TOPIC 11 – CHAPTER 10 Understanding Groups and Managing Work Teams BPA10202/BPK20502 PRINCIPLES OF MANAGEMENT TOPIC 11 – CHAPTER 10 Understanding Groups and Managing Work Teams Robbins, S.P., DeCenzo, D. A., and Coulter, M., (2015), Fundamentals of Management: Essential Concepts and Applications, Global Edition (9th ed.) Upper Saddle River , New Jersey, Pearson

Learning Outcomes Define group and describe the stages of group development. Describe the major concepts of group behavior. Discuss how groups are turned into effective teams. Discuss contemporary issues in managing teams

LO1 Define group and describe the stages of group development.

What is a Group? A group is of two or more interacting and interdependent individuals who come together to achieve specific goals. Formal groups are work groups that are defined by the organization’s structure and have designated work assignments and specific tasks directed at accomplishing organizational goals. Informal groups are social groups that occur naturally in the workplace and tend to form around friendships and common interests Exhibit 10-1 shows examples of formal work groups

What is a Group?

Stages of Group Development

Stages of Group Development The forming stage has two phases. The first phase is when people first join the group and the second phase is when they define the group’s purpose, structure, and leadership. The latter phase involves a great deal of uncertainty as members “test the waters” to determine acceptable behaviors and is complete when members begin to think of themselves as part of a group. The storming stage is named because it is the period of intragroup conflict about who will control the group and what the group needs to be doing. This stage is complete when a relatively clear hierarchy of leadership and agreement on the group’s direction is evident.

Stages of Group Development The norming stage is one in which close relationships develop and the group becomes cohesive and demonstrates a strong sense of group identity and camaraderie. This stage is complete when the group structure solidifies and the group has assimilated a common set of expectations regarding member behavior. The fourth stage is the performing stage. The group structure is in place and accepted by group members. Their energies have moved from getting to know and understand each other to working on the group’s task. This is the last stage of development for permanent work groups.

Stages of Group Development However, for temporary groups—such as project teams, task forces, or similar groups that have a limited task to do—the final stage is the adjourning stage in which the group prepares to disband. Attention is focused on wrapping up activities instead of task performance.

Group Effectiveness Does a group become more effective as it progresses through the first four stages? The assumption that a group becomes more effective as it progresses through the first four stages may be generally true, but what makes a group effective is complex Under some conditions, high levels of conflict are conducive to high levels of group performance. There might be situations in which groups in the storming stage outperform those in the norming or performing stages.

Group Effectiveness Groups don’t always proceed sequentially from one stage to the next. Sometimes groups are storming and performing at the same time. Groups even occasionally regress to previous stages. Don’t assume that all groups precisely follow this process or that performing is always the most preferable stage Managers need to know the stage a group is in so they can understand the problems and issues that are most likely to surface.

LO2 Describe the major concepts of group behavior.

Group Behavior Roles Norms and conformity Status systems Group size Group cohesiveness.

Group Behavior - Roles A role refers to behavior patterns expected of someone who occupies a given position in a social unit. Individuals play multiple roles and adjust their roles to the group to which they belong at the time. In an organization, employees attempt to determine what behaviors are expected of them. They read their job descriptions, get suggestions from their bosses, and watch what their coworkers do. Role conflict occurs when an employee has conflicting role expectations.

Group Behavior – Norms and Conformity Norms are acceptable standards shared by the group’s members. Although each group has its own unique set of norms, common classes of norms appear in most organizations. These norms focus on: Effort and performance. This is probably the most widespread norm and it can be extremely powerful in affecting an individual employee’s performance. Dress codes dictate what’s acceptable to wear to work.

Group Behavior – Norms and Conformity Conformity – Adjusting one’s behavior to align with a group’s norms

Group Behavior - Status Systems Status is a prestige grading, position, or rank within a group. Human groupings have always had status hierarchies. Status is a significant motivator that has behavioral consequences when individuals see a disparity between what they perceive their status to be and what others perceive it to be. Members of groups often place people into status categories, and they usually agree about who’s high, low, and in the middle

Group Behavior - Group Size The size of a group affects that group’s behavior, depending on what criteria you’re looking at. Small groups (5-7 members) complete tasks more quickly than larger ones do However, if a group is engaged in problem solving, large groups (12 or more) consistently score better than their smaller counterparts Individual productivity of each group member declines as the group expands, which is known as social loafing—reducing effort because dispersion of responsibility encourages individuals to slack off

Group Behavior - Group Cohesiveness Group cohesiveness is the degree to which members are attracted to one another and share the group’s goals. However, the relationship between cohesiveness and effectiveness is complex. A key moderating variable is the degree to which the group’s attitude aligns with its formal goals or the goals of the larger organization. The more cohesive a group, the more its members will follow its goals.

Group Behavior - Group Cohesiveness Exhibit 10-3, summarizes the relationship between cohesiveness and productivity. If the goals are favorable, a cohesive group is more productive than a less cohesive group. However, if cohesiveness is high and attitudes are unfavorable, productivity decreases. If cohesiveness is low and goals are supported, productivity increases, but not as much as when both cohesiveness and support are high. When cohesiveness is low and goals are not supported, cohesiveness has no significant effect on productivity.

Group Behavior - Group Cohesiveness

LO3 Discuss how groups are turned into effective teams

Groups Versus Teams Turning groups into effective teams may be critical for an organization’s survival Exhibit 10-5 indicates the difference between a work group and work team Work groups share information and make decisions to help each member do his or her job more efficiently and effectively. They do not engage in collective work that requires joint effort. Work teams work intensely on a specific, common goal using their positive synergy, individual and mutual accountability, and complementary skills.

Groups Versus Teams

Types of Work Teams Teams can do a variety of things, from designing products and providing services to negotiating deals and making decisions. The four most common types of work teams are: Problem solving teams Self-managed work teams Cross-functional teams Virtual teams

Types of Work Teams Problem-solving teams are teams from the same department or functional area involved in efforts to improve work activities or to solve specific problems. Members share ideas or offer suggestions on how work processes and methods can be improved, but they’re rarely given the authority to implement any of their suggested actions.

Types of Work Teams The need to get employees involved in work- related decisions and processes led to the development of the self-managed work team, which is a formal group of employees who operate without a manager and are responsible for a complete work process or segment. A self-managed team is responsible for getting the work done and for managing itself, which usually includes planning and scheduling work, assigning tasks to members, collective control over the pace of work, making operating decisions, and taking action on problems.

Types of Work Teams The third type of team is the cross-functional team, defined as a work team composed of individuals from various specialties. For example, ArcelorMittal, the world’s largest steel company, uses cross-functional teams of scientists, plant managers, and salespeople to review and monitor product innovations.

Types of Work Teams The final type of team is the virtual team. In a virtual team, members collaborate online with tools such as wide-area networks, videoconferencing, fax, email, or websites where the team can hold online conferences. Virtual teams can do all the things that other teams can—share information, make decisions, and complete tasks. However, they lack the normal give-and-take of face- to-face discussions. That’s why virtual teams tend to be more task- oriented, especially if the team members have never personally met.

Effective Teams Exhibit 10-6 shows the four key components of effective teams: Context Team’s composition Work design, and Process variables.

Effective Teams

Team Composition Several team composition factors are important to a team’s effectiveness. They include: Team member abilities Personality Role allocation Diversity Size of teams Member flexibility, and Member preferences.

Team Composition Part of a team’s performance depends on its members’ knowledge, skills, and abilities. Research shows a team needs three different types of skills. Technical expertise. Problem-solving and decision-making skills. Interpersonal skills.

Team Member Roles Nine potential team roles have been identified, as seen here in Exhibit 10-7. On many teams, individuals may play multiple roles. It’s important for managers to understand the individual strengths a person brings to a team and to select team members with those strengths to ensure that these roles are filled.

Team Member Roles

Work Design Effective teams need to work together and take collective responsibility for completing tasks. Important work design elements that enhance team member motivation and increase team effectiveness include: Autonomy Using a variety of skills Being able to complete a whole and identifiable task or product, and Working on a task or project that has a significant impact on others.

Team Processes Team process variables related to team effectiveness: Common plan/purpose Specific goals Team efficacy Task conflict Minimal social loafing

Team Processes An effective team has a common plan and purpose that provides direction, momentum, and commitment for team members. Members of successful teams put a lot of time and effort into discussing, shaping, and agreeing on a purpose that belongs to them both individually and as a team. Teams also need specific goals that facilitate clear communication and help teams maintain their focus on getting results.

Team Processes Team efficacy emerges when teams believe in themselves and in their members and believe that they can succeed Effective teams also need some of the right kind of conflict, which actually improves team effectiveness. Task conflicts—those based on disagreements about task content—can be beneficial because they may stimulate discussion, promote critical assessment of problems and options, and lead to better team decisions. Note that relationship conflicts are almost always dysfunctional.

Team Processes Finally, effective teams work to minimize the tendency for social loafing, which can be avoided by making members individually and jointly accountable for the team’s purpose, goals, and approach.

Shaping Team Behavior Member selection is key. Teamwork training When hiring team members, managers should check whether applicants have the technical skills required to successfully perform the job and whether they have the interpersonal skills to fulfill team roles. Teamwork training Performing well in a team involves a set of behaviors that can be learned from training specialists who conduct workshops that can cover such topics as team problem solving, communications, negotiations, conflict resolution, and coaching skills. They also remind employees that it takes teams take longer to do some things—such as making decisions—than employees acting alone would.

Rewards External rewards: Promotions Pay raises An organization’s reward system needs to encourage cooperative efforts rather than competitive ones. External rewards: Promotions Pay raises Other forms of recognition Inherent rewards: Camaraderie Personal development Helping teammates

LO4 Discuss contemporary issues in managing teams.

Contemporary Issues Managing global teams Understanding when teams aren’t the answer.

Global Teams

Global Teams: Team Structure Some areas of team structure—such as conformity, status, social loafing, and cohesiveness—require different strategies for managing global teams.

Global Teams: Team Processes The processes that global teams use to do their work can be particularly challenging for managers. Communication issues often arise because not all team members may be fluent in the team’s working language. Additionally, managing conflict in global teams isn’t easy, especially when those teams are virtual teams

When Teams are Not the Answer Managers need to carefully evaluate whether the work requires or will benefit from a collective effort. Three “tests” have been suggested for making this determination: Can the work be done better by more than one person? Task complexity would be a good indicator of a need for different perspectives. In contrast, simple tasks that don’t require diverse input are probably better done by individuals.

When Teams are Not the Answer Does the work create a common purpose or set of goals for the people in the group that’s more than the sum of individual goals? For instance, many car dealerships use teams to link customer-service personnel, mechanics, parts specialists, and sales representatives to better meet the goal of outstanding customer satisfaction. Is there interdependence between tasks? A team approach is the answer when the success of everyone depends on the success of each person and the success of each person depends on the others.