2. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 1

3. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 2 Chapter 14 Managing Teams

4. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 3 Learning Objectives After studying Chapter 14, you will know: how teams contribute to your organization’s effectiveness what makes the new team environment different from the old how groups become teams why groups sometimes fail how to build an effective team how to manage your team’s relationships with other teams how to manage conflict

5. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 4 The Contributions Of Teams Force for cost reduction Force for speed Building block for organization structure Effects on organizations Force for productivity Force for innovation Force for change Force for quality

6. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 5 Benefits Of Groups Benefits derived by organizations groups have greater total resources than individuals do groups have a greater diversity of resources groups can aid decision making Benefits derived by members a group is a useful learning mechanism a group can satisfy important personal needs group members can provide one another with feedback identify opportunities for growth and development train, coach, and mentor

7. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 6 The New Team Environment Definitions working group - collection of people who work in the same area or have been drawn together to undertake a task do not necessarily come together as a unit and achieve significant performance improvements team - small number of people with complementary skills who are committed to a common purpose, common performance goals, and a common approach for which they hold themselves mutually accountable real teams are more fully integrated into the organizational structure authority of teams is increasing

8. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 7 The New Team Environment (cont.) Types of teams work teams - make or do things like manufacture, assemble, sell, or provide service are well defined and a clear part of the organization’s structure composed of a full-time, stable membership project and development teams - work on long-term projects disband when the work is completed parallel teams - operate separately from the regular work structure on a temporary basis do work that is not normally done by the standard structure recommend solutions to specific problems do not have the authority to act

9. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 8 The New Team Environment (cont.) Types of teams (cont.) management teams - coordinate and provide direction to subunits under their jurisdiction integrate work among subunits authority based on hierarchical rank responsible for the overall performance of the business unit Dial Up User’s High Speed User’s

10. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 9 The New Team Environment Managers determine and plan the work Jobs are narrowly defined Cross-training is viewed as inefficient Most information is “management property” Training for nonmanagers focuses on technical skills Risk taking is discouraged and punished People work alone Rewards based on individual performance Managers determine “best methods” Traditional environment Team environment Managers and teams jointly determine and plan the work Jobs require broad skills and knowledge Cross-training is the norm Most information is freely shared Continuous learning requires training for all Encourage and support measured risk taking People work together Rewards based on contributions to the team and individual performance Everyone works to improve methods and processes

11. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 10 Team Autonomy Continuum Traditional work groups Self-designing teams Quality circles Semi-autonomous work groups High performance work teams Self-managing teams Low team autonomy High team autonomy

12. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 11 The New Team Environment (cont.) Self-managed teams autonomous work groups in which workers are trained to do all or most of the jobs in a unit have no immediate supervisor make decisions previously made by first-line supervisors compared to traditionally managed teams, self managed teams appear to: be more productive have lower costs provide better customer service have better safety records be more satisfying for members

13. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 12 The New Team Environment (cont.) Self-managed teams (cont.) traditional work groups - have no managerial responsibilities supervised by first-line manager quality circles - voluntary groups of people drawn from various production teams who make suggestions about quality have no authority to make decisions or execute semiautonomous work groups - make decisions about managing and carrying out major production activities still get outside support for quality control and maintenance

14. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 13 The New Team Environment (cont.) Self-managed teams (cont.) autonomous work groups (self-managing teams) - control decisions about and execution of a complete range of tasks fully responsible for an entire product or an entire part of a production process self-designing teams - control the design of the team other responsibilities comparable to those of autonomous work groups semiautonomous and autonomous teams improve the organization’s financial and overall performance

15. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 14 How Groups Become Teams Group activities forming - members lay the ground rules for what types of behavior are acceptable storming - hostilities and conflict arise people jockey for positions of power and status norming - members agree on shared goals norms and closer relationships develop performing - group channels its energies into performing its task declining - deterioration of a group adjourning - termination of a group

16. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 15 How Groups Become Teams (cont.) Group activities (cont.) transnational teams work groups composed of multinational members whose activities span multiple countries often are geographically dispersed and psychologically distant work on highly complex projects of considerable importance teams require several skills advocacy skills - build team’s legitimacy catalytic skills - work with a variety constituents, build commitment, reward members for contributions integrative skills - emphasize excellence, coordinate problem solving, and measure progress and results

17. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 16 How Groups Become Teams (cont.) The passage of time groups are open to formative experiences at critical periods forming period - rules, norms, and roles are established that set long-lasting precedents midway period - occurs between initial meeting and a deadline realization that time is becoming a scarce resource group must “get on with it” groups should renew or open lines of communication sufficient time to change the approach if necessary A developmental sequence groups do not necessarily progress from one ‘stage’ to the next progress on these dimensions must be a conscious goal

18. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 17 Stepping Up To Team Leadership React to change Foresee and influence change Implement change Contain conflict Make the most of team differences Resolve conflict Manage one-on-one Create a team identity Coordinate group effort Train individuals Expand team capabilities Develop individual performance Explain decisions Facilitate and support team decisions Get input for decisions Direct people Build trust and inspire teamwork Involve people Supervisory leadership Team leadership Participative leadership

19. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 18 How Groups Become Teams (cont.) Why groups sometimes fail not easy to build high- performance teams teams sometimes are launched with little or no training or support systems giving up control to teams is difficult for some managers teams are not allowed to make important decisions failure lies in not knowing and doing what makes teams successful

20. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 19 Building Effective Teams Criteria for team effectiveness productive output - standards of quantity and quality satisfaction of member’s personal needs commitment to work together A performance focus key element is commitment to a common purpose common understanding of how team will work together norms developed for examining performance strategies purpose translated into measurable performance goals team will play the lead role in designing the measurement system feedback on team performance

21. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 20 Building Effective Teams (cont.) Motivating teamwork social loafing - being less productive when in a group occurs when individuals believe that: their contributions are not important others will do the work for them their lack of effort will go undetected social facilitation - working harder when in a group than when working alone occurs when individuals: are concerned with what others think of them and when they want to maintain a positive self-image know each other and can observe each other have clear performance goals and culture supportive of teamwork

22. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 21 Building Effective Teams (cont.) Motivating teamwork (cont.) generated by designing the team’s task to be motivating the task is meaningful team members accountable to one another, not just the boss best motivation is tying rewards to team performance assumes that performance can be measured validly differential rewards for member’s contributions should be made by the team itself member contributions members should be selected and trained to be effective teams require technical, problem-solving and decision-making, and interpersonal skills

23. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 22 Building Effective Teams (cont.) Norms shared beliefs about how people should think and behave from the organization’s standpoint, norms can be positive or negative

24. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 23 Building Effective Teams (cont.) Roles different sets of expectations for how different individuals should behave two important sets of roles must be performed task specialist - have more job-related skills and abilities keep team moving toward task accomplishment maintenance specialist - develop and maintain harmony team leaders - build commitment and confidence manage relationships with outsiders deal with obstacles in the way of team performance create opportunities for team members do real work, not just supervise

25. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 24 Building Effective Teams (cont.) Roles (cont.) coach - management representative to whom the team reports not a true member of the team helps the team understand its role in the organization acts as a resource to the team acts as an advocate for the team in the rest of the organization Cohesiveness degree to which: the team is attractive to its members members are motivated to remain in the team members influence one another

26. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 25 Building Effective Teams (cont.) Cohesiveness (cont.) importance of cohesiveness contributes to member satisfaction impacts performance depending upon the task and team norms the task in decision making tasks, a cohesive team is subject to groupthink to make a good decision, team should establish a norm of constructive disagreement if task involves producing tangible output, cohesiveness can enhance performance performance norms - cohesive groups are more effective at norm enforcement

27. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 26 Cohesiveness, Performance Norms, And Group Performance Low High Performance Norms High Low Cohesiveness Poor goal attainment and task performance Moderate goal attainment and task performance High goal attainment (group’s perspective) and lowest task performance (management’s perspective ) High goal attainment and task performance

28. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 27 Building Cohesiveness And High Performance Norms Help team succeed and publicize its successes Be a participative leader Recruit members with similar attributes Team Cohesiveness and Performance High entrance and socialization standards Tie rewards to team performance Present a challenge from outside the team Keep the team small

29. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 28 Managing Lateral Relationships Managing outward gatekeeper - role that spans team boundaries scans environment for relevant information team’s strategy dictates the mix of internally versus externally focused roles informing strategy - entails concentrating on the internal team process to achieve a state of performance readiness subsequently, outsiders informed of teams intentions parading strategy - entails simultaneously emphasizing internal team building and achieving external visibility probing strategy - requires team members to interact frequently with outsiders to diagnose customer needs and experiment with solutions

30. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 29 Patterns Of Working Relationships Lateral role relationships Work flow relationships Stabilization relationships Audit relationships Service relationships Liaison relationships Advisory relationships

31. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 30 Managing Lateral Relationships (cont.) Intergroup conflict some conflict may be constructive for the organization many things cause great potential for destructive conflict tensions and anxieties likely to arise in teams that are: demographically diverse from different parts of the organization composed of contrasting personalities over time and with communication, diverse groups become more cooperative and perform better than homogeneous groups

32. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 31 Managing Lateral Relationships (cont.) Managing conflict aim is to make conflict productive people benefit from conflict when: a new solution is implemented, the problem is solved, and it is unlikely to emerge again work relationships have been strengthened and people believe they can work together in the future four-stage dispute resolution process investigate - interview the disputants and others decide - decide how to resolve the dispute take action - explain decision and the reasoning follow up - document the conflict and the resolution

33. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 32 Managing Lateral Relationships (cont.) Managing conflict (cont.) don’t allow dysfunctional conflict to build address it before it escalates procedural justice is important make a good faith effort give voice in proceedings

34. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 33 Managing Lateral Relationships (cont.) Conflict styles two dimensions used to distinguish among styles assertiveness - how much people strive to satisfy their own concerns cooperativeness - degree of focus on satisfying other party’s concerns different styles are necessary at different times collaboration is the ideal approach when both sets of concerns are valid, a creative solution is needed, and when commitment to the solution is vital for implementation superordinate goals - higher-level organizational goals toward which all teams should be striving

35. McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill© 2003 The McGraw-Hill Companies, Inc. All rights reserved. 14 - 34 UncooperativeCooperative Cooperativeness Unassertive Assertive Assertiveness Competing Collaborating Compromising Avoiding Accommodating Conflict Management Strategies