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HI 5005: Management and Organisations in a Global Environment

Lecture/Assessment Schedule

Module 3: Managing for High Performance Week

Session 9: Performance Management: Groups and Teams (also operating in the Global Environment) Have you ever heard someone say:

Topic

Assessment Schedule

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Performance Management: Groups and Teams

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Motivation

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Managing Change and Innovation

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Performance Management (cont): Control and Organisational Performance

“He/She is NOT a good team player” and, “That’s why she/he didn’t get the job”!

Study Week Dr Peter Schmidt

Learning Objectives 1. Understand the difference between a group and a team 2. Explain the stages of team development and the likely behaviours at each stage 3. Understand the advantages and disadvantages of team decision making and how to enhance the teams decision making capability 4. Advantages and disadvantages of team activity

But, first….Why all the fuss about teams? Question: When did all this fuss about teams start? Do you know? You should know, you are students of management! Answer: The Hawthorne Studies (Elton Mayo..famous Australian) in USA 1930s discovered that the effect of the team swamped all the other variables that he was trying to study

5. Developing Teamwork: Actions Generally Requiring Organisation Structure or Policy e.g. Building Highly Cohesive Teams

A serendipitous discovery (like Fleming’s discovery of Penicillin)

6. Outline the issues in Cross-Cultural teams

He was not even studying team influences, so the big discovery came as a huge shock

Dr Peter Schmidt

Dr Peter Schmidt

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1. What’s the difference between: a Group and a Team?

What is a team?

A unit of two or more people who interact and coordinate their work to accomplish a shared goal or purpose

…and teamwork is an understanding and commitment to group goals on the part of all team members

Dr Peter Schmidt

 Has a designated, strong leader

 Shares or rotates leadership roles

 Individual accountability

 Mutual/indiv. accountability

 Identical purpose for group and organization

 Specific team vision or purpose

 Performance goals set by others

 Performance goals set by team

 Works within organizational boundaries

 Not inhibited by organisational boundaries

 Individual work products

 Collective work products

 Organized meetings; delegation

 Mutual feedback, open-ended discussion, active problemsolving

Dr Peter Schmidt

Why Are Work Teams Popular? Think back to the BurgerKing Case Study

Increases performance

Next Question: How do Teams develop?

Creates esprit de corps

Why Use Teams?

Takes advantage of workforce diversity

 What stages do teams go through from the point when individuals are formed into a team? Allows managers to do more strategic Management

Increases flexibility

Dr Peter Schmidt

Dr Peter Schmidt © Copyright 2003 Pearson Education Australia

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2. Tuckman’s Stages of Team Development

Learning Objectives 1. Understand the difference between a group and a team 2. Explain the stages of team development and the likely behaviours at each stage

Pre-stage I

Stage III Norming Dr Peter Schmidt

Stage I Forming

Stage IV Performing

Stage II Storming

Stage V Adjourning

Dr Peter Schmidt

The Leader’s Role during the Stages of Team Development

Usefulness of the Stages in the Life of a Team What practical use is this theory?

Forming: Orientation, break the ice Leader: Facilitate social interchanges

Storming: Conflict, disagreement Leader: Encourage participation, surface differences

Norming: Establishment of order and cohesion Leader: help clarify team roles, norms, values

Performing:

 Initial politeness is to be expected but it will not last  Some conflict, politics, in setting roles in the team  Eventually the team will settle down, but don’t be surprised if conflict persists (functional but not dysfunctional conflict)  Expect a sense of loss when the task is completed and the team breaks up – Before that team members may try to think of new team tasks just to keep the team together!

Cooperation, problem solving Leader: Facilitate task accomplishment Dr Peter Schmidt

Dr Peter Schmidt

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Learning Objectives 1. Understand the difference between a group and a team 2. Explain the stages of team development and the likely behaviours at each stage 3. Understand the advantages and disadvantages of team decision making and how to enhance the teams decision making capability

Decision Making in Teams Advantages

DIsadvantages

• Provides more complete information

• Time consuming • Minority domination

• Generates more alternatives

• Pressures to conform

Well, we did devote two full sessions to studying Management Decision Making which, by the way, has attracted two Nobel Prizes

• Increases acceptance of a solution

• Likelihood of “Groupthink”

Now we will look at Decision Making in Teams

• Increases legitimacy

• Ambiguous responsibility

Dr Peter Schmidt

Dr Peter Schmidt

Sometimes called the ‘herd instinct’

Lecture 6: Slide 29 © Copyright 2003 Pearson Education Australia

‘Multiple Advocacy’ is one way to address these issues: (We discussed this earlier in Session 6: 29)

Publisher: Routledge, 2003

“Multiple Advocacy entails the deliberate establishment of several independent agencies in order to foster increased competition and greater analytical variety, thereby affording policy makers access to a wider spectrum of views. ….it impedes the herd instinct in the decision process and thus reduces the likelihood of failure due to unchallenged premises or cognitive errors”. p.42

Team Versus Individual Decision Making

Criteria of Effectiveness

Teams

Accuracy

Individuals

X

Speed

X

Creativity

X

Degree of acceptance X Efficiency

X

Dr Peter Schmidt © Copyright 2003 Pearson Education Australia

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Techniques for Making More Creative Team Decisions

Learning Objectives 1. Understand the difference between a group and a team 2. Explain the stages of team development and the likely behaviours at each stage 3. Understand the advantages and disadvantages of team decision making and how to enhance the teams decision making capability 4. Advantages and disadvantages of team activity

Dr Peter Schmidt

Dr Peter Schmidt © Copyright 2003 Pearson Education Australia

4. Advantages of Teamwork

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4. Disadvantages of Team Activity  Pressure to conform

 Synergy

 Loafing

 Helpful in gaining acceptance/ commitment

 Time consuming

 Avoid major errors

 Groupthink

 Enhances members’ job satisfaction

 ‘Getting along syndrome’: (i.e. avoiding conflict)  Loss of power

Dr Peter Schmidt

Dr Peter Schmidt

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First…Why do Teams Fail?

Learning Objectives 1. Understand the difference between a group and a team

 Using a team for work that is better suited to an

individual  Calling the performing unit a ‘team’, but managing

members as individuals  Failing to clarify where decision making power rests  Specifying what they want the team to do, but not

providing adequate resources and support  Assuming that team members already have all the

necessary skills to work well as a team Dr Peter Schmidt

2. Explain the stages of team development and the likely behaviours at each stage 3. Understand the advantages and disadvantages of team decision making and how to enhance the teams decision making capability 4. Advantages and disadvantages of team activity 5. Developing Teamwork: Actions Generally Requiring Organisation Structure or Policy e.g. Building Highly Cohesive Teams

Dr Peter Schmidt

5. Developing Teamwork as the norm  A major strategy of teamwork development is to promote the

attitude among group members that working together effectively is an expected standard of conduct

5. Developing Teamwork: Actions Generally Requiring Organisation Structure or Policy 5 (a) Design physical structures that facilitate team communication  Group cohesiveness, and therefore teamwork, is enhanced when team members are located close together and can interact frequently and easily

 Developing a norm of teamwork will be difficult for a leader

when a strong culture of individualism exists within the firm  A belief in cooperation and collaboration rather than

competitiveness as a strategy for building teamwork has been referred to as cooperation theory

5 (b) Emphasise group recognition and rewards 5 (c) Initiate ritual and ceremony 5 (d) Practise open-book management

 Individuals who are accustomed to competing with one

another for recognition, salary increases and resources must now learn to collaborate Recall earlier discussion on characteristics of national culture

Dr Peter Schmidt

Dr Peter Schmidt

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5. Developing Teamwork: Actions Generally Requiring Organisation Structure or Policy 5 (a) Design physical structures that facilitate team communication  Group cohesiveness, and therefore teamwork, is enhanced

when team members are located close together and can interact frequently and easily  In contrast, people who spend most of their time in private

offices or cubicles are less likely to interact  Frequent interaction often leads to camaraderie and a

feeling of belongingness

The NAB took this advice: They ‘put their money where their mouth is’ All banks (because of ATMs and Internet Banking) have too many buildings in the CBD of our major cities…look around and you will see! NAB has too many buildings in Melbourne’s CBD NAB’s Head Office is in Melbourne - a modern building at 500 Bourke Street Despite the above, NAB’s CEO felt that it was hindering teamwork, hindering collaboration so….he took this advice:  Group cohesiveness, and therefore teamwork, is enhanced when team

members are located close together and can interact frequently and easily  In contrast, people who spend most of their time in private offices or cubicles

are less likely to interact  Frequent interaction often leads to camaraderie and a feeling of belongingness

 A useful tactic for achieving physical proximity is to establish

a shared physical facility, such as a conference room, research library, or beverage lounge Dr Peter Schmidt

Designing physical structures that facilitate team communication

Dr Peter Schmidt

So, NAB designed a new Head Office in Melbourne’s Docklands … a new physical structure to facilitate team communication Dr Peter Schmidt

Designing physical structures that facilitate team communication

Dr Peter Schmidt

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Steelcase’s Corporate Culture

Steelcase Corporate Development Centre More than just a building, the Corporate Development Centre (also known as "the Pyramid") was designed to encourage communication and creativity. Six stories high, it consists of 333,000 square feet of office and team spaces and 242,000 sq ft of labs and building support areas.

[Steelcase is a leading office furniture designer and manufacturer ] Steelcase commits to values of openness, collaboration, teamwork, innovation and constant change

The third floor was redesigned in 2001 to apply and test new planning principles as part of Steelcase's research into how people work.

Dr Peter Schmidt

5. Developing Teamwork: Actions Generally Requiring Organisation Structure or Policy (continued)

5 (b) Emphasise group recognition and rewards  Give rewards for group accomplishment to reinforce

teamwork then people will receive rewards for what they have achieved collaboratively  The recognition accompanying the reward should

emphasise the team’s value to the organisation rather than the individual’s value to the organisation

Dr Peter Schmidt

It is dramatically sited on 125 acres of native prairie land in Michigan. There is an open atrium from the ground floor to the top, with a giant ticking pendulum. The building is a visible symbol; the underlying values are openness, collaboration, Dr Peter Schmidt teamwork, innovation and constant change. {Originally designed in 1989}

5. Developing Teamwork: Actions Generally Requiring Organisation Structure or Policy (continued)

5 (c) Initiate ritual and ceremony  Another way to enhance teamwork is to initiate ritual

and ceremony  Ritual and ceremony afford opportunities for

reinforcing values, revitalising spirit and bonding workers to one another and to the team

Dr Peter Schmidt

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Actions Generally Requiring Organisation Structure or Policy (continued)

5 (d) Practise open-book management

Recapping: 5. Developing Teamwork: Actions Generally Requiring Organisation Structure or Policy 5 (a) Design physical structures that facilitate team communication  Group cohesiveness, and therefore teamwork, is enhanced when team members are located close together and can interact frequently and easily

 Get the company working together as a team by sharing

information about company finances and strategy with large numbers of employees  Train every employee - empower and motivate them to

understand and pursue the company’s business goals

5 (b) Emphasise group recognition and rewards 5 (c) Initiate ritual and ceremony 5 (d) Practise open-book management

 By these means, employees will become ‘business

partners’ and they will perceive themselves to be members of the same team Dr Peter Schmidt

Assoc Prof P Schmidt, 2005

Stanley Schacter addressed this Question: What kind of work team is best? One that gets on well together and where the members are close or is it better for the members to preserve a bit of distance from each other? Some companies foster relationships between team members even supporting non work functions like football matches, BBQs etc on weekends. It would come as no surprise then if two co-workers were found to be co-habitating! But there are other companies, on finding out about co-workers co-habitating, while wishing their relationship well, will nevertheless request one of them to volunteer to resign! So who is right? Dr Peter Schmidt

But is Group Cohesiveness a good thing?  Stanley Schacter’s Study (developed at length in HI 5009) Dr Peter Schmidt

The Behavioural Science School of Management conducts research & experiments into questions such as:

What kind of team or team performs better – one that is ‘closely knit’ or one that isn’t ‘closely knit’?

So, who is right? Donald Trump (The Apprentice) has commented on MAGNA being ‘closely knit’ and somewhat free of conflict whereas NET WORTH is not ‘closely knit’ and is wrought with conflict – but the question is: Which type of team performs the best? What do you think?

The only way to answer such a question is to do some Behavioural Science Research / Experimentation Dr Peter Schmidt

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But is Group Cohesiveness a good thing? Stanley Schacter’s* Research and Experiments into Team Cohesiveness and Productivity HC1: +ive induction

Stanley Schacter’s* Research and Experiments into Team Cohesiveness and Productivity

Interpretations of Results, Conclusions +ive or –ive induction equates to leadership. All leaders think they give positive leadership but maybe it really is negative. So . . . • Low Cohesive Teams are safer and more consistent in performance

LC1: +ive induction CG no intervention LC2: -ive induction

HC2: -ive induction

• A “High Performance Team” is a highly cohesive team but it better

be led positively (Think about NAASA)

Limitations 1951, middle-America, coeds. So . . . • Is any of this relevant to our current workplace? • However, there is a strong hint here that high-cohesive teams could

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be troublesome and you would be foolish to ignore Schacter’s results

*Research subjects were college coeds, USA 1951

Stanley Schacter found…..  A highly cohesive team, benefiting from good leadership, is capable of High Performance.. out-performing other teams  But, a highly cohesive team is also capable of very poor performance under bad leadership  So, highly cohesive teams might be risky and so are discouraged in some companies

But, you should be able to state and discuss the limitations of his research - particularly in applying it to today’s workplace in Australia Dr Peter Schmidt

What did we learn from over ten years of Hawthorne studies?

 The “Hawthorne Effect”: people try harder if they are

being observed  Asking people about their jobs (Questionnaire)

– involving people – itself yields enhanced performance i.e. treat workers like humans not like machines  And so, this triggered the Human Relations School of Management  While the ‘relay room studies’ invariably resulted in impressive

productivity gains, the ‘bank wiring studies’ did not and this led to the observation that team norms can limit productivity  And so, this led to a big interest in teams in

the work place and it spawned many Behavioural Science School of Management studies and research Dr Peter Schmidt

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Some results from the many Behavioural Science School studies and research

Learning Objectives 1. Understand the difference between a group and a team

 Teams are ubiquitous  Teams influence an employee’s perceptions and attitudes  Teams influence the productivity of employees  Teams aid an individual in satisfying unfulfilled needs

2. Explain the stages of team development and the likely behaviours at each stage 3. Understand the advantages and disadvantages of team decision making and how to enhance the teams decision making capability

 Teams facilitate communication

4. Advantages and disadvantages of team activity

 We also know, from Hoffstede’s work on national culture,

5. Developing Teamwork: Actions Generally Requiring Organisation Structure or Policy e.g. Building Highly Cohesive Teams

that teams are a natural feature of Asian cultures but not Western cultures

6. Outline the issues in Cross-Cultural teams Dr Peter Schmidt

6. Outline of the issues in Cross-Cultural Teams Managing Diversity in Teams

Dr Peter Schmidt

6. Outline of the issues in Cross-Cultural Teams Managing Diversity in Teams

 Choose members for their ability and competence  Acknowledge the cultural differences  Understand the goals of the team  Each team member should have equal power and have an opportunity to contribute

The issue of managing cultural diversity returns us to a major theme of: HI 5005: Management and Organisations in a Global Environment

 There must be mutual respect  Leaders should give positive feedback to the team and individuals early in the team’s life Dr Peter Schmidt

Dr Peter Schmidt

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“People Issues” for the Global Business

“People Issues” for the Global Business

 Factors affecting staffing needs: Scope of

internationalisation - export department, international division, global organisation

Recruitment and selection

 Sources of staff: parent country nationals (PCNs),

 What are the skills and abilities needed by international managers – two categories:

host country nationals (HCN), and third country nationals (TCNs)

 those needed to do the job, and

 TCNs and PCNs are collectively known as

 those needed to work in a foreign location

expatriates - people working and residing in countries other than their native country

Dr Peter Schmidt

Dr Peter Schmidt

“People Issues” for the Global Business Necessary skills and abilities for international managers

Dr Peter Schmidt

i.

Selection of managers: When selecting from a pool of prospective managers, HR managers typically look for those individuals who are competent managers, have appropriate training, and can adapt to new situations

ii.

The selection process in international firms is particularly important because of the high cost of expatriate failure (between A$40,000 and A$250,000)

iii.

Expatriate failure is the early return of an expatriate manager to his or her home country because of an inability to perform in the overseas assignment

iv.

Facing the difficulty: A combination of tests and interviews

Dr Peter Schmidt

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“People Issues” for the Global Business Culture Shock and Acculturation v.

Expatriation and repatriation implementation and issues

vi.

PCNs on foreign assignments may experience cultural shock

“People Issues” for the Global Business Culture Shock and Acculturation

Benefits packages for expatriate managers:

x.  

vii. Cultural shock is a psychological phenomenon that may



lead to feelings of fear, helplessness, irritability, and disorientation



viii. Acculturation is the processes by which a person

understands a foreign culture and modifies their behaviour to fit into it ix.



xi.

housing, education for family members, medical treatment, travel to the home country, and club memberships

Equity in compensation: an appropriate level of compensation for expatriate managers

Acculturation typically proceeds through four phases (see following slide)

Dr Peter Schmidt

Dr Peter Schmidt

Four Phases of Acculturation

Acculturation

Phases in acculturation  An expatriate suffering from culture shock may be less

effective and productive  Repatriation - bringing a manager back home after a

foreign assignment has been completed  Individuals that successfully adapted to the foreign

environment may experience culture shock upon returning to their own country  Minimising problems associated with expatriation and

repatriation: providing training and development

Dr Peter Schmidt

Dr Peter Schmidt

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Note: Lack of Understanding and Acculturation problems rank high on barriers to entry in foreign markets

Barriers to entering foreign markets

Dr Peter Schmidt

Overcoming these Barriers demands training and development of expatriate as well as local staff

Overcoming these Barriers demands training and development of expatriate as well as local staff Training and development  Training is instruction directed at enhancing specific jobrelated skills and abilities  Development is general education concerned with preparing managers for new assignments and/or higherlevel positions Assessing training needs  Firms assess training and development needs by determining the difference between what managers and employees can do and what the firm feels they should be able to do  A company entering international markets for the first time is likely to have more substantial training and development needs than a global firm. Dr Peter Schmidt

Learning Objectives 1. Understand the difference between a group and a team

Basic training methods and procedures  Need to be very flexible as to needs assessment and then working out how to address those needs Developing young international managers  In the global business environment of the 21st Century, it is important to ‘internationalise’ young managers early in their careers – (an international MBA program, for instance, can help)

2. Explain the stages of team development and the likely behaviours at each stage 3. Understand the advantages and disadvantages of team decision making and how to enhance the teams decision making capability 4. Advantages and disadvantages of team activity 5. Developing Teamwork: Actions Generally Requiring Organisation Structure or Policy e.g. Building Highly Cohesive Teams 6. Outline the issues in Cross-Cultural teams

Dr Peter Schmidt

Dr Peter Schmidt

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