? The intention of this paper is to analyze how the organizational environment can create a culture of collaboration, showcase the importance of acquiring the right human capital in conjunction to teams and how to convert a dysfunctional team into a functional one. Lastly, through a case study in Haier Group, it will be demonstrated that effective teamwork really creates a competitive advantage for organizations.

1. Name: Psylla Evangelia (131956)
Course: MG 3034 A1
Managing People and Organizations
Due Date: July 3, 2017
Instructor: Metinidou Kyriaki
Teamwork as a Source of Competitive
Advantage for Organizations

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TABLE OF CONTENTS
1. Introduction............................................................................................................................3
2. The Role Of Teamwork In Developing Competitive Advantage ..........................................4
2.1 Organizational Environment And Teams.........................................................................4
2.2 Human Capital Acquisition, Motivation And Teams.......................................................5
2.3 From Team Dysfunctionality To Team Effectiveness .....................................................6
2.4 Teamwork as a Competitive Advantage for Organizations .............................................6
3. Case Study On Haier Group ..................................................................................................9
4. Conclusion ...........................................................................................................................11
5. References............................................................................................................................12
6. Appendix..............................................................................................................................15

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1. Introduction
Since the beginning of time, humans sensed that, in order to fulfill needs, accomplish
tasks and feel that they belong somewhere, they had to be part of a team. Proof lies under the
writings of Plato and Aristotle regarding “Endelexeia”, which means to feel complete, and
“Methexis”, which signifies collaboration and the act of working together as a team or group
(Vrakas, 2014). Later, Abraham Maslow developed the theory of needs, according to which
people who work in positions that boost their self-esteem, eventually reach the level of Self –
Actualization (McShane et al., 2016). Finally, Harold Leavitt proved in one of his research
papers that, through effective teamwork, many human advantages arise, such as amplified
productivity and healthier connection of the organization with the environment (Leavitt, 1974).
But why do teams comprise the most powerful tool of today’s organizations and
function as a competitive advantage for a firm? The intention of this paper is to analyze how
the organizational environment can create a culture of collaboration, showcase the importance
of acquiring the right human capital in conjunction to teams and how to convert a dysfunctional
team into a functional one. Lastly, through a case study in Haier Group, it will be demonstrated
that effective teamwork really creates a competitive advantage for organizations.

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2. The Role of Teamwork In Developing Competitive Advantage
2.1 Organizational Environment and Teams
As discussed by Crespy, Kramer (2011) and Webber (2015), before the nascence of
teams, an organization must possess a strong Teamwork and Collaboration Culture, which can
only be accomplished by already owning a collaborative philosophy. This collaborative
philosophy of high – level managers will lead them into recruiting for collaboration, meaning
the recruitment of collaborative individuals, who are not only extremely motivated but also
accordingly skilled to join the team. When recruiting for collaboration, it must also create a
collaborative climate within the company, per which the leader must make every member of
the team have positive feelings regarding the company and the team in particular, as well as
feel comfortable to share every idea and collaborate effectively with the other members of the
team. If all of the above succeed, this collaborative climate is later communicated to the
external environment of the company, i.e. other potential employees and workforce. (Crespy,
2011; Kramer, 2011; Webber S. S., Webber D. S., 2015)
Figure 1 Creating a Collaboration Culture

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2.2 Human Capital Acquisition, Motivation and Teams
Henry Ford – the founder of Ford Motor Company, said once that “coming together is
a beginning, staying together is progress, and working together is success” (Thompson, 2014).
Even though he said that about a century ago, this is the ultimate truth, because acquiring the
right human capital (coming together) leads to strong team building (staying together) and
finally creates team effectiveness (working together). In terms of human capital acquisition,
candidates who are skilled in the requested field, motivated, confident and have a collaborative
spirit are the most likely to be selected by companies that have a strong teamwork and
collaboration culture, because it is proven that this type of candidates build the strongest teams
(Hughes et al.,2012). Consequently, adopting a culture of collaboration, along with successful
human capital acquisition for team building purposes, are the first two and most vital steps to
create a competitive advantage for the organization. For that matter, Arianna Huffington once
said in one of her interviews that the “Human Capital is the most valuable asset” for an
organization (Huffington, 2014).
In terms of motivation, Whetten & Cameron (2010) summarize the conjunction of
motivation to team performance in this equation: “Performance=ability X motivation where
ability=Aptitude x Training x Resources and motivation= the desire and commitment from the
employee”. Namely, an able employee is one who has, not only attained the necessary skills,
but has also received ample training, and is granted the prerequisite resources from the
company. Such employees, in combination with a high motivational spirit, which is generated
by the employee’s aspirations and ambitions, will ultimately form the ideal team performance
(Whetten & Cameron, 2010).

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2.3 From Team Dysfunctionality to Team Effectiveness
Lencioni and Okabayashi (2008) in their book “The Five Dysfunctions of a Team”
discuss that teams have to recognize the existence of five team dysfunctions in order to
overcome any organizational or team problems that may occur, thus be proactive. These five
dysfunctions are depicted as a pyramid, showing that all are on the one hand interrelated, but
on the other have to be examined separately.
Occupying the base of all difficulties, an absence of trust among team members
originates from each individual’s inability to share weaknesses and exhibit vulnerability. Such
practises create a plethora of hindrances, as increased mistrust results in lower productivity,
and loss of time and energy. However, by employing a culture in which team members can
aknowledge the assets of their colleagues, and feel free to share their worries, such issues can
be easily overcome.
This absence of trust, inevitably leads to conflict avoidance. In organizational settings,
conflicts are often productive, aiding teams in making better decisions. However, due to the
decreased confidence and comfort of team members, conflict is avoided. This results in a
simulated balance, which does not coincide with reality (Parker, 1996).

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As expected, avoidance of conflict leads to a lack of commitment. Team members who
are not commited will create an atmoshpere of ambiguity, in which decisions are made on the
premise of personal benefit, instead of team wellness. It is crucial to clarify that commited team
members should reach unified and transparent decisions, whose stakeholders are represented
equally.
Lack of commitment creates avoidance of accountability, which can hold a team back
from being effective, especially when the team members are not willing to bear responsibilities.
The solution for this issue is to measure the team’s progress by setting clear team rule and
value systems and, finally, assigning the “What”, When” and “By Whom”.
When accountability is barely present, individuals become invested in their own
interests, instead of the team’s. A not result-oriented team will not produce the optimal quality
and quantity of reseults. Nonetheless, such obstacles can be overcome by setting clear team
outcomes, providing rewards for team-beneficial behaviors, and, most importantly, assigning
a leader to set the example by being open-minded, empathetic, active and comfortable to
engage in conflict (Lencioni & Okabayashi, 2008) (see appendix).

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2.4. Teamwork as a Competitive Advantage for Organizations
From the literature review we may conlude to the following:
1. A company should aquire a collaboration culture, because it eventually boosts team
spirit and effective teamork.
2. When an organization recruits for collaboration, then it is sure that competent teams
will be built.
3. Motivation and self-motivation plays the most significant role in creating and
sustaining teams. Many motivated individuals build a motivated team, thus a competent
and competitive team.
4. In order for a team to be effective, team members must be trustworthy, eager to initiate
creative conflict, commited to the team, accountable for their responsibilities and result-
driven.
5. Human capital, when it fulfils all the prerequisites and requirements of an
organizational position, consists a distinctive competency for the firm. Consequently
and in contrast with products, human capital cannot be imitated and it can create a
sustainable competitive advantage for an organization.

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3. Case Study on Haier Group
Haier Group, which is a leading brand for household appliances, has made tremendous steps
in terms of organizational innovation over the past six years. Meyer et al. (2017) conducted
research on the organizational design of Haier Group, proving that one major reason for the
company’s success is microdivisionalization. Microdivisionalization is based on the
divisionalization model of Drucker, Chandler and Williamson, which indicates that a firm
should be divided into smaller units-teams. Using this strategy, the $32bn company managed
to create more than 2,000 self-managed teams and reach the top in global major appliances
(Meyer et al., 2017).

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Haier Group followed, apparently, Leavitt’s (1974) proposal regarding the design of
organizations around small teams to observe commitment, increased productivity,
cohesiveness and team motivation.
After 2009, Haier introduced their new strategy on creating 2,000 ““self-ownership
teams” (zi zhu jing ying ti, abbreviated ZZJYT) and eliminated middle-management stating
that “in the past, employees waited to hear from the boss; now, they listen to the customer”
(Haier and Higher, 2013). ZZJYTs’ ambitious members were also encouraged by the CEO to
recognize opportunities or propose new ideas. If implementable, the person who proposed the
idea would become the manager and the team leader for that particular project.
Microdivisionalization and team building benefited Haier Group in many aspects:
1. The relationship of teams with the customers was tight, which eventually
boosted sales (Meyer et al., 2017) and amplified productivity, as also discussed
by Leavitt (1974).
2. Haier was enabled to boost MBU’s, so that the company could distinguish and
reward best performing employees and expunge ineffectively and inefficiently
performers (Meyer et al., 2017).
3. By creating a Win-Win model of Individual-Goal Combination, the $32bn
company managed to flatten and delayer the organizational structure by
converting it into a more dynamic one (Haier Website).

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Zhang Ruimin once introduced the “New cask principle”, which beautifully
demonstrates the significance of teamwork:
In other words, the CEO of Haier Group by likening team effectiveness with the compactness
between wooden planks, supports that team effectiveness is not determined by the number of
team members, but by how unified the team is (Zhang, 2016).
At this point it must be mentioned that the previous findings on Collaboration Culture
coincide with the philosophy and mentality of Haier Group (Crespy, Kramer, 2011;Webber,
2015). Furthermore, from the allegory of Zhang Ruimin we may conclude that Haier primarily
wants to acquire motivated, accountable, committed and trustworthy personnel that will build
effective teams, which eventually will create a competitive advantage (Lencioni & Okabayashi,
2008).
4. Conclusion
Summarizing, the adaptation of a collaboration culture, the acquisition of motivated,
skilled and team-spirited human capital along with open communication and trust among
members, signify the fundamentals of an effective team. Moreover, as proved by the case study
on Haier Group, microdivisionalization and small teams boost sales and enforce personnel to
perform more effectively and efficiently. Therefore, effective teamwork indeed comprises a
competitive advantage for organizations.
Word Count: 1695

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Appendix