Chapter 9 1 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. Objectives • Examine group effectiveness • Examine the characteristics of successful team design versus motivating the individual • Discuss team development • Examine selection criteria and pay systems for team work • Investigate the effects of team norms 2 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. Successful Team Designs • Have clear direction – know its purpose or objectives • Establish team norms on how you will work and communicate • Have basic material resources • Have authority (autonomy) to manage the work • Have specific goals • Promote strategic thinking (be aware of the environment; seek ways to improve) • Are rewarded for excellence 3 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. Benefits of Work Teams • They enhance employee commitment as members feel more ownership because of involvement in decision making • They enhance quick adaptability of the organization to the environment and to customer demands 4 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. Benefits of Work Teams • They create productivity gains due to worker flexibility • They increase gains by reducing the need for managers 5 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. Costs of Work Teams • Can’t meet production demands and organizational goals due to: – Difficulty of consensus – Effort and time for coordination – Effort and time for training 6 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. Saturn Car Company • GM’s experiment in cutting costs and using teamwork (1990) – Self-managed work teams assemble cars, maintain equipment, order supplies, set work schedules, select team members. • Workers are salaried and have a profit sharing plan • Although the company made a profit after the first three years the company has been unprofitable most years and has not yet recouped its initial investment 7 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. Job Characteristics Model 8 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. Job Enrichment • Create external relationships with clients • Reduce supervision • Increase autonomy in decision making and responsibility • Increase feedback directly from the job 9 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. • When would you use teams? 10 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. • When would you use teams? – When the work is more than one person can do and the tasks are highly interrelated – When there is a high level of creativity required by the task – Where a unique decision must be made that requires the knowledge or expertise of more than one person. • Do not use teams just because everyone else is. 11 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. Punctuated Equilibrium Model of Group Development 12 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. Punctuated Equilibrium • Groups who reported a significant transition had higher performance • Groups who reported a significant transition were had lower satisfaction 13 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. Tuckman’s Hierarchical Stage Development Model forming>storming>norming>performing 14 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. Results • Satisfaction – The earlier that people went through the stages the happier they were. • Forming, norming, performing correlated with satisfaction in a negative direction – Group norming and performing were the primary predictors of satisfaction – Groups that did not storm were more satisfied 15 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. Results • Groups that left performing until later had higher performance. • Groups that went through norming earlier were more successful 16 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. Selecting to Teams • What qualities would you select for when creating teams?? 17 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. Selecting to Teams (M.J. Stevens and M.A. Campion) – – – – – Conflict Resolution Skills - Encouraging desirable conflict but discouraging undesirable conflict; and, employing integrative (win-win) negotiation strategies rather than distributive (win-lose) strategies. Collaborative Problem Solving Skills - identifying situations requiring participative group problem solving and utilizing the proper degree of participation. Communication Skills - Utilizing decentralized networks where possible; recognizing open and supportive communication methods; Goal Setting Skills- Establishing specific, challenging, and accepted team goals; and monitoring, evaluating, and providing feedback on both overall team performance and individual team member performance. Planning and Task Coordination Skills - Coordinating and synchronizing activities, information, and tasks between team members, establishing individual task and role assignments which ensure the proper balance of workload between team members. 18 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. Group norms • Unwritten rules that guide group behavior and define what is good behavior and what is bad behavior • Norms of self-managed teams will control member behavior more than organizational rules • Team norms have more impact on the ethical behavior of its members than does a supervisor • Norms will determine whether the group is effective/ineffective and whether member behavior supports or does not support organizational goals 19 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. Creating the right norms • Select individuals who hold organizationally consistent standards. • Training to reinforce the organizational values should be considered at the inception of teams and updates should occur during the course of a team's life. • Close monitoring of the early development period of the group - the time when norms develop - to ensure the inception of organizationally responsible norms. 20 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. ...Tips for Virtual Teams • Establish team norms on how you will work and communicate • Determine how work will be managed and reviewed • Allow for multiple leadership; avoid a controlling style 21 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc. Empowerment through delegation • Specify employee objectives and range of discretion • Delegate process decisions • Have employees to develop goals • Ensure required resources are available • Establish feedback processes 22 Organizational Behavior: An Experiential Approach 7/E Joyce S. Osland, David A. Kolb, and Irwin M. Rubin ©2001 by Prentice Hall, Inc.