Chapter 13
Creating and Managing Teams
Few trends have influenced how work gets done in organizations as much as the use of
work teams. Organizations are increasingly structuring work around teams rather than
individuals. Managers need to understand what influences team performance and
satisfaction. Focus on the following learning objectives as you read and study this
chapter.
LEARNING OBJECTIVES
2. Describe the major components that determine group performance and satisfaction.
4. Discuss contemporary issues in managing teams.
It’s Your Career
Maximizing Outcomes Through Negotiation
“Everything is negotiable!” Managers negotiate with employees, bosses, colleagues,
suppliers, and sometimes even customers. And each of us, in our daily lives, will find
Here are some brief suggestions to hone your skills at negotiating:
1. Do your homework. Gather as much pertinent information as possible before
your negotiation.
3. Begin with a positive proposal. Concessions tend to be reciprocated. So start
with something positive.
5. Pay attention to the interpersonal aspects of the negotiation process.
Negotiating is communicating. Trust is an important part of that communication.
CHAPTER OUTLINE
INTRODUCTION
Work groups are a common arrangement within today’s business organizations.
Work is being restructured around groups of all kinds and in all sizes of
organizations. Managers need an understanding of group behavior and the
concept of teams in order to appreciate what groups can and cannot do within
organizations and how groups function.
13.1 GROUPS AND GROUP DEVELOPMENT
Groups exhibit different behavior—more than just the sum total of each group
member’s individual behavior. In this section, we’re going to look at various
aspects of group behavior.
A. What Is a Group?
1. Formal groups are work groups established by the organization
2. Informal groups are natural social formations that appear in the
work environment.
B. Stages of Group Development
Evidence suggests that groups pass through five stages as they develop
(see Exhibit 13-2).
1. Forming is the first stage in group development during which
people join the group and then define the group’s purpose,
2. Storming is the second stage of group development
3. Norming is the third stage of group development, characterized
by close relationships and cohesiveness.
5. Adjourning is the final stage in group development for temporary
13.2 WORK GROUP PERFORMANCE AND SATISFACTION
We need to look at how groups work. The answer to why some groups are more
successful than others is quite complex. There are five factors that can affect this
relationship (see Exhibit 13-3).
A. External conditions imposed on the group. These factors include an
organization’s strategy, authority relationships, formal rules and
regulations, the availability of resources, employee selection criteria, the
performance management system and culture, and the general physical
layout of the group’s workspace.
B. Group member resources. These factors include member abilities and
personality characteristics.
C. Group member resources. The relationship between group performance
and member resources is made more challenging in global organizations
where cross-cultural groups are prevalent.
D. Group structure. There are seven aspects of the internal structure. Six
are covered here and leadership is covered in Chapter 17.
1. A role is a set of behavior patterns expected of someone
2. Norms are acceptable standards or expectations
3. Conformity. Norms focus on effort and performance,
dress, and loyalty. Also, because individuals desire
4. Status systems are an important factor in understanding
5. Group size can also affect the group’s overall behavior.
The effect depends on which outcomes are focused on. An
6. Group cohesiveness is the degree to which members are
attracted to a group and share the group’s goals. Research
E. Group processes include the communication patterns used by members
to exchange information, group decision processes, leader behavior,
power dynamics, conflict interactions, and other actions.
1. Group decision-making (See Exhibit 13-6)
Groups make many organizational decisions. Advantages
2. Disadvantages of group decision-making include:
a. Time consuming
3. Conflict management is another group concept that must
be understood. Conflict is perceived when incompatible
differences result in interference or opposition.
a. The traditional view of conflict is the view that all
conflict is bad and must be avoided.
for Conflict and Performance relationship.
4. Three types of conflict have been identified:
a. Task conflict is conflict over the content and goals
5. Managers may use a number of different conflict resolution
approaches (see Exhibit 13-8).
F. Group tasks. The complexity and interdependence of tasks influence the
group’s effectiveness.
FUTURE VISION: Conflicts 2.0
While organizations have traditionally looked upon conflict as a negative behavior,
successful companies recognize the importance of managing functional conflict by
tolerating dissent. Tomorrow’s organizations will use blogs, social networking, and other
IT solutions to allow employees to criticize and offer improvement over existing
processes.
The following discussion questions are posed:
Talk About It 1: What do you think? Will functional conflict make an organization
stronger? Discuss.
Talk About It 2: What issues—good and bad— might managers have to deal with if
employees can use social media and other digital tools to question practices, criticize
decisions, and offer suggestions for improvement? What might managers have to do to
deal with these issues?
Student answers to these questions will vary.
13.3 TURNING GROUPS INTO EFFECTIVE TEAMS
Work teams are groups whose members work intensely on a specific, common
goal using their positive synergy, individual and mutual accountability, and
complementary skills.
A. What Is a Work Team?
Although most students are familiar with the concept of a “team,” many
may be less familiar with the concept of a “work team.” All work teams are
groups, but only formal groups can be work teams. Exhibit 13-9
highlights the differences between groups and teams.
B. Types of Teams
Certain characteristics distinguish different types of teams:
1. A problem-solving team is a type of work team that is composed
2. A self-managed team is a type of work team that operates
3. A cross-functional team is a work team composed of individuals
LEADER MAKING A DIFFERENCE
Former Siemens CEO Peter Löscher played an important role in helping grow
one of the largest electronics and industrial engineering companies in the
world. Löscher was brought in as CEO after a traumatic time in the
company’s history, when it was disgraced internationally and paid a $1.6
billion fine for bribery charges. Under his leadership, Löscher turned the
company around and returned it to its role of being a leader in the global
What can you learn from this leader making a difference?
C. Creating Effective Teams
The establishment of teams in the workplace will not automatically
enhance productivity. Managers must look closely at how they can
successfully develop and manage effective teams.
1. Research has been conducted on the characteristics associated
2. Eight characteristics are associated with effective teams (see
Exhibit 13-10):
a. Clear goals
b. Relevant skills
13.4. CURRENT CHALLENGES IN MANAGING TEAMS
The introduction of work teams into the world of business has had a major
influence on how work gets done in organizations. The management of teams
presents challenges as well as advantages to managers in today’s workplace.
(See Exhibit 13-11)
A. Managing Global Teams
2. Regarding group member resources in global teams, managers
3. Differences in group structure may be significant. Managing global
4. Managing conflict as part of group processes can be difficult,
especially in virtual global teams.
B. Understanding Social Networks
1. Recent studies show that teams with high levels of interpersonal
2. Organizations are becoming increasingly aware of the importance
ANSWERS TO REVIEW AND DISCUSSION
QUESTIONS
Student answers to these questions will vary.
13-1. Describe the different types of groups and the five stages of group development.
A group is two or more interacting and interdependent individuals who come together to
achieve specific goals. Formal groups are work groups that are defined by the
organization’s structure and have designated work assignments and specific tasks
13-2. Explain how external conditions and group member resources affect group
performance and satisfaction.
13-3. Discuss how group structure, group processes, and group tasks influence group
performance and satisfaction.
Group roles generally involve getting the work done or keeping group members happy.
Group norms are powerful influences on a person’s performance and dictate things such
13-4. Compare groups and teams.
Characteristics of work groups include a strong, clearly focused leader; individual
accountability; purpose that’s the same as the broader organizational mission; individual
13-5. Describe the four most common types of teams.
A problem-solving team is one that’s focused on improving work activities or solving
13-6. List the characteristics of effective teams.
The characteristics of an effective team include clear goals, relevant skills, mutual trust,
13-7. Explain the role of informal (social) networks in managing teams.
Research on social networks has shown that when people need help getting a job done,
13-8. How do you think scientific management theorists would react to the increased
reliance on teams in organizations? How would behavioral science theorists react?
PERSONAL INVENTORY ASSESSMENTS
Student answers to these questions will vary.
ETHICS DILEMMA
Student answers to these questions will vary.
What do you do when a co-worker shares that he has shaved his entire body to reduce
aerodynamic drag? In this ethical dilemma, students are asked what they think when
13–11. What do you think? Why are work colleagues sharing increasingly personal
information?
13–12. How have social media and technology contributed to this type of information
disclosure?
13-13. What are the ethical implications of sharing such personal information in the
workplace?
(LO: 4, Discuss contemporary issues in managing teams, AACSB: Ethical understanding
and reasoning)
SKILLS EXERCISE: DEVELOPING YOUR
COACHING SKILLS
Managers are expected to add coaching to the growing list of expected skills. In this
exercise, students are given three steps to hone their coaching skills. To strengthen
their coaching muscles, students should choose two of the following activities and break
each one into at least six to eight separate tasks or steps. Students should indicate
which steps are sequential, and which can be done simultaneously with others. Finally,
students should suggest the number of team members best suited for each task.
a. Making an omelet
b. Washing the car
c. Creating a computerized mailing list
d. Designing an advertising poster
e. Planning a ski trip
f. Restocking a supermarket’s produce department
WORKING TOGETHER: TEAM EXERCISE
In this exercise, students are to imagine that they have been put in charge of a team to
make snack foods like Doritos healthier. Issues for students to think about include
diverse group membership, rules of team behavior that would stimulate creativity,
rewards for team members, and evaluation of members. Students may want to refer to
MY TURN TO BE A MANAGER
• What traits do you think good team players have? Do some research to answer
this question and write up a report detailing your findings using a bulleted list
• Select two of the characteristics of effective teams listed in Exhibit 13–10 and
develop a team-building exercise for each characteristic that will help a group
improve that characteristic. Be creative. Write a report describing your exercises
and be sure to explain how your exercise will help a group improve or develop
• Complete the skill building modules Developing Trust, Creating Effective Teams,
and Running Productive Meetings found on mymanagementlab. Your professor
will tell you what you need to do with this information. (LO: 1, Define groups and
the stages of group development, AACSB: Analytical thinking) (LO: 2, Describe
the major components that determine group performance and satisfaction,
• Select one group to which you belong. Write a report describing the following
things about this group: stage of group development, types of roles played by
group members, group norms, group conformity issues, status system, the size
• Using the same group, describe how decisions are made. Is the process
effective? Efficient? Describe what types of conflicts seem to arise most often
(relationship, process, or task) and how those conflicts are handled. Add this
• When working in a group (any group to which you’re assigned or to which you
belong), pay careful attention to what happens in the group as tasks are
completed. How does the group’s structure affect how successful the group is at
• Steve’s and Mary’s suggested readings: Tom Rath, Vital Friends (Gallup Press,
2006); Jon R. Katzenbach and Douglas K. Smith, The Wisdom of Teams:
Creating the High Performance Organization (McGraw-Hill, 2005); Patrick
Lencioni, Overcoming the 5 Dysfunctions of a Team (Jossey-Bass, 2005); Ben
Mezrich, Bringing Down the House: The Inside Story of Six MIT Students Who
Took Vegas for Millions (The Free Press, 2002); Jon R. Katzenbach and Douglas
K. Smith, The Discipline of Teams (Wiley, 2001); and Jean Lipman-Blumen and
• Research brainstorming and write a report to your professor explaining what it is
components that determine group performance and satisfaction, AACSB:
• Self-knowledge can be a powerful learning tool. Go to mymanagementlab and
complete these self-assessment exercises: Do I Trust Others? Do Others See
Me As Trusting? How Good Am I at Building and Leading a Team? and What’s
My Preferred Conflict-HandIing Style? Using the results of your assessments,
ANSWERS TO CASE APPLICATION 1
QUESTIONS
Student answers to these questions will vary.
Far and Wide
13-14. What challenges would there be to creating an effective team in an organization
staffed by independent contractors? How could managers deal with these challenges?
13–15. Why do you think teamwork is crucial to Lonely Planet’s business model?
13-16. Using Exhibit 13-10, what characteristics of effective teams would be most
important to Lonely Planet’s guidebook teams? Explain your choices.
all of these goals are important in this type of situation.
ANSWERS TO CASE APPLICATION 2
QUESTIONS
Student answers to these questions will vary.
737 Teaming Up for Take Off
13-17. What type of team(s) do these employee teams appear to be? Explain.
13–18. As this story illustrated, sometimes it may take a long time for a team to reach its
goal. As a manager, how would you motivate a team to keep on trying?
13-19. What role do you think a team leader needs to play in this type of setting?
13–20. Using Exhibit 13-10, what characteristics of effective teams would these teams
need? Explain.
From Exhibit 13–10, the characteristics of an effective team include clear goals, relevant
ADDITIONAL CHAPTER INFORMATION
You may want to use the following example in class. The Harley-Davidson assembly
plant located in Kansas City has been described as a new model of the American factory
floor. Why? Harley has created an environment in which line workers are not just