Management
Fourteenth Edition
Chapter 13
Creating and Managing
Teams
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Learning Objectives
13.1 Define groups and the stages of group development.
13.2 Describe the major components that determine group
performance and satisfaction.
13.3 Define teams and best practices influencing team
performance.
Know how to maximize outcomes through effective
negotiations.
Develop your skill at coaching team members.
13.4 Discuss contemporary issues in managing teams.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
What is a Group?
• Group: two or more interacting and interdependent
individuals who come together to achieve specific goals
• Formal groups are work groups defined by the
organization’s structure and have designated work
assignments and specific tasks directed at
accomplishing organizational goals.
• Informal groups are social groups. These groups
occur naturally in the workplace and tend to form
around friendships and common interests. For example,
five employees from different departments who
regularly eat lunch together are an informal group.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Exhibit 13-1
Examples of Formal Work Groups
Group Description
Command groups Groups determined by the organizational chart and composed of
individuals who report directly to a given manager.
Task groups Groups composed of individuals brought together to complete a
specific job task; their existence is often temporary because when
the task is completed, the group disbands.
Cross-functional teams Groups that bring together the knowledge and skills of individuals
from various work areas or groups whose members have been
trained to do each others’ jobs.
Self-managed teams Groups that are essentially independent and that, in addition to
their own tasks, take on traditional managerial responsibilities such
as hiring, planning and scheduling, and evaluating performance.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Stages of Group Development (1 of 2)
1. Forming: the first stage of group development in
which people join the group and then define the
group’s purpose, structure, and leadership
2. Storming: the second stage of group
development, characterized by intragroup conflict
3. Norming: the third stage of group development,
characterized by close relationships and
cohesiveness
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Stages of Group Development (2 of 2)
4. Performing: the fourth stage of group
development when the group is fully functional
and works on group task
5. Adjourning: the final stage of group
development for temporary groups during which
group members are concerned with wrapping up
activities rather than task performance
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Exhibit 13-2
Stages of Group Development
As shown in Exhibit 13-2, the stages of group development are forming, storming, norming,
performing, and adjourning.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Exhibit 13-3
Group Performance/Satisfaction Model
Exhibit 13-3 presents the major factors that determine group performance and satisfaction.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
External Conditions Imposed on the Group
• External conditions include:
– Organization's strategy
– Authority relationships
– Formal rules and regulations
– Availability of resources
– Employee selection criteria
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Group Member Resources
• Knowledge
• Abilities
• Skills
• Personality traits
• Interpersonal skills—especially conflict management
and resolution, collaborative problem solving, and
communication—consistently emerge as important for
high performance by work groups.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Group Structure (1 of 2)
• Work groups have an internal structure
• The various aspects of group structure include
roles, norms, conformity, status systems, group
size, group cohesiveness and leadership
• Role: behavior patterns expected of someone
occupying a given position in a social unit
• Norms: standards or expectations that are accepted
and shared by a group’s members
• Conformity:
– Groupthink: when a group exerts extensive
pressure on an individual to align his or her opinion
with others’ opinions
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Exhibit 13-4
Examples of Asch’s Cards
Exhibit 13-4 presents examples of Asch’s cards.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Group Structure (2 of 2)
• Status systems:
– Status: a prestige grading, position, or rank
within a group
• Group size:
– Social loafing: the tendency for individuals to
expend less effort when working collectively
than when working individually
• Group cohesiveness: the degree to which group
members are attracted to one another and share
the group’s goals
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Exhibit 13-5
Group Cohesiveness and Productivity
Exhibit 13-5 represents the relationship between cohesiveness and effectiveness.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Group Processes: Group Decision-Making
• Advantages:
– Groups generate more complete information and knowledge
– Increase acceptance of a solution
– Increase legitimacy
• Disadvantages:
– Take more time
– A dominant minority can unduly influence outcome;
– Groupthink can undermine critical thinking in the group and
harm the quality of the final decision
– Individual responsibilities are ambiguous
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Exhibit 13-6
Creative Group Decision Making
Exhibit 13-6 represents three techniques managers can use to help groups make more
creative decisions.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Group Processes: Conflict Management
• Conflict: perceived incompatible differences that
result in interference or opposition
– Traditional view of conflict: the view that all
conflict is bad and must be avoided
– Human relations view of conflict: the view
that conflict is a natural and inevitable outcome
in any group
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Interactionist View of Conflict
• Interactionist view of conflict: the view that some
conflict is necessary for a group to perform effectively
• The interactionist view doesn’t suggest that all conflicts
are good.
– Functional conflicts: conflicts that are constructive
and support a group’s goals and improve its
performance
– Dysfunctional conflicts: conflicts that are
destructive and prevent a group from achieving its
goals
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Types of Conflict
• Task conflict: conflict over content and goals of the
work. Low-to-moderate levels of task conflict are
functional.
• Relationship conflict: conflict based on interpersonal
relationships
• Research shows that relationship conflicts are almost
always dysfunctional because the interpersonal
hostilities increase personality clashes and decrease
mutual understanding and the tasks don’t get done
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Types of Conflict
• Process conflict: conflict over how work gets done.
• Low levels of process conflict are functional. Otherwise,
intense arguments over who should do what may
become dysfunctional and can lead to uncertainty about
task assignments and increase the time to complete
tasks
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Group Tasks
• It’s the complexity and interdependence of tasks that
influence a group’s effectiveness.
• Simple tasks are routine and standardized
• Complex tasks tend to be novel or nonroutine
• The more complex the task, the more a group benefits
from group discussion about alternative work methods.
• Effective communication and controlled conflict are
most relevant to group performance when tasks are
complex and interdependent.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
The Difference Between Groups and Teams
• Work teams: groups whose members work
intensely on a specific, common goal using their
positive synergy, individual and mutual
accountability, and complementary skills
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Exhibit 13-8: Groups Versus Teams
Work Teams Work Groups
Leadership role is shared One leader clearly in charge
Accountable to self and team Accountable only to self
Team creates specific purpose Purpose is same as broader organizational
purpose
Work is done collectively Work is done individually
Meetings characterized by open-ended Meetings characterized by efficiency; no
discussion and collaborative problem-solving collaboration or open-ended discussion
Performance is measured directly by Performance is measured indirectly according
evaluating collective work output to its influence on others
Work is decided upon and done together Work is decided upon by group leader and
delegated to individual group members
Can be quickly assembled, deployed, blank
refocused, and disbanded
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Types of Work Teams (1 of 2)
• Problem solving team: a team from the same
department or functional area that’s involved in efforts to
improve work activities or to solve specific problems
• Self-managed work team: a type of work team that
operates without a manager and is responsible for a
complete work process or segment
• A self-managed team is responsible for getting the work
done and for managing themselves, which usually
includes planning and scheduling of work, assigning
tasks to members, collective control over the pace of
work, making operating decisions, and taking action on
problems.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Types of Work Teams (2 of 2)
• Cross-functional team: a work team composed
of individuals from various functional specialties
• Virtual team: a type of work team that uses
technology to link physically dispersed members
in order to achieve a common goal
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Creating Effective Work Teams (1 of 2)
• Clear goals
High-performance teams have a clear understanding of
the goal to be achieved. Members are committed to the
team’s goals, know what they’re expected to accomplish,
and understand how they will work together to achieve
these goals.
• Relevant skill
Effective teams are composed of competent individuals
who have the necessary technical and interpersonal skills
to achieve the desired goals while working well together
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Creating Effective Work Teams (1 of 2)
• Mutual trust
Effective teams are characterized by high mutual trust
among members. That is, members believe in each
other’s ability, character, and integrity
• Unified commitment
Unified commitment is characterized by dedication to the
team’s goals and a willingness to expend extraordinary
amounts of energy to achieve them
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Creating Effective Work Teams (2 of 2)
• Good communication
Members convey messages, verbally and nonverbally,
between each other in ways that are readily and clearly
understood. Also, feedback helps guide team members
and correct misunderstandings.
• Negotiating skills
Effective teams are continually making adjustments to
whom does what. Problems and relationships regularly
change within teams, members need to be able to
confront and reconcile differences.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
• Appropriate leadership
Creating Effective Work Teams (2 of 2)
• Appropriate leadership
Effective leaders are important. They can motivate a team
to follow them through the most difficult situations by
increasing the self-confidence of team members, and
helping members to more fully realize their potential.
• Internal and external support
Internally, the team should have proper training, a clear
measurement system that members can use to evaluate
their performance and a supportive human resource
system. Externally, managers should provide the team
with the resources needed to get the job done.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Exhibit 13-9
Characteristics of Effective Teams
Exhibit 13-9 illustrates the characteristics typically exhibited with effective teams.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Managing Global Teams
• Group member resources in global teams
• Group structure
• Group processes
• Manager’s role
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Exhibit 13-10: Global Teams
Drawbacks Benefits
Dislike of team members Greater diversity of ideas
Mistrust of team members Limited groupthink
Stereotyping Increased attention on understanding
others’ ideas, perspectives, etc.
Communication problems blank
Stress and tension blank
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Building Team Skills
• In building team skills, managers must view their
role as more of being a coach and developing
team members in order to create more committed,
collaborative, and inclusive teams.
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Understanding Social Networks
• Social network structure: the patterns of informal
connections among individuals within a group
• Managers need to understand the social networks and
social relationships of work groups because a group’s
informal social relationships can help or hinder its
effectiveness
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Review Learning Objective 13.1
• Define groups and the stages of group
development.
– Formal/informal groups
– Stages of group development:
▪ Forming
▪ Storming
▪ Norming
▪ Performing
▪ Adjourning
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Review Learning Objective 13.2
• Describe the major components that determine
group performance and satisfaction.
– External conditions and group member resources
affect work group performance
– Group decision making
– Conflict management
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Review Learning Objective 13.3
• Define teams and best practices influencing
team performance.
– Managing global teams
– Building team skills
– Understanding social networks
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Review Learning Objective 13.4
• Discuss contemporary issues in managing
teams.
– The 12 common decision-making errors and biases:
▪ Overconfidence
▪ Immediate gratification
▪ Anchoring effect
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved
