Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Managing Team Performance: Overview Definition and Importance of Teams Types of Teams and Implications for PM Purposes and Challenges of Team PM Including Team Performance in the PM System Rewarding Team Performance

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Definition of Team Two or more people –Interact Dynamically Independently –Share common and valued Goal, Objective or Mission

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Importance of Teams Global pressures Flexibility in flatter organizations Complexity of products and services Rapidly changing environments

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Performance Management & Teams PM systems should target: –Individual performance –Individual’s contribution to team performance –Performance of entire team

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 General principles of PM relating to teams 1.Design and implement best possible system 2.Consider dangers of poorly implemented system

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Managing for Improved Team Performance Don’t limit team processes with other task or organizational requirements Provide good team design and organizational support Give feedback only on processes that the team members can control

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Types of Teams Classified by –Complexity of task –Membership configuration

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Complexity of Task ranges from: Routine –Well defined –Few deviations in how work is done –Outcomes easily assessed - to - Non-routine –Not defined well –No clear specifications on how to do the work –Outcomes are long term and difficult to assess

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Membership Configuration includes Length of time team expects to work together Stability of team membership Static Dynamic

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Types of Teams Based on Membership Configuration and Task Complexity

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Types of Teams Work or Service Teams Project Teams Network Teams

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Work or Service Teams Intact Routine tasks Share similar skill sets

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Project Teams Assembled for specific purpose Tasks outside core product or service Members from different functional areas

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Network Teams Membership not constrained by –Time or space –Organizational boundaries Teams may include –Temporary or full-time workers –Customers –Vendors –Consultants Work is extremely non-routine

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Examples of PM Approaches by Type of Team Type of Team –Work & Service Team –Project Team –Network Team Type of PM Approach –Peer ratings –Ongoing measurements –Development of competencies

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Purposes of Team PM Traditional goals of any PM System Specific to Team performance: –Make all team members accountable –Motivate all team members to have a stake in team performance

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Challenges of Team PM How do we assess relative individual contribution? How do we balance individual and team performance? How do we identify individual and team measures of performance?

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Including Team Performance in the PM System Prerequisites Performance Planning Performance Execution Performance Assessment Performance Review Performance Renewal and Re-Contracting

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Performance Management Process Performance Review Performance Renewal and Re-contracting Performance Assessment Performance Execution Performance Planning Prerequisites

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Prerequisites Knowledge of mission –Organization –Team Knowledge of job to be performed by the team

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Performance Planning Results expected of the team Behaviors expected of team members Developmental objectives to be achieved by team and its members

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Performance Execution Team responsibilities 1.Commit to goal achievement 2.Seek feedback from Each other Supervisor 3.Communicate openly & regularly 4.Conduct regular & realistic peer- appraisals

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Performance Execution Supervisor responsibilities 1.Observe and document Team performance Relative contribution of team members 2.Update team on any changes in goals of the organization 3.Provide resources & reinforcement

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Performance Assessment Types of Assessments Self-appraisals Peer evaluations Supervisor evaluation Outsider appraisals (if appropriate)

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Performance Assessment Kinds of Performance to be Assessed Individual task performance Individual contextual performance Team performance

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Dimensions of Team Performance to assess: Effectiveness Efficiency Learning and growth Team member satisfaction

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Performance Review Two meetings with supervisor or review board –Team meeting –Individual meeting Emphasis on past, present and future

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Team meeting Discuss overall team –Performance –Results Information comes from: –Team members –Other teams/outsiders –Supervisor’s evaluation

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Individual meeting Discuss how individual behavior contributed to team performance Information comes from: –Self-appraisal –Peer ratings –Supervisor’s evaluation

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Performance Renewal and Re-Contracting Make adjustments to performance plan Include plan for individual performance as it affects team functioning

Herman Aguinis, University of Colorado at Denver Prentice Hall, Inc. © 2006 Making Team-based Rewards Effective All employees should be eligible Rewards should be –Visible –Contingent –Reversible Avoid factors which cause reward systems to fail Consider variable pay systems (in addition to individual bonuses)