal and Recontracting Make adjustments to performance plan Make adjustments to performance plan Include plan for individual performance as it affects team functioning Include plan for individual performance as it affects team functioning Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-33

Making Team-Based Rewards Effective All employees should be eligible All employees should be eligible Rewards should be: Rewards should be: VisibleVisible ContingentContingent ReversibleReversible Avoid factors which cause reward systems to fail Avoid factors which cause reward systems to fail Consider variable pay systems (in addition to individual bonuses) Consider variable pay systems (in addition to individual bonuses) Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-34

Quick Review Definition and Importance of Teams Definition and Importance of Teams Types of Teams and Implications for PM Types of Teams and Implications for PM Purposes and Challenges of Team PM Purposes and Challenges of Team PM Including Team Performance in the PM System Including Team Performance in the PM System Rewarding Team Performance Rewarding Team Performance Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-35

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hal 11-36