10th Edition
Managing Organizational Behavior
Moorhead & Griffin
Chapter 10
Organizations and Teams
© 2012 South-Western, a part of Cengage Learning
All rights reserved.
Prepared by Charlie Cook
The University of West Alabama
Chapter Learning Objectives
After studying this chapter you should be able to:
• Differentiate teams from groups.
• Identify and discuss the benefits and costs of teams
in organizations.
• Identify and describe various types of teams.
• Describe how organizations implement the use of
teams.
• Discuss other essential team issues.
© 2012 South-Western, a part of Cengage Learning
10–2
Differentiating Teams from Groups
• Team Defined
–A small number of people with complementary skills
who are committed to:
• a common purpose
• common performance goals
• an approach for which they hold themselves mutually
accountable
–Required skills:
• Technical and functional job skills
• Problem solving and decision-making skills
• Interpersonal skills
© 2012 South-Western, a part of Cengage Learning
10–3
10.1 Differences Between Teams and Traditional Work Groups
Reference: Adapted from Jack D. Osburn, Linda Moran, and Ed Musselwhite, with Craig Perrin, SelfDirected Work Teams: The New American Challenge (Homewood, IL: Business One Irwin, 1990), p. 11.
© 2012 South-Western, a part of Cengage Learning
10–4
Differentiating Teams from Groups (cont’d)
True Team
Self-Directing
© 2012 South-Western, a part of Cengage Learning
Self-Managing
Autonomous
10–5
Differentiating Teams from Groups (cont’d)
Group versus Team
Differences
Job
categories
© 2012 South-Western, a part of Cengage Learning
Authority
Reward
systems
10–6
Differentiating Teams from Groups (cont’d)
Reward Systems
for Teams
Skill-based
pay
© 2012 South-Western, a part of Cengage Learning
Gain-sharing
systems
Team-bonus
plans
10–7
Benefits of Teams in Organizations
Team-Based
Environment Benefits
Enhanced
performance
Employee
benefits
© 2012 South-Western, a part of Cengage Learning
Reduced
costs
Organizational
enhancements
10–8
10.2
Benefits of Teams in Organizations
Type of Benefit
Specific Benefit
Organizational Examples
ENHANCED
PERFORMANCE
Increased productivity
Ampex: On-time customer delivery rose 98%.
Improved quality
K Shoes: Rejects per million dropped from 5,000 to 250.
Improved customer
service
Eastman: Productivity rose 70%.
EMPLOYEE
BENEFITS
Quality of work life
Lower stress
Milwaukee Mutual: Employee assistance program usage
dropped to 40% below industry average.
REDUCED
COSTS
Lower turnover,
absenteeism
Kodak: Reduced turnover to one-half the industry
average.
Fewer injuries
Texas Instruments: Reduced costs more than 50%
Westinghouse: Costs down 60%.
Increased innovation,
flexibility
IDS Mutual Fund Operations: Improved flexibility to
handle fluctuations in market activity.
ORGANIZATIONAL
ENHANCEMENTS
Hewlett-Packard: Innovative order-processing system.
References: Adapted from Richard S. Wellins, William C. Byham, and George R. Dixon, Inside Teams (San Francisco:
Jossey-Bass, 1994); Charles C. Manz and Henry P. Sims Jr., Business Without Bosses (New York: Wiley, 1993).
© 2012 South-Western, a part of Cengage Learning
10–9
Costs of Teams in Organizations
Managerial role
confusion/frustration
Managerial sense of loss
of usefulness
Difficulties in
changing to a
team-based
organization
Employee resistance
to role changes
Cumbersome and lengthy
team development process
Losses due to premature
abandonment of the process
© 2012 South-Western, a part of Cengage Learning
10–10
Types of Teams
Quality
Circles
Work
Teams
Problem-Solving
Teams
Team Types
Management
Teams
© 2012 South-Western, a part of Cengage Learning
Product Development
Teams
Virtual
Teams
10–11
Implementing Teams in Organizations
• Changing to a Team-Based Situation
–Planning the Change
• Making the decision
• Preparing for implementation
–Implementation Phases
•
•
•
•
•
Start-up
Reality and Unrest
Leader-centered teams
Tightly formed teams
Self-managing teams
© 2012 South-Western, a part of Cengage Learning
10–12
Implementing Teams… (cont’d)
• Changing to a Team-Based Situation (cont’d)
–Planning the Change
• Making the decision
– Change leader’s competencies
»Have a strong belief that employees want to be
responsible for their own work
»Be able to demonstrate the team philosophy
»Articulate a coherent vision of the team environment
»Have the creativity/authority to overcome obstacles as
they surface
© 2012 South-Western, a part of Cengage Learning
10–13
Implementing Teams… (cont’d)
• Changing to a Team-Based Situation (cont’d)
–Planning the Change
• Making the decision
– Change Process
»Leader establishes steering committee to explore the
organization’s readiness for the team environment and
lead it through the planning and preparation for the
change
»Establish a feasibility study
»Make a go or no-go decision
© 2012 South-Western, a part of Cengage Learning
10–14
Implementing Teams… (cont’d)
• Changing to a Team-Based Situation (cont’d)
–Planning the Change
• Making the decision
• Steps involved in preparing for implementation:
– Clarify the mission
– Select the site for the first work teams
– Prepare the design team
– Plan the transfer of authority
– Draft the preliminary plan
© 2012 South-Western, a part of Cengage Learning
10–15
Implementing Teams… (cont’d)
• Changing to a Team-Based Situation (cont’d)
–Planning the Change
–Implementation Phases
• Start-up
– Select and train team members
– Identify team boundaries
– Adjust preliminary plan to fit
the particular team situations
© 2012 South-Western, a part of Cengage Learning
10–16
Implementing Teams… (cont’d)
• Changing to a Team-Based Situation (cont’d)
–Planning the Change
–Implementation Phases
• Start-up
• Reality and unrest: Managers’ roles
– Provide encouragement
– Monitor team performance
– Act as intermediaries between teams
– Help teams acquire needed resources
– Foster the right type of communication
– Protect teams from those who want to see them fail
© 2012 South-Western, a part of Cengage Learning
10–17
Implementing Teams… (cont’d)
• Changing to a Team-Based Situation (cont’d)
–Planning the Change
–Implementation Phases
• Start-up
• Reality and unrest
• Leader-centered teams
– Encourage strong internal team leaders
– Assist each team in development of its
own sense of identity
© 2012 South-Western, a part of Cengage Learning
10–18
Implementing Teams… (cont’d)
• Changing to a Team-Based Situation (cont’d)
–Planning the Change
–Implementation Phases
• Start-up
• Reality and Unrest
• Leader-centered teams
• Tightly formed teams
– Keep communication channels with other teams open
– Provide performance feedback
– Transfer authority/responsibility to all team members
© 2012 South-Western, a part of Cengage Learning
10–19
Implementing Teams… (cont’d)
• Changing to a Team-Based Situation (cont’d)
–Planning the Change
–Implementation Phases
•
•
•
•
•
Start-up
Reality and Unrest
Leader-centered teams
Tightly formed teams
Self-managing teams: keeping teams on track
– Continue job-team-interpersonal skill training
– Improve support systems for facilitation of team development and
productivity
– Improve internal customer/supplier relationships
© 2012 South-Western, a part of Cengage Learning
10–20
10.1
Phases of Team
Implementation
© 2012 South-Western, a part of Cengage Learning
10–21
Essential Team Issues
Necessities for Team-Based
Organizational Success
Performancebased reasons
for teams
© 2012 South-Western, a part of Cengage Learning
Proper
planning of
strategies
Proper
implementation
of strategies
10–22
Team Implementation
Implementation Phases
Team Performance
Phase 1: Start-up
Performance is normal
Phase 2: Reality/Unrest
Performance declines due to confusion
and frustration with training and lack of
top management direction
Phase 3: Leader-centered teams
Performance increases due to
increasing familiarity with the team
process and restoration of internal
leadership
Phase 4: Tightly-formed teams
Performance continues to increase
Phase 5: Self-managing teams
Performance peaks as teams mature
and become more flexible
© 2012 South-Western, a part of Cengage Learning
10–23
Importance of Top Management
in Team Implementation
• Makes go or no-go decision for organizational
change to team-based structure
–Based on sound business performance reasons
• Is instrumental in communicating the reasons for
change to the rest of the organization
• Supports the change effort during the difficult
periods
© 2012 South-Western, a part of Cengage Learning
10–24
10.2
Performance and Implementation of Teams
Reference: Reprinted by permission of Harvard Business School Press. From The Wisdom of Teams:
Creating the High Performance Organization by Jon R. Katzenbach and Douglas K. Smith, Boston, MA,
1993, p. 84. Copyright © 1993 by the Harvard Business School Publishing Corporation; all rights reserved.
© 2012 South-Western, a part of Cengage Learning
10–25
Organizational Behavior in Action
• After reading the chapter:
–How are families like teams? How are they unlike
teams?
–Students frequently are required to participate as
members of teams in their classes.
• What are the advantages of teams in classes?
• What are the disadvantages of teams in classes?
© 2012 South-Western, a part of Cengage Learning
10–26