BUS7000 Organizational Behavior &Theory

BUS7000 Organizational Behavior &Theory
Week 4 Dr Jenne Meyer

Article Analysis

Videos for week 3 content
Emotional Intelligence:

Applied Performance Practices
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Meaning of Money in the Workplace
Money means different things to people symbol of success reinforcer and motivator reflection of performance Source of less/more anxiety Differences in meaning of money by gender and culture Money is an important motivator Rewarding people with money is one of the oldest and most widespread applied performance practices but money means different things to different people • Symbol of achievement/success/status • Reinforcer and motivator • Reflection of performance • Source of enhanced or reduced anxiety Differences in meaning of money by gender and culture • Men value money more than women – men tend to view money as a symbol of power and status • Cultural values influence the meaning and value of money – high power distance countries e.g. China and Japan tend to have high respect and priority for money Money is an important motivator

Membership/Seniority Based Rewards
Fixed wages, seniority increases Advantages Guaranteed wages may attract job applicants Seniority-based rewards reduce turnover Disadvantages Doesn’t motivate job performance Discourages poor performers from leaving May act as golden handcuffs (tie people to the job) Represent the largest part of most paychecks – “pay for pulse” e.g. fixed wages Advantages • Guaranteed wages may attract job applicants • Seniority-based rewards reduce turnover Disadvantages • Do not directly motivate job performance • Discourages poor performers from leaving voluntarily • May act as “golden handcuffs” – discourage employees from quitting

Job Status-Based Rewards
Includes job evaluation and status perks Advantages: Job evaluation tries to maintain fairness Motivates competition for promotions Disadvantages: Employees exaggerate duties, hoard resources Reinforces status Encourage hierarchy, might undermine cost-efficiency and responsiveness Most organizations reward employees on the basis of the worth or status of the jobs they occupy – job evaluation methods result in pay levels that relate to a job’s skill, effort, responsibility and working conditions Employees with more valued jobs may have larger offices, company-paid vehicles and other perks Advantages: • Improve feelings of fairness • Motivates employees to compete for promotions Disadvantages: • Employees may exaggerate duties, hoard resources • Reinforces status mentality vs. egalitarian workplace • Encourages bureaucratic hierarchy – may undermine costefficiency and responsiveness to the external environment

Competency-Based Rewards
Pay increases with competencies acquired and demonstrated Skill-based pay Pay increases with skill modules learned Advantages More flexible work force, better quality, consistent with employability Disadvantages Potentially subjective, higher training costs Pay increases with competencies acquired and demonstrated Skill-based pay -- pay increases with number of skill blocks/ modules learned e.g. technical skills Advantages • More flexible and multiskilled work force • Better product/service quality; consistent with employability Disadvantages • Competency definitions may become vague/subjective – skillbased plans are more objective • Increases training costs

Organizational Rewards
Types of organizational rewards Organizational bonuses (e.g. company trips) Employee stock ownership plans (ESOPS) Stock options Profit-sharing plans Evaluating organizational rewards Creates an “ownership culture” Adjusts pay with firm's prosperity Weak link between individual effort and rewards Rewards affected by external forces Individual-level rewards – bonuses for task accomplishment or exceeding performance goals; commissions; piece rate systems Team Rewards – e.g. gainsharing plans – calculate bonuses from the work unit’s cost savings and productivity improvement Types of Organizational Rewards • Organizational bonuses e.g. productivity gains, trips • Employee share ownership plans (ESOPs) – reward systems that encourage employees to buy company shares • Share options – gives employees the right to purchase company shares at a future date at a predetermined price • Profit-sharing plans – pays bonuses to employees on the basis of the previous year’s level of corporate profits Evaluating Organizational Rewards • ESOPs and share options create an “ownership culture” • Profit-sharing automatically adjusts pay with firm’s prosperity • Problem – perceived weak connection between individual effort and rewards -- e.g., company’s stock price/profitability is influenced by external forces (beyond the employees’ control)

Improving Reward Effectiveness
Link rewards to performance Ensure rewards are relevant Team rewards for interdependent jobs Ensure rewards are valued Watch out for unintended consequences Link rewards to performance – employees with better performance should be rewarded more than those with poorer performance) Ensure rewards are relevant – align rewards with performance within the employee’s control i.e. see a “line of sight” Use team rewards for interdependent jobs – use team rewards when employees work in highly interdependent jobs because it is difficult to measure individual performance in these situations Ensure rewards are valued – rewards work best when they are valued i.e. avoid false assumptions about what employees want Watch out for unintended consequences – consider possible undesirable effects on employee behaviors

Unintended Consequences of Rewards at TransSantiago
Transit bus drivers in Santiago, Chile were paid by the number of passengers Motivated starting work on time, shorter breaks, efficient driving, ensuring passengers paid fares Unintended consequences Traffic accidents -- reckless driving to next stop, cut off competing buses Passenger injuries/deaths – doors left open, buses departed before all on board Drove past stops with only one passenger waiting Transit bus drivers in Santiago, Chile, were paid by the number of fare-paying passengers. This incentive system motivated drivers to begin their route on time, take shorter breaks and drive efficiently, however, unintended results occurred: • Reckless driving to the next passenger waiting area, cutting off competing buses; many passenger injuries/fatalities because drivers speeded off before passengers were seated, drove past stops where only one passenger was waiting, many traffic accidents.

Job Design Assigning tasks to a job, including the interdependency of those tasks with other jobs Organization's goal -- to create jobs that can be performed efficiently yet employees are motivated and engaged The process of assigning tasks to a job, including the interdependency of those tasks with other jobs Organization's goal – to create jobs that allow work to be performed efficiently yet employees are motivated and engaged

Job Specialization Dividing work into separate jobs, each with a subset of tasks required to complete the product/service Scientific management Frederick Winslow Taylor Champion of job specialization Taylor also emphasized person-job matching, training, goal setting, work incentives The result of division of labour in which each job includes a subset of the tasks required to complete the product or service Scientific management Advocated by Frederick Winslow Taylor in early 1900s Mainly associated with high levels of job specialization and standardization of tasks to achieve maximum efficiency for maximum efficiency Taylor also emphasized person-job matching, training, goal setting, work incentives

Evaluating Job Specialization
Advantages Disadvantages Less time changing activities Lower training costs Job mastered quickly Better person-job matching Job boredom Discontentment pay Higher costs Lower quality Lower motivation Advantages • Less time changing activities; lower training costs; jobs mastered quickly; better person-job matching Disadvantages • Job boredom; discontentment pay to attract employees resulting in higher costs; reduced work quality; undermines the motivational aspect of jobs

Job Characteristics Model
Critical Psychological States Core Job Characteristics Outcomes Work motivation Growth satisfaction General effectiveness Feedback from job Knowledge of results Skill variety Task identity Task significance Meaningfulness Autonomy Responsibility Identifies five core job dimensions that produce three psychological states Core job characteristics • Skill variety – the use of different skills and talents to perform tasks within their jobs e.g. sales clerks also stock inventory and change store-front displays • Task identity – the degree to which a job requires completion of a whole or identifiable piece of work e.g. assembling an entire broadband modem rather than just soldering circuitry • Task significance – the degree to which a job has a substantial impact on the organization ad/or larger society e.g. manufacturing quality of medical devices impact life and death of patients • Autonomy – jobs with high autonomy provide freedom, independence and discretion in scheduling the work and determining procedures • Job feedback – the degree to which employees can tell how well they are doing on the basis of direct feedback from the job itself Critical Psychological States • Experienced meaningfulness – belief that one’s work is worthwhile or important • Experienced responsibility – feel personally accountable • Knowledge of results – information on consequences of work effort Individual Differences – job design doesn’t increase work motivation for everyone in every situation • Employees must have skills and knowledge to master job • May not motivate employees dissatisfied with their work context e.g. working conditions, however research findings are mixed Individual differences

Improving Task Significance Through Voice of the Customer
Rolls Royce Engine Services improved task significance through their “Voice of the Customer” program, in which customers talk to production staff about how the quality of their engine maintenance work is important to customers. Rolls Royce introduced “Voice of the Customer,” an initiative in which customers visit the facility where aircraft engines are repaired and talk to production staff about how the quality of these engines is important to them. “It gives employees with relatively repetitive jobs the sense that they’re not just working on a part but rather are key in keeping people safe.”

Videos for debate Performance commitment Stop slacking: Working smart: Keep the best employees:

Job Rotation Moving from one job to another Benefits
Minimizes repetitive strain injury Multiskills the workforce Potentially reduces job boredom Job ‘A’ Job ‘B’ The practice of moving employees from one job to another Benefits • Minimizes health risks from repetitive strain and heavy lifting • Supports multi-skilling which increases workforce flexibility • Potentially reduces the boredom of highly repetitive jobs Job ‘D’ Job ‘C’

Job Enlargement Adding tasks to an existing job
Example: video journalist Video journalist • Operates camera • Operates sound • Reports story Employee 1 Operates camera Employee 2 Operates sound Employee 3 Reports story Traditional news team The practice of adding more tasks to an existing job – skill variety increases because there are more tasks to perform Example: Video journalist is an example of an enlarged job • A traditional news team consists of a camera operator, a sound and lighting specialist, and the journalist who writes and reports the story • One video journalist performs all of these tasks

Job Enrichment Given more responsibility for scheduling, coordinating, and planning one’s own work 1. Clustering tasks into natural groups Stitching highly interdependent tasks into one job e.g., video journalist, assembling entire product 2. Establishing client relationships Directly responsible for specific clients Communicate directly with those clients The practice of giving employees more responsibility for scheduling, coordinating, and planning one’s own work – generally higher job satisfaction/work motivation as well as lower absenteeism and turnover results Enrichment strategies: 1. Natural grouping – combining interdependent tasks into one job e.g. video journalist completes an entire product (a news story) 2. Establishing client relationships – putting employees in direct contact with their clients -- supervisor isn’t a go-between

Dimensions of Empowerment
Self-determination Employees feel they have freedom and discretion Meaning Employees believe their work is important Competence Employees have feelings of self-efficacy Empowerment is a psychological concept with four dimensions: Self determination • Empowered employees feel that they have freedom, independence, and discretion over their work activities Meaning • Employees who feel empowered care about their work and believe that what they do is important Competence • Empowered employees are confident about their ability to perform the work well and have a capacity to grow with new challenges (self-efficacy) Impact • Empowered employees view themselves as active participants in the organization – their decisions and actions influence the company’s success Impact Employees feel their actions influence success

Supporting Empowerment
Individual factors Possess required competencies, able to perform the work Job design factors Autonomy, task identity, task significance, job feedback Organizational factors Resources, learning orientation, trust Individual factors • Possess required competencies, able to perform the work and handle the additional decision making requirements Job characteristics (job design factors) • Autonomy, task identity, task significance, receive job feedback Organizational factors • Resources and information is accessible, learning orientation culture, employees are trusted

Self-Leadership The process of influencing oneself to establish the self-direction and self-motivation needed to perform a task Includes concepts/practices from goal setting, social cognitive theory, and sports psychology Self-leadership at Bayer CropScience The process of influencing oneself to establish the selfdirection and self-motivation needed to perform a task Includes concepts/practices from: • Goal setting • Social cognitive theory • Sports psychology – constructive thought processes 6-23

Elements of Self-Leadership
Personal Goal Setting Constructive Thought Patterns Designing Natural Rewards Self- Monitoring Self- Reinforce- ment Personal goal setting Employees set their own goals Apply effective goal setting practices • Set goals for your own work effort • Apply effective goal setting practices • Requires a high degree of self-awareness

Personal Goal Setting Constructive Thought Patterns Designing Natural Rewards Self- Monitoring Self- Reinforce- ment Positive self-talk Talking to ourselves about thoughts/actions Potentially increases self-efficacy Mental imagery Mentally practicing a task Visualizing successful task completion Self-talk – the process of talking to ourselves about our own thoughts or actions Positive self-talk increases self-efficacy Mental imagery – process of mentally practicing a task and visualizing its successful completion

Personal Goal Setting Constructive Thought Patterns Designing Natural Rewards Self- Monitoring Self- Reinforce- ment Finding ways to make the job itself more motivating e.g. altering the way the task is accomplished Finding ways to make the job more motivating e.g. altering the way the task is accomplished – making slight changes to suit their needs and preferences

Personal Goal Setting Constructive Thought Patterns Designing Natural Rewards Self- Monitoring Self- Reinforce- ment Keeping track of your progress toward the self-set goal Looking for naturally-occurring feedback Designing artificial feedback Keeping track at regular intervals of one’s progress toward a self-set goal Using naturally-occurring feedback e.g. lawn maintenance employees can see improving appearance of client’s lawn Designing feedback systems e.g. arranging to receive a monthly report on sales levels

Personal Goal Setting Constructive Thought Patterns Designing Natural Rewards Self- Monitoring Self- Reinforce- ment “Taking” a reinforcer only after completing a self-set goal e.g. Watching a movie after writing two more sections of a report e.g. Starting a fun task after completing a task that you don’t like “Taking” a reinforcer only after completing a self-set goal e.g. taking a break after reaching a pre-determined stage of your work – self-induced form of positive reinforcement

Self-Leadership Contingencies
Individual factors Higher levels of conscientiousness and extroversion Positive self-evaluation (self-esteem, self-efficacy, internal locus) Organizational factors Job autonomy Participative and trustworthy leadership Measurement-oriented culture Individual factors • Self-leadership behaviors more frequently found in people with higher levels of conscientiousness and extroversion • More likely to apply self-leadership strategies when people have a positive self-concept evaluation (i.e. self-esteem, self-efficacy, and internal locus of control) Organizational factors • Employees need some degree of autonomy • Have an empowering/trusting rather than controlling boss • Culture emphasizes continuous measurement of performance

Team Dynamics 8 McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

What are Teams? What are teams? Why do teams exist?
Groups of two or more people who interact and influence each other, are mutually accountable for achieving common goals associated with organizational objectives, and perceive themselves as a social entity within an organization 1. Groups of two or more people 2. Exist to fulfill a purpose 3. Interdependent – interact and collaborate 4. Mutually accountable for achieving common goals – influence each other 5. Perceive themselves to be a team

What are Teams? Groups of two or more people
Exist to fulfill a purpose Interdependent -- interact and influence each other Mutually accountable for achieving common goals Perceive themselves as a social entity Groups of two or more people who interact and influence each other, are mutually accountable for achieving common goals associated with organizational objectives, and perceive themselves as a social entity within an organization 1. Groups of two or more people 2. Exist to fulfill a purpose 3. Interdependent – interact and collaborate 4. Mutually accountable for achieving common goals – influence each other 5. Perceive themselves to be a team

Many Types of Teams Departmental teams
Production/service/ leadership teams Self-directed teams Advisory teams Task force (project) teams Skunkworks Virtual teams Communities of practice Departmental teams • Employees have similar or complementary skills located in the same unit of a functional structure • Usually minimal task interdependence because each person works with employees in other departments Production/service/leadership teams • Typically multiskilled (employees have diverse competencies); team members collectively produce a common product/service; or make ongoing decisions Self-directed teams • Similar to production/service teams except they produce an entire product and have low interdependence with other work units; high autonomy Advisory teams • Provide recommendations to decision makers e.g. committees, advisory councils, work councils, review panels, etc. Task force (project) teams • Usually multiskilled; temporary – exist to solve a problem, realize an opportunity, or develop a product or service Skunkworks • Multiskilled teams usually located away from the organization and relatively free of its hierarchy – often initiated by an entrepreneurial team leader who borrows people and resources to design a product or service Virtual teams • Formal teams whose members operate across space, time, and organizational boundaries and are linked through information technologies to achieve organizational tasks Communities of practice • Purpose is to share information; bound together by shared expertise and passion for a particular activity or interest

Informal Groups Groups that exist primarily for the benefit of their members Reasons why informal groups exist: Innate drive to bond Social identity -- we define ourselves by group memberships Goal accomplishment Emotional support • All teams are groups • Groups include people assembled together, whether or not they have any interdependence or organizationally-focused objective • Exist primarily for the benefit of their members Reasons why informal groups exist: • Innate drive to bond • Social identity – we define ourselves by our group affiliations • Goal accomplishment – achieve things individuals working alone could not accomplish • Emotional support – comforted by presence of others

Advantages/Disadvantages of Teams
Make better decisions, products/services Better information sharing Increase employee motivation/engagement Fulfills drive to bond Accountable to team members, who monitor performance Team members are benchmarks of comparison Disadvantages Individuals better/faster on some tasks Process losses Social loafing Advantages 1. Make better decisions and develop better products/services 2. Can quickly share information and coordinate tasks 3. Increase employee motivation/engagement – fulfills drive to bond; accountable to team members who monitor performance; performance improves when co-workers become benchmarks of performance comparison Disadvantages 1. Individuals better/faster on some tasks 2. Process losses – resources expended toward team development and maintenance rather than the task • Brooks’ Law – adding more people to a late software project only makes it later 3. Social loafing – problem that occurs when people exert less effort when working in groups than when working alone

How to Minimize Social Loafing
Make individual performance more visible Form smaller teams Specialize tasks Measure individual performance Increase employee motivation Increase job enrichment Select motivated employees Make individual performance more visible • Form smaller teams • Specialize tasks • Measure individual performance Increase employee motivation • Increase job enrichment • Select motivated employees

Team Effectiveness Model
Task characteristics Team size Team composition Team Design Rewards Communication Org structure Org leadership Physical space Organizational and Team Environment Accomplish tasks Satisfy member needs Maintain team survival Team Effectiveness Team development Team norms Team cohesiveness Team trust Team Processes Team effectiveness defined -- extent that the group: • Fulfills organizational (or other system) purpose • Fulfills needs of individual members • Is able to survive (i.e. maintain member commitment) Elements of team effectiveness model • Organizational and Team Environment • Team design • Team processes • Team outcomes (effectiveness)

PSA Peugeot Citroën’s Team Space
PSA Peugeot Citroën, Europe’s second largest automaker, set up an “obeya room” (shown here) to speed up team decision making. The room, which is plastered with charts and notes on key issues, creates a unique team environment that encourages face-to-face interaction to quickly resolve those issues. PSA Peugeot Citroën, Europe’s second largest automaker, set up an “obeya room” (shown here) to speed up team decision making. The room, which is plastered with charts and notes on key issues, creates a unique team environment that encourages face-to-face interaction to quickly resolve those issues

Organization/Team Environment
Reward systems Communication systems Organizational structure Organizational leadership Physical space • Reward systems – at least partly rewarded for team performance • Communication systems – need right amount of information and feedback • Organizational structure – teams flourish when organized around work processes because this increases interaction and interdependence • Organizational leadership – provide support and strategic direction • Physical space – physical layout makes a difference

Team’s Task Characteristics
Teams are better at tasks that: are sufficiently complex (require teamwork) can be divided into more specialized roles requiring frequent coordination are well-structured (easier to coordinate) Teams preferred with higher task interdependence Extent that employees need to share materials, information, or expertise to perform their jobs. What type of work is best for teams? • Sufficiently complex – requires skills and knowledge beyond the competencies of one person • When the complex work can be divided into more specialized roles and the people in the roles require frequent coordination with each other • Well-structured tasks because it is easier to coordinate such work among several people Task interdependence – particularly important for teams • Extent to which team members must share materials, information, or expertise to perform their jobs

Levels of Task Interdependence
High Reciprocal A B C Sequential A B C Pooled interdependence (lowest level) • Employee or work unit shares a common resource with other employees or work units e.g. machinery, administrative support, budget Sequential interdependence • The output of one person becomes the direct input for another person e.g. assembly line Reciprocal interdependence (highest level) • Work output is exchanged back and forth among individuals – interwoven relationship e.g. medical team Pooled Resource A B C Low

Team Size Smaller teams are better because:
need less time to coordinate roles and resolve differences require less time to develop more member involvement, thus higher commitment But team must be large enough to accomplish task Smaller teams are better because: • Need less time to coordinate roles and resolve differences • Require less time to develop • More member involvement, thus higher commitment But…team must be large enough to accomplish task

Team Member Competencies
Team Composition Effective team members must be willing and able to work on the team Effective team members possess specific competencies (5 C’s in diagram) Conflict Resolving Diagnose conflict sources Use best conflict-handling strategy Coordinating Align work with others Keep team on track Team Member Competencies Effective team members must be willing and able to perform their work in a team environment Competencies of effective team members (5 Cs): • Cooperating – willing and able to work together i.e. sharing resources and being flexible to accommodate others • Coordinating – actively manage the team’s work i.e. keep the team on track and align work with others • Communicating – transmit information freely (vs. hoarding), efficiently, and respectfully; listen actively to co-workers • Comforting – help co-workers maintain a positive and healthy psychological state i.e. show empathy, provide psychological comfort, and build co-worker feelings of confidence and self-worth • Conflict resolving – have skills and motivation to resolve dysfunctional disagreements i.e. effective diagnostic skills and use various conflict-handling skills effectively Comforting Show empathy Provide psych comfort Build confidence Communicating Share information freely, efficiently, respectfully Listen actively

Team Composition: Diversity
Team members have diverse knowledge, skills, perspectives, values, etc. Advantages view problems/alternatives from different perspectives broader knowledge base better representation of team’s constituents Disadvantages take longer to become a high-performing team more susceptible to “faultlines” increased risk of dysfunctional conflict Extent to which team composition includes people with diverse knowledge, skills, values, mental models, perspectives Advantages of team diversity • View problems/alternatives from different perspectives • Broader pool of technical competencies • Provide a better representation of constituents e.g. other departments Disadvantages of team diversity • People from diverse backgrounds take longer to become a highperforming team • Diverse teams are susceptible to “fault lines” that may split a team into subgroups e.g. gender, professional • Increased risk of dysfunctional conflict

Stages of Team Development
Performing Adjourning Existing teams might regress back to an earlier stage of development Norming Storming 1. Forming • Period of testing and orientation • Members defer to the existing authority • Expectations learned, and how members fit into the team 2. Storming • More conflict as members compete for roles • Members try to establish norms 3. Norming • Cohesion develops • Roles established, consensus forms around group objectives • Similar mental models and expectations formed about how goals should be accomplished 4. Performing • Team becomes more task-oriented • Efficient work coordination, conflict resolution • Highly cooperative, high trust, committed to goals, identify with the team 5. Adjourning • Team is about to disband • Members shift from task to relationship focus Forming

Team Development as Membership and Competence
Two central processes in team development Team membership formation Transition from “them” to “us” Team becomes part of person’s social identity Team competence development Forming routines with others Forming shared mental models Five-stage model is not a perfect representation of the team development process e.g. some teams remain in a particular stage longer than others Two central processes in team development: 1. Developing team identity (team membership formation) • Transition where members view team as “us” rather than “them” • Team becomes part of the person’s social identity 2. Developing team competence • Forming routines with team members • Forming shared/complementary mental models

Team Roles A set of behaviors that people are expected to perform
Some formally assigned; others informally Informal role assignment occurs during team development and is related to personal characteristics A set of behaviors that people are expected to perform because of the positions they hold in a team and organization • Some roles are formally assigned e.g. team leaders are usually expected to initiate discussion • Informal roles which are negotiated through the team development process and are related to personal characteristics e.g. supporting others; initiating new ideas

Team Building Formal activities intended to improve the team’s development and functioning Types of team building Clarify team’s performance goals Improve team’s problem-solving skills Improve role definitions Improve relations Formal activities intended to improve the development and functioning of a work team • More common for existing teams that have regressed to earlier stages of team development due to turnover or loss of focus Types of Team Building: • Clarifying team’s performance goals increases motivation to achieve goals • Improve the team’s problem-solving skills Is Team Building Effective? Although team building activities are popular their success is less certain: • Team-building activities need to target specific team problems • Team building is a continuous process, not a one-shot inoculation • Team building needs to occur on-the-job, not just away from the workplace • Improve role definitions – helps team develop shared mental models • Improve relations – aimed at improving relations among team members i.e. help team members learn more about each other, build trust, and manage conflict within the team

Team Norms Informal rules and shared expectations team establishes to regulate member behaviors Norms develop through: Initial team experiences Critical events in team’s history Experience/values members bring to the team Informal rules and shared expectations a team establishes to regulate member behaviors – norms apply only to behavior, not to private thoughts or feelings Norms develop through: 1. Initial team experiences 2. Critical events in team’s history 3. Experiences/values members bring to the team

Preventing/Changing Dysfunctional Team Norms
State desired norms when forming teams Select members with preferred values Discuss counter-productive norms Introduce team-based rewards that counter dysfunctional norms Disband teams with dysfunctional norms • State/establish desired norms when forming teams • Select members with preferred values • Discuss/coach counter-productive norms while developing useful norms • Introduce team-based rewards that counter dysfunctional norms • Disband teams with dysfunctional norms

Team Cohesion The degree of attraction people feel toward the team and their motivation to remain members Both cognitive and emotional process Related to the team member’s social identity The degree of attraction people feel toward the team and their motivation to remain members • Cognitive – members logically believe the team will fulfill goals and needs • Emotional – team is part of person’s social identity

Influences on Team Cohesion
Member similarity • Similarity-attraction effect • Some forms of diversity have less effect Team size • Smaller teams tend to be more cohesive Member interaction • Regular interaction increases cohesion • Calls for tasks with high interdependence Somewhat difficult entry • Team eliteness increases cohesion • But lower cohesion with severe initiation Member similarity • More/faster cohesion when members are similar to each other • Generally takes longer/more difficult for diverse teams to become cohesive, but this depends on the form of diversity Team size • Smaller teams tend to be more cohesive – easier for a few people to agree on goals and coordinate work activities Member interaction • Regular interaction increases cohesiveness • More interaction through higher task interdependence Team success • Successful teams fulfill member needs • Success increases social identity with team External challenges • Challenges increase cohesion when not overwhelming

Team Cohesion Outcomes
Motivated to remain members Willing to share information Better social support Resolve conflict effectively Better interpersonal relationships Better performance But only if norms are aligned with org goals Also, effect of performance on cohesion might be stronger than vice versa • Motivated to maintain membership and achieve objectives • Share information more frequently • Strong interpersonal bonds • Conflict resolved more swiftly and effectively • Better interpersonal relationships • Better performance (if norms are aligned)

Trust in Teams Positive expectations one person has of another person in situations involving risk Three levels of trust Swift trust New team members tend to have moderate or higher trust in co-workers Trust is fragile in new relationships – based on assumptions, not experience – so easily broken Positive expectations one person has toward another person or group in situations involving risk 3 levels of trust – calculus-based, knowledge-based, identification based Swift trust • New team members tend to have a moderate or high level—not a low level of trust in their new co-workers • Swift trust is fragile in new relationships because it is based on assumptions rather than experience i.e. easily broken

Self-Directed Teams at Whole Foods Markets
Whole Foods Markets organizes employees around self-directed teams, responsible for a particular store area. These teams have considerable autonomy to operate their store section. Whole Foods Markets organizes employees around self-directed teams, responsible for a particular store area. These teams have considerable autonomy to operate their store section. 8-56

Self-Directed Teams Defined
Cross-functional groups organized around work processes, that complete an entire piece of work requiring several interdependent tasks, and that have substantial autonomy over the execution of those tasks. Cross-functional work group that is organized around work processes, complete an entire piece of work requiring several interdependent tasks, and has substantial autonomy over the execution of those tasks Two distinct features • Teams complete an entire piece of work requiring interdependent tasks – clusters the team members together while minimizing interdependence and interaction with employees outside the team • Substantial autonomy over execution of their tasks – teams plan, organize, and control work activities with little or no direct involvement of a supervisor • SDTs potentially increase both productivity and job satisfaction 8-57

Self-Directed Team Success Factors
Responsible for entire work process High interdependence within the team Low interdependence with other teams Autonomy to organize and coordinate work Work site and technology support team communication/coordination • Responsible for an entire work process e.g. making an entire product or providing a service • High interdependence within the team • Low interdependence with other teams • Sufficient autonomy to organize and coordinate work • Work site and technology support team communication/coordination

Virtual Teams Teams whose members operate across space, time, and organizational boundaries and are linked through information technologies to achieve organizational tasks Increasingly possible because of: Information technologies Knowledge-based work Increasingly necessary because of: Organizational learning Globalization Teams whose members operate across space, time, and organizational boundaries and are linked through information technologies to achieve organizational tasks Increasingly possible because of: • Information technologies • Knowledge-based work Increasingly necessary because of: • Organizational learning – encourage employees to share and use knowledge where geography limits direct collaboration • Globalization – employees are spread around the planet rather than in one building or city

Virtual Team Success Factors
Member characteristics Communication technology skills Self-leadership skills Emotional intelligence Flexible use of communication technologies Fairly high task structure Opportunities to meet face-to-face • Virtual team member characteristics e.g. good communication technology skills; strong self-leadership; and higher emotional intelligence • Toolkit of communication technologies/channels and freedom to choose channels that work best for them • Fairly high task structure e.g. clear operational objectives • Opportunities to meet face-to-face especially early in the team development process

Team Decision Making Constraints
Time constraints Time to organize/coordinate Production blocking Evaluation apprehension Belief that others are silently evaluating you Peer pressure to conform Suppressing opinions that oppose team norms Groupthink Tendency in highly cohesive teams to value consensus at the price of decision quality Concept losing favor – study specific elements Time constraints • Teams take longer than individuals to make decisions • Time to organize/coordinate/maintain relationships • Production blocking undermines idea generation – time constraint in team decision making due to the procedural requirement that only one person may speak at a time Evaluation apprehension • Decision making problem that occurs when individuals are reluctant to mention ideas that seem silly because they believe (often correctly) that other team members are silently evaluating them • Based on the individual’s desire to create a favorable selfpresentation and creative ideas often sound bizarre • Most common when higher status person attends meeting, or members formally evaluate each other Peer Pressure to conform • Suppressing opinions that oppose team norms • Members might punish the violator or try to persuade him or her that the opinion is incorrect • Conformity is subtle – we question our ideas when team members disagree Groupthink • Tendency of highly cohesive teams to value consensus at the price of decision quality – desire for harmony • Concept is losing favor – better to consider specific features of teams (e.g. overconfidence)

General Guidelines for Team Decisions
Team norms should encourage critical thinking Sufficient team diversity Ensure neither leader nor any member dominates Maintain optimal team size Introduce effective team structures 1. Team norms should encourage critical thinking 2. Sufficient team diversity 3. Ensure neither leader nor any member dominates 4. Maintain optimal team size 5. Introduce effective team structures

Constructive Conflict
People focus their discussion on the issue while maintaining respectfulness for others having different points of view. Problem: constructive conflict easily slides into personal attacks • A type of conflict in which people focus their discussion on the issue while maintaining respect for people having other points of view • Advantage: Encourages people to present their divergent viewpoints • Challenge: People get defensive when their ideas are questioned -- constructive conflict can easily slide into perceived personal attacks

Week 4 wrap up Questions? Assignments for next week

BUS7000 Organizational Behavior &Theory

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