Chapter 11 – Effective Team Management
11-1
Chapter 11
Effective Teams
Learning Objectives 11-2
Key Definitions/Terms 11-2
Chapter Overview 11-3
Lecture Outline 11-3
Lecture Enhancers 11–20
Management in Action 11-23
Building Management Skills 11-26
Managing Ethically 11–28
Small Group Breakout Exercise 11–29
Be the Manager 11–31
Case in the News 11–31
Supplemental Features 11–32
Manager’s Hot Seat 11-32
Instructor’s PowerPoint Slides 11–33
CHAPTER CONTENTS
Chapter 11 – Effective Team Management
11-2
LO 11-2. Identify the different types of groups and teams that help
managers and organizations achieve their goals.
LO 11-4. Explain why it is important for groups and teams to have a
LO 11-5. Describe how managers can motivate group members to achieve
organizational goals and reduce social loafing in groups and
teams.
command group A group composed of
group role A set of behaviors and tasks that a
LEARNING OBJECTIVES
KEY DEFINITIONS/TERMS
Chapter 11 – Effective Team Management
11-3
self-managed work team A group of employees
who supervise their own activities and monitor the
quality of the goods and services they provide.
nonmanagerial employees from various
departments or divisions who meet to solve a
specific, mutual problem; also called
ad hoc
committee
.
team A group whose members work intensely with
one another to achieve a specific common goal or
videoconferences.
This chapter examines in detail groups and teams, how they can contribute to increased organizational
effectiveness, and the various factors that influence the level of group and team productivity. Different
kinds of groups and teams are described, and the group dynamics that influence the functioning and
effectiveness of groups are outlined. The chapter also discusses how managers can motivate group
members to achieve organizational goals and how social loafing in groups and teams can be reduced.
The chapter also throws light on why the effective management of groups and teams is a key
ingredient for organizational performance and effectiveness.
NOTE ABOUT INSTRUCTOR’S POWERPOINT
SLIDES
The Instructor PowerPoint Slides include most
Student PowerPoint slides, along with additional
material that can be used to expand the lecture.
Images of the Instructor PowerPoint slides can be
found at the end of this chapter on page 11–34.
BASIC POWERPOINT SLIDE 1
(INSTRUCTOR’S POWERPOINT SLIDE 1)
Chapter Title
CHAPTER OVERVIEW
LECTURE OUTLINE
Chapter 11 – Effective Team Management
Management Snapshot (pp. 369-370)
Teams Innovate at W.L. Gore
How Can Managers Promote High Motivation, Performance, and Innovation?
W.L. Gore & Associates is widely recognized for its diverse and innovative products. A key
ingredient to Gore’s enduring success is its use of teams to innovate and motivate rather than relying
on a hierarchy of managers.
Bill Gore and his wife Genevieve founded Gore in 1958. He believed that innovation and high
motivation and performance could be achieved when as many people as possible in an organization
were members of self-managed teams that were tasked to be innovative and had high levels of
autonomy. Gore is therefore structured around a lattice of self-managed teams. Many teams at Gore
have the goal of developing innovative new products, and associates in different teams communicate
directly with each other whenever the need or desire arises.
New hires at Gore are assigned into broad areas—such as R&D, engineering, sales and marketing,
information technology, operations management, or human resources. New hires are also assigned a
sponsor. Sponsors are experienced associates who help newcomers learn the ropes, meet other
associates, and acclimatize to Gore’s unique culture and values centered on high trust and motivation.
Ultimately, sponsors help newcomers find a team for which they are a good fit.
Gore is owned by the Gore family and associates. Associates participate in a profit-sharing program
and are awarded a percentage of their salary in shares of the company. Associates are accountable to
each other and their teams, and they are reviewed by their peers. Because associates thrive in Gore’s
collaborative and team-based structure, the company has received recognition for being a top
employer.
I. Groups, Teams, and Organizational
Effectiveness
A group may be defined as two or more people who
interact with each other to accomplish certain goals
or meet certain needs. A team is a group whose
members work intensely with each other to achieve
a specific common goal or objective.
LO 11-1: Explain why
groups and
teams are key
contributors
to
organizationa
l
TO 11-10
that is not a team do not work intensely
together.
3. In this chapter, the term group refers to both
groups and teams.
4. Because members of teams do work intensely
together, teams can be difficult to form, and it
may take time for team members to learn how
to effectively work together.
5. Groups and teams can help an organization
gain a competitive advantage by:
a. enhancing organizational performance
b. increasing responsiveness to customers
c. increasing innovation
d. increasing levels of employee motivation
and job satisfaction.
A. Groups and Teams as Performance
Enhancers: One of the main advantages of using
groups is the opportunity to obtain synergy—
performance gains that result when individuals and
departments coordinate their actions.
1. People working in a group are able to
produce more than would have been produced if
each person had worked separately.
a. Synergy is described by statement that
‘the whole is more than the sum of its
parts.’
b. To take advantage of the potential for
synergy in groups, managers need to make
sure that groups are composed of members
who have complementary skills and
knowledge.
c. To promote synergy, managers need to
Chapter 11 – Effective Team Management
B. Groups, Teams, and Responsiveness to
Customers: Being responsive to customers often
requires the wide variety of skills found in different
departments.
1. In a cross-functional team, the expertise and
knowledge of different organizational
departments are brought together into a team
environment in order to enhance responsiveness
to customers.
C. Teams and Innovation: Innovation, the creative
development of new products, new services, or even
new organizational structures, can be better
managed by creating teams of diverse individuals
who together have the necessary knowledge for
innovation.
1. In addition, team members can often uncover
each other’s errors or false assumptions, critique
each other’s approaches, and complement each
2. To further promote innovation, managers
should empower teams by making their
members fully responsible and accountable for
the innovation process.
3. To speed innovation, managers must form
teams in which each member brings a unique
resource to the team.
D. Groups and Teams as Motivators: Members of
groups and teams are likely to be more highly
1. This is because working alongside other
highly charged people can be stimulating, which
2. This increased motivation and satisfaction
II. Types of Groups and Teams
To achieve their goals, managers can form various
types of groups and teams.
1. Formal groups are groups that managers
establish to achieve organizational goals.
2. Cross-functional teams are formal groups
composed of members from different
departments and cross-cultural teams are
composed of members from different cultures
or countries.
3. Sometimes organization members form
informal groups on their own because they feel
that it helps them achieve their personal goals or
needs.
1. This team is responsible for developing the
strategies that result in an organization’s
competitive advantage.
cross-functional.
3. Diversity within the top management team
helps guard against groupthink—faulty group
decision making that results when group
members strive for agreement at the expense of
an accurate assessment of the situation.
B. Research and Development Teams: Managers
in high-tech industries often create research and
development teams to develop new products.
LO 11-2: Identify the
different
types of
groups and
teams that
help
managers
and
organization
s achieve
their goals
POWERPOINT SLIDE 11-11
TO 11-21
Chapter 11 – Effective Team Management
teams with members from many departments.
C. Command Groups: A command group is a
group composed of subordinates who report to the
same supervisor.
1. Often they are called a department or unit.
When top managers design an organization’s
structure and establish reporting relationships
and a chain of command, they are creating
command groups.
D. Task Forces: Managers often form task forces
to solve a specific problem or accomplish specific
goals within a certain period of time.
1. Task forces are also called ad hoc
committees.
2. Once the task force accomplishes its goal or
resolves its problem, it usually disbands.
3. They can be a valuable tool for busy
managers who do not have the time to explore
an important issue in depth.
E. Self-Managed Work Teams: Self-managed
work teams are teams in which team members are
empowered with the responsibility and autonomy to
complete identifiable pieces of work.
1. Team members decide what the team will do,
how it will do it, and which team members will
perform which specific tasks.
2. Managers provide teams with overall goals
but let team members decide how to meet those
goals.
and satisfaction, and lower costs.
4. Managers can take a number of steps to
effective and help an organization gain a
competitive advantage:
Chapter 11 – Effective Team Management
a. Give teams enough responsibility and
autonomy to be truly self-managing.
Refrain from telling team members what to
do or solving problems for them, even if
you as manager know what should be done.
b. Make sure that a team’s work is
sufficiently complex so that it entails a
number of different steps or procedures that
must be performed and results in some kind
of finished end product.
c. Carefully select members of self
managed work teams. Team members
should have the diversity of skills needed to
complete the team’s work, have the ability
to work with others and want to be part of a
team.
d. As a manager, realize that your role vis-
à-vis self-managed work teams calls for
guidance, coaching, and support, not
supervision. You are a resource for teams to
turn to when needed.
members who rarely or never meet face-to-face and
interact by using various forms of information
technology.
1. As organizations are becoming increasingly
global, virtual teams allow employees to solve
problems and explore opportunities without
being limited by geographic location.
Chapter 11 – Effective Team Management
3. Virtual teams rely on two forms of
information technology: synchronous and
asynchronous technology.
a. Synchronous technology enables virtual
team members to communicate and interact
with each other in real time and
simultaneously through videoconferencing,
teleconferencing, and electronic meetings.
b. Asynchronous technologies delay
communication, as with e-mail or Internet
websites.
4. One of the challenges virtual team members
face is building a sense of camaraderie and trust
among each other.
a. To address this challenge, some
organizations schedule opportunities for
virtual team members to meet.
b. Research suggests that while some virtual
teams can be as effective as traditional
teams, virtual team members might be less
satisfied with teamwork efforts and have
fewer feelings of camaraderie or cohesion.
1. Friendship groups help satisfy employees’
needs for interpersonal interaction and can
provide social support in times of stress.
2. The informal relationship that managers build
in these groups can often help them solve work-
related problems.
11-11
1. Interest groups can provide managers with
insights into the issues and concerns that are
important to employees.
2. These groups can also signal the need for
change.
III. Group Dynamics
The ways in which a group functions depend
upon a number of group characteristics and
processes known as group dynamics.
A. Group Size and Roles
1. Group Size: The number of members in
a group can be an important determinant of
members’ motivation and commitment, as
well as overall group performance.
a. Members of small groups, between
two and nine members, tend to interact
more with each other, find it easier to
coordinate their efforts, and tend to be
more motivated, satisfied, and
ii. A disadvantage of small versus
large groups is that members of
small groups have fewer resources
i. They have more resources at their
disposal to achieve group goals,
such as the knowledge, experience,
LO 11-3: Explain how
different
elements of
group
dynamics
influence the
functioning
and
effectiveness
of groups and
teams.
POWERPOINT SLIDES 11-
22 TO 11-35
TEXT REFERENCE
has both a locking
mechanism for IV systems
and also a protected needle
so that health care workers
began to feel overloaded
with his business. While
employees did form teams
Chapter 11 – Effective Team Management
ii. They can also capitalize upon the
advantages that stem from the
division of labor—splitting the
work to be performed into particular
tasks and assigning tasks to
individual workers.
iii. The disadvantages of large
c. When deciding upon the appropriate
size for any group, managers should
attempt to gain the advantages of small
division of labor.
they know to solve problems and
with any real tangible results.
In an effort to improve team
effectiveness, Lopez told
employees that teams should
elect team leaders. He and a
colleague came up with rules
or guidelines teams should
follow. ICU Medical also
started to reward team
members for their team’s
to live up to their promise.
Today any ICU Medical
employee can create a team
to address a problem, seize
an opportunity, or work on a
Chapter 11 – Effective Team Management
what is expected of them, and how the
different roles in the group fit together.
c. Managers should encourage role
making, taking the initiative to modify
an assigned role by assuming additional
responsibilities.
d. In self-managed work teams, group
members themselves are responsible for
creating roles.
B. Group Leadership: All groups and teams need
leadership.
1. Sometimes managers assume the leadership
role or appoint a member of a group.
2. In other cases, group or team members may
choose their own leaders, or a leader may
emerge naturally.
C. Group Development over Time: It sometimes
takes a self-managed work team two or three years
to perform up to its true capabilities.
2. Researchers have identified five stages of
group development that many groups seem to
pass through.
a. In the first stage, forming, members try
to get to know each other and reach a
common understanding.
b. In the second stage, storming, group
members experience conflict and
disagreements.
Chapter 11 – Effective Team Management
work of the group gets accomplished.
e. The last stage, adjourning, applies
only to groups that eventually are
disbanded.
D. Group Norms: Group norms are shared
guidelines or rules for behavior that most group
members follow. Groups develop norms
concerning a wide variety of behaviors,
including work hours, sharing information, how
tasks are performed, and how members should
dress.
Managers should encourage members to
develop norms that contribute to group
performance and the attainment of group goals.
1. Conformity and Deviance: Group
members conform to norms because:
a. they want to obtain rewards and avoid
punishments
b. they want to imitate group members
whom they like and admire
c. because they have internalized the
norms and believe that they are the right
and proper way to behave.
b. Groups generally respond to members
who behave defiantly in one of three
ways:
Chapter 11 – Effective Team Management
ii. the group might expel the
member
iii. the group might change the norm
so that it is consistent with the
member’s behavior.
c. The last alternative suggests that
some deviant behavior can be functional
for a group. Deviance is functional
when it causes group members to stop
TEXT REFERENCE
MANAGEMENT
INSIGHT: Self-Teams
Benefit from Deviance and
Conformity at IDEO
IDEO has designed many
products we now take for
Managers at IDEO also
11-16
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
1. When group cohesiveness is high,
individuals strongly value their group
membership.
2. When group cohesiveness is low, group
members have little desire to retain their
group membership.
3. Research indicates that managers should
within the group, levels of conformity to
a. Level of Participation Within a
Group: As group cohesiveness
increases, the extent of group members’
participation within the group increases.
norms even when they are
dysfunctional. Low cohesiveness can
result in too much deviance and can
undermine group control.
c. Emphasis on Group Goal: As group cohesiveness
how new products might
work, evaluating and refining
prototypes, and encouraging
wild ideas. As long as these
norms are followed, diversity
of thought and even deviance
promote innovation at IDEO.
All in all, IDEO’s focus on
encouraging both deviance
and conformity in design
products that seem so
familiar we take them for
Chapter 11 – Effective Team Management
11-17
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
d. Success: As groups become more
successful, their cohesiveness tends to
goals. A moderate level of cohesiveness
motivates group members to accomplish
both group and organizational goals.
5. Factors Leading to Group
Cohesiveness: Four factors contribute to the
level of group cohesiveness. These
determinants of group cohesiveness are
group size, effectively managed diversity,
group identity and healthy competition, and
success.
a. Group Size: Members of small
groups tend to be more motivated and
committed. To promote cohesiveness in
c. Group Identity and Healthy
Competition: Managers can increase
group cohesion by encouraging groups
to develop their own identities and
engage in healthy competition. Healthy
competition among groups is promoted
rewarding cooperation between groups.
Chapter 11 – Effective Team Management
IV. Managing Groups and Teams for
High Performance
A. Motivating Group Members to Achieve
Organizational Goals: When work is difficult,
tedious, or requires a high level of commitment,
managers cannot assume that group members
will always be motivated to work toward the
organizational goals.
1. Managers can motivate members by
making sure that the members themselves
benefit when the group or team performs
highly.
2. Managers often rely on some
combination of individual and group-based
incentives to motivate members of groups.
a. A major challenge is to develop a fair
pay system that will lead to high
individual motivation and high group
performance.
3. Other benefits that managers can use
include providing extra resources,
bestowing awards and recognition, and
offering a choice of future work
assignments.
B. Reducing Social Loafing in Groups: Social
loafing is the tendency of individuals to put
forth less effort when they work in groups than
identifiable.
LO 11- 4: Explain why
it is
important
for groups
and teams to
have a
balance of
conformity
and deviance
and a
moderate
level of
cohesiveness
POWERPOINT SLIDE 11-36
TO 11-38
LO 11-5: Describe how
managers can motivate
POWERPOINT SLIDE 11-39
Chapter 11 – Effective Team Management
a. Group members should perceive that
low and high levels of effort will be
noticed and individual contributions
evaluated.
b. Managers can assign specific tasks to
group members and hold them
accountable for their completion.
c. Sometimes the members of a group
can cooperate to eliminate social loafing
by making individual contributions
identifiable.
d. However, in some teams, individual
3. Keep group size at an appropriate level.
a. As size increases, members are more
likely to think that their individual
contributions are not important.
b. Managers should form groups with