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Teams and Groups in Business Settings

Teams and Groups in Business Settings. OB Outcomes: Attitudes and Behaviors Effort Job Satisfaction Absenteeism Turnover Stress Workplace Violence Organizational Citizenship Behavior and Commitment Employee Theft Safety and Accidents Sexual Harassment Grievances.

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Teams and Groups in Business Settings

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  1. Teams and Groups in Business Settings

  2. OB Outcomes: Attitudesand Behaviors Effort Job Satisfaction Absenteeism Turnover Stress Workplace Violence Organizational Citizenship Behavior and Commitment Employee Theft Safety and Accidents Sexual Harassment Grievances Influenced by Managers Using Application of Individual Differences Perceptions Attributions Attitude change Values Personality Group Dynamics Reward Systems Job Design Leadership Organizational Behavior Course Model

  3. Work Groups Two or more people who interact for the purpose of sharing information & making better decisions in order to enhance each member’s Individual performance. No collective work that requires joint effort Group performance is the sum of each individual’s contribution. Work Teams Two or more individuals who interact in ways to produce synergy through coordinated effort. Means of ↑ performance & quality by working toward a common goal Overall group performance is greater than the sum of the individual parts. Merely calling a group a team does not automatically increase its performance. Groups Versus Teams

  4. Competitive Advantage of Teams Increase productivity, quality, and service via: 1. Better decision-making 2. More creativity 3. Improved communication leading to: a. Less conflict b. Higher morale c. Higher customer satisfaction --Recall Sears: ↑job sat → ↑customer sat 4. Greater staffing flexibility via cross-training

  5. TYPES OF WORK TEAMS: Problem Solving (QCs) Task Force (temporary) Cross- Functional WORK TEAMS (Standing) Committees (e.g., safety team) (permanent) Self-managed (next slide) Virtual

  6. Characteristics of Self-Directed (Self-Managed) Teams Members... • Are held accountable for quantity & quality of work • Have discretion in assigning tasks & scheduling • Can perform multiple jobs on the team because of cross training (mandatory job rotation) • Evaluate each other’s job performance • Are responsible for total quality of group output • Frequently use skill based pay and gain-sharing

  7. Consequences of Team Membership for Individuals PositiveNegative • Waste of Time • Teams overused • Interpersonal Conflict & Stress • Constraint on Behavior • Peer pressure • Loss of individuality • Need Fulfillment (→ > Effort) • Security/safety, social, esteem • Problem Solving/Task Accomplishment • Assistance from others • Communication • Grapevine 75% accurate

  8. Consequences of Team Membership for Organizations PositiveNegative Improved Decision Making & Problem Solving (but contingent on the nature of the problem)…lets look at this a little more closely

  9. Assigning Problems/Tasks to Individuals & Teams INDIVIDUALS seem to do better under 2 conditions: • when the problem has a highly verifiable solution - a single, correct answer • when the solution requires a long train of complex, interrelated steps

  10. TEAMSdo better under three conditions: • when the problem is suitable to a division of labor AND group members have diverse but relevant skills • when the ultimate resolution of the problem will depend on acceptance of others • when the goal is to produce new, original, or creative ideas. Can be facilitated by anonymous interaction if political concerns exist (e.g., electronic brainstorming).

  11. Team Decision-Making Questions • Did teams perform better than individuals working in isolation? • Did the quality of team performance exceed that of the most proficient member of the team? • Was team performance affected by the most influential member of the team?

  12. Consequences of Team Membership for Organizations PositiveNegative Contradictory Performance Norms Improved Decision Making & Problem Solving (contingent) Increased Acceptance & Commitment to Decisions, Facilitates Implementation Increased Conformity to Desired Norms (e.g., clean desk) Promotes Creativity & Innovation Costly Potential Inter-team Conflict Resistance to Change Group Think Escalation of Commitment

  13. High Low performance performance Moderate Moderate to performance low performance High Low Positive Negative Group Performance Norms Group Cohesiveness

  14. Strategies for Minimizing “Groupthink” …(when norms for consensus override appraisals of alternatives) • Have one member play “devil’s • advocate” at each meeting • Create subgroups to work on problem and share results • Have members talk over their ideas with “outsiders” • Bring in outside experts to observe and comment on group • Hold a “second chance” meeting to review “final” decision • If a leader, avoid seeming partial to one course of action

  15. Escalation of Commitment • Continuing to support an unsuccessful action even when ill-advised • “Throwing good money after bad”. An increased commitment to a previous decision in spite of negative information Why do people engage in this behavior?

  16. 3 Common Reasons for Escalation of Commitment • To save face:Individuals and groups do not like to admit their decision-making was flawed • “Crowd Psychology”:Competitive situations give rise to more escalation of commitment. “Double or nothing” bets. • To try to recoup “sunk costs”:Flawed logic--sunk costs (prior investments of time or $) are not recoverable. Boy/girlfriend.

  17. GUIDELINES FOR AVOIDING ESCALATING COMMITMENTS • 1. Try to set limits on you or your team’s commitment to a decision ahead of time, and then stick to it. • Don’t follow other individuals or teams (imitation or • crowd psychology). • 3. Stop periodically to assess exactly why you or the team is • continuing with a course of action. What will it cost to • continue? Avoid “sunk costs”. Stay vigilant to avoid • “creeping” commitments to previously chosen courses • of action. Season tickets.

  18. Final Tips for Using Teams • Teams have pros & cons; their use “cuts both ways”. Will the team have norms favorable to management? • Have good reasons for forming a team; does the nature of the problem/issue call for a team? • Have a specific reason for putting someone on a team; recognize the potential impacts (+ & -) of diversity • Keep the size (5-9) of each team reasonable; odd #s best • Don’t expect too much too soon; teams must go through developmental stages

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