1. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 1 CHAPTER 13 CHAPTER 13 Management 3rd Edition Chuck Williams Managing Teams Prepared by Deborah Baker Texas Christian University

2. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 2 CHAPTER 13 What Would You Do? You have been with Cessna nearly 20 years…  Cessna built its first plane in 1911, but in the 1980s, Cessna nearly went out of business  You are asked to rebuild the single-engine business from scratch  You want to use a team-based approach, but you realize the expense and training required What kind of people should you hire? What skills and experience do they need for a team?

3. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 3 CHAPTER 13 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 Boeing1987 Caterpillar1986 Champion International1985 Cummings Engine1973 Digital Equipment1982 Ford1982 General Electric1985 LTV Steel1985 Procter & Gamble 1962

4. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 4 CHAPTER 13 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.

5. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 5 CHAPTER 13 The Good and Bad of Using Teams 1 Advantages of Teams Disadvantages of Teams When to Use And Not Use Teams

6. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 6 CHAPTER 13 The Advantages of Teams 1.1 Customer Satisfaction Product and Service Quality Speed and Efficiency in Product Development Employee Job Satisfaction Increases… Better decision making and problem solving (multiple perspectives, alternate solutions, increased commitment to decisions) Better decision making and problem solving (multiple perspectives, alternate solutions, increased commitment to decisions)

7. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 7 CHAPTER 13 The Disadvantages of Teams 1.2 Initially High Employee Turnover Social Loafing Legal Risk (National Labor Relations Act) Employee Job Satisfaction Disadvantages of group decision making (groupthink, inefficient meetings, domination by a minority, lack of accountability) Disadvantages of group decision making (groupthink, inefficient meetings, domination by a minority, lack of accountability)

8. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 8 CHAPTER 13 The Disadvantages of Teams Factors that Encourage People to Withhold Effort in Teams 1.2 1.The presence of someone with expertise 2.The presentation of a compelling argument 3.Lacking confidence in one’s ability to contribute 4.An unimportant or meaningless decision 5.A dysfunctional decision-making climate Adapted From Exhibit 13.3

9. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 9 CHAPTER 13 The Disadvantages of Teams Minimizing the Legal Risks Associated with Teams and the National Labor Relations Act 1.2 Adapted From Exhibit 13.4 1.Use suggestion boxes 2.Give workers greater control 3.Don’t overrule 4.Don’t turn teams into representative bodies 5.Be careful of timing 6.Truly delegate

10. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 10 CHAPTER 13 When to Use Teams 1.3  There is a clear purpose  The job can’t be done individually  Team-based rewards are possible  Ample resources exist  Teams have authority  There is a clear purpose  The job can’t be done individually  Team-based rewards are possible  Ample resources exist  Teams have authority USE TEAMS WHEN…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

11. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 11 CHAPTER 13 Kinds of Teams 2 How Teams Differ in Autonomy How Teams Differ in Autonomy Special Kinds Of Teams Special Kinds Of Teams

12. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 12 CHAPTER 13 Autonomy, the Key Dimension 2.1 Traditional Work Groups Traditional Work Groups Employee Involvement Teams Employee Involvement Teams Semi- autonomous Work Groups Semi- autonomous Work Groups Self- managing Teams Self- managing Teams Self- designing Teams Self- designing Teams Autonomy Adapted From Exhibit 13.6

13. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 13 CHAPTER 13 Been There Done That Charles Dull, Senior VP of the Aid Association for Lutherans…  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

14. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 14 CHAPTER 13 Special Kinds of Teams 2.2 Cross-Functional Teams Virtual Teams Project Teams

15. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 15 CHAPTER 13 Cross-Functional Teams  Employees from different functional areas  Attack problems from multiple perspectives  Generate more ideas and alternative solutions  Often used in conjunction with matrix and product organizational structures 2.2

16. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 16 CHAPTER 13 Tips for Managing Successful Virtual Teams Virtual Teams 2.2  Select self-starters and strong communicators  Focus on clear, specific goals  Provide frequent feedback  Keep team upbeat and action-oriented  Periodically bring team members together  Improve communications  Ask team members for feedback on how well team is working Adapted From Exhibit 13.7

17. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 17 CHAPTER 13 Project Teams  Created to complete specific, one-time projects within a limited time  Often used to develop new products, improve existing products, roll out new information systems, or build new factories/offices  Can reduce or eliminate communication barriers, and typically speeds up the design process  Often used with matrix organizational designs 2.2

18. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 18 CHAPTER 13 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.

19. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 19 CHAPTER 13 Work Team Characteristics 3 Team Size Team Size Team Conflict Team Conflict Team Development Team Development Team Norms Team Norms Team Cohesiveness Team Cohesiveness

20. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 20 CHAPTER 13 Team Norms 3.1  Informally agreed-on standards that regulate team behavior  Powerful influence on work behavior  Can lead to positive and/or negative outcomes  Regulate the everyday behaviors of teams

21. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 21 CHAPTER 13 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 3.2

22. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 22 CHAPTER 13 Promoting Team Cohesiveness 3.2 1.Make sure all team members are present at team meetings 2.Create additional opportunities for teammates to work together 3.Engage in nonwork activities as a team 4.Make employees feel that they are part of a “special” organization

23. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 23 CHAPTER 13 What Really Works Cohesion and Team Performance Team Performance 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success66% Team Performance with Interdependent Tasks 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success73% Team Performance with Independent Tasks 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success60%

24. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 24 CHAPTER 13 Team Size 3.3 Size Performance

25. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 25 CHAPTER 13 Team Conflict 3.4  C-type Conflict  cognitive conflict  focuses on problems and issues  associated with improvements in team performance  A-type Conflict  affective conflict  emotional, personal disagreements  associated with decreases in team performance  Both types often occur simultaneously

26. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 26 CHAPTER 13 How Teams Can Have a Good Fight 3.4 Adapted from Exhibit 13.8 1.Work with more, rather than less, information 2.Develop multiple alternatives to enrich debate 3.Establish common goals 4.Inject humor into the workplace 5.Maintain a balance of power 6.Resolve issues without forcing a consensus

27. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 27 CHAPTER 13 Stages of Team Development 3.5 Team Performance Time Forming Storming Norming Performing De-Norming De-Storming De-Forming Adapted from Exhibit 13.9

28. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 28 CHAPTER 13 Enhancing Work Team Effectiveness 4 TeamTraining Team Compensation and Recognition Selecting People for Teamwork Setting Team Goals and Priorities

29. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 29 CHAPTER 13 Setting Team Goals and Priorities 4.1  Team goals enhance team performance  Goals clarify team priorities  Challenging team goals help team members to regulate effort

30. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 30 CHAPTER 13 Requirements for Stretch Goals to Motivate Team Performance 4.1  Have a high degree of autonomy  Empowered with control resources  Need for structural accommodation  Need for bureaucratic immunity

31. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 31 CHAPTER 13 Selecting People for Teamwork 4.2 TeamDiversityTeamDiversity TeamLevelTeamLevelIndividualism-CollectivismIndividualism-Collectivism

32. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 32 CHAPTER 13 Team Training 4.3 Training Needs for Teams Teams ConflictConflict Interpersonal Skills Decision Making and Problem Solving Technical Training Training for Team Leaders

33. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 33 CHAPTER 13 Problems Reported by Team Leaders 1. Confusion about new roles 2. Feeling they’ve lost control 3. Not knowing what it means to coach or empower 4. Having doubts about whether team concept will work 5. Uncertainty about dealing with employees’ doubts 6. Confusion about when team is ready for more responsibility 7. Confusion about how to share responsibility and accountability 8. Concern about promotional opportunities 9. Uncertainty about the strategic aspects of leader’s role as team matures 10. Not knowing where to turn for help with team problems 4.3 Adapted from Exhibit 13.11

34. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 34 CHAPTER 13 Team Compensation and Recognition  The level of reward must match the level of performance  Three methods of compensating team participants:  skill-based pay  gainsharing  nonfinancial rewards 4.4

35. Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 35 CHAPTER 13 What Would You Do—II?  The new team established a hierarchical centralized leadership group  Harley created a flatter organization comprised of three circles  Teams have been successful, but you are still encountering team conflict How can you keep the teams from unraveling? How can you make the team structure more effective? When your team took over Harley-Davidson, you began to rebuild a declining icon…