150 Instructor’s Manual for Leadership: Theory, Application, Skill Development, 6e
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CHAPTER 8
Team Leadership and Self-Managed Teams
Chapter Outline
I. The Use of Teams in Organizations
A. Is it a Group or a Team?
B. Benefits and Limitations of Teamwork
C. What Is an Effective Team?
D. Characteristics of Effective Teams
E. Team Leadership
F. Organizational Culture and Team Creativity
II. Types of Teams
A. Functional Team
B. Cross-Functional Team
C. Virtual Team
D. Self-Managed Team (SMT)
III. Decision Making in Teams
A. Normative Leadership Model
B. Team-Centered Decision-Making Model
C. Advantages and Disadvantages of Team-Centered Decision Making
IV. Conducting Effective Team Meetings
A. Planning Meetings
B. Conducting Meetings
C. Handling Problem Members
V. Self-Managed Teams
A. The Nature of Self-Managed Teams
B. The Benefits of Self-Managed Teams
C. Top Management and Self-Managed Team Success
D. The Changing Role of Leadership in Self-Managed Teams
E. The Challenges of Implementing Self-Managed Teams
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New To This Edition
Added a new subsection titled “What is an Effective Team?”
Complete overhaul of the section on the “Characteristics of Effective Teams.” Instead of seven
characteristics, we now have ten. Team Leadership and Creativity Driven that were listed as
characteristics of effective teams are now separated and presented as standalone subsections.
The section on Decision Making in Teams has been scaled back to focus on the Normative Leadership
Model (discussed in Chapter 4) and Team-Centered Decision Making.
Added a new subsection titled “Advantages and Disadvantages of Team-Centered Decision Making.”
Exhibit 8.5 – Differences between Self-Managed Team and Conventional Teams – has been updated
with a new dimension added and an old dimension redefined.
Finally, a number of subheading titles were changed and parts of the content re-written for
clarification.
Lecture Outline
PowerPoint: You may use the PowerPoint supplement to enhance your lectures. Even if your classroom is not
equipped to use PowerPoint, you can review the material on your personal computer to get teaching ideas and to
copy the slides. Copies of the slides can be made into overheads. (Slide 8-1 is chapter title and 8-2 is LOs)
I. THE USE OF TEAMS IN ORGANIZATIONS (Slide 8-3)
Teams offer the best opportunity for better organizational performance in the form of increased productivity and
profits.
The synergistic benefits of teamwork are such that members of a team working cooperatively with one another can
achieve more in output than those working independently.
Teams have become the basic unit of empowerment—large enough for the collective strength and synergy of diverse
talents and small enough for effective participation and bonding.
Increasingly, employers are looking for applicants who possess teamwork skills, and abilities.
Not all team efforts have resulted in success. In some cases, the use of teams has resulted in such negative outcomes
as increased costs, stress, and lower group cohesion.
Organizations looking to adopt the team structure must ask themselves the following questions: (Slide 8-4)
o Will the use of teams diffuse important organizational capabilities?
o How much infrastructure realignment will be required?
o Will leaders embrace the team concept and change their styles to suit?
o Can teams carry out tasks previously performed by individuals or functional units?
o How difficult will it be to develop team problem-solving capabilities?
A. Is it a Group or a Team? (Slide 8-5)
A group is a collection of individuals who interact primarily to share information and to make decisions that
A team is a unit of interdependent individuals with complementary skills who are committed to a common
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have a collective mentality that focuses on: (Slide 8-6)
1. shared mission;
2. common objectives;
3. sharing information, insights, and perspectives;
4. making decisions that support each individual to do his/her own job better; and/or
5. reinforcing each other’s efforts.
WORK APPLICATION 8-1
Think of a past or present job. Based on your knowledge of the distinction
between a group and a team, would you say you were part of a team or a group?
Explain.
CONCEPT APPLICATION 8-1
Group or Team
Answers to the Concept Application questions are at the end of lecture outline.
B. Benefits and Limitations of Teamwork
Learning Outcome (LO) 8-1. Discuss the benefits and limitations of working in teams.
Benefits: In a team situation it is possible to achieve synergy, whereby the team’s total output exceeds the
sum of individual member contributions. Team members often evaluate and add to one another’s thinking,
so there are fewer chances of errors and the quality of the decisions is improved. A team atmosphere
contributes well towards effective problem solving, continuous improvement, and innovation. Also, being
a team member makes it possible for someone to satisfy more needs than working alone; among these are
the need for affiliation, security, self-esteem, and self-fulfillment.
Limitations: Some teams have the unhealthy practice of pressuring members to conform to lower group
standards of performance and conduct. For example, a team member may be ostracized for being more
productive than his or her coworkers. Shirking of individual responsibility, or social loafing, is another
problem frequently noted in groups. Another well-known problem common in teams is the practice of
groupthink, which happens when the team values getting along so much that dissenting views are quickly
suppressed in favor of group consensus.
Teamwork is an understanding and commitment to a common goal on the part of all team members.
1. Benefits of Using Teams (Slide 8-7)
There are several benefits of teamwork.
1. Teams offer synergistic benefits that non-team arrangements fail to offer.
2. Team members can help each other avoid major errors.
3. Teams offer more opportunities for new ideas that advance innovation.
4. Teams offer a work environment in which people feel empowered, and satisfied with their jobs.
Being a team member makes it possible to satisfy one’s social needs for affiliation. Team members
develop trust for each other and come to see the team as a social network fulfilling other needs.
WORK APPLICATION 8-2
Identify a team you were or are a part of and describe the advantages that you
derived from being a member of the team.
2. Limitations of Using Teams (Slide 8-8 and Discussion Question on Slide 8-9)
Employing the team approach has some potential limitations for both organizations and individuals.
Team members may face pressure to conform to team standards of performance and conduct. For
example, a team member may be ostracized for being much more productive than his or her coworkers.
Shirking of individual responsibility, also known as social loafing is another possible limitation of
teams.
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Social loafing is the conscious or unconscious tendency by some team members to shirk responsibilities by
withholding effort towards team goals when they are not individually accountable for their work.
Another well-known disadvantage associated with highly cohesive teams is a concept known as
groupthink.
Groupthink is when members of a cohesive group tend to agree on a decision not on the basis of its merit
but because they are less willing to risk rejection for questioning a majority viewpoint or presenting a
dissenting opinion.
Highly cohesive teams can lead to intra-team and inter-team conflicts. This can happen when become
so cohesive that they resemble cliques, compromising their effectiveness.
Self-Assessment 8-1
Assessing Teamwork in Your Group
If you want students to complete the Self-Assessment exercises throughout the
book, you may want to tell students and spend a little time talking about them.
YOU MAKE THE ETHICAL CALL 8.1
He Is Not a Team Player
Answers will vary based on opinion.
WORK APPLICATION 8-3
Based on Self-Assessment 8-1, list some things that a team could do to improve
its level of teamwork. Use experiences associated with a present or past job.
C. What Is an Effective Team? (Slide 8-10)
Team members are required to form positive exchange relationships with the team leader and with each other.
Team-member exchange (TMX) is a team member’s social exchanges with peers in terms of the mutual
Team effectiveness is a construct consisting of three components: (1) task performance—the degree to which
the team’s output (product or service) meets the needs and expectations of those who use it; (2) group process—
Innovative teams are those with the capability to rapidly respond to new problems and changes with creative
Team learning is the collective acquisition, combination, creation, and sharing of knowledge
D. Characteristics of Effective Teams (Slide 8-13 and Exhibit 8.1 Slide 8-14)
LO 8-2. Identify and explain the ten characteristics of highly effective teams.
See Exhibit 8.1 and the ensuing discussion of each characteristic in the text.
1. Team Charter and Norms
A team charter is a governing document that should be jointly developed by team members and should
specify the rules by which they agree to be governed.
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Norms evolve out of a team charter and become the framework for the decision-making process within the
team, thus providing the underpinnings for group cohesion.
Team norms are acceptable standards of behavior that are shared by team members.
YOU MAKE THE ETHICAL CALL 8.2
Norms
Answers will vary based on opinion.
2. Widely Shared Team Goals
3. Team Cohesion and Task Interdependence
Team cohesion is the extent to which team members band together and remain committed to achieving
team goals.
4. Team Demographics and Size
Team demographics focus on the diversity in culture, knowledge, skills, gender, personality,
background, and experiences of team members.
5. Clearly Defined Roles and Responsibilities
The benefits of having clearly defined roles and responsibilities are that team members are more likely to
6. Positive Interpersonal Relationships
Positive interpersonal relationships exist when there is mutual respect and trust, support, inclusion,
7. Clearly Stated Operating Procedures
8. Effective Conflict Resolution Strategies
9. High-Level Interpersonal Communications
Effective teams have open and honest communication with each other.
10. Strong Top Management Support
When teams are not achieving expected results, top management must determine if all or most of the
characteristics of effective teams are present.
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WORK APPLICATION 8-4
Recall a team you have worked with that you would characterize as effective.
Which of the characteristics discussed and listed in Exhibit 8.1 did your team
possess?
E. Team Leadership (Slide 8-15 and Discussion Question Slide 8-16)
LO 8-3. What role can a team leader play in creating an effective team?
The team leader’s role in creating an effective team include being the (1) chief motivator, (2) team coach and
mentor, (3) role model, (4) team culture enforcer, (5) cheerleader, and (6) resource person.
Studies have shown that when leaders are trained to develop and nurture high-quality relationships with all of
their followers, the results on follower performance are dramatic.
A team leader’s empowering or directive style of leadership will impact team performance.
Team leaders must manage not just the work but also team member relations across diverse functional and
cultural boundaries.
The team leader’s role in creating effective teams is critical. Some examples:
The team leader as chief motivator. Through the leader’s support, encouragement, and training, followers
feel a sense of self-worth, appreciation, and value for their work, and respond with high performance.
The team leader as coach and mentor. These leaders are experienced and knowledgeable in the team
process and are capable of developing trust and teamwork norms in team members.
The team leader as a role model. A team leader must model the behavior that he/she wants to see in team
members. Being a role model develops trust, commitment, and confidence in the leader.
The team leader as team culture enforcer. The team leader plays a leading role in fostering a team culture
that supports the team’s goals and operational strategies.
The team leader as cheerleader. As the team’s leading cheerleader, the leader inspires and motivates team
members to achieve higher levels of performance
The team leader as resource person. The team leader’s role is to be the resource person that recognizes
team needs and attends to them in a timely fashion.
WORK APPLICATION 8-5
Interview someone you have worked with or know who is a team leader. Ask him
or her to provide specific examples for some for the roles discussed in the text.
F. Organizational Culture and Team Creativity (Slide 8-17 and Discussion Question Slide 8-18)
LO 8-4 Describe how organizational culture can influence team creativity.
Creating the right organizational culture is the responsibility of top management. Creativity does not work
in hierarchical command-and-control environments. Top management has the responsibility to create the
appropriate setting and support systems that foster and nourish creativity. Creating an organizational culture
that supports and encourages creativity provides the protection that team members need to take creative
risks. Another organizational factor that influences team creativity is a commitment to team diversity.
Diverse teams feature differences in thinking styles, knowledge, skills, values, and beliefs among individual
team members, which enhances creativity.
Creativity is one of the most complex mental functions. Creativity feeds innovation.
Team creativity is the creation of something that is valuable, useful, and novel by individuals working together
in a complex social system.
Top management plays a significant role in fostering a culture of learning and creativity. Creating an
organizational culture that supports and encourages creativity provides the protection that team members need to
take creative risks.
Diverse teams feature differences in thinking styles, knowledge, skills, values, and beliefs among individual
team members, enhancing creativity.
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Inter-team rivalries can turn a team into a vortex of creativity. The goal is to create a team culture where there is
simultaneous cooperative and competitive behavior within and between teams.
Self-Assessment 8-2
Assessing the Culture for Creativity
If you want students to complete the Self-Assessment exercises throughout the
book, you may want to tell students and spend a little time talking about them.
CONCEPT APPLICATION 8-2
Managing Creative Teams
Answers to the Applying the Concept questions are at the end of lecture outline.
Work Application 8-6
Think of a work situation in which you were required to do a lot of creative
thinking, or in which your job required doing a lot of very creative things. In what
ways did the organization and your immediate supervisor or leader facilitate or
hinder your effectiveness?
II. TYPES OF TEAMS
In this section, we focus on four team types that are common across organizations today: the functional team, the
cross-functional team, the virtual team, and the self-managed team.
A. Functional Team (Slide 8-19)
A functional team is a group of employees belonging to the same functional department, such as marketing,
R&D, production, human resources, or information systems, who have a common objective.
Over the years, the use of functional teams has been in decline.
B. Cross-Functional Team (Slide 8-20)
A cross-functional team is composed of members from different functional departments of an organization who
are brought together to perform unique tasks to create new and non-routine products or services.
Cross-functional team offers many potential benefits to an organization, including:
Creative potential far exceeds anything a single functional team could come up with
Coordination is improved and many problems avoided when people come together to work on a
project, rather than working in separate units
Offers multiple sources of information and perspectives and contacts; these are critical for success in
globally competitive, high-technology markets
Members learn new skills which they carry back to their functional units and subsequent teams
The positive synergy that occurs in effective cross-functional teams can help achieve a level of
performance exceeding the sum of the individual performances of members
WORK APPLICATION 8-7
Recall any experience you have had or currently have, working with individuals
from different disciplines or technical specialties outside of yours. How did you
get along with these individuals? Describe the positives and negatives of your
experience.
C. Virtual Team (Slide 8-21 and Discussion Question Slide 8-22)
A virtual team is one whose members are geographically dispersed, requiring them to work together through
electronic means with minimal face-to-face interaction.
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Organizations are using virtual teams to provide human resource flexibility, customer service responsiveness,
innovation, and speed in project completion.
Globalization and technological advances are driving organizations to adopt virtual teams.
Virtual teams enable organizations to pool the talents and expertise of employees and nonemployees by
eliminating time and space barriers.
D. Self-Managed Team (SMT) (Slide 8-23)
Self-managed teams (SMTs) are relatively autonomous teams whose members share or rotate leadership
responsibilities and hold one another mutually responsible for a set of performance targets assigned by top
management.
WORK APPLICATION 8-8
Recall a present or past job. Describe what type of team you are in or have been
in—functional, cross-functional, or self-managed.
CONCEPT APPLICATION 8-3
Type of Team
Answers to the Applying the Concept questions are at the end of lecture outline.
III. DECISION MAKING IN TEAMS (Slide 8-24)
Organizations are finding out that the leader-centered decision-making model does not work well in organizations
professing to be team-oriented.
Instead, there is greater acceptance and appreciation for the team-centered decision-making model.
For work teams to be effective, leaders must relinquish some of the decision-making responsibilities to team
members. Exactly how this can be done effectively is the focus of this section.
A. Normative Leadership Model (Slide 8-25)
The Normative Leadership Model has a time-driven and development-driven decision tree that enables the user
to select one of five leadership styles (decide, consult individually, consult group, facilitate, and delegate)
appropriate for the situation in order to maximize decision outcomes.
Each of the five leadership styles affects the level of participation in the decision by followers
Leaders who employ the “facilitate” and “delegation” leadership styles allow greater team participation in
decision making. Some describe this as empowering leadership.
B. Team-Centered Decision-Making Model (Slide 8-26)
The team-centered decision-making model is preferred when:
a) Relevant information and expertise are scattered among different people,
C. Advantages and Disadvantages of Team-Centered Decision Making (Slide 8-27)
Advantages
It can improve decision quality.
Exposure to team decision making has strong positive spillovers on the quality of individual decisions.
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Disadvantages
It can take longer than decisions made alone by a manager.
It can be self-serving and contrary to the best interests of the organization, if team members have objectives
Self-Assessment 8-3
Personality Traits and Teams
If you want students to complete the Self-Assessment exercises throughout the
book, you may want to tell students and spend a little time talking about them.
WORK APPLICATION 8-9
Recall a team decision that you were a part of, and describe the team leader’s role
during the process leading up to the final decision. Would you characterize the
leader’s role as leader-centered or team-centered?
IV. Conducting Effective Team Meetings (Slide 8-28)
In a team-oriented organization, leaders spend a great deal of time conducting meetings. Therefore, the need
for meeting management skills is stronger than ever.
The most common complaints about meetings are that there are too many of them, they are too long, and they
are unproductive.
A. Planning Meetings (Slide 8-29)
Planning is needed in at least five areas:
objectives,
selecting participants and making assignments,
the agenda,
the time and place for the meeting,
and leadership.
1. Objectives
2. Participants and Assignments
3. Agenda
4. Date, Time, and Place
To determine which day(s) and time(s) of the week are best for meetings, get members’ input. Select an
5. Leadership