UGBA105: Organizational Behavior Week 4: Managing Teams Class agenda: Teams and Teamwork in Organizations – – – – – Defining and describing teams in organizations The goods and bads of teams and the problem of “fit” Steps in team design Excerpts from “12 Angry Men” Leadership in teams 2 What is a team? “A team is a small number of people with complementary skills who are committed to a common purpose, set of performance goals, and approach for which they hold themselves mutually accountable.” Katzenbach and Smith: “The Discipline of Teams” 3 Top Management Process Coordinators The team concept is central to the design of the modern horizontal organization Team Team New product development process Process Coordinators Team Team Order fulfillment process Process Coordinators Team Procurement, logistics process Team 4 Read your way to a better team! 5 What kinds of teams exist in organizations? • Executive and entrepreneurial teams • Off-line problem-solving teams – Task forces – Quality circles; safety; productivity • On-line production teams – E.g., NUMMI, Saturn • Cross-functional (and cross-product) process teams – Product development • Boundary-spanning (Chrysler) • Customer service (e.g., Xerox) 6 “The myth of the executive team” “The expression ‘top management team’ is a misnomer for the groups that exist at the apex of many firms. Many such groups are simply constellations of executive talent: individuals who rarely come together (and then usually for perfunctory information exchange), who rarely collaborate, and who focus almost entirely on their own part of the enterprise. Donald C. Hambrick, Financial Times, Oct 11, 2001 7 An entrepreneurial team 8 A product development team in a mature corporation 9 What’s so good about teams? • • • • • • Better coordination & cooperation Flexibility & responsiveness Empowered & motivated people Reduced resistance to change More accountability & responsibility Superior decision-making 10 Are teams or individuals better at decision-making? • Teams bring together greater diversity of skills, knowledge, points of view • Teams (diverse ones) are more creative • Teams make more accurate decisions – But may not be best for deep learning • Greater acceptance of decisions by team members 11 What are the downsides to teamwork? • • • • • • Slowness, inefficiency Coordination costs Increased uncertainty and risk Accountability problems Politics, conflict, stalemate Groupthink 12 The problem of groupthink Definition: When members fail to disagree, to bring up doubts and fears, or to bring up information that contradicts the team’s decision. Suddenly, they are going in a direction that makes no one happy simply because no one wants to cause conflict. Components: – – – – – Illusion of invulnerability Rationalizations collectively devised to discount negative feedback Belief in team’s morality & shared negative views of external detractors Pressure to conform on anyone who doubts about the majority view Reluctance to deviate from what appears to be the team consensus 13 14 A contemporary example On February 7, 1999, the audit committee of Enron Corporation’s board of directors gathered in London to hear rather startling news. The company’s auditors described Enron’s accounting practices as “high risks.” David B. Duncan, who headed up the Arthur Anderson L.L.P. team at the company, informed the committee that Enron’s accounting was “pushing the limits” and was “’at the edge’ of acceptable practice”. However, none of the directors “objected to the procedures described by the auditors, requested a second opinion, or demanded a more prudent approach.” --John A. Byrne (Feb 2002) Business Week 15 The “risky shift” (Group polarization) An extension of groupthink The tendency for decisions of a group to be more extreme (whether risky or cautious) than those made by individuals acting alone. People with moderate viewpoints assume that teammates hold more extreme views, so they alter their own views to conform (groupthink). 16 The value of diversity and dissent (Based on Charlan Nemeth’s jury research) • Exposure to minority viewpoints, even when they’re wrong, stimulates divergent thought and a search for information – Leads to better performance and decision-making, more creativity. – Downsides are: conflict, low morale, persecution of minorities • How about role playing at dissent: The devil’s advocate? – Doesn’t work. Need an authentic minority. Devil’s advocates can reinforce the convictions of the group. We profit from people with whom we disagree. But we don’t give them credit – we get angry. 17 Making teams work in YOUR organization Achieving “fit” to: – – – – – – Strategy People Culture Management & leadership Tasks and technology Formal and informal structure 18 Teams were a bad fit for Levi’s (S)killed workers.. found themselves pitted against slower colleagues, damaging morale and triggering corrosive infighting… Longtime friendships dissolved as faster workers tried to banish slower ones. The quantity of pants produced per hour worked plunged in 1993 to 77% of pre-team levels. Meanwhile, labor and overhead costs surged …At the same time, the wages of many top performers have fallen. "We created a lot of anxiety and pain and suffering in our people, and for what?" 19 asks Ralph Pollard, a former Levi's manufacturing manager. But teams are key to Southwest Air’s fast turnarounds Airplanes arrive at the gate, are unloaded, serviced, reloaded, and depart in an average of 17 minutes, compared with the industry average of 43 minutes. Behind this strategy are cross-functional teams that coordinate up to 10 20 distinct functional groups, from pilots to cabin cleaners The set-up • Size • Goals The resources • Authority/empowerment • Material resources • Information The structure • Roles and skills • Demographics • Incentives The culture • Values and norms • Training Designing effective teams 21 Roles every team should have: Facilitator: Moderator of group process. Makes sure the group stays on target and points out issues that may derail the group. Not the decision maker (the group is), so does not have final say on any decision. Timekeeper: In charge of making sure the group stays on track (e.g., you don’t stay up until 4:00am working on a marketing project). Recorder: In charge of taking notes. Effectively, the “group memory”, charged with ensuring that good ideas are not lost. Comic relief: Self-appointed position; usually the person with the worst PowerPoint or Excel skills. Helps the group keep a sense of humor about the fact that it is 4:00am & you have just started phase II of the project that is due at 8:20am. (Please note that the timekeeper & facilitator should be shot for this.) 22 Roles teams should watch out for • Blocker: Stubbornly resists all attempts by the team to move ahead, is constantly negative, and frequently returns to rejected issues & ideas • Recognition seeker: Calls attention to him/herself by boasting and acting as if he or she were superior • Bully/dominator: Manipulates the team to pursue his/her agenda; interrupts others; tries to gain attention • Avoider: Isolated; passive resister 23 Develop these: Cultural patterns of functional teams • Openness: Members encourage flexibility, experimentation, and creativity • Empathy: Members listen and to try to understand one other’s views and values • Equality: Members respect the positions of others and no one is made to feel inferior • Spontaneity: Members express ideas freely and honestly without hidden motives • Problem orientation: Members openly discuss mutual problems without rushing to give solutions or insist on agreement 24 Guard against these: Cultural patterns of dysfunctional teams • Evaluation: Members’ manner of speech, tone of voice, or verbal content is perceived as critical or judgmental of others • Control: Communication is perceived as an attempt to manipulate or dominate the recipient • Strategems: Members are seen as operating from hidden motives, playing games, feigning emotion, withholding information, or having private access to sources of data • Superiority: Members convey an attitude of condescension toward others • Dogmatism: Members insist that their own points are best and try to foist them on the team 25 Guess which describes Dilbert’s world 26 Training for teamwork Meeting skills, time management Conflict management Problem-solving Group dynamics, team building Change management Communication Coaching and feedback skills Business knowledge (e.g., customer service) 27 Outward Bound and similar team-building programs may help • Break down status and role distinctions • Foster real interdependence & cooperation • Cognitive dissonance builds commitment 28 And now, our feature presentation ... 29 Leadership in teams 30 (Formal) leaders are most important in the early stages of team development L L L Mature = Leader L Experienced Transitional L Start - up C. Manz & H. Sims Business Without Bosses John Wiley, 1993 31 Leadership - followership roles rotate in mature teams L L L L L Teamwork implies rotation of leader and follower roles 32 Leadership behaviors: Instrumental (task-oriented) • Initiating: Stating the goal or problem,making proposals – “Let’s set up an agenda..” • Seeking information or opinions: – “What do you think would be the best approach to this, Jack” • Providing information and opinions: – “I worked on a similar problem last year, and..” • Clarifying: Helping one another understand ideas and suggestions – “What you mean, Sue, is that we could…” • Elaborating: “Building on Don’s idea, we could…” • Summarizing: Reviewing points covered & ideas expressed so decisions are made on full information – Appointing a recorder to take notes • Consensus testing: Testing if group is near decision or needs to continue discussion – “Is the group ready to decide about this…” 33 Leadership behaviors: Maintenance (socio-emotional) • Harmonizing: Mediating conflict, reconciling differences, relieving tensions – “Don, I don’t think you and Sue really see the question that differently.” • Compromising: Admitting error at times of conflict – “Well, I’d be willing to change if you provided some help on…” • Gate-keeping: Making sure all members have a chance to express ideas and feelings – “Sue, we haven’t heard from you on this issue.” • Encouraging: Helping a member make his or her point; creating climate of acceptance – “I think what you started to say is important, Jack. Please continue.” 34 Leading a dysfunctional team • Adopt a Socratic leadership style • Attack data and logic, not persons • Don’t polarize others in group against you • Remain calm • Don’t reveal an explicit position that can be attacked – appear neutral 35 Key points to remember • Just any old group of people is not a team • Teams are not always the answer • To ensure success, teams must be carefully designed and supported • Being a good team member requires effort • Leading teams is tricky business 36 Wednesday • Lecture tie-up, business • Prepare case: “The team that wasn’t” • Project team discussions 37