©2008 by Nelson, a division of Thomson Canada Limited 1 Management Second Canadian Edition Chuck Williams Alex Z. Kondra Conor Vibert Slides Prepared by: Kerry Rempel, Okanagan College

©2008 by Nelson, a division of Thomson Canada Limited 2 Chapter 12 Managing Teams

©2008 by Nelson, a division of Thomson Canada Limited 3 What Would You Do? Cessna has an opportunity to redesign its production facilities and you want to move to using teams Teams may provide increased quality, faster, more efficient production, and higher employee satisfaction Teams are expensive to implement, require significant training, and they work only a third of the time they are used If you were in charge, what would you do?

©2008 by Nelson, a division of Thomson Canada Limited 4 Learning Objectives: Why Work Teams? After reading the next two sections, you should be able to: 1. explain the good and bad of using teams 2. recognize and understand the different kinds of teams

©2008 by Nelson, a division of Thomson Canada Limited 5 The Good and Bad of Using Teams Advantages of teams include increased customer satisfaction can be trained to meet the needs of specific customer groups product and service quality speed and efficiency of product development employee satisfaction

©2008 by Nelson, a division of Thomson Canada Limited 6 The Good and Bad of Using Teams Disadvantages of teams include: initially high turnover social loafing groupthink

©2008 by Nelson, a division of Thomson Canada Limited 7 When to Use Teams Use teams when … there is a clear purpose the job requires people to work together team-based rewards are possible ample resources are available teams have required authority to get the job done Adapted from Exhibit 12.1

©2008 by Nelson, a division of Thomson Canada Limited 8 When Not to Use Teams Don’t use teams when … there is no clear purpose the job can be done by individuals independently rewards are for individual performance required resources are not available management will monitor and control the work Adapted from Exhibit 12.1

©2008 by Nelson, a division of Thomson Canada Limited 9 Kinds of Teams Autonomy, the key dimension Special kinds of teams

©2008 by Nelson, a division of Thomson Canada Limited 10 Autonomy, the Key Dimension Autonomy, discretion that workers have over work, varies from low to high across types of groups: Traditional work groups Employee involvement groups Semi-autonomous work groups Self-managing teams Self-designing teams

©2008 by Nelson, a division of Thomson Canada Limited 11 Team Autonomy Continuum Exhibit 12.2

©2008 by Nelson, a division of Thomson Canada Limited 12 Special Kinds of Teams Cross-functional teams Virtual teamProject team

©2008 by Nelson, a division of Thomson Canada Limited 13 Learning Objectives: Managing Work Teams After reading the next two sections, you should be able to: 3. understand the general characteristics of work teams 4. explain how to enhance work team effectiveness

©2008 by Nelson, a division of Thomson Canada Limited 14 Work Team Characteristics Team norms Team cohesiveness Team size Team conflict Stages of team development

©2008 by Nelson, a division of Thomson Canada Limited 15 Team Norms Informally agreed-on standards that regulate team behaviour Clarify expectations Can have positive and/or negative outcomes

©2008 by Nelson, a division of Thomson Canada Limited 16 Team Cohesiveness The extent to which team members are attracted to a team and motivated to remain in it Cohesive teams: retain their members promote cooperation achieve high levels of performance

©2008 by Nelson, a division of Thomson Canada Limited 17 Team Size Very large or very small teams may not perform as well as moderately sized teams The right size for most teams is between six and nine members Teams that are too large might suffer from minority domination Teams that are too small may lack diversity of skills and knowledge

©2008 by Nelson, a division of Thomson Canada Limited 18 What Really Works Cohesion and Team Performance Team Performance Team Performance with Interdependent Tasks

©2008 by Nelson, a division of Thomson Canada Limited 19 What Really Works Team Performance with Independent Tasks

©2008 by Nelson, a division of Thomson Canada Limited 20 Team Conflict Primary cause of team conflict is disagreement over team goals and priorities Other causes of conflict can be disagreements over task-related issues, interpersonal incompatibilities and simple fatigue C-type conflict Cognitive conflict – related to improvements in team performance A-type conflict Affective conflict – related to decreases in team performance

©2008 by Nelson, a division of Thomson Canada Limited 21 How Teams Can Have a Good Fight Work with more, rather than less, information Develop several alternatives to enrich debate Establish common goals Inject humour into the workplace Maintain a balance of power Resolve issues without forcing consensus Adapted from Exhibit 12.3

©2008 by Nelson, a division of Thomson Canada Limited 22 Stages of Team development Exhibit 12.4

©2008 by Nelson, a division of Thomson Canada Limited 23 Enhancing Work Team Effectiveness Setting team goals and priorities Selecting people for teamwork Team training Team compensation and recognition

©2008 by Nelson, a division of Thomson Canada Limited 24 Setting Team Goals and Priorities Team goals increase team performance Goals clarify team priorities Challenging team goals regulate team effort

©2008 by Nelson, a division of Thomson Canada Limited 25 Requirements for Stretch Goals to Motivate Teams A high degree of autonomy Empowered with control resources Structural accommodation Bureaucratic immunity

©2008 by Nelson, a division of Thomson Canada Limited 26 Selecting People for Teamwork Individualism-collectivism degree to which a person believes that people should be self-sufficient and loyal to one’s self rather than a team Team level average level of ability, experience, or other factors on a team Team diversity variances in ability or other factors on a team

©2008 by Nelson, a division of Thomson Canada Limited 27 Team Training Need for training often underestimated Various types of training needed interpersonal skills decision-making and problem-solving skills conflict resolution skills technical skills cross training leadership

©2008 by Nelson, a division of Thomson Canada Limited 28 Team Compensation and Recognition The level of reward must match the level of performance Three methods: skill-based pay gainsharing nonfinancial rewards

©2008 by Nelson, a division of Thomson Canada Limited 29 Top Ten Problems Reported by Team Leaders 1.Confusion about roles and what they should do differently 2. Feeling they’ve lost control 3. Not knowing what coaching or empowering means 4. Having personal doubts about the efficacy of the team concept 5. Uncertainty about how to deal with employees’ doubts about teams Adapted from Exhibit 12.6

©2008 by Nelson, a division of Thomson Canada Limited 30 Top Ten Problems Reported by Team Leaders 6. Confusion about when a team is ready for responsibility 7. Confusion about how to share responsibility and accountability 8. Concern about promotional opportunities 9. Uncertainty about strategic aspects of leader’s role 10. Not knowing where to turn for help with team problems Adapted from Exhibit 12.6

©2008 by Nelson, a division of Thomson Canada Limited 31 What Really Happened? Since Cessna implemented cross- functional teams, they have experienced the following: quality is up 86% on-time delivery has risen 28% inventories are down 52% resulting in savings to Cessna of tens of millions of dollars each year