Chapter 13 Managing Teams

2 What Would You Do? Teams at GE Aircraft Engines When does it make sense to use teams? What kinds of teams should GE Aircraft Engines use and why? How should people who work on teams be paid?

3 When Selected Companies Began Using Work Teams Adapted From Exhibit 13.1 Boeing1987 Caterpillar1986 Champion International1985 Cummings Engine1973 Digital Equipment1982 Ford1982 General Electric1985 LTV Steel1985 Procter & Gamble 1962

4 After discussing this section, you should be able to: Learning Objectives Why Work Teams? 1. explain the good and bad of using teams. 2. recognize and understand the different kinds of teams.

5 The Advantages of Teams CustomersatisfactionProductandservicequality Speed and efficiency in productdevelopment Employee satisfaction Better decision making and problem solving (multiple perspectives, more alternative solutions, increased commitment to decisions CrossTraining

6 The Disadvantages of Teams InitiallyHighTurnoverSocialLoafingSelf-LimitingBehavior Legal Risk Disadvantages of group decision making (groupthink, inefficient meetings, minority domination, lack of accountability

7 Factors That Encourage Self- Limiting Behavior in Teams The presence of someone with expertise The presentation of a compelling argument Lacking confidence in one’s ability to contribute An unimportant or meaningless decision A dysfunctional decision-making climate Adapted From Exhibit 13.3

8 Minimizing the Legal Risks Associated with Teams and the National Labor Relations Act Suggestion boxes Greater worker control Don’t overrule Don’t turn teams into representative bodies Timing is important Adapted From Exhibit 13.4

9 When to Use Teams Use Teams When: There is a clear purpose The job can’t be done individually Team-base rewards are possible Ample resources exist Teams have authority Don’t Use Teams When: There is no clear purpose The job can be done individually Only individual-based rewards exist Resources are scarce Management controls Adapted From Exhibit 13.5

10 Kinds of Teams Autonomy, the Key Dimension Special Kinds of Teams

11 Autonomy, the Key Dimension TraditionalWorkGroups Autonomy EmployeeInvolvementTeams Semi-autonomousWorkGroups Self-managingTeams Self-designingTeams

12 Been There, Done That Implemented team concept while organization was downsizing Self-managed teams closer to customer  response time improved  satisfaction level of field people increased Now lowest-cost provider in industry AAL and Self-Managed Teams

13 Special Kinds of Teams Cross-Functional Teams Virtual Teams Project Teams

14 Managing Successful Virtual Teams Self-starters and strong communicators Clear, specific goals Frequent feedback Upbeat and action-oriented interactions Periodically bring team members together Communications via more telephone calls, s, internet messaging and videoconference sessions Ask team members for feedback Adapted from Exhibit 13.7

15 After discussing this section, you should be able to: Learning Objectives Managing Work Teams 3. understand the general characteristics of work teams. 4. explain how to enhance work team effectiveness.

16 Work Team Characteristics Team Norms Team Cohesiveness Team Size Team Conflict Stages of Team Development

17 Team Norms Informally agreed-on standards of team behavior Develop over time Clarify expectations Can lead to positive and/or negative outcomes

18 Team Cohesiveness The extent to which members are attracted to the team and motivated to remain in it Cohesive teams:  retain their members  promote cooperation  have consistent performance

19 What Really Works? Cohesion and Team Performance Team Performance 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success66% Probability of success73% Team Performance with Interdependent Tasks

20 What Really Works? (cont’d) 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success 60% Cohesion and Team Performance Team Performance with Independent Tasks

21 Team Size Curvilinear relationship Size Performance

22 Team Conflict C-type Conflict  cognitive conflict  focuses on problems and issues A-type Conflict  affective conflict  emotional, personal disagreements Both types often occur simultaneously

23 How Teams Can Have a Good Fight Work with more rather than less information Develop multiple alternatives to enrich debate Establish common goals Inject humor into the workplace Maintain a balance of power Resolve issues without forcing consensus Adapted from Exhibit 13.8

24 Team Performance Time Stages of Team Development Forming Storming Norming Performing De-Norming De-Storming De-Forming Adapted from Exhibit 13.9

25 Enhancing Work Team Effectiveness TeamTraining Team Compensation and Recognition Selecting People for Teamwork Setting Team Goals and Priorities

26 Setting Team Goals and Priorities Team goals enhance team performance Goals clarify team priorities Challenging team goals help team members to regulate effort

27 Requirements for Stretch Goals to Motivate Teams A high degree of autonomy Empowered with control resources Structural accommodation Bureaucratic immunity

28 Blast From The Past Work Teams: Just Horsing Around Hawthorne Studies  importance of “informal” norms Eric Trist and work teams Skunkworks  a team insulated from bureaucracy

29 Selecting People for Teamwork TeamDiversity TeamLevelIndividualism-Collectivism

30 Team Training Need for training often underestimated Type of training needed to work well on team  interpersonal skills  decision-making & problem-solving  technical  leadership

31 Team Compensation and Recognition The level of reward must match the level of performance Three methods:  skill-based pay  gainsharing  nonfinancial rewards

32 What Really Happened? Teams at GE Aircraft Engines Newly hired employees received group training All employees receive feedback concerning teamwork and job performance Used combination of self-designing and cross- functional teams Used skill-based pay program Costs are down and performance is up