1. ninth edition STEPHEN P. ROBBINS PowerPoint Presentation by Charlie Cook The University of West Alabama MARY COULTER © 2007 Prentice Hall, Inc. All rights reserved. Understanding Groups and Teams Chapter 15

2. © 2007 Prentice Hall, Inc. All rights reserved.15–2

3. © 2007 Prentice Hall, Inc. All rights reserved.15–3 Peter Drucker on Teams…. “[One] problem is that management is becoming ever more fashion-conscious. Managers implement strategies like down-sizing and reengineering just because they seem like the thing to do. Managers are fashion-conscious because, in reality, 90% of running an organization is routine. Teenagers are fashion-conscious because most of what goes on at school is boring. The same goes for managers. Perhaps the worst example of this is the emphasis on teams. It takes years to build a successful team, but companies are rushing into it expecting instant results. In most cases, teams don’t even work. Teams are difficult to manage. Who is the boss? The team leader or the engineering boss that assigns the project to the team? It’s never a good idea to create a conflict of interest and loyalties. Teams are the right strategy only for a very small number of situations.”

4. © 2007 Prentice Hall, Inc. All rights reserved.15–4 Team Effectiveness: Some Impressive Results Wilson Sporting Goods -Wilson Sporting Goods - Kodak Customer Service -Kodak Customer Service - Corning -Corning - Sealed Air -Sealed Air - Exxon -Exxon - Carrier -Carrier - Xerox -Xerox - Westinghouse -Westinghouse - Texas Instruments -Texas Instruments - Avg. annual cost savings: $5 millionAvg. annual cost savings: $5 million Response accuracy increase: 100%Response accuracy increase: 100% Defect reduction: 1,800 ppm to 3 ppmDefect reduction: 1,800 ppm to 3 ppm Waste reduced by 50%Waste reduced by 50% $10 million saved in 6 months$10 million saved in 6 months Unit turnaround: 2 weeks to 2 daysUnit turnaround: 2 weeks to 2 days Productivity increased by 30%Productivity increased by 30% Product costs down 60%Product costs down 60% Cost reduction: over 50%Cost reduction: over 50%

5. © 2007 Prentice Hall, Inc. All rights reserved.15–5 Understanding Groups GroupGroup  Two or more interacting and interdependent individuals who come together to achieve specific goals.  Formal groups  Work groups defined by the organization’s structure that have designated work assignments and tasks. –Appropriate behaviors are defined by and directed toward organizational goals.  Informal groups  Groups that are independently formed to meet the social needs of their members.

6. © 2007 Prentice Hall, Inc. All rights reserved.15–6 Stages in Group Development FormingForming  Members join and begin the process of defining the group’s purpose, structure, and leadership. StormingStorming  Intragroup conflict occurs as individuals resist control by the group and disagree over leadership. NormingNorming  Close relationships develop as the group becomes cohesive and establishes its norms for acceptable behavior. PerformingPerforming  A fully functional group structure allows the group to focus on performing the task at hand. AdjourningAdjourning  The group prepares to disband and is no longer concerned with high levels of performance.

7. © 2007 Prentice Hall, Inc. All rights reserved.15–7 Groupthink Symptoms An illusion of invulnerability, which leads to unwarranted optimism and excessive risk taking by the group.An illusion of invulnerability, which leads to unwarranted optimism and excessive risk taking by the group. Unquestioned assumption of the group’s morality and therefore an absence of reflection on the ethical consequences of group action.Unquestioned assumption of the group’s morality and therefore an absence of reflection on the ethical consequences of group action. Collective rationalization to discount negative information or warnings.Collective rationalization to discount negative information or warnings. Stereotypes of the opposition as evil, weak, or stupid.Stereotypes of the opposition as evil, weak, or stupid. An illusion of unanimity such that greater consensus is perceived than really exists.An illusion of unanimity such that greater consensus is perceived than really exists. Direct pressure on dissenting members, which reinforces the norm that disagreement represents disloyalty to the group.Direct pressure on dissenting members, which reinforces the norm that disagreement represents disloyalty to the group. Mindguards, who protect the group from adverse information.Mindguards, who protect the group from adverse information.

8. © 2007 Prentice Hall, Inc. All rights reserved.15–8 Group Structure: Group Size Small groupsSmall groups  Complete tasks faster than larger groups.  Make more effective use of facts. Large groupsLarge groups  Solve problems better than small groups.  Are good for getting diverse input.  Are more effective in fact- finding. Social LoafingSocial Loafing  The tendency for individuals to expend less effort when working collectively than when work individually.

9. © 2007 Prentice Hall, Inc. All rights reserved.15–9 Group Structure (cont’d) Group CohesivenessGroup Cohesiveness  The degree to which members are attracted to a group and share the group’s goals.  Highly cohesive groups are more effective and productive than less cohesive groups when their goals aligned with organizational goals.

10. © 2007 Prentice Hall, Inc. All rights reserved.15–10 Group Processes: Group Decision Making AdvantagesAdvantages  Generates more complete information and knowledge.  Generates more diverse alternatives.  Increases acceptance of a solution.  Increases legitimacy of decision. DisadvantagesDisadvantages  Time consuming  Minority domination  Pressures to conform  Ambiguous responsibility

11. © 2007 Prentice Hall, Inc. All rights reserved.15–11 Exhibit 15–6Group versus Individual Decision Making Criteria of Effectiveness Groups Individuals Accuracy Speed Creativity Degree of acceptance Efficiency

12. © 2007 Prentice Hall, Inc. All rights reserved.15–12 Exhibit 15–7Techniques for Making More Creative Group Decisions

13. © 2007 Prentice Hall, Inc. All rights reserved.15–13 Exhibit 15–8Conflict and Group Performance

14. © 2007 Prentice Hall, Inc. All rights reserved.15–14 Exhibit 15–9Conflict-Management Techniques Source: Adapted from K.W. Thomas, “Conflict and Negotiation Processes in Organizations,” in M.D. Dunnette and L.M. Hough (eds.) Handbook of Industrial and Organizational Psychology, vol. 3, 2d ed. (Palo Alto, CA: Consulting Psychologists Press, 1992), p. 668. With permission

15. © 2007 Prentice Hall, Inc. All rights reserved.15–15 Exhibit 15–10Groups versus Teams

16. © 2007 Prentice Hall, Inc. All rights reserved.15–16 Exhibit 15–11Characteristics of Effective Teams

17. © 2007 Prentice Hall, Inc. All rights reserved.15–17 Characteristics of Effective Teams Have a clear understanding of their goals.Have a clear understanding of their goals. Have competent members with relevant technical and interpersonal skills.Have competent members with relevant technical and interpersonal skills. Exhibit high mutual trust in the character and integrity of their members.Exhibit high mutual trust in the character and integrity of their members. Are unified in their commitment to team goals.Are unified in their commitment to team goals. Have good communication systems.Have good communication systems. Possess effective negotiating skillsPossess effective negotiating skills Have appropriate leadershipHave appropriate leadership Have both internally and externally supportive environmentsHave both internally and externally supportive environments