Evolution Of Teams

Published Date: 02 Nov 2017

Introduction

Electron, established in 1997, is a small manufacturing company in England. After undergoing partition from its parent company in 2007, it soon realized it needed to change its current organizational structure in order to survive in a competitive and innovative marketplace. A team based structure was implemented and it brought with itself opportunities as well as problems. Effective team management and performance evaluation is necessary for the structure as well as the objective of Electron to be successful.

Evolution of Teams

According to Richardson (2010), real team is defined as ‘‘a group of people working together in an organization who are recognized as a team; who are committed to achieving team-level objectives upon which they agree; who have to work closely and interdependently in order to achieve those objectives; whose members are clear about their specified roles within the team and have the necessary autonomy to decide how to carry out team tasks; and who communicate regularly as a team in order to regulate team processes’’ (p. 86). She identified six main criteria for evaluating teams, namely,

Interdependence: team members tend to work closely with each other in a coordinated manner in order to achieve a common goal.

Shared objectives: team members share a clear and common objective.

Autonomy:

Reflexivity: a systematic procedure is put in place to review the team’s performance and is modifications to the objectives are made as necessary.

Boundedness: there exists a clear understanding of who are the team’s members.

Specified role:

Teams, today, function in a dynamic and complex environment. These teams are continuously required to change and adapt in order to keep up with the fast passed world of today.

Organizations are realizing the importance of teams through the need for economic efficiencies coupled with fierce competition. This has pressured organizations to become leaner, faster and more receptive. To cope with these environmental and competitive demands, organizations have opted for work teams with the aim of becoming more agile (e.g., Campion, Medsker, & Higgs, 1993; Mathieu, Maynard, Rapp, & Gilson, 2008; Sundstrom, 1999).

According to Ray and Bronstein (1995), in most cases it is found that teams achieve more as compared to individuals. Manz & Sims (1993) argued that teams tend to produce better quality decisions then individuals as they combine a wider range of skill set coupled with experience to solve a certain problem (Mennecke & Bradley, 1998). Many researches indicate that effective teams benefit employers as well as employees in terms of better quality (Cohen & Ledford, 1994; Manz & Sims, 1993), flexibility (Cohen & Mohrman, 1995), coordination (Harrington Mackin, 1994), and productivity (Cohen & Ledford, 1994; Ray & Bronstein, 1995).

Electron, operating through a traditional departmental structure, consisting of manufacturing, engineering, sales/marketing, human resources, and finance realized the need for a new operating structure as there was a need to develop a more effective and efficient production processes with an emphasis on improving company culture, customer service, increased productivity and a commitment to teamwork. For this purpose, the company introduced a team based structure.

Dimensions of Team Effectiveness and Performance Management

According to Hick (1998), team effectiveness is measured through a team’s work and commitment. Many researchers have identified various aspects necessary for a team to be effective, such as empowerment (Hyatt & Ruddy, 1997) and leadership support (Hackman, 1987; Moran 1996), as well as rewards and recognition (Munz, & Bommer, 2005).

Cohesiveness/Team Relationships

Pelled et al. (1999) argued that cohesiveness is essential in teams and is greatly influenced by interpersonal relationships among team members. According to Bettenhausen (1991), team cohesion is directly correlated with satisfaction, productivity and member interactions.

In the case of Electron, cohesiveness among old team member exists and is being enforced upon the new members. While relationships are strong among old members, it will take time to strengthen the relationship between the old and new members as is apparent from the case of Stephi. The strengthening of relationship between the old and new members is necessary for the group to function.

Collaborative Problem-Solving/Decision-Making

Problem-solving skills are another important variable in team effectiveness (West et al, 1998).

In Electrons case, more emphasis is being put on individual performance and the performance of newer members whereas the focus should be on collective problem solving and decision making in order to achieve team effectiveness.

Team Commitment

Commitment is directly correlated to increased productivity, lower turnover, working together and performance (Bishop & Scott, 1997). In contrast, poor commitment among team members is related to absenteeism and higher turnover (Becker & Billings, 1993).

The old and new employees of Electron demonstrate high levels of team commitment as they are adjusting themselves with the norms of the teams in order to achieve the same goals.

Clear Communication

According to Swezey and Salas (1992) and Campion et al. (1996), communication is directly correlated to team effectiveness.

Communication in Electron is clear and everyone is fully aware of the norms and values of the company and how work is effectively done as Jack states, "They invest a lot in the team and give it their all. They are quite careful to ensure they do things right to please their other members".

Empowerment

According to Carr (1991), empowerment is an evolution and has replaced power dependent relationships into interdependent relationships. Empowerment leads to increased client satisfaction, reduction in organizational costs and reduced organizational layers (Schrednick, Schutt & Weiss, 1992). Kirkman and Rosen (1999) found that empowered teams more productive and yielded higher client satisfaction, job satisfaction, and commitment.

There is a lack of empowerment at Electron as team members are forced to follow the company’s set norms and values through guilt and peer pressure to conform.

Team Performance Management

Gowen (1986) carried out a detailed analysis to find the relationship between setting goals and performance. The results of this study revealed that if team goals were aligned with individual goals, there was a 31% increase in productivity. In work teams, performance evaluation is done on the basis of creativity, performance and achievement of goals.

In the case of Electron, the evaluation of performance is being done by old members of the teams and the basis for evaluation has become member’s attitudes and compliance with team norms. Therefore, members who wanted to join long term tend to put their focus on obeying the norms rather than on performance. Electron focuses on team goals and has not set any individual goals.

Leadership

Hackman (1987) revealed in his study that if leaders empowered employees then team member are much more likely to perform quality work. The role of a leader should be to provide adequate resources, training, rewards and empowerment to team members in order to achieve team goals. According to Moran (1996), 77% of teams fail due to lack of leadership support.

In the case of Electron, old members of the team are acting as the leaders. There is no clear demarcation of leaders in Electrons teams.

Rewards and Recognition

Various studies reveal a positive relationship between recognition and performance (Tesluk, Vance, & Mathieu, 1999; Rubin, Munz, & Bommer, 2005).

Electrons management has given team goals on the successful achievement of which rewards will be given to the team as a whole. This is a good strategy and it helps promote teamwork.

Trust

According to Cummings and Bromiley (1996), trust in a group depends on if a group "(a) makes a good-faith effort to behave in accordance with any commitments both explicit or implicit, (b) is honest in whatever negotiations preceded such commitments, and (c) does not take excessive advantage of another even when the opportunity is available" (p. 303). Trust is based on common norms, experiences and regular interactions (Bradach & Eccles, 1988; Lewis & Weigert, 1985; Mayer et al, 1995). Trust and cooperation in a group is also dependent on the anticipation of future associations (Powell, 1990).

Trust exists in among the old employees of Electron but needs to be achieved between the old and new members. As stated in the case that as the new members of the team were unaware of the team’s value consensus, they posed an immediate challenge to the power relationships the older employees had formed.

Clarity of Team Norms

Norms are a part of all teams. Norms in Electron have developed into rules regardless of whether they were intentional or not. These norms effectiveness should be evaluated and a session should be put in place to introduce the new members of the team regarding the team’s norms.

Conflict Management Technique

With a structure in place based on diversity of resources, knowledge and ideas, the major disadvantage a work team may face is conflict. Different opinions and ideas can be productive but they may also lead to disagreement among team members. If conflicts do arise in teams, then the overall effectiveness of a team will deteriorate and performance will go down. Conflicts can lead to hurdles in good decision making (Zander, 1994).

Electron needs to allow its new team members to take part and put forward their ideas and opinions. Disagreements among members of a team can lead to constructive criticism and should be dealt with in a positive manner rather than using techniques like guilt and peer pressure. This will stimulate more creativity in problem solving and decision making.

Focus on Continuous Improvement

The focus of teams should be on continuous improvement by looking for creative ways to produce a stream of improvements in quality, design and timely delivery while reducing costs.

Electron currently puts too much emphasis on complying with team norms rather than on continuous improvements. As stated in the case that the importance of teamwork values was being shadowed by the need to "obey" the team’s set norms.

Meeting Management Skills

Team meetings are necessary as they tend to keep members on the same page by evaluating past performance and establishing future objectives but in most organizations meeting management skills go undeveloped or underdeveloped (Weaver, 1997).

In the case of Electron, team meetings were held after every two weeks for one hour. With the introduction of new members in the teams, these meetings became a forum for discussing norms, creating rules and discussing new member’s behaviors. This in turn hindered the effectiveness of meetings as well as team flexibility.

Participation/Confidence

All members of a team are different in terms of skills and abilities. While this gives teams the benefit of multiple skills and knowledge, it can also pose as a problem if there is a lack of participation among team members (Marvin E. Shaw. 1981).

Electron employees, the new team members were put under pressure to comply with the team norms and they felt the heat. This could lead to lack of participation/confidence among the teams as the new members were trying to please their team mates rather than focusing on the team’s objective.

Recommendations for Team Effectiveness and Performance Management

Working in teams has tremendous advantages but it can also lead to some problems which can lead to underperformance and ineffectiveness of teams. According to Hassan Pournaghshbanb (1990), the most common problems among teams are leadership, cooperation, participation, quality, and evaluation. The common problems Electron’s teams face can be resolved by implementing 4 major structural features that contribute to an effective team based organization, these are as follows,

The Recruiting and Hiring Process

Electron’s recruitment and hiring process needs to ensure employees have necessary skills to collaborate in a team environment. While hiring the new members of the team, the old members should evaluate the prospective candidates if they match the norms and rules set in the company. This includes accessing their behavior and attitudes. By doing this at the very start, greater probability will exist that new and members of a team will jell together, leading to effective team work. Through this technique less time will be utilized in getting members to accept and comply with the set norms and focus will be diverted towards organizational goals leading to effective team and performance management in the long run.

Team and Individual Compensation System

In order to achieve effective team and performance management, Electron management needs to implement a compensation system that addresses rewards and recognition from a team perspective as well as an individual perspective. This will allow members of a team enhance their creativity, problem solving and decision making skills in an effective and efficient manner. Through establishing individual goals and compensation plans, both old and new members will remain on top of their game by effectively utilizing their capabilities. This will lead to open discussions, more participation, and continuous improvement, collaborative problem solving and decision making on an individual as well as team level. Individual and team rewards will encourage a healthy cooperation and healthy competition within teams. This will further lead to commitment in achieving the organization’s overall goals.

A Learning and Development System

A learning and development system needs to be implemented in Electron that focuses on developing existing team skills as well as technical skills. This system will not only serve to educate the new members the importance of the norms/rules implemented in Electron but will also develop their skills and abilities in order to help them perform better. As no one’s skill set is absolute and learning and development is essential for everyone in the dynamically changing business world, therefore, the learning and development system will also be targeting the old members by providing them up to date knowledge and techniques in order to also help them perform better. This framework will also empower employees to make decisions and recommendations that will bring further efficiency and effectiveness in the company.

A Leadership Approach

Electron needs to change its current team structure by undergoing a leadership approach that supports and fosters an empowered team environment. Currently, Electron teams lack leaders and the old members have been joined together based on seniority to overlook the teams. Leadership is a complex terminology and is much more than seniority. Good leaders are those that comprise of experience, education, training and a never ending process of self-study (Jago, 1982). Northouse (2007, p3) defines leadership as, ‘Leadership is a process whereby an individual influences a group of individuals to achieve a common goal.’ Furthermore, various researches have shown that a leadership role in a team, that assigns work roles and specifies procedures are associated with superior team effectiveness (Kane, Zaccaro, Tremble, & Masuda, 2002). Electron’s management needs to establish leaders for its teams that are experienced and carry all leadership traits, in order to bridge the gap of the old and new members. The leader will be required to outline the overall objectives of the organization, set goals, develop/implement positive team norms, decide upon a task based performance strategy, and develop understanding in a team through clear communication within the team. This includes re-evaluation of the companies norms which have becomes rules (Cohen & Bailey, 1997; Kozlowski & Ilgen, 2006; Marks et al., 2001).

Conclusion

It is a fact that work teams might be found difficult to implement (Orsburn et al., 1990) mainly due to the effort that is put into structuring or restructuring an organization’s systems. Never the less, there importance cannot be denied. Implementing a team structure at Electron was a good management decision as is apparent from the outcomes generated but time has come to reevaluate team structures that have developed in the organization. Though implementing the suggestions of changing their recruiting and hiring process, developing team and individual compensation systems, implementing a development and learning system and opting for a leadership approach for their teams, Electron will be able to achieve effective team and performance management in the company.