Chapter 10
Chapter 10
Although groups and teams are often used interchangeably, there are distinct differences
between the two:
1. Workgroups
• Definition: A group is two or more individuals who interact and are interdependent but
work towards individual goals.
• Characteristics:
o Purpose: Share information and help each member perform in their specific
roles.
• Performance: The group’s overall performance is simply the sum of individual members’
contributions.
2. Work Teams
• Characteristics:
• Performance: A team’s output exceeds the sum of individual efforts due to collaboration
and coordination.
Key Takeaways
1. Problem-Solving Teams
• Definition: Small groups (usually 5–12 employees) from the same department that meet
regularly to discuss ways to improve processes, quality, or the work environment.
• Limitation: These teams often make recommendations but lack authority to implement
solutions directly.
• Limitation: Conflict within the team or lack of psychological safety can negatively impact
performance.
3. Cross-Functional Teams
• Example: Product development teams like Starbucks’ team for the Via instant coffee
brand or Harley-Davidson’s motorcycle design teams.
4. Virtual Teams
5. Multiteam Systems
• Example: Emergency response coordination involving medical teams, hospital staff, and
recovery teams after a major accident.
Each type of team has distinct strengths and challenges, and choosing the right team
structure depends on the goals, tasks, and organizational needs.
Effective teams share several key components that contribute to their success. These can be
grouped into three categories: context, composition, and process.
• Leadership and Structure: Teams need clear role definitions, shared workloads, and
structured coordination. Leadership is especially vital in multiteam systems, where
facilitation ensures harmony between interconnected teams.
• Climate of Trust: Trust among members fosters cooperation, reduces monitoring needs,
and promotes risk-taking and openness. Trust in leaders allows teams to align with their
goals and decisions.
• Performance Evaluation and Reward Systems: Team-based incentives and rewards (e.g.,
profit-sharing, group appraisals) encourage effort, commitment, and recognition of
group accomplishments.
• Abilities of Members: Teams perform better with skilled individuals who contribute
diverse expertise.
• Allocating Roles: Assigning clear roles ensures a balanced workload and effective
utilization of individual strengths.
• Diversity and Cultural Differences: Diversity can enhance creativity but requires careful
management to prevent conflict.
• Team Size: Teams should be small enough to manage effectively but large enough to
provide the required expertise.
• Member Preferences: Members who prefer working in teams are more likely to
contribute positively.
• Common Purpose: Teams perform well when members are united around shared goals
and mission.
• Team Identity and Cohesion: A strong sense of belonging fosters collaboration and
commitment.
• Conflict Levels: Constructive conflict can enhance creativity, while destructive conflict
harms team dynamics.
• Social Loafing: Teams work best when all members contribute equally, avoiding free-
riding behavior.
Key Considerations
• Teams thrive when external support, well-matched composition, and effective processes
align.
• Not every situation benefits from teamwork—sometimes individual work is the better
approach.
• Ensuring trust, structure, and alignment among members is crucial for sustained
effectiveness.
Effective team composition is crucial for overall performance and success. Here are the main
components to consider when building teams:
• Role of Leadership: An intelligent leader can boost the performance of less skilled
members, while a less capable leader might hinder a high-ability team.
2. Personality of Members
• Conscientiousness: Highly conscientious members back each other up and stay
organized, resulting in better team outcomes.
• Emotional Stability: Teams with stable members handle conflict well and perform better
under stress.
• Extraversion: Teams with highly extraverted members often show helpful behaviors,
especially in cooperative settings.
3. Allocation of Roles
• Key Insight: Assign skilled, experienced, and conscientious members to central or core
roles for the most impact.
• Defined Roles: Successful teams have well-defined roles that leverage individual
strengths and preferences.
4. Diversity
• Demographic Diversity: Research shows mixed results, with gender and racial diversity
sometimes negatively impacting performance, especially in certain occupations.
• Functional Diversity: Diversity in education, expertise, and skills generally boosts team
creativity and problem-solving.
• Cultural Diversity: Initially challenging for team dynamics, but cultural differences can
become an asset over time for tasks needing diverse viewpoints.
5. Team Size
• Optimal Size: Smaller teams are usually more effective. For example, Amazon’s “two-
pizza rule” suggests teams should be small enough to be fed with two pizzas.
• Challenges of Large Teams: Coordination issues and social loafing increase as team size
grows.
Practical Insights
2. Select members with personality traits that align with team goals.
Team processes refer to the internal dynamics that significantly influence the success of a
team. Here are the essential process variables and their importance:
• Teams perform better when members collectively define their mission and strategies to
achieve it.
• Reflexivity: Effective teams reflect on their goals and adjust plans as needed, ensuring
adaptability to changing conditions.
2. Specific Goals
• Translating a common purpose into measurable and realistic performance goals boosts
focus and communication.
• Challenging but achievable goals improve performance on set criteria (e.g., quantity,
accuracy).
3. Team Efficacy
• Teams with high efficacy are motivated to work harder and more effectively.
• Boosting Efficacy: Management can help by enabling small successes and providing skill-
training opportunities.
4. Team Identity
• Emotional connection to the team enhances commitment and willingness to work hard.
5. Team Cohesion
• Represents the emotional attachment among team members, driving motivation and
collaboration.
• High cohesion, especially in complex tasks, correlates with greater creativity and
performance.
6. Mental Models
• Shared mental models involve a collective understanding of how the team operates and
its environment.
• Teams with aligned mental models show better communication, motivation, and overall
performance.
7. Managed Conflict
• Conflict isn’t inherently harmful—constructive task conflict can stimulate creativity and
improve team outcomes.
• Teams with emotional stability and openness handle conflict better, using it as an
opportunity for growth.
8. Minimized Social Loafing
• Social loafing occurs when individuals contribute less effort in group settings. Effective
teams ensure accountability and equal participation.