Principles of Management Chapter 8 ( Full Study Guide)

Why are teams important? (3 reasons)

Sustainable competitive advantage; creativity and innovation; happiness and success.

Group

Two or more members, with a clear leader, who perform independent jobs with individual accountability, evaluation, and rewards.

Team

A small number of members, with shared leadership, who perform interdependent jobs with individual AND group accountability, evaluation, and rewards.

Group managers vs. team leaders (leadership style)

Group managers are directive leaders; team leaders are empowering leaders.

Are all groups teams?

No. All teams are groups, but not all groups are teams.

Group–team continuum

Management-directed (a group) → Semiautonomous (in between) → Self-managed/self-directed (a team).

Which organizations tend to use management-directed groups?

Mechanistic organizations (e.g., McDonald's); organic organizations lean toward teams (e.g., Amazon's small customer-focused teams).

Group performance model

Group performance is a function of organizational context, group structure, group process, and group development stage.

Five components of group structure

Group type, size, composition, leadership, and objectives.

Formal groups

Departments and their subparts created by the organization as part of its formal structure; all employees have formal group membership.

Informal groups

Not created by the organization; members join voluntarily because of similar interests and develop social structures/network communities.

Functional (vertical) groups

Members perform jobs within one limited area, e.g., a work unit or department.

Cross-functional (horizontal) groups

Members come from different areas and possibly different levels; they help specialized departments understand and coordinate with each other.

Command groups

Consist of managers and the employees they supervise.

Task groups

Employees selected to work on a specific objective. Two types – task forces and standing committees.

Task force (ad hoc committee)

A temporary task group formed for a specific purpose.

Standing committee

A permanent task group that works on continuing organizational issues.

Global virtual teams

Members are physically located in different places but work together as a team using technology.

Ideal group size

About 5 to 9 members (some say 5, others 6, is ideal for participation and discussion). Groups are larger than teams.

Problems with groups that are too small vs. too large

Too small – limits ideas and creativity. Too large – slow, less innovative, not everyone participates, consensus slows down.

Group composition

The mix of members' skills and abilities. Include diverse individuals with complementary (not identical) skills.

Leadership & objectives – management implications

Ensure the group's size and composition fit the situation and that the group or team has clear objectives.

Group process (group dynamics)

The patterns of interactions that emerge as members perform their jobs.

Six components of group process

Roles, norms, cohesiveness, status, decision making, and conflict resolution.

Group task roles

Played by members who do and say things that directly aid in accomplishing the group's objectives.

Group maintenance roles

Played by members who do and say things to develop and sustain the group process through cooperative behavior.

Self-interest roles

Played by members who do and say selfish things that help themselves at the expense of other members or the group.

How roles affect group performance

Effective groups have members playing task and maintenance roles while minimizing self-interest roles. No task roles = job doesn't get done.

Management implications of roles

Be aware of members' roles, play a missing role yourself, make members aware of needed roles, and create win-win by balancing personal and organizational interests.

Group norms

Expectations about behavior that are shared by members of a group; they develop spontaneously as members interact.

How do groups enforce norms?

Through peer pressure.

Management implications of norms

Be aware of norms, maintain and develop positive norms, and eliminate negative norms.

Group cohesiveness

The extent to which members stick together.

Six factors influencing cohesiveness

Objectives, success, size, homogeneity, participation, and competition.

Size, homogeneity & participation effect on cohesiveness

Smaller group + more homogeneous members + more equal participation = higher cohesiveness.

Competition and cohesiveness

Teams that compete with external teams are more cohesive than those that compete internally.

Management implications of cohesiveness

Build cohesive, productive groups; make everyone feel welcome, respected, valued; avoid cliques; keep team small; be inclusive to maximize diversity.

Status

The perceived ranking of one member relative to other members in the group.

What is status based on?

Factors such as performance, job title, skills, appearance, race, age, and gender.

Effects of high vs. low status

Groups listen to high-status members and overlook their norm-breaking; high-status members influence norms. Low-status members' ideas are ignored and they copy high-status behavior.

Status congruence

The acceptance and satisfaction members receive from their group status.

Status inconsistency

Members not satisfied with their status may not participate actively, leading to negative outcomes like weak performance.

Management implications of status

Have high status in your command group, keep positive relationships with high-status members, don't lose your status, and listen to/include low-status members.

Who holds decision-making authority in groups vs. teams?

Groups – the manager. Teams – the members, through empowerment. Trend is toward shared/inclusive decision making.

Conflict resolution in groups

Unresolved conflict hurts performance and cohesiveness. Conflict of ideas helps performance; personal conflict hurts performance and relationships.

Four major stages of group development (+ fifth)

1. Forming, 2. Storming, 3. Norming, 4. Performing (5. Termination).

Stage 1 – Forming (orientation)

Low development level; members are concerned about structure, leadership, and objectives (fit, roles, norms, how decisions are made). Management style – Autocratic.

Autocratic management style

Manager tells members what to do and how to do it and closely oversees their performance. Used in Forming.

Stage 2 – Storming (dissatisfaction)

Moderate development; members become dissatisfied, frustrated, feel incompetent; group must resolve structure and process issues. Management style – Consultative.

Consultative management style

Manager is highly directive (task role) but also highly supportive, includes members' input, and encourages them. Used in Storming.

Stage 3 – Norming (resolution)

High development; members resolve differences between expectations and reality, become more satisfied, build friendships. May regress to Stage 2 if issues aren't handled. Management style – Participative.

Participative management style

Manager and group members share decision making. Used in Norming.

Stage 4 – Performing (production)

Outstanding development; commitment and competence stay steady, group works as a team with high satisfaction, issues resolved quickly. Management style – Empowerment.

Empowerment management style

Manager gives members the authority to do their task their own way and make decisions on their own. Used in Performing.

Stage 5 – Termination

Members have feelings about leaving the group; teams usually don't reach this stage; no management style needed.

Good citizen identity

Using organizational citizenship behavior—volunteering for extra work and speaking up for improvements (seen in Performing).

How do competence and commitment change over group development?

Competence tends to keep increasing over time; commitment starts high, drops off, then rises.

Training to develop groups into teams

Both managers and members need group process skills; organizational development team building helps.

Holacracy

A system with no traditional hierarchy or assigned roles—no bosses, all leaders; employees take on various tasks and move between teams freely.

Group managers vs. team leaders (responsibilities)

Group managers perform the four management functions themselves; team leaders empower members to perform them and focus on developing group structure, process, and development.

Team leader's role in the management functions

Leading – develop structure/process. Planning – empower members to set objectives and decide. Organizing/staffing – members help select, evaluate, reward. Controlling – help team set standards and positive norms.

Nonfinancial team rewards

Meetings or ceremonies recognizing accomplishments—lunches, cookouts, plaques, certificates, T-shirts, mugs.

Skill-based pay

Employees are paid for learning additional skills or knowledge needed to perform multiple jobs.

Gainsharing and profit sharing

Employees share financial gains from increased productivity, decreased costs, and improved quality.

Five parts of planning a meeting

Objective; participants and assignments; agenda; date, place, and time; leadership.

Meeting objective – key rule

Clearly define the purpose. No clear objective = no meeting. Purely informational? Send an email instead.

Meeting participants and assignments

Invite key people only; participants should know in advance what's expected so they come prepared.

Meeting agenda

Tells members what is expected and how the meeting will progress; time limits per item keep the group on target.

Ideal meeting length

About 30–90 minutes.

Meeting leadership

Facilitate discussion and choose the management style based on the group's stage of development; handle agenda items differently as needed.

Positive meeting norms

Treat everyone with respect, start and end on time, be open and honest, everyone listens and engages, no interrupting, limit multitasking.

Sequence of the first meeting

Introductions → Objectives → Role assignments → Contact information exchange. Put people at ease from the start.

Three parts of a meeting

1. Identify objectives, 2. Cover agenda items, 3. Summarize and review assignments.

Voice

Expressing constructive opinions, concerns, or ideas about work issues that lead to improved work, group processes, and innovation.

Six problem members in meetings

Silent type, talker, wanderer, bored member, arguer, and social loafer.

Handling the silent type

Ask them in advance for a specific contribution, use round-robin rotation, and call on them with questions they can easily answer.

Round-robin rotation

A method where all members take turns giving their input.

Handling the talker

Remind them of the no-interrupting norm, slow them down (don't shut them up), and use rotation so they wait their turn.

Handling the wanderer

Keep the group on track and on agenda; kindly thank them, then throw a question to the group to refocus.

Handling the bored member

Watch for nonverbal signs and engage them, e.g., assign them to record ideas or take minutes.

Handling the arguer

Don't argue back; bring others into the discussion; cut off personal arguments; challenge ideas not people.

Plussing

Adding to what someone said to make the idea better instead of arguing against it.

Social loafer

A selfish slacker who withholds effort and fails to do their share of the work. Confront assertively; if needed, threaten to go to the boss.

Working with group members – key tips

Get digressions back on track, don't let members bully others, resolve criticism/conflict one-on-one, and handle challenges to your authority outside the meeting.

Globalization – individualism vs. collectivism in groups

Individualists play more self-interest roles and cause more meeting problems. Collectivists are more conformist, cohesive, consensus-seeking, and have less conflict.

Culture and management style

Some cultures prefer an autocratic style over a participative style.

Technology and meetings

Email, chat rooms, and project-sharing tools replace some meetings, but tech meetings are never as effective as face-to-face—meet in person when feasible.

Ethics in teams

Leaders must model moral behavior because members copy their ethical or unethical behavior; focus on helping stakeholders, not self-interest.