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Chapter 8
- 1. Chapter 8 Managing Groups and Teams
- 14. Group size and performance
- 21. Stages of group development Forming Storming Norming Performing Adjourning
- 31. The communication process Sender/receiver Sender/receiver Encoding message Medium Decoding message Feedback Feedback Noise Noise Noise Noise
Notes de l'éditeur
- This Chapter begins Part 4 of the textbook - covering the fourth management function - Leading. The “Leading” section of the textbook has three chapters: Groups and Teams, Motivation and Leadership. Detailed Chapter contents are given on Page 242, Learning Objectives are set out on Page 243, and the Chapter 8 begins with a case study (Pages 244-246) on the Human Resources and “employee engagement” strategies of Guild Insurance and Financial Services.
- Page 242. The detailed learning objectives for Chapter 8 are set out on Page 243.
- Strangers leaving by the same door at a theatre are not a group–they are not interdependent, nor are they interacting and influencing each other collectively or trying to reach the same goal. Increasingly, organisations are seeing the importance of groups and teams in meeting their objectives and improving performance. Teamwork happens when groups work together efficiently and effectively to reach organisational goals. Although groups have always been central to organisations, as noted above, they are seen increasingly as important organisational assets. Groups and teams are used by organisations of all sizes. Further discussion can be found on page 246.
- Pages 246-247. Further details on Formal and Informal groups are given in the two following slides. Students might also look at Figure 8.1 on Page 247, where the different kinds of groups are set out diagrammatically.
- Each organisational work unit (manager and subordinates) is a command group that is linked to higher (in the hierarchy) command groups–in this way, supervisors link lower-level and higher-level groups. A task group is a formal group set up to supplement or replace work normally undertaken by a command group. Task groups can be permanent or temporary. Further discussion can be found on pages 246-247.
- Informal groups may or may not help achieve organisational goals. They are set up by employees outside or separate from the normal hierarchical and command group structures of the organisation. An interest group is an informal group set up to help employees with common concerns. Such concerns can have a wide base, for example, sport, a mutual interest in computer game play, or a desire to have the organisation change some policy. A friendship group is an informal group existing because of employee social needs. The groups stem from mutual attraction based on common characteristics such as similar work, backgrounds and/or values. These groups may get together outside formal work times - over lunch breaks, after work, at weekends. They can help attract and bind employees to the organisation. Further discussion can be found on pages 246-249.
- See Figure 8.3 on page 249. Homans (1950) explained how informal groups grow out of formal group dynamics. Required activities are needed to perform job tasks. Required interactions are specified dealings with others as part of the job. Required sentiments are attitudes needed to do the job. Given sentiments are non-required attitudes brought to the job. Homans notes that, out of the formal group activities, informal groups with emergent activities, interactions and sentiments will grow. These can possibly supplant the required activities, interactions and sentiments (Page 248). Note that group member satisfaction is an important outcome from group activities, as well as group performance.
- This is Figure 8.4 from Page 249 - A general model of work group behaviour. Several factors affect teamwork and formal work groups’ effectiveness. In analysing these, it helps to see groups as systems using inputs, engaging in many processes or transformations, and producing outcomes. (Remember the inputs, transformation process and outputs diagram from Chapter 1, Page 24). Note that important outcomes are not just group performance measures, such as quantity, quality and costs, but member satisfaction too. Further discussion can be found on Pages 249-258. These inputs and processes are dealt with in further detail in the next few slides.
- As work-group composition has a bearing on a group’s ultimate success, managers must consider carefully who will be part of a group. Two crucial selection factors are potential member characteristics and reasons for their attraction to the group. Because diverse groups perform better in the long term (creativity, flexibility, decision making) than homogeneous groups, managers need to consider measures to build group diversity. Members often cannot choose their own specific work groups (except for some task groups, committees or project teams) but they may be attracted to particular organisations, they may like other group members, and can be interested in the work itself. Members can also have goals beyond the group - looking for experience or contacts for future promotion or career development. Further discussion can be found on Pages 249-250.
- The common categories of group roles: task, maintenance and self-oriented were outlined by Alcorn (1985) and Bateman and Snell (2004). All are discussed in the next few slides. Group-task roles help a group develop and reach its goals. Further discussion can be found on Page 250 including more detailed explanation of each the above roles.
- These are roles not directly addressing a task itself but, instead, helping foster group unity, positive interpersonal relations among group members and development of their ability to work effectively together. Further discussion can be found on Page 251, including more details on the above roles.
- These are roles related to the personal needs of group members and often negatively influence group effectiveness. Further discussion can be found on Page 251.
- Pages 251-252. There is no one ideal group size, and modern team structures are often relatively large. With pairs (dyads, groups of two) there can either be politeness or tension and disagreement. Groups of three can result in “two against one”. Groups of four or six often deadlock. There are some benefits in groups of five or seven. Beyond about 12 members, usually communications and coordination start to become problems. Social loafing or free riding describes the tendency for people to use less effort working in groups than alone. This can “snowball” as other members then also reduce their efforts. Individualism is where personal interests are given priority over group needs. Collectivism is where group interest are given priority over individual needs. Individualism and collectivism are both cultural (learned) and personality factors. For individualists, social loafing tends to increase with increasing group size.
- Figure 8.5, Effects of group size on performance, Page 252. Note how performance increases significantly as group size grows from very small, but then tapers off and starts to fall away as size continues to increase beyond the optimum.
- Some groups accomplish more than others, despite the similarity in inputs. The reason for this lies, in part, in group processes , the dynamic inner workings of the group. As group members work, some energy goes into group development and operations. This is diverted from the task and is known as process loss, as it is energy which could have been devoted to the task. Process loss is inevitable, given group members’ normal interdependence. Further discussion can be found on page 252.
- Page 252. Sometimes, process loss is more than offset by positive group synergy - the energy flow of really successful groups. Group synergy and effectiveness are affected by the three major group process factors - norms, cohesiveness and group development. These are dealt with in following slides.
- For a behaviour to be a norm, members must see it as expected for group membership. Work groups do not use norms to regulate all behaviour. Rather they develop and enforce norms relating to central matters. For example, group norms develop about production processes. These norms relate to quality and quantity as well as how the job is done. Norms can also develop about social processes – how group members speak to and treat each other, when to have lunch, who to have it with, etc. Further discussion can be found on Pages 254-255.
- Pages 255-256. High cohesiveness means members’ performance levels are similar. If performance norms are low, there will be pressure not to “show up” other group members by working hard. Change can also be harder to implement if opposed by a highly cohesive group, but is easier if backed by a cohesive group.
- Page 256 Figure 8.6 - Effects of cohesiveness and performance norms on group performance - shows the relationship between performance norms and achievement of organisational goals/high performance. Students should note that high cohesiveness does not necessarily lead to high group performance - it depends on the performance norms in the group. For example, group members in a very repetitive, boring job might be very cohesive, but might be united in efforts to do as little as possible.
- New groups, such as work units, committees and task forces form constantly. Even established groups change as members leave and new ones join. It is argued that groups pass through fairly predictable development stages. New groups may progress through these phases but, if membership changes, development may briefly regress to earlier stages. The stages of group development were described by Tuckman (1965). Students often misconceive Tuckman’s stages as “compulsory” and evenly spaced. It should be emphasised that they are typical and descriptive – some groups could skip a stage, or pass through it very quickly, other stages could be very long-running. The five stages are set out diagrammatically in the next slide. Further discussion can be found on pages 256-257.
- See Figure 8.7 on page 257, which shows the five stages, but gives significantly more descriptive detail. Forming: “Who are these people? What’s going to be expected of me? Will I fit in? Will I like it? Will I be able to do the work?” Storming: “Why should you be boss? Why are you doing the job like that? Why didn’t you do the job like I suggested? I don’t think that I like you.” (Conflicts) Norming: building cohesiveness, developing consensus, clarifying roles. Performing: groups focus on their tasks, norms are accepted, roles are clear, the group starts to achieve its goals. Adjourning: goals accomplished, groups prepare to disband. (Permanent groups may not go through an adjourning stage, unless there are numbers of resignations, or a merger or takeover). Some management writers give a sixth stage of group development – Mourning, where group members go through a grieving process – they may be sad at leaving friends and an interesting work environment. Managers often use symbolic means of helping staff through adjourning and mourning – awards, certificates, parties, celebrations, farewell speeches.
- Groups are used when organisations can benefit from the experience and ideas of two or more people. Group efforts are increasingly useful when creativity and innovation are needed for organisational success. Further discussion can be found on pages 258-260. Because task forces can promote interaction across the various specialist departments and command groups of an organisation, they are useful where innovation or creativity in needed. The three kinds of teams identified - entrepreneurial, self-managing, and virtual - are dealt with separately in the three following slides.
- Page 258. Entrepreneurial teams may be given significant freedom to experiment and try out new products and services.
- Page 258-259. Also called “autonomous work groups”. Famously pioneered by the Volvo car company in the early 1970s. At its Kamar plant, Volvo organised workers into groups of about 20, and gave them responsibility for complete parts of the production process (eg. making the entire engine unit). The groups were also given responsibility for planning, scheduling, reporting, and sometimes for selection of new group members (hiring). Some studies show that job satisfaction and organisational commitment is higher in self-managing teams than in traditional work groups. However, getting rid of unsatisfactory workers, performance appraisal and settling pay matters can be difficult in self-managed teams. Hackman (1987) list four steps to improve chances of success: Carefully consider the appropriate tasks and the level of authority to be delegated to the team, Consider group composition and allocation of resources, Support training in group processes and team work, Remove performance obstacles, help group learning. Sims (1995) says productivity in self-managed teams can drop initially and take up too 18 months to recover as the team learns to manage itself.
- Virtual teams comprise members who rarely, if ever, meet, instead interacting through different means of technology including phones, faxes, email, computer networks and video conferencing. Global organisations with widely dispersed activities are finding virtual teams increasingly important as knowledge becomes further specialised. Duarte and Snyder (1999) give six steps for establishing a virtual team: Identify significant organisational power sources and influences Develop clear purpose or mission statement Identify team participants Orchestrate initial contacts Orientate members to virtual team processes (a face-to-face meeting?) Set up control and management processes. Virtual teams can cross the organisation’s traditional boundaries (eg, could involve other experts, an outsourced supplier, etc.) Further discussion can be found on Pages 259-260.
- So far, the lecture has concentrated on the challenges facing groups and teams in working together. Their main interactions are through the communication process. This section on communication covers the five individual factors that can influence communications breakdown: the perceptual process, the attribution process, semantics, the cultural context and communication skills. Page 260.
- Page 260. Perception is influenced by how we perform these three stages - influenced by our previous experience, needs, personality, culture and education.
- How do we work out what causes our behaviour and the behaviour of others? Attribution theory is one way to understand how perceptions influence managerial communication and interpersonal processes. It explains how people make judgments or attributions about causes of the behaviour of another or themselves. These judgments form a basis for later actions. Fundamental attribution error is when we underestimate the influence of the situation or circumstances, and overestimate “dispositional” factors (the personality and motives of the individual). For example, we are likely to interpret minor rudeness from service industry staff as stemming from their natural nastiness or lack of friendliness, rather than being caused by overwork. pressure and lack of support or resources. When we personally are involved, we are likely to fall into self-serving bias. For example, a student who does well in an exam is likely to think that this results from their hard work and intelligence, rather than from the exam being easy, or from the good coaching of their lecturers Further discussion can be found on Page 260.
- Words are symbols, so their meanings differ for everyone. Semantics is the study of meanings and word choice. Within organisations, a common cause of semantic blocks is the use of professional jargon , or language related to a specific profession but unfamiliar to outsiders. Further discussion can be found on Page 260. Table 8.1 on Page 260 has some interesting examples of miscommunication through semantic blocks.
- Page 260-261. Communications experts differentiate between passive listening (following the general meaning) and active listening (participating to ensure that all relevant facts are understood, and the speaker’s feelings are considered as well). Active listening involves paraphrasing, checking meaning, affirmations (including nods and body language). Effective feedback focuses on specific behaviours or outcomes rather than generalities or the person themselves. It is easier to give positive feedback than negative feedback, although both can be important to working in groups successfully. If you are receiving negative feedback, try not to be defensive, seek specific examples, and use paraphrasing to check understanding and perceptions.
- This is a modified version of Figure 8.8 (Basic components of the communication process) on Page 261. It sets the process of transferring meaning from one person to another within an organisational context. As well as the normal communication difficulties of encoding, decoding, noise and subordinate reluctance to give negative information, situational stresses may cause communication breakdown. Students should note that “noise” in the communication process does not necessarily refer to sound. It refers to any interference or distraction which affects the transfer of messages.
- When tasks need input from several, managers must look at the communication network, or the information flow patterns among task group members. Further discussion can be found on Pages 261-262. (See Figure 8.9 on page 262.) As shown in Figure 8.9, communication networks can have varying degrees of centralisation or decentralisation. Centralised networks work well for fast, accurate communication on simple, routine tasks. Decentralised networks help build morale and high performance for more complex tasks.
- This section will deal with Human Resources Management: the proper staffing and management of work groups and teams is critical for their success. Aspects of HRM covered in this section (Pages 262-265) and dealt with in more detail in following slides, are: Establishing the employment relationship Maintaining the employment relationship HRIS, Internet, intranet, etc. The future of work Terminating the employment relationship. (The sequential flow of HRM tasks, set in the organisational context, and the broader legislative context (eg. Anti-discrimination laws) is set out in Figure 8.10 on Page 263 - The Human resource management framework). In establishing the employment relationship, the organisation tries to make sure it has the right number of people with the right blend of skills, when they are needed. Two outcomes of job analysis are job descriptions (the duties, what the job entails) and job specifications (what is needed to do the job - skills, experience, qualifications, qualities). Recruitment is attracting a pool of suitable candidates, preferably at minimal cost. Students should note that recruitment does NOT equal hiring, l which might occur after the selection process. Selection occurs to decide which of the possible candidates should be hired (or it can be used for promotion decisions or for deciding on membership of special project teams, etc.). Selection techniques can include applications, reference checks, general intelligence or other ability tests, job trials, interviews (sometimes including group interviews), or selection centres. The objective of the selection techniques should be to be reliable (to be consistent, to return the same results over time) and to be valid (to actually measure what they set out to measure - eg. aptitude for the job involved, rather than skill in taking tests).
- Strategies to get employees to stay with the organisation, to stay motivated, and to work well with other members. Reward Management: Mix of intrinsic and extrinsic factors. Balance between paying too little (not attracting or keeping good staff) and paying too much (losing money). Remuneration policies: may be covered by legislation (Workplace Relations Act), awards, enterprise bargains or individual contracts. Training (specific skills). Eg. Learning how to use new computer software. Development (wider experience). Eg. A posting to a branch in another country, opportunity to work on a special project. Performance Management Systems: broader than performance appraisal. Long-term improvement of individual and group performance. Performance Appraisal: measures employee performance against targets – can lead to bonuses, promotions, or identification of training needs. Very poor performance can possibly lead to counseling, discipline or dismissal (Usually based on supervisor rankings). 360-degree feedback: looks beyond supervisor ratings – can take in ratings from other team members and coworkers, managers, subordinates, customers or suppliers. According to Carruthers (2003) in 2002, 360-degree feedback was used in 90% of Australia’s “Fortune 500” companies. See Pages 263-264.
- See Page 264. The trend is increasingly towards employee self-service, where employees can access, use, or change their personal information and details.
- The above trends are given in slightly more detail on Page 264.
- Employment relationships involve a legal contract of employment, and terminations need to be managed well, not just for legal reasons, but for the overall morale and efficiency of the organisation. Terminations can affect the people NOT leaving the organisation – they can be concerned about job security, increased workloads on them, and loss of valued friends and colleagues. Organisations often try to use voluntary means of termination (offering departure packages to those willing to leave) to help maintain morale. However, there are some crisis circumstances where involuntary terminations are needed (changed circumstances, financial crises) or when individual dismissal is needed for serious disciplinary reasons. Further details are on Page 265.
- HR metrics measure the impact of HRM activities. They are defined as “the group of measurement processes used to evaluate the contribution or impact of HR activities”. For example, organisation members might agree broadly on the value of management training. HR metrics would try to determine exactly what contribution particular management training has made to organisational performance or improvements. See Page 265.
- Chapter 8’s main learnings are summarised on Pages 265-266.
- Page 266