Chapter 13 Managing Teams

Few trends have influenced how work gets done in organizations as much as the use of work teams. Organizations are increasingly structuring work around teams rather than individuals. Managers need to understand what influences team performance and satisfaction. Focus on the following learning outcomes as you read and study this chapter.

LEARNING OUTCOMES 

13.1 Define group and describe the stages of group development.
13.2 Describe the major components that determine group performance and satisfaction.
13.3 Define team and describe best practices influencing team performance.
13.4 Discuss contemporary issues in managing teams.

A MANAGER’S DILEMMA 

In today’s business world, an increasing number of firms are establishing work teams in order to increase creativity and innovation. Just as firms in the United States find that implementation of work teams contributes to an increase in the quality of their company’s  decisions,  the positive impact experienced by firms in other country where there is a great deal of diversity in the general population has made the use of teams very attractive. 

In this Manager’s Dilemma, we see why working with teams is not always easy.  France’s highly regarded national team, Les Bleus, went to the South African World Cup with a motto, “All together for a new dream.”However, the hopes of a successful World Cup run ended in a nightmare. One player was sent home early for insulting the coach and other players, upset by their poor performance, refused to show up for training.  The Dilemma ends, “so much for the dream.”  While teams are often successful at accomplishing their task, there are cases where group dynamics can prevent members from performing at their best.  What went wrong with Les Bleus?  Throwing star players together does not always mean that the result will be a star team. Students should recognize the immense pressure that the World cup players are under and the fact that country teams are composed of players who do not play on the same professional soccer teams.  Team development takes time, and group norms need to be developed before expecting high levels of performance. How groups form and some of the difficulties experienced by groups will be addressed in this chapter.

Today’s man¬agers must understand the nature and dynamics of groups in order to have the tools necessary to build effective teams. Your students are asked to brainstorm ways to maintain your team’s ability to innovate as new members join the group.  Have students consider how diversity both helps and aids group performance over time.  Discuss with students some of the problems employees are likely to experience as new members attempt to integrate an established team.  Have students “think outside of the box” in order to find a way to create greater cohesion among such a diverse work group.

CHAPTER OUTLINE 

INTRODUCTION
 Work groups are a common arrangement within today’s business organizations. Work is being restructured around groups of all kinds and in all sizes of organizations. Managers need an understanding of group behavior and the concept of teams in order to appreciate what groups can and cannot do within organizations and how groups function.

13.1 GROUPS AND GROUP DEVELOPMENT
 Groups exhibit different behavior—more than just the sum total of each group member’s individual behavior. In this section, we’re going to look at various aspects of group behavior.
A. What Is a Group?
 A group is defined as two or more interacting and interdependent individuals who come together to achieve particular objectives.
1. Formal groups are work groups established by the organization and who have designated work assignments and specific tasks. (See Exhibit 13-1)
2. Informal groups are natural social formations that appear in the work environment.

B. Stages of Group Development
 Evidence suggests that groups pass through five stages as they develop. (See Exhibit 13-2).
1. Forming is the first stage in group development during which people join the group and then define the group’s purpose, structure, and leadership. Forming is a stage characterized by much uncertainty. This stage is complete when members begin to think of themselves as part of a group.
2. Storming is the second stage of group development characterized by intragroup conflict. When this stage is complete, members will agree upon the leadership hierarchy and group direction.
3. Norming is the third stage of group development, characterized by close relationships and cohesiveness.
4. Performing is the fourth stage in group development when the group is fully functional.
5. Adjourning is the final stage in group development for temporary groups. It’s characterized by concern with wrapping up activities rather than with task performance.
13.2 WORK GROUP PERFORMANCE AND SATISFACTION
We need to look at how groups work. The answer to why some groups are more successful than others is quite complex. There are five factors that can affect this relationship. (See Exhibit 13-3)
A. External conditions imposed on the group. These factors include an organization’s strategy, authority relationships, formal rules and regulations, the availability of resources, employee selection criteria, the performance management system and culture, and the general physical layout of the group’s work space.
B. Group member resources.  These factors include member abilities and personality characteristics.
C. Group member resources.  The relationship between group performance and member resources is made more challenging in global organizations where cross-cultural groups are prevalent.
D. Group structure.  There are seven aspects of the internal structure.  Six are covered here and leadership is covered in Chapter Seventeen.
1. A role is a set of behavior patterns expected of someone occupying a given position in a social unit. Role conflict can occur when an individual is confronted with different role expectations.
 2. Norms are acceptable standards or expectations
shared by a group’s members. Although each group
has its own unique set of norms, there are common
classes of norms that appear in organizations.
3. Conformity.  Norms focus on effort and performance,
 dress, and loyalty. Also, because individuals desire acceptance by the groups to which they belong, they are susceptible to conformity pressure.  When an individual’s opinion of objective data differs significantly from that of others in the group, he or she feels extensive pressure to align his or her opinion to conform to others’ opinions.  This is known as groupthink.
4. Status systems are an important factor in understanding group behavior. Status is a prestige grading, position, or rank within a group.
5. Group size can also affect the group’s overall behavior. The effect depends on which outcomes are focused on. An important finding related to group size is social loafing—the tendency for individuals to expend less effort when working collectively than when working individually. .
6. Group cohesiveness is the degree to which members are attracted to a group and share the group’s goals. Research has shown that highly cohesive groups are more effective than those that are less cohesive. However, it’s important to look at the degree to which the group’s attitude aligns with the goals. (See Exhibit 13-5.)
E. Group processes include the communication patterns used by members to exchange information, group decision processes, leader behavior, power dynamics, conflict interactions, and other actions.
1. Group decision making (See Exhibit 13-6)
 Groups make many organizational decisions. Advantages of group decision making include the following benefits:
 a. Generate more complete information and knowledge
 b. Generate more diverse alternatives
 c. Increase acceptance of a solution
 d. Increase legitimacy
2. Disadvantages of group decision making include:
 a. Time consuming
 b. Minority domination
 c. Pressures to conform
 d. Ambiguous responsibility
3. Conflict management is another group concept that must be understood. Conflict is perceived when incompatible differences result in interference or opposition.
 a. The traditional view of conflict is the view that all conflict is bad and must be avoided.
 b.  The human relations view of conflict is the view that conflict is a natural and inevitable outcome in any group.
 c. The interactionist view of conflict is the view that some conflict is necessary for a group to perform effectively.
d.  Functional conflicts are conflicts that support a group’s goals and improve its performance. Dysfunctional conflicts are conflicts that prevent a group from achieving its goals. See Exhibit 13.7 for Conflict and Performance relationship.
4. Three types of conflict have been identified:
a. Task conflict is conflict over the content and goals of the work.
b. Relationship conflict is conflict based on interpersonal relationships.
c. Process conflict is conflict over how work gets done.
5. Managers may use a number of different conflict resolution approaches (see Exhibit 13-8).
F.  Group tasks. The complexity and interdependence of tasks influence the group’s effectiveness.

13.3 TURNING GROUPS INTO EFFECTIVE TEAMS
 Work teams are groups whose members work intensely on a specific, common goal using their positive synergy, individual and mutual accountability, and complementary skills.
A. What Is a Work Team?
Although most students are familiar with the concept of a “team,” many may be less familiar with the concept of a “work team.” All work teams are groups, but only formal groups can be work teams. Exhibit 13-9 highlights the differences between groups and teams.
B. Types of Teams
 Certain characteristics distinguish different types of teams:
1. A problem-solving team is a type of work team that is composed of a manager and his or her subordinates from a particular functional area.
2. A self-managed team is a type of work team that operates without a manager and is responsible for a complete work process or segment.
3. A cross-functional team is a work team composed of individuals from various specialties.
4. A virtual team is a type of work team that uses technology to link physically dispersed members in order to achieve a common goal.
C. Creating Effective Teams
The establishment of teams in the workplace will not automatically enhance productivity. Managers must look closely at how they can successfully develop and manage effective teams.
1. Research has been conducted on the characteristics associated with effective teams. The research on this subject indicates that effective teams have a number of characteristics.
2. Eight characteristics are associated with effective teams (see Exhibit 13-10).
a. Clear goals
b. Relevant skills
d. Unified commitment
e. Good communication
f. Negotiating skills
g. Appropriate leadership
h. Internal and external support

LEADERS WHO MAKE A DIFFERENCE

Marissa Mayer is Google’s Vice President of Search Products and User Experience.  Her cross-functional team of 6 staffers from engineering, design, and five other departments is responsible for redesigning Google’s page design.  By believing in her team, they were able to succeed “in a process marked by wild illustrations and precise mathematical code to create the page design.”

4. CURRENT CHALLENGES IN MANAGING TEAMS
The introduction of work teams into the world of business has had a major influence on how work gets done in organizations. The management of teams presents challenges as well as advantages to managers in today’s workplace. (See Exhibit 13-11)
A. Managing Global Teams
1. Both benefits and drawbacks are associated with the use of global teams.
2. Regarding group member resources in global teams, managers need to know and understand differences in the cultures of global team members and avoid stereotyping.
3. Differences in group structure may be significant. Managing global teams requires skill and sensitivity to different attitudes concerning conformity, status, social loafing, and cohesiveness.
4. Managing conflict as part of group processes can be difficult, especially in virtual global teams.
5. Managers must focus on developing excellent communication skills and sensitivity to different cultures in order to lead global teams successfully.

B. Understanding Social Networks
1. Recent studies show that teams with high levels of interpersonal interconnectedness attain their goals better and are more committed to sustaining the team.
2. Organizations are becoming increasingly aware of the importance of “mapping,” and understanding the social networks within teams.

LET’S GET REAL: MY RESPONSE
Tracy K. Tunwall
Assistant Professor of Business
Mount Mercy University
Cedar Rapids, IA

There are a lot of reasons why the French Soccer Team, Les Bleus, could have failed to develop into a high performing team.  Dr. Tunwall gives several likely suspects then goes into detail on a true team killer – lack of trust. Dr. Tunwall points out that trust is a necessity for any successful team.  Communication breaks down and relationships fail to develop when members on a team don’t feel that trust is present between members.

Answers to Review and Discussion Questions 

1. Describe the different types of groups and the five stages of group development.
A group is two or more interacting and interdependent individuals who come together to achieve specific goals. Formal groups are work groups that are defined by the organization’s structure and have designated work assignments and specific tasks directed at accomplishing organizational goals. Informal groups are social groups.
The forming stage consists of two phases: joining the group and defining the group’s purpose, structure, and leadership. The storming stage is one of intragroup conflict over who will control the group and what the group will be doing. The norming stage is when close relationships and cohesiveness develop as norms are determined. The performing stage is when group members began to work on the group’s task. The adjourning stage is when the group prepares to disband.

2. Explain how external conditions and group member resources affect group performance and satisfaction.
External conditions, such as availability of resources, organizational goals, and other factors, affect work groups. Group member resources (knowledge, skills, abilities, personality traits) can influence what members can do and how effectively they will perform in a group.

3. Discuss how group structure, group processes, and group tasks influence group performance and satisfaction.
Group roles generally involve getting the work done or keeping group members happy. Group norms are powerful influences on a person’s performance and dictate things such as work output levels, absenteeism, and promptness. Pressures to conform can heavily influence a person’s judgment and attitudes. If carried to extremes, groupthink can be a problem. Status systems can be a significant motivator with individual behavioral consequences, especially if incongruence is a factor. What size group is most effective and efficient depends on the task the group is supposed to accomplish. Cohesiveness is related to a group’s productivity.
Group decision making and conflict management are important group processes that play a role in performance and satisfaction. If accuracy, creativity, and degree of acceptance are important, a group decision may work best. Relationship conflicts are almost always dysfunctional. Low levels of process conflicts and low-to-moderate levels of task conflicts are functional. Effective communication and controlled conflict are most relevant to group performance when tasks are complex and interdependent.

4. Compare groups and teams.
Characteristics of work groups include a strong, clearly focused leader; individual accountability; purpose that’s the same as the broader organizational mission; individual work product; efficient meetings; effectiveness measured by influence on others; and discusses, decides, and delegates together. Characteristics of teams include shared leadership roles; individual and mutual accountability; specific team purpose; collective work products; meetings with open-ended discussion and active problem solving; performance measured directly on collective work products; and discusses, decides, and does real work.

5. Describe the four most common types of teams.
A problem-solving team is one that’s focused on improving work activities or solving specific problems. A self-managed work team is responsible for a complete work process or segment and manages itself. A cross-functional team is composed of individuals from various specialties. A virtual team uses technology to link physically dispersed members in order to achieve a common goal.

6. List the characteristics of effective teams.
The characteristics of an effective team include clear goals, relevant skills, mutual trust, unified commitment, good communication, negotiating skills, appropriate leadership, and internal and external support.

7. What challenges do managers face in managing global teams? How should those challenges be handled?
The challenges of managing global teams can be seen in the group member resources, especially the diverse cultural characteristics; group structure, especially conformity, status, social loafing, and cohesiveness; group processes, especially with communication and managing conflict; and the manager’s role in making
it all work.

8. Explain the role of informal (social) networks in managing teams.
Research on social networks has shown that when people need help getting a job done, they’ll choose a friendly colleague over someone who may be more capable. Another recent review of team studies showed that teams with high levels of interpersonal interconnectedness actually attained their goals better and were more committed to staying together.

9. How do you think scientific management theorists would react to the increased reliance on teams in organizations? How would behavioral science theorists react?
Scientific management theorists would likely react negatively to the use of teams in organizations. Scientific management focuses on the “one best way” for an individual to do his or her job; searching for the “one best way” could inhibit creativity and ideas for innovation that would likely come through the use of teams. Behavioral scientists, on the other hand, would be favorable to the concept of increased reliance on teams and groups. Because teams utilize input from the diverse background of several individuals and place responsibility on each team member, behavioralists would be in favor of this approach.

10. Why might a manager want to stimulate conflict in a group or team? How could conflict be stimulated?
A manager might want to stimulate conflict in a group or team in order to help that group or team generate more creative, innovative solutions to a problem or challenge. Managers want to stimulate conflict to gain the full benefits of its functional properties without allowing disagreement to become a disruptive force. Conflict can be simulated by bringing new members to the group, restructuring the group, appointing a devil’s advocate, attempting to change the group’s culture, and using open communication.

ETHICS DILEMMA 

What do you do when a co-worker shares that he has shaved his entire body to reduce aerodynamic drag?  In this ethical dilemma, students are asked what they think when colleagues sharing personal information.  An obvious issue to address here is does it cross the line and become sexual harassment. Sharing information that is too personal may create a hostile work environment.  Employees should know their rights and be able to tell a co-worker that they do not want to hear information with which they are uncomfortable.   How have social media and technology contributed to this type of information disclosure?  With Facebook and other websites, there is the potential to quickly share gossip, rumors, and incrementing photos of co-workers.  Companies need to be aware that they are potential liable when employees (who are agents of the company) share this information with others.

SKILLS EXERCISE:  DEVELOPING YOUR  COACHING SKILLS 

Managers are expected to add coaching to the growing list of expected skills.  In this exercise, students are given three steps to hone their coaching skills.  To strengthen their coaching muscles, students should choose two of the following activities and break each one into at least six to eight separate tasks or steps.  Students should indicate which steps are sequential, and which can be done simultaneously with others.  Finally, students should suggest the number of team members best suited for each task.
a. Making an omelet
b. Washing the car
c. Creating a computerized mailing list
d. Designing an advertising poster
e. Planning a ski trip
f. Restocking a supermarket’s produce department

WORKING TOGETHER:  TEAM EXERCISE 

In this exercise students are to imagine that they have been put in charge of a team to make snack foods like Doritos healthier.  Issues for students to think about include diverse group membership, rules of team behavior that would stimulate creativity, rewards for team members and evaluation of members.  Students may want to refer to Exhibit 13-10 for the characteristics of effective teams.

Your Turn to be a Manager 

• What traits do you think good team players have? Do some research to answer this question and write up a report detailing your findings using a bulleted list format.

• Select two of the characteristics of effective teams listed in Exhibit 13–10 and develop a team-building exercise for each characteristic that will help a group improve that characteristic. Be creative. Write a report describing your exercises and be sure to explain how your exercise will help a group improve or develop that characteristic.

• Complete the skill building modules Developing Trust, Creating Effective Teams, and Running Productive Meetings found on mymanagementlab. Your professor will tell you what you need to do with this information.

• Select one group to which you belong. Write a report describing the following things about this group: stage of group development, types of roles played by group members, group norms, group conformity issues, status system, size of group and how effective/efficient it is, and group cohesiveness.

• Using the same group, describe how decisions are made. Is the process effective? Efficient? Describe what types of conflicts seem to arise most often (relationship, process, or task) and how those conflicts are handled. Add this information to your report on the group’s structure.

• When working in a group (any group to which you’re assigned or to which you belong), pay careful attention to what happens in the group as tasks are completed. How does the group’s structure affect how successful the group is at completing its task? How about its processes?

• Steve’s and Mary’s suggested readings: Tom Rath, Vital Friends (Gallup Press, 2006); Jon R. Katzenbach and Douglas K. Smith, The Wisdom of Teams: Creating the High Performance Organization (McGraw-Hill, 2005); Patrick Lencioni, Overcoming the 5 Dysfunctions of a Team (Jossey-Bass, 2005); Ben Mezrich, Bringing Down the House: The Inside Story of Six MIT Students Who Took Vegas for Millions (The Free Press, 2002); Jon R. Katzenbach and Douglas K. Smith, The Discipline of Teams (Wiley, 2001); and Jean Lipman-Blumen and Harold J. Leavitt, Hot Groups (Oxford, 1999).

• Research brainstorming and write a report to your professor explaining what it is and listing suggestions for making it an effective group decision-making tool.

• In your own words, write down three things you learned in this chapter about being a good manager.

• Self-knowledge can be a powerful learning tool. Go to mymanagementlab and complete these self-assessment exercises: Do I Trust Others? Do Others See Me As Trusting? How Good Am I at Building and Leading a Team? What’s My Preferred Conflict-HandIing Style? Using the results of your assessments, identify personal strengths and weaknesses. What will you do to reinforce your strengths and improve your weaknesses?

Answers to Case Application Questions 

Aiming Higher

1. What challenges would there be to creating an effective team in an organization that was growing by acquiring other companies? How could managers deal with these challenges?
I always tell students, mergers (like marriages) involve the blending together of two, or more, different personalities.  Because members from both organizations have established ways of doing things, it would be difficult to get team members from both cultures to trust and communicate with each other.  Managers will need to give the new group time as well as the necessary resources to develop.  Goals for cooperation will need to be established in addition to rewards for team success.

2. Why do you think teamwork is crucial to Bancolombia’s efforts to forge a single identity?
During a merger or acquisition, organizations can be kept separate or they can be integrated. To get both organizations to integrate quickly, Bancolombia has decided to use teamwork.  The establishment of the team acts as a superordinate goal, which gives members of the organization something to work toward.

3. How do identical office chairs and an open-space office contribute to the emphasis on teamwork? How important is the physical workplace environment to the development of a teamwork atmosphere?
The identical office furniture would help maintain equity between team members – so individuals cannot claim favoritism.  In another sense it could be seen as creating an identity of being on the same team, like jerseys on a sports team. The open-office space would provide more opportunity for team members to interact with one another.  By changing the physical workplace, the organization is reinforcing the concept of a new beginning and divesting itself of old artifacts. 

Making Order Out of Chaos

1. As this story illustrated, sometimes teams have to move quickly. How do you get a team up and running quickly?
To get a team up and running quickly takes everyone understanding and adopting the group goals and professionalism on the part of members.  In this case, lives were on the line.  The population was devastated and needed immediate assistance.  The air traffic controllers also understood the danger posed by having so many aircraft fly and land in a congested area.

2. In a crisis situation such as this, what role does a team leader need to play? Explain.
Strong leadership can help members adopt the group goal and direct the action of members.  In time, teams can develop norms and member roles on their own, but in situations where time is short a strong leader can speed up the process.

3. Using Exhibit 13-10, what characteristics of effective teams would this team need? Explain.
From exhibit 13-10, the characteristics of an effective team include clear goals, relevant skills, mutual trust, unified commitment, good communication, negotiating skills, appropriate leadership, and internal and external support.  Students should see where all of these goals are important in this type of situation.

ADDITIONAL CHAPTER INFORMATION 

You may want to use the following example in class. The Harley-Davidson assembly plant located in Kansas City has been described as a new model of the American factory floor. Why? Harley has created an environment in which line workers are not just encouraged but required to speak up frequently and make decisions about how to build a better bike. And the entire factory is designed around self-directed work teams. In fact, the ability to work on a team is so important at the assembly plant that the hiring process weeds out anyone who didn’t score well on a teamwork assessment.