Copyright © 2003 by South-Western. All Rights Reserved. CHAPTER TEN IMPROVING PERFORMANCE THROUGH EMPOWERMENT, TEAMWORK, AND COMMUNICATION Text by Profs. Gene Boone & David Kurtz Multimedia Presentation by Prof. Milton Pressley The University of New Orleans

Copyright © 2003 by South-Western. All Rights Reserved. Describe why and how organizations empower employees Describe why and how organizations empower employees Distinguish between the two major types of teams in the workplace Distinguish between the two major types of teams in the workplace Identify the characteristics of an effective team and the roles played by team members Identify the characteristics of an effective team and the roles played by team members Summarize the stages of team development Summarize the stages of team development Relate team cohesiveness and norms to effective team performance Relate team cohesiveness and norms to effective team performance LEARNING GOALS

Copyright © 2003 by South-Western. All Rights Reserved. Describe the factors that can cause conflict in teams and the ways conflict can be resolved Describe the factors that can cause conflict in teams and the ways conflict can be resolved Explain the importance of effective communication skills in business Explain the importance of effective communication skills in business Compare the different types of communication Compare the different types of communication Discuss how advances in technology affect business communication Discuss how advances in technology affect business communication LEARNING GOALS

Copyright © 2003 by South-Western. All Rights Reserved. © PhotoDisc CHAPTER OVERVIEW Discuss the ways managers are expanding their employees’ decision- making authority and responsibility Discuss the ways managers are expanding their employees’ decision- making authority and responsibility Explain why and how a growing number of firms rely on teams of workers rather than individuals to make decisions Explain why and how a growing number of firms rely on teams of workers rather than individuals to make decisions Discuss how effective communication allows workers to share information that improves decision-making Discuss how effective communication allows workers to share information that improves decision-making

Copyright © 2003 by South-Western. All Rights Reserved. EMPOWERING EMPLOYEES Total quality management (TQM): companywide program for improving the quality of goods and services by achieving world-class performance and customer satisfaction Total quality management (TQM): companywide program for improving the quality of goods and services by achieving world-class performance and customer satisfaction Involves all employees in determining what customers require and what they need to do to meet those expectations Involves all employees in determining what customers require and what they need to do to meet those expectations © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. EMPOWERING EMPLOYEES Empowerment: giving employees authority and responsibility to make decisions about their work without traditional managerial approval and control Empowerment: giving employees authority and responsibility to make decisions about their work without traditional managerial approval and control © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Sharing Information Effective empowerment means keeping employees informed about the company’s: Effective empowerment means keeping employees informed about the company’s: Financial performance Financial performance Business environment Business environment © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Figure 10.1 Lotus: Software for Sharing Information across Geographic Boundaries

Copyright © 2003 by South-Western. All Rights Reserved. Sharing Decision-making Authority Employees given more authority and responsibility in: Employees given more authority and responsibility in: Choosing benefits Choosing benefits Making decisions that implement a firm’s vision and competitive strategy Making decisions that implement a firm’s vision and competitive strategy Empowerment ranges from allowing employees to suggest improvements in their work to granting the authority and resources to turn their ideas into action Empowerment ranges from allowing employees to suggest improvements in their work to granting the authority and resources to turn their ideas into action © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Linking Rewards to Company Performance Reward employees for contributing desirable ideas and actions Reward employees for contributing desirable ideas and actions Make sure employees understand how their individual actions affect profits Make sure employees understand how their individual actions affect profits © PhotoDisc

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Linking Rewards to Company Performance Employee stock ownership plans (ESOPs): plans that give employees ownership stakes in their companies Employee stock ownership plans (ESOPs): plans that give employees ownership stakes in their companies Stock options: rights to buy a specified amount of the company’s stock at a given price within a given time period Stock options: rights to buy a specified amount of the company’s stock at a given price within a given time period © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. TEAMWORKTEAMWORK Teamwork: practice of organizing groups of people to work together to achieve a common objective Teamwork: practice of organizing groups of people to work together to achieve a common objective

Copyright © 2003 by South-Western. All Rights Reserved. Figure 10.2 Microsoft Office 2000: Importance of Teamwork to Accomplish Goals Figure 10.2 Microsoft Office 2000: Importance of Teamwork to Accomplish Goals

Copyright © 2003 by South-Western. All Rights Reserved. What Is a Team? Team: group of employees who are committed to a common purpose, approach and set of performance goals Team: group of employees who are committed to a common purpose, approach and set of performance goals © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Figure 10.3 Five Species of Teams

Copyright © 2003 by South-Western. All Rights Reserved. Work Teams Work teams: relatively permanent groups of employees with complementary skills performing the day-to-day work of the organization Work teams: relatively permanent groups of employees with complementary skills performing the day-to-day work of the organization © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Problem-Solving Teams Problem-solving team: temporary combination of workers who gather to solve a specific problem and then disband Problem-solving team: temporary combination of workers who gather to solve a specific problem and then disband © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. TEAM CHARACTERISTICS Can range from 2 to 150 people Can range from 2 to 150 people Research indicates maximum results with about 7 people Research indicates maximum results with about 7 people Size © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. TEAM CHARACTERISTICS Task specialist role: time and energy devoted to helping the team accomplish its specific goals Task specialist role: time and energy devoted to helping the team accomplish its specific goals Socio-emotional role: time and energy devoted to supporting the emotional needs of team members and to maintaining the team as a social unit Socio-emotional role: time and energy devoted to supporting the emotional needs of team members and to maintaining the team as a social unit Size Roles

Copyright © 2003 by South-Western. All Rights Reserved. Figure 10.4 Team Member Roles

Copyright © 2003 by South-Western. All Rights Reserved. TEAM CHARACTERISTICS Members may bring varied perspectives based on differences in their work experiences and age, gender, and cultural backgrounds Members may bring varied perspectives based on differences in their work experiences and age, gender, and cultural backgrounds Cross-functional team establishes one type of diversity by bringing together the expertise of members from different functions in the organization Cross-functional team establishes one type of diversity by bringing together the expertise of members from different functions in the organization Size Roles Diversity

Copyright © 2003 by South-Western. All Rights Reserved. Teamwork in Small Organizations Small companies can benefit from teamwork Small companies can benefit from teamwork In fact, small firms may function as teams In fact, small firms may function as teams Owner-manager can cultivate the characteristics of successful teams Owner-manager can cultivate the characteristics of successful teams Concept of teamwork also applies to entrepreneurs Concept of teamwork also applies to entrepreneurs © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. The Process of Forming Teams Benefits result only if the type of team created matches the task to be accomplished Benefits result only if the type of team created matches the task to be accomplished © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Figure 10.5 A Step-by-Step Approach to Forming Effective Teams

Copyright © 2003 by South-Western. All Rights Reserved. Stages of Team Development Teams typically progress through five stages of development Teams typically progress through five stages of development Forming Storming Performing Norming Adjourning © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Figure 10.6 Stages of Team Development

Copyright © 2003 by South-Western. All Rights Reserved. Stages of Team Development An orientation period during which team members get to know each other and find out what behaviors are acceptable to the group An orientation period during which team members get to know each other and find out what behaviors are acceptable to the group Forming © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Stages of Team Development Personalities of team members began to emerge at this stage Personalities of team members began to emerge at this stage Members clarify their roles and expectations Members clarify their roles and expectations Forming Storming © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Stages of Team Development Members resolve differences, accept each other, and reach consensus about the roles of the team leader and other participants Members resolve differences, accept each other, and reach consensus about the roles of the team leader and other participants Forming Storming Norming © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Stages of Team Development Members focus on solving problems and accomplishing tasks Members focus on solving problems and accomplishing tasks Forming Storming Performing Norming © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Figure 10.7 Team Members at the Performing Stage: Pulling Together toward a Common Goal

Copyright © 2003 by South-Western. All Rights Reserved. Stages of Team Development Team disbands after members have completed their assigned task or solved a problem Team disbands after members have completed their assigned task or solved a problem Forming Storming Performing Norming Adjourning © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Team Cohesiveness Team cohesiveness: the extent to which team members feel attracted to the team and motivated to remain part of it Team cohesiveness: the extent to which team members feel attracted to the team and motivated to remain part of it © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Figure 10.8 Building the Cohesiveness of a General Motors Team Figure 10.8 Building the Cohesiveness of a General Motors Team

Copyright © 2003 by South-Western. All Rights Reserved. Team Norms Team norm: informal standard of conduct shared by team members that guides their behavior Team norm: informal standard of conduct shared by team members that guides their behavior © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Team Conflict Conflict: antagonistic interaction in which one party attempts to thwart the intentions or goals of another Conflict: antagonistic interaction in which one party attempts to thwart the intentions or goals of another © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Styles of Conflict Resolution Decisive, assertive approach Decisive, assertive approach May be summarized by the expression, “We’ll do this task my way.” May be summarized by the expression, “We’ll do this task my way.” Competing © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Styles of Conflict Resolution Neither assertive nor cooperative Neither assertive nor cooperative Avoiding conflict is sometimes an effective response Avoiding conflict is sometimes an effective response Competing Avoiding © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Styles of Conflict Resolution Blends both assertiveness and cooperation Blends both assertiveness and cooperation Works well when conflict arises between two opposing and equally important goals, when combatants are equally powerful, or when the situation brings pressure to achieve an immediate solution Works well when conflict arises between two opposing and equally important goals, when combatants are equally powerful, or when the situation brings pressure to achieve an immediate solution Competing Avoiding Compromising © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Styles of Conflict Resolution Marked by active cooperation Marked by active cooperation Can help to maintain team harmony Can help to maintain team harmony Competing Avoiding Compromising Accommodating © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Styles of Conflict Resolution Combines active assertiveness and cooperation Combines active assertiveness and cooperation Can require lengthy, time-consuming negotiations, but can achieve a win-win situation Can require lengthy, time-consuming negotiations, but can achieve a win-win situation Competing Avoiding Collaborating Compromising Accommodating © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. THE IMPORTANCE OF EFFECTIVE COMMUNICATION Communication: meaningful exchange of information through messages Communication: meaningful exchange of information through messages Communication skills are important throughout an organization Communication skills are important throughout an organization © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Figure 10.9 The Communication Process The Process of Communication

Copyright © 2003 by South-Western. All Rights Reserved. Basic Forms of Communication People communicate in many different ways People communicate in many different ways © PhotoDisc

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Oral Communication Face-to-face oral communication allows people to combine words with such cues as facial expressions and tones of voice Face-to-face oral communication allows people to combine words with such cues as facial expressions and tones of voice Oral communication over the telephone lacks visual cues Oral communication over the telephone lacks visual cues Listening: skill of receiving a message and interpreting its intended meaning by grasping the facts and feelings it conveys Listening: skill of receiving a message and interpreting its intended meaning by grasping the facts and feelings it conveys © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Written Communication Channels include reports, letters, memos, online chat sessions, and ed messages Channels include reports, letters, memos, online chat sessions, and ed messages © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Nokia Wireless Digital Phones Connect People by Oral Communications – Speaking with a Person or by Written Communication – Sending a Text Message Nokia

Copyright © 2003 by South-Western. All Rights Reserved. Formal Communication Formal communication channel: carries messages that flow within the chain of command defined by an organization Formal communication channel: carries messages that flow within the chain of command defined by an organization © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Informal Communication Informal communication channels: carry messages outside formally authorized channels within organization’s hierarchy Informal communication channels: carry messages outside formally authorized channels within organization’s hierarchy Grapevine: an internal information channel that passes information from unofficial sources Grapevine: an internal information channel that passes information from unofficial sources © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Verbal and Nonverbal Communication Verbal communication: communication that conveys meaning through words Verbal communication: communication that conveys meaning through words Nonverbal communication: transmits messages through actions and behaviors Nonverbal communication: transmits messages through actions and behaviors © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Figure The Influence of Personal Space in Nonverbal Communication

Copyright © 2003 by South-Western. All Rights Reserved. COMMUNICATION WITHIN THE ORGANIZATION Internal communication: system that sends messages through channels within an organization Internal communication: system that sends messages through channels within an organization © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Communicating in Teams Centralized communication network: team members exchange messages through a single person to solve problems or make decisions Centralized communication network: team members exchange messages through a single person to solve problems or make decisions Decentralized communication network: members communicate freely with other team members and arrive at decisions together Decentralized communication network: members communicate freely with other team members and arrive at decisions together © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. COMMUNICATION OUTSIDE THE ORGANIZATION External communication: meaningful exchange of information through messages transmitted between an organization and its major audiences External communication: meaningful exchange of information through messages transmitted between an organization and its major audiences Communicators in today’s high-tech environment, like the one pictured on the next slide, expect messages to travel fast... and to get fast responses Communicators in today’s high-tech environment, like the one pictured on the next slide, expect messages to travel fast... and to get fast responses © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Figure Expectations Created by Technology: Fast Communication and Great Responsiveness Figure Expectations Created by Technology: Fast Communication and Great Responsiveness

Copyright © 2003 by South-Western. All Rights Reserved. COMMUNICATION TECHNOLOGY Managers rely increasingly on the latest technologies such as intranets, videoconferencing, fax machines, mobile telephones, and Managers rely increasingly on the latest technologies such as intranets, videoconferencing, fax machines, mobile telephones, and Most recent developments provide for richer communication channels by conveying images as well as sound and provide for greater interaction... often in real-time Most recent developments provide for richer communication channels by conveying images as well as sound and provide for greater interaction... often in real-time © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Benefits of Communication Technology Technology’s four major benefits: Technology’s four major benefits: Speeds up business operations Speeds up business operations Bypasses functional boundaries, so people in different departments can communicate directly... rather than through formal channels Bypasses functional boundaries, so people in different departments can communicate directly... rather than through formal channels Makes it easier for people with diverse skills to work together Makes it easier for people with diverse skills to work together May enhance customer service May enhance customer service © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Challenges of Communication Technology Increases the range of communication skills required of each employee Increases the range of communication skills required of each employee People’s choices about when, and with whom, they communicate have been revolutionized People’s choices about when, and with whom, they communicate have been revolutionized © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Figure Communication Technology: Benefits and Challenges

Copyright © 2003 by South-Western. All Rights Reserved. INTERNATIONAL BUSINESS COMMUNICATION Can be a special challenge Can be a special challenge Appropriateness depends in part on an accurate translation that conveys the intended nuances of meaning Appropriateness depends in part on an accurate translation that conveys the intended nuances of meaning © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. Figure Language Line: Translating Oral Communications Figure Language Line: Translating Oral Communications

Copyright © 2003 by South-Western. All Rights Reserved. INTERNATIONAL BUSINESS COMMUNICATION Low-context cultures tend to rely on explicitly written and verbal messages Low-context cultures tend to rely on explicitly written and verbal messages High-context cultures – such as those of Japan, Latin American, and India – depend not only on the message itself, but also the conditions that surround it High-context cultures – such as those of Japan, Latin American, and India – depend not only on the message itself, but also the conditions that surround it © PhotoDisc

Copyright © 2003 by South-Western. All Rights Reserved. WHAT’S AHEAD Exploration of the role of labor unions in contemporary business Exploration of the role of labor unions in contemporary business Discussion of the ways management works with unions Discussion of the ways management works with unions Viewing the nature of employer- employee relationships in nonunion firms Viewing the nature of employer- employee relationships in nonunion firms © PhotoDisc