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Chapter 11 im

  1. 1. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENTOVERVIEW OF THE CHAPTERThis chapter examines in detail groups and teams, how they can contribute to increasedorganizational effectiveness, and the various factors that influence the level of group and teamproductivity. Different kinds of groups and teams are described, and the group dynamics thatinfluence the functioning and effectiveness of groups are outlined. The chapter also discusseshow managers can motivate group members to achieve organizational goals and how socialloafing in groups and teams can be reduced.LEARNING OBJECTIVES1. Explain why groups and teams are key contributors to organizational effectiveness. (LO1)1. Identify the different types of groups and teams that help managers and organizationsachieve their goals. (LO2)2. Explain how different elements of group dynamics influence the functioning andeffectiveness of groups and teams. (LO3)3. Explain why it is important for groups and teams to have a balance of conformity anddeviance and a moderate level of cohesiveness. (LO4)4. Describe how managers can motivate group members to achieve organizational goals andreduce social loafing in groups and teams. (LO5)MANAGEMENT SNAPSHOT: TEAMS EXCEL IN DIVERSE INDUSTRIESManagers at Louis Vuitton, the most profitable luxury brand in the world, and managers atNucor Corporation, the largest producer of steel and biggest recycler in the U.S., have bothsucceeded in using teams to help their organizations become leaders in their respectiveindustries. At Vuitton, teams have between 20 to 30 members that work with one product at atime. Hence, a team with 24 members might produce 120 handbags per day. Team membersare empowered to take ownership for the goods they produce, encouraged to suggestimprovements, and are kept up-to-date on key management facts such as popularity andselling price of products.Production workers at Nucor are organized into teams ranging from eight to forty members,based upon the kind of work the team is doing. Each team develops its own informal rules forbehavior and makes its own decisions, with managers acting as coaches or advisors. Teammembers are eligible for weekly bonuses based on the team’s performance. Because allmembers of a team receive the same amount of weekly bonus money, they are motivated todo their best for the team.Jones and George, Essentials of Contemporary Management, Third Edition 11-1
  2. 2. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENTLECTURE OUTLINEI. GROUPS, TEAMS, AND ORGANIZATIONAL EFFECTIVENESS (LO1)A group may be defined as two or more people who interact with each other to accomplishcertain goals or meet certain needs. A team is a group whose members work intensely witheach other to achieve a specific common goal or objective.• All teams are groups, but not all groups are teams.• The two characteristics that distinguish teams from groups are the intensity with whichteam members work together and the presence of a specific, overriding team goal orobjective.• In this chapter, the term group refers to both groups and teams.• Because members of teams do work intensely together, teams can be difficult to form,and it may take time for team members to learn how to effectively work together.• Groups and teams can help an organization gain a competitive advantage by: 1)enhancing organizational performance, 2) increasing responsiveness to customers, 3)increasing innovation, and 4) increasing levels of employee motivation and jobsatisfaction.Groups and Teams as Performance EnhancersOne of the main advantages of using groups is the opportunity to obtain synergy. Peopleworking in a group are able to produce more than would have been produced if each personhad worked separately. Synergy is described by statement that ‘the whole is more than thesum of its parts.’• To take advantage of the potential for synergy in groups, managers need to make surethat groups are composed of members who have complementary skills and knowledge.Jones and George, Essentials of Contemporary Management, Third Edition 11-2
  3. 3. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENT• To promote synergy, managers need to empower their subordinates and be coaches,guides, and resources for groups, while refraining from playing a directive orsupervisory role.• When tasks are complex and involve highly sophisticated and rapidly changingtechnologies, achieving synergies in teams often hinges on having the appropriate mixof backgrounds and areas of expertise represented on the team.Groups, Teams, and Responsiveness to CustomersBeing responsive to customers often requires the wide variety of skills found in differentdepartments. In a cross-functional team, the expertise and knowledge of differentorganizational departments are brought together into a team environment in order to enhanceresponsiveness to customers.Teams and Innovation• Innovation, the creative development of new products, new services, or even neworganizational structures, can be better managed by creating teams of diverseindividuals who together have the necessary knowledge for innovation.• In addition, team members can often uncover each other’s errors or false assumptions,critique each other’s approaches, and complement each other’s strengths whilecompensating for weaknesses.• To further promote innovation, managers should empower teams by making theirmembers fully responsible and accountable for the innovation process. To speedinnovation, managers must form teams in which each member brings a uniqueresource to the team. Successful innovation sometimes requires that managers formteams with members from different countries and cultures.Groups and Teams as Motivators• Members of groups and teams are likely to be more highly motivated and satisfiedthan they would have been if they were working on their own. This is becauseworking alongside other highly charged people can be stimulating, which allows teammembers to more readily see how their efforts contribute to achievement oforganizational goals.• This increased motivation and satisfaction can also lead to other outcomes, such aslower turnover, satisfaction of team members’ need for social interaction, andimproved ability of team members to cope with work stress.Jones and George, Essentials of Contemporary Management, Third Edition 11-3
  4. 4. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENT• Effectively managed groups and teams can help managers in their quest for highperformance, responsiveness to customers, and employee motivation.Jones and George, Essentials of Contemporary Management, Third Edition 11-4
  5. 5. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENTII. TYPES OF GROUPS AND TEAMS (LO2)To achieve their goals, managers can form various types of groups and teams. Formal groupsare groups that managers establish to achieve organizational goals.• Cross-functional teams are formal groups composed of members from differentdepartments and of members from different cultures or countries.• Sometimes organization members form informal groups on their own because theyfeel that it helps them achieve their personal goals or needs.The Top-Management TeamA central concern of the CEO and president of a company is to form a top management teamto help the company achieve its mission and goals. This team is responsible for developingthe strategies that result in an organization’s competitive advantage.• Most top-management teams have between five and seven members and many are alsocross-functional.• Diversity within the top management team helps guard against groupthink, faultygroup decision making that results when group members strive for agreement at theexpense of an accurate assessment of the situation.Research and Development TeamsManagers in high-tech industries often create research and development teams to developnew products. Managers select R&D team members on the basis of their expertise andexperience in a certain area. Sometimes R&D teams are cross-functional teams with membersfrom many departments.Command GroupsA command group is a group composed of subordinates who report to the same supervisor.Often they are called a department or unit. When top managers design an organization’sstructure and establish reporting relationships and a chain of command, they are creatingcommand groups.Jones and George, Essentials of Contemporary Management, Third Edition 11-5
  6. 6. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENTTask ForcesManagers often form task forces to solve a specific problem or accomplish specific goalswithin a certain period of time. Task forces are also called ad hoc committees. Once the taskforce accomplishes its goal or resolves its problem, it usually disbands.• They can be a valuable tool for busy managers who do not have the time to explore animportant issue in depth.• Task forces that are relatively permanent are often referred to as standing committees.Membership in standing committees changes over time. Managers often form andmaintain standing committees to make sure that important issues continue to beaddressed.Self-Managed Work TeamsSelf-managed work teams are teams in which team members are empowered with theresponsibility and autonomy to complete identifiable pieces of work. Team members decidewhat the team will do, how it will do it, and which team members will perform which specifictasks. Managers provide teams with overall goals but let team members decide how to meetthose goals. Managers usually form self-managed work teams to improve quality, increasemotivation and satisfaction, and lower costs.Managers can take a number of steps to ensure that self-managed work teams are effectiveand help an organization gain a competitive advantage:• Give teams enough responsibility and autonomy to be truly self-managing. Refrainfrom telling team members what to do or solving problems for them, even if you asmanager know what should be done.• Make sure that a team’s work is sufficiently complex so that it entails a number ofdifferent steps or procedures that must be performed and results in some kind offinished end product.• Carefully select members of self managed work teams. Team members should havethe diversity of skills needed to complete the team’s work, have the ability to workwith others and want to be part of a team.• As a manager, realize that your role vis-à-vis self-managed work teams calls forguidance, coaching, and support, not supervision. You are a resource for teams to turnto when needed.Jones and George, Essentials of Contemporary Management, Third Edition 11-6
  7. 7. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENT• Analyze what type of training team members need and provide it. Working in a self-managed work team often requires that employees have more extensive technical andinterpersonal skills.Self-managed teams can run into trouble if members are reluctant to discipline on another.Virtual TeamsVirtual teams are composed of members who rarely or never meet face-to-face and interact byusing various forms of information technology. As organizations are becoming increasinglyglobal, virtual teams allow employees to solve problems and explore opportunities withoutbeing limited by geographic location.• Virtual teams might even include members who are not part of the organization, butwho are part of an organization used for outsourcing.• Virtual teams rely on two forms of information technology: synchronous andasynchronous technology. Synchronous technology enables virtual team members tocommunicate and interact with each other in real time and simultaneously throughvideoconferencing, teleconferencing, and electronic meetings. Asynchronoustechnologies delay communication, as with e-mail or Internet websites.• One of the challenges virtual team members face is building a sense of camaraderieand trust among each other. To address this challenge, some organizations scheduleopportunities for virtual team members to meet. Research suggests that while somevirtual teams can be as effective as traditional teams, virtual team members might beless satisfied with teamwork efforts and have fewer feelings of camaraderie orcohesion.• Research also suggests that it is important for managers to keep track of virtual teamsand intervene when necessary.Friendship GroupsFriendship groups are informal groups composed of employees who enjoy each other’scompany and socialize with each other. Friendship groups help satisfy employees’ needs forinterpersonal interaction and can provide social support in times of stress. The informalrelationship that managers build in these groups can often help them solve work-relatedproblems.Jones and George, Essentials of Contemporary Management, Third Edition 11-7
  8. 8. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENTInterest GroupsEmployees form informal interest groups when they seek to achieve a common goal related totheir membership in an organization. Interest groups can provide managers with insights intothe issues and concerns that are important to employees. These groups can also signal theneed for change.III. GROUP DYNAMICS (LO3)The ways in which a group functions depend upon a number of group characteristics andprocesses known as group dynamics. Five key group dynamics will be discussed: group sizeand roles, group leadership, group development, group norms, and group cohesiveness.Group SizeThe number of members in a group can be an important determinant of members’ motivationand commitment, as well as overall group performance.• Members of small groups, between two and nine members, tend to interact more witheach other, find it easier to coordinate their efforts, and tend to be more motivated,satisfied, and committed. They also find it easier to share information and to see theimportance of their personal contributions for group success.• A disadvantage of small versus large groups is that members of small groups havefewer resources available to accomplish their goals.• Large groups with ten or more members offer some advantages. They have moreresources at their disposal to achieve group goals, such as the knowledge, experience,skills, and abilities of group members. They can also capitalize upon the advantagesthat stem from the division of labor.• The disadvantages of large groups include problems of communication andcoordination and lower levels of motivation, satisfaction, and commitment.• When deciding upon the appropriate size for any group, managers should attempt togain the advantages of small group size while also forming groups with sufficientresources to accomplish their goal. As a general rule, groups should have no moremembers than necessary to achieve the required division of labor.• In R&D teams, group size is too large when: 1) members spend more timecommunicating what they know to others than applying what they know to solveproblems and create new products, 2) individual productivity decreases, and 3) groupperformance suffers.Jones and George, Essentials of Contemporary Management, Third Edition 11-8
  9. 9. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENTGroup RolesA group role is a set of behaviors and tasks that a member of a group is expected to performbecause of his or her position in the group.• Members of cross-functional teams are expected to perform roles relevant to theirspecial areas of expertise.• Managers need to clearly communicate to group members the expectations for theirrole in the group, what is expected of them, and how the different roles in the group fittogether.• Managers should encourage role making, taking the initiative to modify an assignedrole by assuming additional responsibilities.• In self-managed work teams, group members themselves are responsible for creatingroles.Group LeadershipAll groups and teams need leadership. Sometimes managers assume the leadership role orappoint a member of a group. In other cases, group or team members may choose their ownleaders, or a leader may emerge naturally. Sometimes self-managed work teams rotate theleadership role among members.Group Development over TimeIt sometimes takes a self-managed work team two or three years to perform up to its truecapabilities. What a group is capable of achieving depends in part upon its stage ofdevelopment. Researchers have identified five stages of group development that many groupsseem to pass through.• In the first stage, forming, members try to get to know each other and reach a commonunderstanding.• In the second stage, storming, group members experience conflict and disagreements.• During the third stage, norming, close ties between group members develop.• In the fourth stage, performing, the real work of the group gets accomplished.• The last stage, adjourning, applies only to groups that eventually are disbanded.Jones and George, Essentials of Contemporary Management, Third Edition 11-9
  10. 10. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENTGroup Norms• Group norms are shared guidelines or rules for behavior that most group membersfollow. Groups develop norms concerning a wide variety of behaviors, including workhours, sharing information, how tasks are performed, and how members should dress.• Managers should encourage members to develop norms that contribute to groupperformance and the attainment of group goals.Conformity and Deviance• Group members conform to norms because: 1) they want to obtain rewards and avoidpunishments, 2) they want to imitate group members whom they like and admire, and3) because they have internalized the norms and believe that they are the right andproper way to behave.• Failure to conform, or deviance, occurs when a member of a group violates a groupnorm. Deviance signals that the group is not controlling its members’ behaviors.Groups generally respond to members who behave defiantly in one of three ways: 1)the group might try to get the member to change his or her deviant ways and conform,2) the group might expel the member, or 3) the group might change the norm so that itis consistent with the member’s behavior.• The last alternative suggests that some deviant behavior can be functional for a group.Deviance is functional when it causes group members to stop and evaluate norms thatmay be dysfunctional but taken for granted.Encouraging a Balance of Conformity and Deviance• In order for groups and teams to be effective, they need to have the right balance ofconformity and deviance. A group needs a certain level of conformity to controlmembers’ behavior. A group also needs a certain level of deviance to ensure thatdysfunctional norms are discarded.• Managers can take steps to ensure that there is some tolerance of deviance in groups.They can: 1) be role models for the group, 2) let employees know that there are alwaysways to improve group processes, and 3) encourage members of groups and teams toassess existing norms.Jones and George, Essentials of Contemporary Management, Third Edition 11-10
  11. 11. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENTManagement Insight: Teams Benefit from Deviance and Conformity at IDEOIdeo has designed many successful new products, such as the first Apple mouse and the Palmhandheld organizer. Managers and designers at Ideo see themselves as experts in the processof innovation. Innovation and new product development at Ideo is a team effort. The companyrecognizes that it is through diversity in thought that people can recognize opportunities forinnovation. Paradoxically, both conformity and deviation are encouraged on Ideo teams.Conformity to a few very central norms is expected, but diversity of thought and evendeviance is encouraged as a means of promoting innovation.Group CohesivenessGroup cohesiveness is the degree to which members are attracted or loyal to their group.When group cohesiveness is high, individuals strongly value their group membership. Whengroup cohesiveness is low, group members have little desire to retain their group membership.Research indicates that managers should strive to have a moderate level of cohesiveness inthe groups.Consequences of Group CohesivenessThere are three major consequences of group cohesiveness: levels of participation within thegroup may change, levels of conformity to group norms may change, and emphasis on groupgoal accomplishment may change.Level of Participation Within a Group: As group cohesiveness increases, the extent of groupmembers’ participation within the group increases. A moderate level of group cohesivenesshelps to ensure that group members actively participate in the group. Too much cohesivenesscan reduce efficiency.Level of Conformity to Group Norms: Increasing levels of group cohesiveness result inincreasing levels of conformity to norms. Too much conformity may result in conforming tonorms even when they are dysfunctional. Low cohesiveness can result in too much devianceand can undermine group control.Emphasis on Group Goal Accomplishment: As group cohesiveness increases, emphasis ongroup goal accomplishment increases within the group. For an organization to be effective,the different groups need to cooperate with each other and to be motivated to achieveorganizational goals. A moderate level of cohesiveness motivates group members toaccomplish both group and organizational goals.Jones and George, Essentials of Contemporary Management, Third Edition 11-11
  12. 12. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENTFactors Leading to Group CohesivenessFour factors contribute to the level of group cohesiveness. These determinants of groupcohesiveness are group size, effectively managed diversity, group identity, and healthycompetition and success.Group Size: Members of small groups tend to be more motivated and committed. To promotecohesiveness in groups, managers should form groups that are small to medium in size.Effectively Managed Diversity: Although people tend to like and get along with others whoare similar to them, diversity in groups, teams, and organizations can help an organizationgain a competitive advantage. Diverse groups often come up with more innovative andcreative ideas.Group Identity and Healthy Competition: Managers can increase group cohesion byencouraging groups to develop their own identities and engage in healthy competition.Healthy competition among groups is promoted by displaying measures of each team’sperformance and the extent to which they have met their goals to others. Conversely,managers can decrease cohesiveness by promoting organizational identity rather than groupidentity, reducing or eliminating competition between groups, and rewarding cooperationbetween groups.Success: As groups become more successful, their cohesiveness tends to increase. Managerscan increase cohesiveness by making sure that a group can achieve some visible success.IV. MANAGING GROUPS AND TEAMS FOR HIGH PERFORMANCEManagers striving to have top performing groups and teams need to: 1) motivate groupmembers to work toward the achievement of organizational goals, 2) reduce social loafing,and 3) help groups to manage conflict effectively.Motivating Group Members to Achieve Organizational GoalsWhen work is difficult, tedious, or requires a high level of commitment, managers cannotassume that group members will always be motivated to work toward the organizationalgoals.• Managers can motivate members by making sure that the members themselves benefitwhen the group or team performs highly.Jones and George, Essentials of Contemporary Management, Third Edition 11-12
  13. 13. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENT• Managers often rely on some combination of individual and group-based incentives tomotivate members of groups. A major challenge is to develop a fair pay system thatwill lead to high individual motivation and high group performance.• Other benefits that managers can use include providing extra resources, bestowingawards and recognition, and offering a choice of future work assignments.Ethics in Action: Valero Energy’s Commitment to Employees Prevails in a CrisisIn ten years, Valero Energy has grown from a single oil refinery to the largest refiner, in theUnited States with eighteen refineries. The CEO has always realized that Valero’s employeesare the backbone of the company and has been steadfast in his commitment to them. In 2006,Valero was ranked third in Fortune’s 100 Best Companies to Work For. When describing thiscompany, Fortune Magazine wrote, “When disaster strikes, this team pulls together. AfterHurricane Katrina and Rita hit, Valero dispatched semis filled with supplies, set up temporaryhousing for employees, fed volunteers, and donated $1 million to the Red Cross.Reducing Social Loafing in GroupsSocial loafing is the tendency of individuals to put forth less effort when they work in groupsthan when they work alone. It can result in lower group performance and may even preventthe group from attaining its goals.To reduce or eliminate social loafing, managers can:• Make individual contributions to a group identifiable. Group members shouldperceive that low and high levels of effort will be noticed and individual contributionsevaluated. Managers can assign specific tasks to group members and hold themaccountable for their completion. Sometimes the members of a group can cooperate toeliminate social loafing by making individual contributions identifiable. However, insome teams, individual contributions cannot be made identifiable.• Emphasize the valuable contributions of individual members. People sometimesthink that their efforts are unnecessary or unimportant when they work in a group.When managers form groups, they should assign individuals to groups on the basis ofthe valuable contributions that each person can make.Jones and George, Essentials of Contemporary Management, Third Edition 11-13
  14. 14. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENT• Keep group size at an appropriate level. As size increases, members areincreasingly likely to think that their individual contributions are not important.Managers should form groups with no more members than are needed to accomplishgroup goals.Helping Groups to Manage Conflict Effectively• Practically all groups experience either intragroup or intergroup conflict. The effectivemanagement of conflict is discussed in Chapter 16.V. SUMMARY AND REVIEWLECTURE ENHANCERSLecture Enhancer 11.1TEAMWORK AND NASCARNew MBA students at Wake Forest University’s Babcock Graduate School of Managementlearned teambuilding skills on the fast track – literally – by participating in the Richard PettyUltimate Racing Experience at Lowe’s Motor Speedway in Concord, North Carolina. Theuniversity used NASCAR driver and pit crew techniques to instill the value of teamwork byproviding students with an opportunity to participate in a team-building exercise.Here’s how the exercise worked: Each team member was assigned a series of responsibilities.For example, one team member was responsible for leading the racecar toward the pit stopwhile another took a turn riding in a car with a professional driver. Students were not allowedto drive. The cars raced around the tack for a series of eight to ten laps. Then team memberroles were switched. Every student had the opportunity to perform each of the variousassigned tasks. Team members who failed to complete the assignment correctly had to startover, thus setting the team back. The winning team was recognized at the end of the evening.In addition to building team skills, these students gained exposure to a booming businessenterprise that has become one of the nation’s fastest-growing sports. As with other winningenterprises, NASCAR drivers and crews rely on solid teamwork to succeed. Even with all ofthe emphasis that NASCAR places upon high-performing equipment, the best racecar cannotconsistently perform well without a team that is focused on common goals and is usingcommon processes for accomplishing their tasks. Some of the characteristics of teamworkobserved in NASCAR auto racing organization include:Jones and George, Essentials of Contemporary Management, Third Edition 11-14
  15. 15. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENTCommon goals: Daily plans and schedules, weekly plans and schedules, race objectivesCommon processes: Daily morning meetings, Tuesday evening post-race meetings, pit crewpractice sessions, checklists for each carRegular feedback: Daily discussions about the prior day’s accomplishments, immediatefeedback on the performance of the car and the team’s efforts every time the car takes a lapand finishes a raceRewards and recognition: Team members sharing in the winnings and awards,congratulatory messages and tokens of appreciation after each race, sponsor recognition of theteam, media appearancesFocused leadership: Leaders provide common focus for the team, facilitating timely feedback on individual and collective performance, providing needed resources for accomplishingresponsibilities, holding team and individuals accountable for assigned tasks, walking the talk,committed to openness and honesty, listening, listening, listeningIndividual strengths: Specialized skills and knowledge respected within the team andcontinually improved in ‘multi-skill’ job rolesOwnership: A sense of team ownership for everything they do rather that singling out anindividualAdapted from “Wake Forest MBA students Learn Teamwork from NASCAR Pit Crew Techniques, Business Wire, August 16,2004 and Robert M. Williamson, “NASCAR:A Model for Equipment Reliability and Teamwork”, MRO Today, Copyright2000.Lecture Enhancer 11.2REWARDS AND CHALLENGES OF WORKING IN A TEAMA common type of team is the temporary unit, usually composed of members from differentdepartments and job levels, formed to make policy, re-engineer operations, or designproducts, among other tasks. Team members may or may not leave their old jobs.Working in a team environment can be tricky. On one hand, you get to showcase your skillsto team members from all corners of the company, often including influential seniorexecutives. And team assignments tend to be critical and closely watched.Jones and George, Essentials of Contemporary Management, Third Edition 11-15
  16. 16. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENTBut that also means that if the team flops, you flop, whatever the reason. Meanwhile, whileyou are focusing on your new team duties, some young gun in your department is showinghow easily you can be replaced. And because teams often challenge traditional departmentalroles, the potential for a political tug-of-war is high.Shaunna Sowell’s team experiences at Texas Instruments led to promotions and a bettercareer path than she ever envisioned. But she also burned some bridges with a boss. Sowellwas leading a plant design team in 1988 when she was tapped for a product-quality steeringcommittee that was loaded with managers. She initially was intimidated, but her confidencegrew with her experience.“I left one meeting thinking, ‘I’ve ruined my career”, she recalls. I’d just told a guy fourlevels above me that he was wrong. Actually, she impressed an executive on the team whowas looking around for a vice president of Corporate Environmental Safety. “You have to bea great individual contributor”, she says, “that’s how you get picked for the next team”. Herteam involvement, she says, earned her recognition, job offers, and mentoring from seniorexecutives she never would have gotten in the days before teams.But the experience also created friction. “My visibility was getting wider than that of myboss”, she said. “It was pretty uncomfortable”. The relationship cooled and eventually shemoved to another position, although still working on teams.Mary Kinnear feared she risked her career at Boston Gas by joining a re-engineering tem. Thegamble paid off, but not without some uncomfortable moments. In leading a team chargedwith redesigning Boston Gas’s distribution operation, Ms. Kinnear, a human resourcesspecialist, also knew she risked offending some influential executives whose turf was beingthreatened. Some already voiced skepticism about her abilities to do effective work on theteam, she said. “We were all assured there would be some kind of amnesty for teammembers”, she says. “But there were no guarantees”.When the project ended, however, she was eventually named general manager of one of theeight regional operating divisions created by the project team. Absent the project team, shesays she wouldn’t have had the experience or the exposure to land her current job.Sometimes the fears are real. Deloitte & Touche consultant Boris Lukan was part of a joint re-engineering team working with a client, when animosity over cutbacks proposed by theproject team forced one team member from the client company to leave. “For people whowant to be recognized, projects that drive change are great places to be”, he says, “but you’vegot to be ready for the potential impacts that could come out of upsetting how other people dotheir work”.Jones and George, Essentials of Contemporary Management, Third Edition 11-16
  17. 17. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENTStill, such influence became so seductive to Margaret Colquhoun, who was on a teamreshaping the work processes at her hospital, that she found it difficult to go back to thehumdrum routine of her manager’s job, even after a promotion. She left to join a consultingfirm that specializes in team development.These managers offer some advice to others working in teams:• Be an expert, not an advocate. The team needs your specialized knowledge, but doesn’twant an obstructionist who continually says, “You just don’t understand how we do thingsin finance”.• Research the team as you would any job opportunity. Are there cliques? Is there oneperson who dominates? What happens to team members after they leave the team? Howstrong is management support?• Make sure you keep up your performance in your department. “You cannot fail atyour core hierarchical work, succeed at your team work, and be successful overall”, Ms.Sowell says. Also, she urges, keep your department boss informed of your team activities.In most companies, that person still has the most influence on your career.• Stay balanced. “Overload and burnout are more of a problem in teams”, Ms. Sowell says.Being sought after for influential teams is flattering, but you must be careful aboutovercommitting. Each year, Ms. Sowell drafts a contract detailing what she’s committingto do that year and shares it with her staff.Jones and George, Essentials of Contemporary Management, Third Edition 11-17
  18. 18. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENT• See yourself as an equal. Be diplomatic, but don’t hold back your opinions. This is yourstage, with an audience that often includes some of the company’s most influential people.Don’t waste it.Lecture Enhancer 11.3SOCIAL LOAFINGProfessor Bibb Latane, a professor of psychology, conducted research on social loafing atOhio State University in the 1980s. Latane concluded people tend to slack off, or loaf, whenthey work in a group more than they do when working alone.Much of Latane’s experimentation was done by he and his colleagues in his offices under thestands of the Ohio Stadium. There the researchers organized Buckeye student volunteers intogroups of varying sizes and asked them to clap or shout as loud as they could. In this andother experiments, the researchers found that when subjects either were in a group or were ledto believe that they were (through the use of blindfolds and headphones), they consistentlymade less noise per person than when they shouted or clapped alone.Mr. Latane concluded from this and earlier research that there is a “diffusion ofresponsibility” in groups. Each person feels less responsible for helping because others arepresent. The applications to a work environment are unclear. Another research psychologistnoted that “those people [who were clapping] weren’t out earning money to pay theirmortgages or feed their families”.MANAGEMENT IN ACTIONNotes for Topics for Discussion and ActionJones and George, Essentials of Contemporary Management, Third Edition 11-18
  19. 19. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENTDiscussion1. Why do all organizations need to rely on groups and teams to achieve their goals andgain a competitive advantage? (LO1)All organizations need to rely on groups and teams to achieve their goals and gain acompetitive advantage because groups can enhance performance, increase responsivenessto customers, increase innovation, and increase employees’ motivation and satisfaction.People working in groups are able to produce more or higher-quality outputs than wouldhave been produced if each person had worked separately and all their individual inputswere combined. Being responsive to customers often requires the wide variety of skillsand experience found in different departments, which can be combined in cross-functionalteams. Managers can better encourage innovation by creating teams of diverse individualswho together have the knowledge relevant to a particular type of innovation, rather thanrelying on individuals working alone. Also, employees who work in teams are more likelyto be more highly motivated and satisfied, and may experience lower levels of turnover.2. What kinds of employees would prefer to work in a virtual team? What kinds ofemployees would prefer to work in a team that meets face-to-face? (LO2)Employees who prefer working in a virtual team would likely be independent, self-starters. They would also already possess a high-degree of skills and would, therefore, notrequire intensive training or close supervision. Employees preferring to work face-to-face, on the other hand, would tend to enjoy social interaction and to be motivated byworking closely with others. Employees with fewer skills or less experience would alsobe likely to need more face-to-face contact for training purposes.3. Think about a group that you are a member of, and describe the stage of development thatyour group is currently in. Does the development of this group seem to be following theforming-storming-norming-performing-adjourning stages described in the chapter?(LO3)Jones and George, Essentials of Contemporary Management, Third Edition 11-19
  20. 20. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENTThe stages of development that groups go through in the process of achieving their goalsinclude forming, storming, norming, performing, and adjourning. When team membersinitially get to know each other and establish a group objective and understanding of thegoal, it is “forming”. Storming often occurs within groups, characterized by conflict anddisagreement between group members. The third stage, norming, occurs when close tiesform between group members and feelings of friendship and camaraderie emerge.Performing is when the work is done and the group effectively completes their task orobjective. Adjourning applies only to groups that are eventually dissolved, and groupmembers leave the group, perhaps to work in other groups where their services areneeded.4. Discuss the reasons why too much conformity can hurt groups and their organizations.(LO4)There are several reasons why people conform to group norms: they want to obtainrewards and avoid punishments, they want to imitate group members they admire, or theyhave internalized group norms and believe that is the right way to behave. Conformity isnecessary for a group to succeed in achieving its goals, but too much conformity can hurtboth groups and their organizations. Too much conformity may limit team members intheir thinking, and they may not stop to evaluate norms that may be dysfunctional but aretaken for granted by the group. Norms often need to be adjusted over time, and too muchconformity may limit the new ideas that would otherwise emerge in a more flexibleenvironment. If a group fails to perform at a high level due to dysfunctional norms, thegroup performance and organizational performance will suffer.Jones and George, Essentials of Contemporary Management, Third Edition 11-20
  21. 21. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENT5. Why do some groups have very low levels of cohesiveness? (LO5)Group cohesiveness, or the degree to which members are attracted or loyal to their groupor team, is affected by four factors. Some groups have very low levels of cohesiveness,which may be caused by one or more factors. Group size is one factor, with members ofsmall groups more motivated and committed than members of large groups. A group withlow cohesiveness may simply be too large. Second, in forming groups, managers need toselect members with diversity in knowledge, skills, and experience. Managers need tomake sure that diversity is effectively managed, because if it is not, it may lead to lowcohesiveness. Groups also need to have identities. Those groups with low cohesivenessmay simply need to develop their own identities and personalities, and engage in healthycompetition with other groups. Finally, a group with low cohesiveness may need toexperience some success in order to raise their cohesiveness level. When a group achievesnoticeable and visible success, it contributes substantially to its feelings of cohesivenessand camaraderie.6. Imagine that you are the manager of a hotel. What steps will you take to reduce socialloafing by members of the cleaning staff who are responsible for keeping all commonareas and guest rooms spotless? (LO5)Social loafing occurs in groups when individuals put forth less effort because they believethat their individual contribution will not be noticed within the context of the group. Thisbehavior can result in lower group performance and may prevent a group from attainingits goals.A manager can take several steps to reduce social loafing. One tactic is to make individualcontributions to the group identifiable, so that group members perceive that low and highlevels of effort will be noticed and individual contributions evaluated. Staff may beassigned room numbers at random and common areas that they are responsible for, whichwould help identify the worker responsible when a task has not been completed. Managersmay also emphasize the valuable contributions of each staff member, and assignindividuals to groups on the basis of the valuable contributions that each person can maketo the group as a whole. A manager could emphasize and communicate why a maid, abellhop, a desk clerk, and a laundry attendant are each unique, and how each contributesimportant skills to the group. Finally, a manager can overcome social loafing by limitingthe size of the group. The hotel should have no more cleaning staff than are needed tokeep all common areas and guest rooms spotless.Jones and George, Essentials of Contemporary Management, Third Edition 11-21
  22. 22. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENTAction7. Interview one or more managers in your community to identify the types of groups andteams that the organization uses to achieve its goals. What challenges do these groupsand teams face? (LO2)There are various types of groups and teams created by managers and organizationalmembers. Formal groups are groups that managers establish to achieve organizationalgoals. This category includes cross-functional teams, cross-cultural teams, topmanagement teams, research and development teams, command groups, task forces, andself-managed work teams. Cross-functional teams are made up of members from differentdepartments, and cross-cultural teams have members from different cultures or countries.Top management teams have a variety of managers on their teams, with the hopes ofhelping the organization achieve its mission and goals. Subordinates who report to thesame supervisor compose command groups. Task forces are formed to address specificproblems or accomplish specific goals. Self-managed work teams have members who areempowered to complete identifiable pieces of work. Formal groups like these are usuallyestablished by managers interested in improving organizational performance, efficiency,and effectiveness.Organizational members form informal groups, such as friendship groups and interestgroups, because they feel that these groups will help them achieve their own goals or meettheir own needs. These groups are formed when employees wish to socialize with eachother, or achieve a common goal related to their membership in an organization.AACSB standards: 1, 3, 6, 10Notes for Building Management Skills (LO 1, 2, 3, 4, 5)(Note to the instructor: Due to the nature of this question, student answers will vary. Thefollowing answers illustrate main points that each student should include.)1. What type of group was this?Groups may be formal or informal. Formal groups are established to achieve organizationalgoals, and include cross-functional teams, cross-cultural teams, top management teams,research and development teams, command groups, task forces, and self-managed workteams. Informal groups are created by organizational members because they feel that groupswill help them achieve their own goals or meet their own needs. These groups includefriendship groups and interest groups.Jones and George, Essentials of Contemporary Management, Third Edition 11-22
  23. 23. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENT2. Were group members motivated to achieve group goals? Why or why not?Many factors contribute to the motivation of group members to achieve group goals.Group members who are given autonomy and variety in their task assignments are morelikely to be highly motivated. Groups that encourage diversity and communication willalso have highly motivated members. Members may also be more motivated if they haveformed the group themselves, as is the case in friendship and interest groups. Smallergroups often have more motivated and committed members than larger groups. A numberof other factors may contribute to motivation, such as pay level and determination ofbonuses based on individual and group performance.3. How large was the group and what group roles did members play?The size of a group can be an important determinant of motivation, commitment, and teamperformance. Large groups have ten or more members, and offer the advantage ofincreased resources and division of labor. Small groups, those with between two and ninemembers, often have members who are more motivated, satisfied, and committed. Smallgroups also make it easier for members to communicate ideas, coordinate activities, andshare information.A group role is a set of behaviors and tasks that a member of a group is expected toperform because of his or her position in the group. Often, group roles are related to eachmember’s area of expertise.4. What were the group’s norms? How much conformity and deviance existed in the group?Group norms are developed in order to control members’ behaviors to ensure that thegroup performs effectively and meets its goals. Group members are expected to followthese shared guidelines or rules for behaviors. Moderate conformity to these norms isnecessary to achieve high performance. Low conformity and high deviance or failure toconform can result in low performance because the group cannot control its members’behaviors. Too much conformity and not enough deviance can result in low performancebecause the group is reluctant to change existing dysfunctional norms.A balance of conformity and deviance can be achieved by managers who act as rolemodels of tolerance and acceptance for the groups and teams they oversee. Managers canalso communicate to members of a team that improvement is always possible, and thatopportunities to replace existing norms should be considered a means of achieving groupgoals and high performance.Jones and George, Essentials of Contemporary Management, Third Edition 11-23
  24. 24. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENT5. How cohesive was the group? Why do you think the group’s cohesiveness was at thislevel? What consequences did this level of group cohesiveness have for the group and itsmembers?Group cohesiveness is the degree to which members are attracted or loyal to their groupsor teams. Cohesiveness can be high, moderate, or low. When cohesiveness is high,members value their group membership, and wish to remain members. Whencohesiveness is low, group members do not value the group, and do not care to stay in thegroup. Research suggests that a moderate level of cohesiveness is optimal and is mostlikely to contribute to an organization’s competitive advantage.Group cohesiveness can be affected by the size of the group, the way that diversity ismanaged within the group, and whether the group has their own identity and engages inhealthy competition with other groups.The level of cohesiveness within a group or team can have several consequences for thegroup and its members. As group cohesiveness increases, the extent of group members’participation within the group increases. A moderate level ensures that group membersinteract and communicate with one another, though not so much that they do not performtheir roles. Increasing levels of cohesiveness can also increase conformity to group norms.Too much cohesiveness may discourage deviance needed to change dysfunctional norms,and moderate cohesiveness is recommended. Additionally, group cohesiveness increasesresult in an increase in emphasis placed on group goal accomplishment. A moderate levelof cohesiveness is best, allowing a group to achieve organizational goals, in addition tothose of the group.6. Was social loafing a problem in this group? Why or why not?Social loafing occurs when individuals put forth less effort when they work in groups thanwhen they work alone. It may be a problem in groups where it is difficult to identifyindividual performance.In order to counter the effects of social loafing, managers need to make individualcontributions identifiable so that group members perceive that low and high levels ofeffort will be noticed and individual contributions evaluated. Managers may also assignindividuals to groups on the basis of the valuable and unique contributions that eachperson can make to the group as a whole. In addition, groups should be kept as small aspossible. Small groups allow individual contributions to be more easily recognized andvalued.Jones and George, Essentials of Contemporary Management, Third Edition 11-24
  25. 25. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENT7. What could the group’s leader or manager have done differently to increase groupeffectiveness?Managers can take many steps to increase group effectiveness. Some examples include:making sure that groups are diverse in terms of expertise and knowledge; empoweringsubordinates and acting as coaches, guides, and resources; making teams responsible andaccountable for their progress; limiting the size of groups; encouraging improvement andperiodic evaluation of the “status quo”; acting as effective leaders and good examples;creating self-managed teams that are responsible for a whole set of tasks that yields anidentifiable output; giving teams autonomy and responsibility.8. What could group members have done differently to increase group effectiveness?Group members can also take certain steps to increase their group effectiveness. Someexamples include: bringing motivation and commitment to the group; bringing diverse andunique knowledge and skills to the group; communicating with other group members andsharing information; cooperating with other group members when there is a disagreement;performing their share of the work and exerting as much effort as they would if they wereworking alone; encouraging other members to do their best and helping poor performersto improve; conforming to group norms enough to achieve the common goal, butdeviating enough to change dysfunctional norms.AACSB standards: 1, 3, 6, 10MANAGING ETHICALLY (LO2, 5)(Note to the instructor: Student answers will vary.)1. Alone, or in a group, think about the ethical implications of social loafing in a self-managed team.It certainly does seem not seem fair to allow one team member to work harder than others,especially if all team members are receiving the same level of recognition and reward.However, social loafing may occur for a variety of reasons, and therefore we should notjump to the conclusion that laziness it the cause of this behavior. For instance, if there is aredundancy of skill sets within the group, a team member may assume that his or herindividual contribution isn’t really needed. In such a situation, we would hope that thisemployee would make fellow team members aware of the predicament, so thatadjustments can be made be in team member roles. However, if the team’s task is notsufficiently complex or if communication problems exist between team members, suchadjustments may be difficult to make.Jones and George, Essentials of Contemporary Management, Third Edition 11-25
  26. 26. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENT2. Do managers have an ethical obligation to step in when they are aware of social loafing ina self-managed team? Why or why not? Do other team members have an obligation to try tocurtail the social loafing? Why or why not?Because it is the responsibility of the entire team to ensure that it functions as efficientlyas possible, members must attempt to curtail any social loafing that occurs. Althoughsome team members may find it uncomfortable to discipline another member, failure to doso may result in a decline in team motivation. As a coach that provides guidance andsupport to the self-managed team, the manager should assist in resolution of this problem,if team members are unable to work it out on their own.AACSB standards: 1, 2, 3, 7, 9, 10NOTES FOR SMALL GROUP BREAKOUT EXERCISE (LO2, 3, 4)Creating a Cross-Functional Team1. Indicate who should be on this important cross-functional team and why.Since the team is cross-functional, team members should come from a variety ofdepartments. The team should have a member who is responsible for monitoring costs andmaintaining the food services budget. The team should also have at least one of the eightcafeteria managers who is knowledgeable about the day-to-day operations of thecafeterias. A faculty member or graduate student from the management department oncampus might be brought onto the team for consultation in providing quality customerservice and efficient food delivery. An experienced cafeteria worker might be included onthe team to give an employee’s perspective on problems within the cafeterias. Anutritionist could be brought in to give suggestions for new, more healthful menu items. Astudent representative, who would be able to give the team ideas for meals and snacks thatwould appeal to students, should also be a part of the team. An administrator may behelpful to suggest hours that are most convenient for faculty and students.2. Describe the goals the team should be trying to achieve.The goals that the team should be trying to achieve should be the ones that remedy theproblems that the cafeterias are experiencing. The faculty and students have responded tothe survey, and have expressed their dissatisfaction with the current schedule, menus, andservice.Jones and George, Essentials of Contemporary Management, Third Edition 11-26
  27. 27. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENTThe team should try to improve the menu in the cafeterias. This improvement shouldresult from a wider range of choices and the addition of more health-conscious items. Theteam should try to devise a vegetarian and a low-fat, high-fiber menu that appeals to bothstudents and faculty. The team should also try to improve quality, and ensure thatcafeterias deliver food that is appropriately prepared and served at the appropriatetemperature. Another goal is to have operating hours that are convenient for a largesegment of the campus population. The main goal is to increase customer satisfaction withthe services of the cafeteria, while trying to maintain a reasonable budget and controllingcosts to students and faculty. Additionally, managers and employees of the cafeteriasshould be motivated and satisfied with their jobs.3. Describe the different roles that team members will need to perform.Group roles are sets of behaviors and tasks that members of a group are expected toperform because of their positions in the group. Members of this team should beperforming behaviors and tasks that are related to their special areas of expertise. Thenutritionist should propose menu ideas and conduct an analysis of the nutritional contentof the current cafeteria menus in order to determine where changes need to be made. Thestudent should make suggestions and give feedback based on experience as a cafeteriapatron. The cafeteria worker might offer suggestions for more efficient operation in thekitchens or food lines. The management consultant could devise a strategy to motivatecafeteria workers to provide quality customer service. The administrative employee couldresearch the times when most students are likely to be at the cafeterias, for example,during breaks between classes, and make suggestions for operating schedules. Thecafeteria manager may have the most experience in the day-to-day operations and mayserve as the group leader.4. Describe the steps you will take to help ensure that the team has a good balance betweenconformity and deviance and a moderate level of cohesiveness.A good balance between conformity and deviance is essential to ensure that a group isable to control members’ behavior and channel it in the direction of high performance andgroup goal accomplishment. This balance also ensures that dysfunctional norms orbehaviors are discarded in favor of more functional ones. The leader of the group mayensure tolerance of deviance and conformity to group norms by acting as a role model forthe group. The cafeteria manager can encourage and accept team members’ suggestionsfor changes in menu items, service, and operating hours. Second, the manager shouldassure team members that suggestions are considered and implemented to the best of hisor her ability. The manager should communicate his or her vision for an improved foodservice system and the belief that changes will benefit both employees and patrons.Jones and George, Essentials of Contemporary Management, Third Edition 11-27
  28. 28. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENTThe manager can ensure that the group has a moderate level of cohesiveness by makingsure that the group is only as large as is necessary, limiting the number of group membersto ten or less. The cafeteria manager can also make sure that the diversity of the team ismanaged in such a way that everyone feels accepted and instrumental in achieving groupgoals. Students may have different ideas than faculty or administration, and thesedifferences must be managed fairly. Another tactic that may be employed to ensure amoderate level of cohesiveness is to form a group identity that makes members feelappreciated and fortunate to be included in the process.AACSB standards: 1, 3, 9, 10Notes for Be the Manager (LO 1, 2, 3, 4, 5)You need to read some information on groups, group dynamics, and the formation of groups.Even though this group is virtual, it still will go through the same formation sequences as anykind. There is also the added complexity of both national culture and the company’s internalculture. You must first make sure that the group members know each other and trust in theprocess. Consider creating a chat room that everyone in the group can use to exchangeinformation they see of value or just to get acquainted. In addition, the compensation andincentive structure needs to be known by all and designed so all group members will help, nothinder each other. If too much competition develops within the group because the rules arenot clear, it will never get past the storming stage.AACSB standards: 1, 3, 9, 10, 12BUSINESS WEEK CASES FOR DISCUSSIONCase Synopsis: Seagate’s Morale-athonPlenty of companies try to motivate the troops, but few go as far as Seagate Technology. This$9.8 billion maker of computer storage hardware flew 200 of its 4,500 employees to NewZealand for its sixth annual Eco Seagate. It is an intense week of team building topped off byan all day race in which Seagaters had to kayak, hike, bicycle, swim and rap down a cliff.Seagate’s CEO created this event as a way to break down barriers, boost confidence, andmake staffers better team players. Each morning, a top executive gives a presentation on akey attribute of a strong team. That lesson carries over to the afternoon, as participantsengage in orienteering, rappelling, mountain biking, or kayaking lessons.Jones and George, Essentials of Contemporary Management, Third Edition 11-28
  29. 29. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENTQuestions:1. What is Seagate Technology seeking to accomplish with its Eco Seagate?Watkins wants participants to experience the intensity that distinguishes a group from a highperforming team. He also wants to strengthen his company’s culture by reinforcing thosenorms and attitudes that encourage team work, perseverance, and endurance.2. How might participation in Eco Seagate contribute to effectiveness back on the job?Skills nurtured at Eco Seagate that can contribute to on-the-job effectiveness include theability to follow through on commitments to others, actively listening to team members, takeresponsibility for group successes and/or failures, and give as well as accept useful feedback.3. What aspects of group dynamics does Eco Seagate focus on?Eco Seagate focuses upon development of healthy competition and cohesion, and also theimportance of group norms and group leadership.4. How might participation in Eco Seagate contribute to managing groups and teams forhigh performance at Seagate?From their experiences at Eco Seagate, hopefully managers cultivated and can now model theset of skills required to effectively contribute to a high performing team. Such skills includesharing and communicating goals among team members, creating a learning environment forteam members, empowering team members, and encouraging them through positiveexpectations.Case Synopsis: Putting Designers in the Driver’s SeatWhen designer Clay Dean sat down with his team to brainstorm the redesign of the ChevyMalibu three years ago, his mission was clear. The team needed to find an inexpensive way totranscend the dowdy image associated with the car’s inexpensive price. In an intenselycompetitive industry, automakers are attempting to develop more attractive designs as ameans of differentiating themselves and attract new consumers. For inspiration, Dean lookedto low-price consumer brands that have successfully retained flair and style, such as PaneraBread, JetBlue Airways, and Target.To help designers achieve this goal, the company made some changes in organizationalstructure and culture. Designers were given freedom and autonomy to take the lead indefining the vision for new autos. The company began holding design workshops at whichengineers and marketers provide designers with feedback and compromises are hammeredout. The new Malibu is scheduled for marketplace introduction in the summer of 2007.Jones and George, Essentials of Contemporary Management, Third Edition 11-29
  30. 30. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENTQuestions:1. How is GM trying to achieve synergies in teams used to design new cars?GM executives realized that its designers and engineers needed to feel each others’ pain, i.e.,each needed to develop an appreciation for the intricacies, difficulties, and frustrations theother experienced in their efforts to create a new car. Synergy was achieved when these twosets of professionals learned to work together, exchange ideas, correct each other’s mistakes,etc.2. How might these teams be able to increase GM’s responsiveness to customers?Being responsive to customers often requires a wide variety of skills and expertise found indifferent departments of the organization. By forming a cross functional team, GM made surethe diversity of expertise and skill needed to be fully responsive to customers could be readilytapped during the design process.3. How might working in these teams contribute to employee motivation?The experience of working alongside other highly skilled and motivated professionals can bevery stimulating. Many employees enjoy the constant interaction with others that a teamdemands, as opposed to working alone. Also, team members more readily see how theirefforts contributed to the achievement of organizational goals, thereby providing them with asense of personal accomplishment.4. To what extent are these teams self managed?Vice-chairman Robert Lutz made the decision to decentralize authority and put designers incharge of their own work. This implies that they supervised their own work and made theirown decisions concerning how goals would be achieved, hence a self managed team.AACSB standards: 1, 3, 9, 10Jones and George, Essentials of Contemporary Management, Third Edition 11-30
  31. 31. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENTChapter 11 Video Case Teaching NotePike Place FishTeaching Objective: To provide an example of synergy within a high-performing team. Toshow how such a team can enhance work performance, and increase innovation, motivation,job satisfaction, and responsiveness to customers.Video Summary: This video chronicles the Pike Place Fish Co.’s effort to become worldfamous. After working with a consultant, the owner decides to abandon his autocraticmanagement style for one that is team-focused. The interviews of the owner, consultant, andmanager and the scenes inside the market provide an excellent example of a high-performing,self managed work team and the dynamics that occur within it.Questions:1. What does it mean at Pike Place Fish to be world famous?At Pike Place Fish, being world famous means making a difference in the lives of customersand others with whom employees come in contact. “For us, it means going beyond justproviding outstanding service to people”, according to CEO John Yokoyama. “We’re out todiscover how we can make their day. They experience being appreciated whether they buyfish or not”.2. What roles do teams play in Pike Place Fish’s quest to be world famous? Why does ittake new employees time, in some cases three months, to become effective teammembers?At Pike Place Fish, there are no jobs but instead positions available for those who make theteam. Prospective employees have to commit to the purpose of being world famous to behired. To become a true team member, new employees must learn and practice the distinctionbetween being world famous, as opposed to merely wanting to be or believing you are, whichcan take as long as three months.Jones and George, Essentials of Contemporary Management, Third Edition 11-31
  32. 32. CHAPTER ELEVENEFFECTIVE TEAM MANAGEMENT3. How does Pike Place Fish create the context for workers to reach their maximumpotential? What role do managers play in creating and nurturing this atmosphere?To help employees reach their potential, Pike Place Fish creates an environment that fosterspersonal growth and development, with a heavy emphasis on coaching. The intention is forthe coach to empower others to achieve. When an employee wants or needs to be coached,everyone is expected to contribute to that effort. Everyone is allowed to coach anyone, newestemployee, manager, or owner. Management participates in employee development andnurturance by sharing responsibility and power with workers and allowing them to be creativeand manage themselves. The CEO strongly believes that employees and customers must betreated as human beings, not numbers.Jones and George, Essentials of Contemporary Management, Third Edition 11-32

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