MBS538 Organisational Behaviour and Management MODULE 4: Dealing with organisational dynamics S7 – How do you manage teams and make decisions? S8 – How do you use power and lead effectively?

How do you Manage Teams and Make Decisions? In this session we are exploring teams and decision-making.  First, think of as many organisations as you can that do not use any teams.  It’s probable that your list will be quite short, if not empty. Increasingly, businesses are relying on teams in the belief that they can be more creative, productive and efficient than individuals working alone.  Despite this optimism, teams often fail to live up to their potential.  Effective teams are not a result of luck – they are a product of careful planning, effective leadership, and support from the broader organisation.   Second, think of how many decisions you make in a day.  You’re likely to have a large number. Decision-making is one of the most important things you do and it is particularly important in organisations. Decisions made throughout all organisation levels can impact the firm’s opportunities and performance.  Decisions are not just made by the senior executives; they are made at every level of the organisation.  Even seemingly small decisions can have significant impacts.

Learning Outcomes Define group and work team and discuss types of each. Explain the stages of group development and the factors that influence group behaviour. Distinguish between cohesive and dysfunctional teams and discuss factors influencing team and teaming effectiveness. Describe the nature of decision-making. Explain various decision-making models. Apply decision-making tools to individual circumstances.

Teamwork Challenge

Groups and Teams Two or more people with common interests, objectives, and continuing interaction Group Group of people with complementary skills who are committed to a common: Mission Performance goal Approach for which they hold themselves mutually accountable Work team

Groups vs. Teams A group may not have a clear and distinct purpose share leadership roles be jointly responsible for team performance have a single collective outcome solve problems amongst themselves A group with a ‘strong’ leader is not necessarily a team why not?

Effective groups# What are some characteristics of well- functioning effective groups?

Why Teams?# What is the benefit of teams for individuals? What is the benefit of teams for organisations?

Teamwork

How cohesive is your group and how diverse is your team? In your group discuss your responses to the SAQs: How cohesive is your group? and How much diversity is on your team?

The Team Member’s Dilemma We have to work with people we did not chose! We have to give up our independence We have to put up with free riders/social loafers Teams are sometimes disfunctional

Tuckman’s five-stage model of group development

Tuckman discussion At what point(s) do you think the coach made a difference? At what point(s) did a player make a difference? Discuss with your group what you learnt/re-learnt from Tuckman’s model and this portrayal that will help you make a difference in the next team you work with? What will you do?

Cohesive Teams Require Produce Good interaction Shared goals Team members like working in it Competition with other teams Favourable evaluation by outsiders Produce Morale: communication, loyalty, commitment, participation, satisfaction – a positive team climate Productivity: more and better quality outcomes More adaptable, resilient

Disfunctional Teams Scarce resources Jurisdictional ambiguities Organisational or group causes of conflict: Scarce resources Jurisdictional ambiguities Communication breakdown Power and status differences Goal differences Lack of trust Personal differences in conflict resolution style Dependency on team leaders or charismatic, manipulative etc members Conformity - groupthink, lack of originality Coercion - peer pressure

https://hbr.org/2012/04/teamwork-on-the-fly.html

Teamwork on the Fly https://www.youtube.com/watch?v=x7nxl__qOJ4

Teaming What are the characteristics of teaming? What is one challenge and one benefit of using teaming?

Decision-Making

The nature of managerial decision-making Decision-making is the process by which managers respond to opportunities and threats by analysing options and making decisions about goals and courses of action. Decisions in response to opportunities: occur when managers respond to ways to improve organisational performance Decisions in response to threats: occur when managers are impacted by adverse events that affect the organisation PPTs to accompany Contemporary Management 2e by Waddell, Jones & George  © 2011 McGraw-Hill Australia Pty Ltd

The Decision-Making Process Programmed decisions: decisions made on simple, routine matters with an established decision rule Nonprogrammed decisions: decisions made on new and complex decisions that require creative solutions

Decision-Making Process Recognize the problem and the need for a decision Identify the objective of the decision Gather and evaluate data and diagnose the situation List and evaluate alternatives, select the best course of action, and implement the decision Gather feedback and follow up

Models of Decision Making Rational Model Outcome will be completely rational Decision makers are consistent when choosing the best alternative Decision makers are aware of all alternatives Decision makers can calculate the probability of success for each alternative Bounded Rationality Managers select the first alternative that is satisfactory Managers recognize that their conception of the world is simple Managers are comfortable making decisions without determining all the alternatives Managers make decisions by rules of thumb or heuristics Managers satisfice

The Z Problem-Solving Model

Individual factors influencing decision making# What are the individual factors that influence decision making?

Group Decision Making Synergy Social decision schemes Advantages Positive force that stimulates new solutions to problems through mutual influence and encouragement within the group Synergy Rules that determine final group decisions Social decision schemes More knowledge and information through the pooling of group member resources Increased acceptance of and commitment to the decision Greater understanding of the decision Advantages Pressure within the group to conform and fit in Domination of the group by one forceful member Amount of time required to make a decision Disadvantages

Techniques# What are some group decision techniques?

Brainstorm the uses for paperclips. Brainstorming# Do not be constrained by convention Do not be shy or hesitant Do not criticise or shoot down others Do not dismiss or ignore others’ contributions Do not dwell and do not be boring Do not give up after making contributions Do not interrupt Do not sub-group Do not use unfamiliar acronyms or jargon Brainstorm the uses for paperclips.

Failure to Launch

Failure to Launch Video Does “The Bird Problem” present Kit and Ace with a programmed or nonprogrammed decision? What features of their decision problem led to your choice? Which steps in the decision-making process appear in “The Bird Problem?” Note the examples of each step that you see. Assess the degree of certainty, uncertainty, and risk that Kit and Ace face in this decision problem. What factors set the degree of certainty, uncertainty, and risk?

Summary A group consists of two or more people who share interests, objectives, and continuing interaction Work team is a group of people with complementary skills with similar commitments Working in teams encourages collaborations within the organization and encourages bonding between people Factors affecting group behavior are norms of behaviour, group cohesion, social loafing, and loss of individuality

Summary Forming, storming, norming, performing, and adjourning Groups can be formal or informal and have five stages of development Forming, storming, norming, performing, and adjourning Effective task and maintenance functions ensure social benefits of psychological intimacy and integrated involvement Factors influencing group effectiveness Work team structure, work team process, diversity, and creativity

Summary Decision-making process starts from first recognising the problem and the need for a decision and ends with collecting feedback The various models of decision making include, the rational model, the bounded rationality model, and the Z model Individual influences affecting decision making are: Comfort with risk, cognitive style, personality, intuition, and creativity

Summary Groups make decisions using brainstorming, nominal group technique, devil’s advocacy, and dialectical inquiry Organisations should cultivate a supportive organisational culture and a team-oriented work design to draw participation