1. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Part 3 Management: Empowering People to Achieve Business Objectives

2. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Chapter 10 Improving Performance through Empowerment, Teamwork, and Communication

3. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-3 Chapter Objectives 1.Describe why and how organizations empower employees. 2.Distinguish between the two major types of teams in the workplace. 3.Identify the characteristics of an effective team and the roles played by team members. 4.Summarize the stages of team development. 5.Relate team cohesiveness and norms to effective team performance. 6.Describe the factors that can cause conflict in teams and how conflict can be resolved. 7.Explain the importance of effective communication skills in business. 8.Compare the different types of communication.

4. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-4 Empowering Employees Empowerment—giving employees authority and responsibility to make decisions about their work without traditional managerial approval and control. Anderson & Associates engineering firm believes in empowering its employees through information.

5. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-5 Empowering Employees Sharing Information Effective empowerment means keeping employees informed about the company’s:  Financial performance  Business environment Sharing Decision-Making Authority Employees given more authority and responsibility  Making decisions that implement a firm’s vision and competitive strategy

6. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-6 Empowering Employees Linking Rewards to Company Performance Reward employees for contributing desirable ideas and actions Make sure employees understand how their individual actions affect profits  Employee Stock Ownership Plans  Stock Options

7. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-7 Employee Stock Ownership Plans and Stock Options

8. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-8 Teamwork Teamwork—cooperative effort by a group of workers acting together for a common cause. What is a Team? A group of employees who are committed to a common purpose, approach, and set of performance goals. Lockheed Martin’s Joint Strike Fighter team must coordinate a massive team of suppliers

9. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-9 Five Species of Teams

10. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-10 Teamwork What is a Team? Work team—relatively permanent group of employees with complementary skills who perform the day-to-day work of organizations. Problem-Solving Teams—temporary combination of workers who gather to solve a specific problem and then disband.

11. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-11 Team Characteristics Team Size Can range from 2 to 150 people Research indicates maximum results with about 6-7 people

12. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-12 Team Characteristics Team Roles Task specialist role—time and energy devoted to helping the team accomplish its specific goals Socioemotional role—time and energy devoted to supporting the emotional needs of team members and to maintaining the team as a social unit

13. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-13 Team Member Roles

14. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-14 Team Characteristics Team Diversity Members may bring varied perspectives based on differences in their work experiences and age, gender, and cultural backgrounds Cross-functional team establishes one type of diversity by bringing together the expertise of members from different functions in the organization

15. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-15 Team Characteristics Teamwork in Small Organizations Small companies can benefit from teamwork In fact, small firms may function as teams Owner-manager can cultivate the characteristics of successful teams Concept of teamwork also applies to entrepreneurs

16. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-16 Team Characteristics Benefits result only if the type of team created matches the task to be accomplished Stages of Team Development Stage 1: Forming. Stage 2: Storming. Stage 3: Norming. Stage 4: Performing. Stage 5: Adjourning.

17. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-17 Stages of Team Development

18. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-18 Team Characteristics Team Cohesiveness and Norms Team Cohesiveness—extent to which team members feel attracted to the team and motivated to remain part of it. Team Norm—informal standard of conduct shared by team members that guides their behavior.

19. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-19 Team Characteristics Team Conflict Conflict—antagonistic interaction in which one party attempts to thwart the intentions or goals of another.

20. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-20 Team Characteristics Styles of Conflict Resolution The Competing Style The Avoiding Style The Compromising Style The Accommodating Style The Collaborating Style

21. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-21 The Importance of Effective Communication The Process of Communication Communication—meaningful exchange of information through messages.  Communication skills are important throughout an organization The Communication Process

22. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-22 Forms of Communication

23. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-23 The Importance of Effective Communication Basic Forms of Communication Oral Communication  Listening—skill of receiving a message and interpreting its intended meaning by grasping the facts and feelings it conveys. Cynical listening Offensive listening Polite listening Active listening

24. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-24 The Importance of Effective Communication Basic Forms of Communication Written Communication Formal Communication Informal Communication  Grapevine—internal information channel that passes information from unofficial sources.

25. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-25 The Importance of Effective Communication Basic Forms of Communication Verbal communication—communication that conveys meaning through words Nonverbal communication—transmits messages through actions and behaviors

26. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-26 Influence of Personal Space in Nonverbal Communication

27. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-27 Communication within the Organization Internal communication—system that sends messages through channels within an organization.

28. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-28 Communication within the Organization Communication in Teams Centralized communication network— team members exchange messages through a single person to solve problems or make decisions Decentralized communication network— members communicate freely with other team members and arrive at decisions together

29. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-29 Communication Outside the Organization External Communication—meaningful exchange of information through messages transmitted between an organization and its major audiences.

30. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 10-30 International Business Communication Can be a special challenge Appropriateness depends in part on an accurate translation that conveys the intended nuances of meaning Low-context cultures tend to rely on explicitly written and verbal messages High-context cultures – such as those of Japan, Latin American, and India – depend not only on the message itself, but also the conditions that surround it