ENT4050 Dynamic Organizing Centre for Entrepreneurship Senter for entreprenørskap – Silvia Tofte Lectures • • • • • • • 18.08.09 15.09.09 29.09.09 06.10.09 Multiple Choise test (ch. 4-9) 10.11.09 24.11.09 Multiple Choise test (ch. 10-13) 01.12.09 Hand in Reflection Rapport Senter for entreprenørskap – Silvia Tofte Agenda • Team assignment • Debrief – Includes theory from chapter 2 and 3 • Reflection Rapport – ½ - 1 page – Theoretical reflection Senter for entreprenørskap – Silvia Tofte Team assignment – Slide show with music • only “one” song – Theme: Team and Motivation • Include litterature from chp. 2 and/or 3 – Time: 1 hour Senter for entreprenørskap – Silvia Tofte CHAPTER 2 Integrated Model of Successful Team Performance • Model serves two purposes • • Description Prescription • Team context affects team’s ability to: • • • Perform effectively Build and sustain motivation Coordinate people Senter for entreprenørskap – Silvia Tofte CHAPTER 2 Exhibit 2-1. Integrated Model of Successful Team Performance Organizational Context Team Design Ability • Knowledge • Skills • Education • Information •Productivity Motivation • Cohesion • Intrinsic • Extrinsic • Learning Strategy Team Culture Senter for entreprenørskap – Silvia Tofte • Communication • Coordination • Integration CHAPTER 2 Essential Conditions for Successful Team Performance • Knowledge, skill, and ability • Motivation and effort • Coordination strategies Senter for entreprenørskap – Silvia Tofte CHAPTER 2 Exhibit 2-3. The Social Loafing Effect High Amount of Individual Effort Expended Source: Greenberg, J. (1996). Managing behavior in organizations, p. 189\. Upper Saddle River, NJ: Prentice Hall. Low One Person Working Alone Small Groups Number of People Working Senter for entreprenørskap – Silvia Tofte Large Groups CHAPTER 2 Team Performance Criteria • • • • Productivity Cohesion Learning Integration Senter for entreprenørskap – Silvia Tofte CHAPTER 2 The Team Performance Equation AP = PP + S - T AP = actual productivity PP = potential productivity S = synergy T = performance threats Senter for entreprenørskap – Silvia Tofte CHAPTER 3 Types of Team Pay • • • • Incentive pay Recognition Profit sharing Gainsharing Senter for entreprenørskap – Silvia Tofte CHAPTER 3 Exhibit 3-5. Implementing Recognition Awards: A Guide • • • • • • • • • • Purpose/objective Eligibility Program award levels Benefit implications Funding Types of awards Nomination procedures Timing Award presentation Program evaluation Source: Adapted from Gross, S. E. (1995). Compensation for teams: How to design and implement team-based reward programs. New York: AMACOM. Senter for entreprenørskap – Silvia Tofte CHAPTER 3 Exhibit 3-7. Pay Strategies for Four Types of Teams Type of Team Parallel Production and Service Project Management Work Focus Pay for Performance Supplement regular organizational structure and perform problem-solving and workimprovement tasks (e.g., problem-solving teams, quality circles, employee participation teams) Responsible for producing a project or serve and are self-contained, identifiable work units (e.g., manufacturing teams, assembly teams, tactical teams, customer sales or service teams) Gainsharing or other business unit plan to reward savings Recognition rewards Often involve diverse group of knowledge workers, such as design engineers, process engineers, programmers (e.g., new project development teams) Composed of well-trained managers; often have stable membership; teams usually permanent; expected to provide integration, leadership and direction to organization Team bonuses or business unit bonuses if teams are interdependent Use individual bonuses that are based on peer evaluations Use bonuses based on project success Profit sharing and stock plans Team or business unit bonuses Profit-sharing and stock-based options Source: Adapted from Lawler, E. E. (2000). Rewarding excellence: Pay strategies for the new economy (p. 217). San Francisco, CA: Jossey-Bass. Senter for entreprenørskap – Silvia Tofte CHAPTER 3 Team Performance Appraisal • What is measured? • • • Job-based pay Skill-based pay Competency-based pay • Who does the measuring? • • Single-source evaluations Multi-source evaluations Senter for entreprenørskap – Silvia Tofte CHAPTER 3 Exhibit 3-9. 360-Degree or Multi-Rater Feedback Suppliers’ Ratings Superiors’ Ratings Employee Other Team Members’ Ratings Customers’ Ratings Subordinates’ Ratings Senter for entreprenørskap – Silvia Tofte Source: Novak, C. J. (1997, April). Proceed with caution when paying teams. HR Magazine, 42(4), 73–78. CHAPTER 3 Rater Bias • • • • • • • • • • • Inflation bias Extrinsic incentives bias Homogeneity bias Halo bias Fundamental attribution error Communication medium Experience effect Reciprocity bias Bandwagon bias Primacy and recency bias Conflict of interest bias Senter for entreprenørskap – Silvia Tofte CHAPTER 3 Ratee Bias • • • • • Egocentric bias Intrinsic interest Social comparison Fairness Listening to advice Senter for entreprenørskap – Silvia Tofte CHAPTER 3 Guiding Principles, Part I • • • • • • Goals should cover areas that team members can directly effect Balance the mix of individual and team-based pay Consult with team members who will be affected Avoid organizational myopia Determine eligibility (who qualifies for plan) Determine equity method Senter for entreprenørskap – Silvia Tofte CHAPTER 3 Guiding Principles, Part II • • • • • • Quantify criteria used to determine payout Determine how target levels of performance are established and updated Develop a budget for the plan Determine timing of measurements and payments Communicate with those involved Plan for the future Senter for entreprenørskap – Silvia Tofte