Team Dynamics McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Teamwork at Reckitt Benckiser From self-led production teams in the UK to volunteering and extreme hiking team-building activities in Brazil (as shown in this photo), household products manufacturer Reckitt Benckiser thrives on a team spirit. From self-led production teams in the UK to volunteering and extreme hiking team-building activities in Brazil (as shown in this photo), household products manufacturer Reckitt Benckiser thrives on a team spirit.

What are Teams? Groups of two or more people Exist to fulfill a purpose Interdependent -- interact and influence each other Mutually accountable for achieving common goals Perceive themselves as a social entity Groups of two or more people who interact and influence each other, are mutually accountable for achieving common goals associated with organizational objectives, and perceive themselves as a social entity within an organization 1. Groups of two or more people 2. Exist to fulfill a purpose 3. Interdependent – interact and collaborate 4. Mutually accountable for achieving common goals – influence each other 5. Perceive themselves to be a team

Many Types of Teams Departmental teams Production/service/ leadership teams Self-directed teams Advisory teams Task force (project) teams Skunkworks Virtual teams Communities of practice Departmental teams • Employees have similar or complementary skills located in the same unit of a functional structure • Usually minimal task interdependence because each person works with employees in other departments Production/service/leadership teams • Typically multiskilled (employees have diverse competencies); team members collectively produce a common product/service; or make ongoing decisions Self-directed teams • Similar to production/service teams except they produce an entire product and have low interdependence with other work units; high autonomy Advisory teams • Provide recommendations to decision makers e.g. committees, advisory councils, work councils, review panels, etc. Task force (project) teams • Usually multiskilled; temporary – exist to solve a problem, realize an opportunity, or develop a product or service Skunkworks • Multiskilled teams usually located away from the organization and relatively free of its hierarchy – often initiated by an entrepreneurial team leader who borrows people and resources to design a product or service Virtual teams • Formal teams whose members operate across space, time, and organizational boundaries and are linked through information technologies to achieve organizational tasks Communities of practice • Purpose is to share information; bound together by shared expertise and passion for a particular activity or interest

Informal Groups Groups that exist primarily for the benefit of their members Reasons why informal groups exist: Innate drive to bond Social identity -- we define ourselves by group memberships Goal accomplishment Emotional support • All teams are groups • Groups include people assembled together, whether or not they have any interdependence or organizationally-focused objective • Exist primarily for the benefit of their members Reasons why informal groups exist: • Innate drive to bond • Social identity – we define ourselves by our group affiliations • Goal accomplishment – achieve things individuals working alone could not accomplish • Emotional support – comforted by presence of others

Advantages/Disadvantages of Teams Make better decisions, products/services Better information sharing Increase employee motivation/engagement Fulfills drive to bond Accountable to team members, who monitor performance Team members are benchmarks of comparison Disadvantages Individuals better/faster on some tasks Process losses Social loafing Advantages 1. Make better decisions and develop better products/services 2. Can quickly share information and coordinate tasks 3. Increase employee motivation/engagement – fulfills drive to bond; accountable to team members who monitor performance; performance improves when co-workers become benchmarks of performance comparison Disadvantages 1. Individuals better/faster on some tasks 2. Process losses – resources expended toward team development and maintenance rather than the task • Brooks’ Law – adding more people to a late software project only makes it later 3. Social loafing – problem that occurs when people exert less effort when working in groups than when working alone

How to Minimize Social Loafing Make individual performance more visible Form smaller teams Specialize tasks Measure individual performance Increase employee motivation Increase job enrichment Select motivated employees Make individual performance more visible • Form smaller teams • Specialize tasks • Measure individual performance Increase employee motivation • Increase job enrichment • Select motivated employees

Team Effectiveness Model Task characteristics Team size Team composition Team Design Rewards Communication Org structure Org leadership Physical space Organizational and Team Environment Accomplish tasks Satisfy member needs Maintain team survival Team Effectiveness Team development Team norms Team cohesiveness Team trust Team Processes Team effectiveness defined -- extent that the group: • Fulfills organizational (or other system) purpose • Fulfills needs of individual members • Is able to survive (i.e. maintain member commitment) Elements of team effectiveness model • Organizational and Team Environment • Team design • Team processes • Team outcomes (effectiveness)

PSA Peugeot Citroën’s Team Space PSA Peugeot Citroën, Europe’s second largest automaker, set up an “obeya room” (shown here) to speed up team decision making. The room, which is plastered with charts and notes on key issues, creates a unique team environment that encourages face-to-face interaction to quickly resolve those issues. PSA Peugeot Citroën, Europe’s second largest automaker, set up an “obeya room” (shown here) to speed up team decision making. The room, which is plastered with charts and notes on key issues, creates a unique team environment that encourages face-to-face interaction to quickly resolve those issues

Organization/Team Environment Reward systems Communication systems Organizational structure Organizational leadership Physical space • Reward systems – at least partly rewarded for team performance • Communication systems – need right amount of information and feedback • Organizational structure – teams flourish when organized around work processes because this increases interaction and interdependence • Organizational leadership – provide support and strategic direction • Physical space – physical layout makes a difference

Team’s Task Characteristics Teams are better at tasks that: are sufficiently complex (require teamwork) can be divided into more specialized roles requiring frequent coordination are well-structured (easier to coordinate) Teams preferred with higher task interdependence Extent that employees need to share materials, information, or expertise to perform their jobs. What type of work is best for teams? • Sufficiently complex – requires skills and knowledge beyond the competencies of one person • When the complex work can be divided into more specialized roles and the people in the roles require frequent coordination with each other • Well-structured tasks because it is easier to coordinate such work among several people Task interdependence – particularly important for teams • Extent to which team members must share materials, information, or expertise to perform their jobs

Levels of Task Interdependence High Reciprocal A B C Sequential A B C Pooled interdependence (lowest level) • Employee or work unit shares a common resource with other employees or work units e.g. machinery, administrative support, budget Sequential interdependence • The output of one person becomes the direct input for another person e.g. assembly line Reciprocal interdependence (highest level) • Work output is exchanged back and forth among individuals – interwoven relationship e.g. medical team Pooled Resource A B C Low

Team Size Smaller teams are better because: need less time to coordinate roles and resolve differences require less time to develop more member involvement, thus higher commitment But team must be large enough to accomplish task Smaller teams are better because: • Need less time to coordinate roles and resolve differences • Require less time to develop • More member involvement, thus higher commitment But…team must be large enough to accomplish task

Team Member Competencies Team Composition Effective team members must be willing and able to work on the team Effective team members possess specific competencies (5 C’s in diagram) Conflict Resolving Diagnose conflict sources Use best conflict-handling strategy Coordinating Align work with others Keep team on track Team Member Competencies Effective team members must be willing and able to perform their work in a team environment Competencies of effective team members (5 Cs): • Cooperating – willing and able to work together i.e. sharing resources and being flexible to accommodate others • Coordinating – actively manage the team’s work i.e. keep the team on track and align work with others • Communicating – transmit information freely (vs. hoarding), efficiently, and respectfully; listen actively to co-workers • Comforting – help co-workers maintain a positive and healthy psychological state i.e. show empathy, provide psychological comfort, and build co-worker feelings of confidence and self-worth • Conflict resolving – have skills and motivation to resolve dysfunctional disagreements i.e. effective diagnostic skills and use various conflict-handling skills effectively Comforting Show empathy Provide psych comfort Build confidence Communicating Share information freely, efficiently, respectfully Listen actively

Team Composition: Diversity Team members have diverse knowledge, skills, perspectives, values, etc. Advantages view problems/alternatives from different perspectives broader knowledge base better representation of team’s constituents Disadvantages take longer to become a high-performing team more susceptible to “faultlines” increased risk of dysfunctional conflict Extent to which team composition includes people with diverse knowledge, skills, values, mental models, perspectives Advantages of team diversity • View problems/alternatives from different perspectives • Broader pool of technical competencies • Provide a better representation of constituents e.g. other departments Disadvantages of team diversity • People from diverse backgrounds take longer to become a highperforming team • Diverse teams are susceptible to “fault lines” that may split a team into subgroups e.g. gender, professional • Increased risk of dysfunctional conflict

Stages of Team Development Performing Adjourning Existing teams might regress back to an earlier stage of development Norming Storming 1. Forming • Period of testing and orientation • Members defer to the existing authority • Expectations learned, and how members fit into the team 2. Storming • More conflict as members compete for roles • Members try to establish norms 3. Norming • Cohesion develops • Roles established, consensus forms around group objectives • Similar mental models and expectations formed about how goals should be accomplished 4. Performing • Team becomes more task-oriented • Efficient work coordination, conflict resolution • Highly cooperative, high trust, committed to goals, identify with the team 5. Adjourning • Team is about to disband • Members shift from task to relationship focus Forming

Team Development as Membership and Competence Two central processes in team development Team membership formation Transition from “them” to “us” Team becomes part of person’s social identity Team competence development Forming routines with others Forming shared mental models Five-stage model is not a perfect representation of the team development process e.g. some teams remain in a particular stage longer than others Two central processes in team development: 1. Developing team identity (team membership formation) • Transition where members view team as “us” rather than “them” • Team becomes part of the person’s social identity 2. Developing team competence • Forming routines with team members • Forming shared/complementary mental models

Team Roles A set of behaviors that people are expected to perform Some formally assigned; others informally Informal role assignment occurs during team development and is related to personal characteristics A set of behaviors that people are expected to perform because of the positions they hold in a team and organization • Some roles are formally assigned e.g. team leaders are usually expected to initiate discussion • Informal roles which are negotiated through the team development process and are related to personal characteristics e.g. supporting others; initiating new ideas

Team Building Formal activities intended to improve the team’s development and functioning Types of team building Clarify team’s performance goals Improve team’s problem-solving skills Improve role definitions Improve relations Formal activities intended to improve the development and functioning of a work team • More common for existing teams that have regressed to earlier stages of team development due to turnover or loss of focus Types of Team Building: • Clarifying team’s performance goals increases motivation to achieve goals • Improve the team’s problem-solving skills Is Team Building Effective? Although team building activities are popular their success is less certain: • Team-building activities need to target specific team problems • Team building is a continuous process, not a one-shot inoculation • Team building needs to occur on-the-job, not just away from the workplace • Improve role definitions – helps team develop shared mental models • Improve relations – aimed at improving relations among team members i.e. help team members learn more about each other, build trust, and manage conflict within the team

Team Norms Informal rules and shared expectations team establishes to regulate member behaviors Norms develop through: Initial team experiences Critical events in team’s history Experience/values members bring to the team Informal rules and shared expectations a team establishes to regulate member behaviors – norms apply only to behavior, not to private thoughts or feelings Norms develop through: 1. Initial team experiences 2. Critical events in team’s history 3. Experiences/values members bring to the team

Preventing/Changing Dysfunctional Team Norms State desired norms when forming teams Select members with preferred values Discuss counter-productive norms Introduce team-based rewards that counter dysfunctional norms Disband teams with dysfunctional norms • State/establish desired norms when forming teams • Select members with preferred values • Discuss/coach counter-productive norms while developing useful norms • Introduce team-based rewards that counter dysfunctional norms • Disband teams with dysfunctional norms

Team Cohesion The degree of attraction people feel toward the team and their motivation to remain members Both cognitive and emotional process Related to the team member’s social identity The degree of attraction people feel toward the team and their motivation to remain members • Cognitive – members logically believe the team will fulfill goals and needs • Emotional – team is part of person’s social identity

Influences on Team Cohesion Member similarity • Similarity-attraction effect • Some forms of diversity have less effect Team size • Smaller teams tend to be more cohesive Member interaction Member similarity • More/faster cohesion when members are similar to each other • Generally takes longer/more difficult for diverse teams to become cohesive, but this depends on the form of diversity Team size • Smaller teams tend to be more cohesive – easier for a few people to agree on goals and coordinate work activities Member interaction • Regular interaction increases cohesiveness • More interaction through higher task interdependence • Regular interaction increases cohesion • Calls for tasks with high interdependence

Influences on Team Cohesion (con’t) Somewhat difficult entry • Team eliteness increases cohesion • But lower cohesion with severe initiation Team success • Successful teams fulfill member needs • Success increases social identity with team External challenges Somewhat difficult entry • Cohesion increased when entry to team is restricted—the more elite the team, the more prestige it confers • Caution: severe initiation can weaken cohesion Team success • Successful teams fulfill member needs and goals • Success increases social identity with the team External competition and challenges • Cohesion higher with external competition/challenges – provides social support • Cohesion can dissipate if external threats are severe/overwhelming • Challenges increase cohesion when not overwhelming

Team Cohesion Outcomes Motivated to remain members Willing to share information Better social support Resolve conflict effectively Better interpersonal relationships Better performance But only if norms are aligned with org goals Also, effect of performance on cohesion might be stronger than vice versa • Motivated to maintain membership and achieve objectives • Share information more frequently • Strong interpersonal bonds • Conflict resolved more swiftly and effectively • Better interpersonal relationships • Better performance (if norms are aligned)

Team Cohesion and Performance Moderately high task performance High task performance Team Norms Support Company Goals Moderately low task performance Low task performance Team Norms Oppose Company Goals • Cohesive teams usually perform better – less conflict and more conformity to norms • Team cohesion increases team performance only when the team’s norms are compatible with organizational values and objectives • When team norms are counterproductive (oppose company goals) a cohesive team will typically perform at a lower level than if the team had low cohesion Low Team Cohesion High Team Cohesion

Trust in Teams Positive expectations one person has of another person in situations involving risk Three levels of trust Swift trust New team members tend to have moderate or higher trust in co-workers Trust is fragile in new relationships – based on assumptions, not experience – so easily broken Positive expectations one person has toward another person or group in situations involving risk 3 levels of trust – calculus-based, knowledge-based, identification based Swift trust • New team members tend to have a moderate or high level—not a low level of trust in their new co-workers • Swift trust is fragile in new relationships because it is based on assumptions rather than experience i.e. easily broken

Three Levels of Trust Identification-based Trust Knowledge-based Trust High Identification-based Trust Knowledge-based Trust Calculus-based trust • Logical calculation that other team members will act appropriately because of sanctions i.e. based on deterrence • Lowest potential trust and is easily broken – not enough to sustain a team’s relationship Knowledge-based trust • Based on the predictability of another team member’s behavior and/ or confidence in the person’s competence • More stable because it develops over time Identification-based trust • Based on mutual understanding and emotional bonds • Potentially the strongest of the three types of trust • Transgressions quickly forgiven because the individual’s self-concept is based partly on team membership Calculus-based Trust Low

Self-Directed Teams at Whole Foods Markets Whole Foods Markets organizes employees around self-directed teams, responsible for a particular store area. These teams have considerable autonomy to operate their store section. Whole Foods Markets organizes employees around self-directed teams, responsible for a particular store area. These teams have considerable autonomy to operate their store section. 8-29

Self-Directed Teams Defined Cross-functional groups organized around work processes, that complete an entire piece of work requiring several interdependent tasks, and that have substantial autonomy over the execution of those tasks. Cross-functional work group that is organized around work processes, complete an entire piece of work requiring several interdependent tasks, and has substantial autonomy over the execution of those tasks Two distinct features • Teams complete an entire piece of work requiring interdependent tasks – clusters the team members together while minimizing interdependence and interaction with employees outside the team • Substantial autonomy over execution of their tasks – teams plan, organize, and control work activities with little or no direct involvement of a supervisor • SDTs potentially increase both productivity and job satisfaction 8-30

Self-Directed Team Success Factors Responsible for entire work process High interdependence within the team Low interdependence with other teams Autonomy to organize and coordinate work Work site and technology support team communication/coordination • Responsible for an entire work process e.g. making an entire product or providing a service • High interdependence within the team • Low interdependence with other teams • Sufficient autonomy to organize and coordinate work • Work site and technology support team communication/coordination

Virtual Teams Teams whose members operate across space, time, and organizational boundaries and are linked through information technologies to achieve organizational tasks Increasingly possible because of: Information technologies Knowledge-based work Increasingly necessary because of: Organizational learning Globalization Teams whose members operate across space, time, and organizational boundaries and are linked through information technologies to achieve organizational tasks Increasingly possible because of: • Information technologies • Knowledge-based work Increasingly necessary because of: • Organizational learning – encourage employees to share and use knowledge where geography limits direct collaboration • Globalization – employees are spread around the planet rather than in one building or city

Virtual Team Success Factors Member characteristics Communication technology skills Self-leadership skills Emotional intelligence Flexible use of communication technologies Fairly high task structure Opportunities to meet face-to-face • Virtual team member characteristics e.g. good communication technology skills; strong self-leadership; and higher emotional intelligence • Toolkit of communication technologies/channels and freedom to choose channels that work best for them • Fairly high task structure e.g. clear operational objectives • Opportunities to meet face-to-face especially early in the team development process

Team Decision Making Constraints Time constraints Time to organize/coordinate Production blocking Evaluation apprehension Belief that others are silently evaluating you Peer pressure to conform Suppressing opinions that oppose team norms Groupthink Tendency in highly cohesive teams to value consensus at the price of decision quality Concept losing favor – study specific elements Time constraints • Teams take longer than individuals to make decisions • Time to organize/coordinate/maintain relationships • Production blocking undermines idea generation – time constraint in team decision making due to the procedural requirement that only one person may speak at a time Evaluation apprehension • Decision making problem that occurs when individuals are reluctant to mention ideas that seem silly because they believe (often correctly) that other team members are silently evaluating them • Based on the individual’s desire to create a favorable selfpresentation and creative ideas often sound bizarre • Most common when higher status person attends meeting, or members formally evaluate each other Peer Pressure to conform • Suppressing opinions that oppose team norms • Members might punish the violator or try to persuade him or her that the opinion is incorrect • Conformity is subtle – we question our ideas when team members disagree Groupthink • Tendency of highly cohesive teams to value consensus at the price of decision quality – desire for harmony • Concept is losing favor – better to consider specific features of teams (e.g. overconfidence)

General Guidelines for Team Decisions Team norms should encourage critical thinking Sufficient team diversity Ensure neither leader nor any member dominates Maintain optimal team size Introduce effective team structures 1. Team norms should encourage critical thinking 2. Sufficient team diversity 3. Ensure neither leader nor any member dominates 4. Maintain optimal team size 5. Introduce effective team structures

Constructive Conflict People focus their discussion on the issue while maintaining respectfulness for others having different points of view. Problem: constructive conflict easily slides into personal attacks • A type of conflict in which people focus their discussion on the issue while maintaining respect for people having other points of view • Advantage: Encourages people to present their divergent viewpoints • Challenge: People get defensive when their ideas are questioned -- constructive conflict can easily slide into perceived personal attacks

Brainstorming Team structure in which participants try to think up as many ideas as possible. Four specific rules to follow Speak freely Don’t criticize Provide as many ideas as possible Build on others’ ideas Dismissed by research, but embraced by some of the world’s most creative firms Reason: Brainstorming works under specific conditions but lab studies haven’t replicated those conditions Team structure in which participants try to think up as many ideas as possible Four specific rules: 1. Speak freely – describe even the craziest ideas 2. Don’t criticize others or their ideas 3. Provide as many ideas as possible – quality increases with quantity 4. Build on others’ ideas Note: Brainstorming is embraced by some of the world’s most creative firms, yet dismissed by much of the scholarly literature. Why? Experimental lab studies using students likely violate several conditions found in brainstorming sessions at creative firms

Evaluating Brainstorming Strengths Produces more creative ideas (under some conditions) Less evaluation apprehension when team supports a learning orientation Strengthens decision acceptance and team cohesiveness Sharing positive emotions encourages creativity Weaknesses Production blocking still exists Evaluation apprehension exists in many groups Strengths • Produces more creative ideas (not just more ideas) • Less evaluation apprehension when team supports a learning orientation • Strengthens decision acceptance and team cohesiveness • Sharing positive emotions encourages creativity Problems with brainstorming • Production blocking still exists • Evaluation apprehension exists in many groups

Electronic Brainstorming Relies on networked computers to submit and share creative ideas Strengths -- more creative ideas, minimal production blocking, evaluation apprehension, or conformity problems Limitations -- too structured and technology-bound Relies on networked computers to submit and share creative ideas • Ideas distributed anonymously to other participants – piggybacking ideas is encouraged • Anonymously vote electronically on the ideas presented • Face-to-face discussion usually follows • Strengths: generates more creative ideas with minimal production blocking, evaluation apprehension, or conformity problems • Limitations: too structured and technology-bound for some; some leaders may also feel threatened because of honesty of statements generated and limited ability to control the discussion

Nominal Group Technique Individual Activity Team Activity Individual Activity Describe problem Write down possible solutions Possible solutions described to others Vote on solutions presented Face-to-face without full interaction • Team is “nominal” i.e. a team in name only during two of the three stages After the problem is described: 1. Individuals silently write and independently document their ideas (possible solutions) 2. Participants collectively describe these ideas to the other team members (usually round-robin format) – no criticism or debate, however clarification of ideas is encouraged 3. Participants silently and independently evaluate the ideas presented Effectiveness of Nominal Group Technique • High task orientation, low potential for conflict • Production blocking and evaluation apprehension still occur

Team Dynamics