Creating and

Managing Teams
Principles of Management: Chapter 6
Learning Outcomes

Today’s lecture:
■ Groups and Group Development
■ Work Group Performance and Satisfaction
■ Turning Groups into Effective Teams
Groups and Group Development

What is a group?
■ Group: Two or more interacting and interdependent individuals who come together to
achieve specific goals.
■ Formal groups are work groups defined by the organization’s structure and have
designated work assignments and specific tasks directed at accomplishing
organizational goals.
■ Informal groups are social groups. These groups occur naturally in the workplace and
tend to form around friendships and common interests.
Groups and Group Development (cont.)

Stages of group development: Groups develop through five stages.

1. Forming stage: The first stage of group development in which people join the group
and then define the group’s purpose, structure, and leadership.
2. Storming stage: The second stage of group development, characterized by intragroup
conflict.
Examples of Formal Work Groups
Groups and Group Development (cont.)

3. Norming stage: The third stage of group development, characterized by close

relationships and cohesiveness. There’s now a strong sense of group identity and
camaraderie.
4. Performing stage: The fourth stage of group development when the group is fully
functional and works on the group’s task.
5. Adjourning: The final stage of group development for temporary groups during which
group members are concerned with wrapping up activities rather than task
performance.
Work Group Performance and Satisfaction
External Conditions Imposed on the Group
■ Work groups are affected by the external conditions imposed on it, such as the organization’s
strategy, authority relationships, formal rules and regulations, availability of resources,
employee selection criteria, the performance evaluation system and culture, and the general
physical layout of the group’s work space.
Group Member Resources
■ A group’s performance potential depends to a large extent on the resources each individual
brings to the group. These resources include knowledge, abilities, skills, and personality traits,
and they determine what members can do and how effectively they will perform in a group.
■ Interpersonal skills—especially conflict management and resolution, collaborative problem
solving, and communication—consistently emerge as important for high performance by work
groups.
■ Personality traits also affect group performance because they strongly influence how the
individual will interact with other group members.
Work Group Performance and Satisfaction
(cont.)
Group structure: Work groups aren’t unorganized crowds. They have an internal structure that shapes
members’ behavior and influences group performance. The structure defines:
■ Role: Behavior patterns expected of someone occupying a given position in a social unit
■ Norms: Standards or expectations that are accepted and shared by a group’s members
■ Conformity: Because individuals want to be accepted by groups to which they belong, they’re
susceptible to pressures to conform
■ Status: A prestige grading, position, or rank within a group
■ Group size: Does the size of a group affect the group’s overall performance? Yes, but the preferred
size depends on what the group is attempting to accomplish
■ Group cohesiveness: The degree to which group members are attracted to one another and share
the group’s goals
■ Leadership
Work Group Performance and Satisfaction
(cont.)
Group Processes
■ Group Decision Making:
Advantages- Groups generate more complete information and knowledge ; They bring a
diversity of experiences and perspectives to the decision process that an individual cannot ;
Groups generate more diverse alternatives because they have a greater amount and diversity of
information ; Groups increase acceptance of a solution ; Group members are reluctant to fight or
undermine a decision they helped develop ; Groups increase legitimacy

Disadvantages- Groups almost always take more time to reach a solution than it would take an
individual ; A dominant and vocal minority can heavily influence the final decision ; Groupthink
can undermine critical thinking in the group and harm the quality of the final decision ;
Members share responsibility in a group, but the responsibility of any single member is
ambiguous
Work Group Performance and Satisfaction
(cont.)
Determining whether groups are effective at making decisions depends on the criteria used
to assess effectiveness. If accuracy, creativity, and degree of acceptance are important, then a
group decision may work best. However, if speed and efficiency are important, then an
individual decision may be the best. In addition, decision effectiveness is influenced by
group size. Although a larger group provides more diverse representation, it also requires
more coordination and time for members to contribute their ideas.
■ Conflict Management: How a group manages conflict?
CONFLICT- Perceived incompatible differences that result in interference or opposition
Traditional view of conflict- The view that all conflict is bad and must be avoided
Work Group Performance and Satisfaction
(cont.)
Human relations view of conflict- The view that conflict is a natural and inevitable
outcome in any group
Interactionist view of conflict- The view that some conflict is necessary for a group
to perform effectively
Functional conflicts- Conflicts that support a group’s goals and improve its
performance
Dysfunctional conflicts- Conflicts that prevent a group from achieving its goals
Task conflict- Conflicts over content and goals of the work
Relationship conflict- Conflict based on interpersonal relationships
Process conflict- Conflict over how work gets done
Work Group Performance and Satisfaction
(cont.)
■ Group Tasks: The impact that group processes have on group performance and member
satisfaction is moderated by the task the group is doing. More specifically, it’s the
complexity and interdependence of tasks that influence a group’s effectiveness. Tasks can
be characterized as either simple or complex. Simple tasks are routine and standardized.
Complex tasks tend to be novel or nonroutine.
Turning Groups into Effective Teams
■ The difference between groups and teams:
Work groups interact primarily to share information and to make decisions to help each member do his or
her job more efficiently and effectively. There’s no need or opportunity for work groups to engage in
collective work that requires joint effort.
Work teams are groups whose members work intensely on a specific, common goal using their positive
synergy, individual and mutual accountability, and complementary skills.
Turning Groups into Effective Teams
(cont.)
■ Types of Work Teams: Teams can do a variety of things. They can design products, provide
services, negotiate deals, coordinate projects, offer advice, and make decisions. The four most
common types of work teams:
Problem-solving team- A team from the same department or functional area that’s involved in
efforts to improve work activities or to solve specific problems
Self-managed work team- A work team that operates without a manager and is responsible
for a complete work process or segment
Cross-functional team- A work team composed of individuals from various functional
specialties
Virtual team- A work team that uses computer technology to link physically dispersed
members and achieve a common goal
Turning Groups into Effective Teams
(cont.)
■ Creating Effective Work Teams: Teams don’t always achieve high levels of performance.
However, research on teams provides insights into the characteristics typically associated with
effective teams.
Clear Goals- High-performance teams have a clear understanding of the goal to be achieved.
Relevant Skills- Effective teams are composed of competent individuals who have the necessary
technical and interpersonal skills to achieve the desired goals while working well together.
Mutual Trust- Effective teams are characterized by high mutual trust among members.
Unified Commitment- Unified commitment is characterized by dedication to the team’s goals and a
willingness to expend extraordinary amounts of energy to achieve them.
Turning Groups into Effective Teams
(cont.)
Good Communication- Not surprisingly, effective teams are characterized by good communication.
Members convey messages, verbally and nonverbally, between each other in ways that are readily
and clearly understood. Also, feedback helps guide team members and correct misunderstandings.
Negotiating Skills- Effective teams are continually making adjustments as to who does what.
Appropriate Leadership- Effective leaders are important. They can motivate a team to follow them
through the most difficult situations.
Internal And External Support- The final condition necessary for an effective team is a supportive
climate. Internally, the team should have a sound infrastructure, which means proper training, a clear
and reasonable measurement system that team members can use to evaluate their overall
performance, an incentive program that recognizes and rewards team activities, and a supportive
human resource system. Externally, managers should provide the team with the resources needed to
get the job done.