Chapter 11 Effective Work Groups and Teams

Figure 11.1 Potential performance is the highest level possible. In order for an organization to achieve its goals, managers and work groups need to strive to ensure that a group’s actual performance comes as close as possible to its potential performance. Research has shown that process losses – the performance difficulties that a group experiences because of coordination and motivation problems – are an important factor when a group’s actual performance falls short of its potential performance. To increase the effectiveness of a work group, managers need to identify ways to improve the group’s motivation and coordination to achieve process gains. Process gains are increases in potential performance that result from new ways of motivating and coordinating group members. 3

Problems in Group Motivation and Performance Social Loafing Sucker Effect Social loafing is the tendency for individuals to exert less effort when they work in a group than when they work alone. The sucker effect is a condition in which some group members, not wishing to be considered suckers, reduce their own efforts when they see social loafing by other group members. Both are common problems in group motivation and performance.

Causes of Social Loafing Lack of connection between inputs and outcomes Perception that individual efforts are unnecessary or unimportant Large group size Motivation, effort, and performance are highest when outcomes are administered to employees contingent on their level of individual performance. If there is a lack of connection, individuals will not exert the same effort. Employees may also think that there efforts are not really needed. This belief lowers their level of motivation. Several studies have found that the tendency for group members to put forth less effort increases as the size of the group increases. This increase in social loafing occurs because larger numbers of people in a group increase the problems associated with identifying and evaluating each person’s individual performance.

Reducing Social Loafing Make individual contributions identifiable Make individuals feel that they are making valuable contributions to a group Keep the group as small as possible

Types of Task Interdependence Pooled Task Interdependence Sequential Task Interdependence Reciprocal Task Interdependence Pooled Task Interdependence: each member of a group makes separate and independent contributions to group performance. Sequential Task Interdependence: requires specific behaviors to be performed by group members in a predetermined order. Reciprocal Task Interdependence: the activities of all work group members are fully dependent on one another so that each member’s performance influences the performance of every other member of the group. Diagrams of each type of interdependence follow on the next three slides.

Figure 11.2 PooledTask Interdependence In this type of interdependence, each member’s contribution can be identified and evaluated. Group performance is determined by summing up the contributions of the individual members. Examples of tasks with pooled interdependence include work performed by the members of a typing pool, by waiters and waitresses in a restaurant, and by a group of physicians in a health maintenance organization. One common source of process losses on tasks with pooled interdependence is duplication of effort. This coordination problem can usually be solved by carefully and clearly assigning tasks to group members. Because pooled interdependence allows each member’s contribution to be measured and rewarded, the potential for process losses due to lack of motivation is relatively low. 3

Figure 11.2 Sequential Task Interdependence In this type of interdependence, the level of each member’s performance affects the performance of other members down the line. Examples include all types of assembly-line work from the production of cars to the production of Subway sandwiches. Sequential interdependence makes identifying individual performance of group members difficult because each member contributes to the same final product. An error made by a group member at the beginning of a work sequence can affect how well members later in the sequence perform their tasks. The performance level of the least capable or poorest-performing member of the group determines group performance (weakest link). The potential for process losses is higher with sequential interdependence than with pooled interdependence. Motivation and social loafing problems are also encountered more often because all of the group’s members work on the same product and it is hard to discern what individual performance levels are. Managers should consider close monitoring of these groups, forming groups on the basis of ability, and rewarding group members on the basis of group performance.

Figure 11.2 Reciprocal Task Interdependence When the activities of all work group members are fully dependent one another so that each member’s performance influences the performance of every other member of the group, the group tasks are characterized by reciprocal task interdependence. Examples of work groups whose tasks are reciprocally interdependent include high-tech research and development teams, top management teams, emergency room personnel, and operating room teams. The potential for process loss is highest when tasks are reciprocally interdependent because motivation and coordination problems can be especially difficult. Motivation problems like social loafing can ensue because it is difficult, if not impossible, to identify an individual’s level of performance when the final product is the result of the complex interplay of the contributions made by everyone. While the potential for process losses increases as task interdependence moves from pooled to sequential to reciprocal, the potential for process gains also increases. As the level and intensity of group members’ interactions increase and the expertise and skills of group members are brought to the task, the potential for synergy increases. Synergy is a type of process gain that occurs when members of a group acting together are able to produce more or better output than would have been produced by the combined efforts of each person acting alone.

What is Group Cohesiveness? The attractiveness of a group to its members High Low Groups high in cohesiveness are very appealing to their members; those low in cohesiveness are not appealing to their members and may even repulse them to the point where they try to leave the team. Group cohesiveness affects group performance and effectiveness. Figure 11.3 illustrates the five factors that influence a group’s level of cohesiveness. It is pictured on the next slide.

Figure 11.3 Determinants of Group Cohesiveness As groups get bigger, their members tend to be less satisfied. Therefore, large groups do not tend to be cohesive. Groups between 3 and 15 people tend to promote cohesiveness. People generally like, get along with, and most easily communicate with others who are similar to themselves. Groups will be more cohesive when group members are homogeneous. Competition between groups in an organization increases group cohesiveness when it motivates members of each group to band together to achieve its goals. Some competition can be helpful, but too much competition can be dysfunctional. Nothing breeds success like success. When groups are successful, cohesiveness increases. A group’s exclusiveness is indicated by how difficult it is to become a member of the group, the extent to which outsiders look up to the group’s members, the group’s status within the organization, and the special rights and privileges accorded to its members. 3

Signs of Cohesiveness Low cohesiveness: Moderate cohesiveness: Very high cohesiveness: Managers should strive for a moderate level of cohesiveness. This is the level that results in the most favorable group and organizational outcomes.

Table 11.1 Consequences of High Cohesiveness When Group Goals Are Aligned with Organizational Goals A high level of participation and communication within the group conformity to group norms Group goal accomplishment Advantages Group members likely to perform behaviors necessary for group and organization to achieve goals, information flows quickly in the group, and turnover may be relatively low The group is able to control its members’ behavior to achieve group goals The group achieves its goals and is effective Group members may waste time socializing on the job and chatting about non-work matters Excessive conformity within the group may result in resistance to change and failure to discard dysfunctional norms Group members may not cooperate with other groups as much as they should Potential Disadvantages Table 11.1 describes the consequences when group goals are aligned with organizational goals. Note that cohesiveness results in advantages and disadvantages at high levels.

Table 11.2 Disadvantages of High Cohesiveness When Group Goals are Not Aligned with Organizational Goals Consequences A high level of participation and communication within the group A high level of conformity to group norms Group goal accomplishment Group members may waste time socializing on the job and chatting about non-work matters Group members behave in ways that are dysfunctional for the organization The group achieves its goals at the expense of organizational goals Disadvantages Table 11.2 describes what happens when group goals are not aligned with organizational goals and the group has a high level of cohesiveness. In this case, the group members are loyal to the group and not the organization. There are no advantages to high cohesiveness when the group goals are not aligned with the organization.

Important Organizational Groups Top Management Team Self-Managed Work Teams Research and Development Teams Virtual Teams The Top Management Team is the team of managers who report to the chief executive officer (CEO). The quality of decision making in the top management team is a function of the personal characteristics and backgrounds of team members. Self-Managed Work Teams are teams in which team members have the autonomy to lead and manage themselves and determine how the team will perform its tasks. The job characteristics model of job design provides a good framework for understanding why the use of self-managed work teams can lead to higher levels of motivation, performance, and satisfaction. Research and Development Teams are usually cross-functional teams that are formed to develop new products. An R&D team that is created to expedite new product designs and promote innovation in an organization is known as a skunk works. Virtual Teams are teams in which a significant amount of communication and interaction occurs electronically rather than face to face. Organizations use virtual teams to help people in different places and/or time zones work together. Organizations will increase their reliance on virtual teams because of increasing levels of globalization.

Conditions Required for Effectiveness in Self-Managed Teams Team is truly self-managing Work is complex Work results in finished end product Managers are supportive of teams Members are carefully selected Members want to be part of the team These conditions must be present for self-managed work teams to be effective. More research is needed to explain why self-managed teams are successful as well as why they are sometimes not successful.

Opening Case: Creating High-Performance Teams How can organizations create high-performance teams? Hickory Springs Manufacturing Company Levi Strauss The opening case describes the experiences of two companies when they began to use teams. It illustrates the many issues associated with creating teams. Of the two companies, Levi Strauss was less successful.