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CHAPTER 14
LEADING TEAMS
CHAPTER OUTLINE
Are You Ready to Be a Manager?
I. Why Teams at Work?
A. What Is a Team?
B. The Dilemma of Teams
II. How to Make Teams Effective
A. Model of Team Effectiveness
B. Effective Team Leadership
III. Types of Teams
A. Formal Teams
B. Self-Directed Teams
IV. Innovative Uses of Teams
A. Virtual Teams
VI. Team Processes
A. Stages of Team Development
B. Team Cohesiveness
C. Team Norms
VII. Managing Team Conflict
A. Types of Conflict
B. Balancing Conflict and Cooperation
C. Causes of Conflict
D. Styles to Handle Conflict
E. Negotiation
VIII. Work Team Effectiveness
A. Productive Output
B. Satisfaction of Members
C. Capacity to Adapt and Learn
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ANNOTATED LEARNING OBJECTIVES
After studying this chapter, students should be able to:
1. Identify the types of teams in organizations.
Many types of teams can exist within organizations and can be classified in terms of those
created as part of the organization’s formal structure and those created to increase employee
2. Discuss some of the problems and challenges of teamwork.
There are three primary reasons teams present a dilemma for most people. First, people have to
give up their independence. When people become part of a team, their success depends on the
3. Identify roles within teams and the type of role you could play to help a team be effective.
For a team to be successful it must maintain its members’ social well-being and accomplish the
team’s task. In successful teams, two types of roles emerge: task specialist and socioemotional.
4. Explain the general stages of team development.
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Team development evolves over definitive stages that occur in sequence and may occur rapidly.
5. Identify ways in which team size and diversity of membership affect team performance.
The ideal size of work teams is about seven, although variations from five to twelve seem to
work best. These teams are large enough to take advantage of diverse skills, enable members to
6. Explain the concepts of team cohesiveness and team norms and their relationship to team
performance.
Team cohesiveness is defined as the extent to which team members are attracted to the team and
7. Understand the causes of conflict within and among teams and how to reduce conflict.
Conflict refers to antagonistic interaction in which one party attempts to block the intentions or
8. Describe the different characteristics and consequences of task conflict versus relationship
conflict.
Task conflict refers to disagreements among people about the goals to be achieved or the content
9. Define the outcomes of effective teams and how managers can enhance team effectiveness.
Positive outcomes of effective teams include such things as improved productivity of workers,
LECTURE OUTLINE
INTRODUCTION
Many people get their first management experience in a team setting, and you will probably
sometimes have to work in a team as a new manager. Teams have become the primary way in
which many companies accomplish their work from the assembly line to the executive suite.
Teams have real advantages, but it can sometimes be tough to work in a team. You may have
Are You Ready to Be a Manager?
This questionnaire gives students insight into their teamwork skills.
I. WHY TEAMS AT WORK?
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New Manager Self-Test: How Do You Like To Work?
Your approach to your job or schoolwork may indicate whether you thrive on a team. An
A. What Is a Team?
1. A team is a unit of two or more people who interact and coordinate their work to
accomplish a specific goal. This definition has three components.
a. Two or more people are required.
2. Although a team is a group of people, the two terms are not interchangeable.
a. An employer can put together a group of people and never build a team.
B. The Dilemma of Teams
1. There are three primary reasons teams present a dilemma for most people.
a. We have to give up our independence. When people become part of a team, their
success depends on the team’s success; therefore, they are dependent on how well
other people perform, not just on their own individual initiative and actions.
Exhibit 14.1: Differences between Groups and Teams
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b. We have to put up with free riders. The term free rider refers to a team member
Exhibit 14:2: Five Common Dysfunctions of Teams
II. HOW TO MAKE TEAMS EFFECTIVE
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Exhibit 14.3: Work Team Effectiveness Model
A. Model of Team Effectiveness
1. The factors that influence team effectiveness begin with the organizational context,
3. Good team leaders understand and manage stages of team development,
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Discussion Question #1: Volvo went to self-directed teams to assemble cars because of the
need to attract and keep workers in Sweden, where pay raises are not a motivator (high taxes)
and many other jobs are available. Are these factors good reasons for using a team approach?
Discuss.
B. Effective Team Leadership
1. Team leaders play an important role in shaping team effectiveness. In addition to
managing internal processes, there are three specific ways in which leaders contribute
to team success.
a. Rally people around a compelling purpose. It is the leader’s responsibility to
articulate a clear, compelling purpose and direction, one of the key elements of
III. TYPES OF TEAMS
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Exhibit 14.4: Horizontal and Vertical Teams in an Organization
Spotlight on Skills: How to Run a Great Meeting
Effective meetings help people process important information, solve problems, and feel actively
involved in the organization’s tasks or goals. Good meetings are the result of careful planning.
Prepare in Advance.
Define the purpose.
Invite the right people
Prepare an agenda and identify the unexpected outcome.
Bring Out the Best During the Meeting.
• Start on time, state the purpose, and review the agenda.
A. Formal Teams
1. Formal teams are created by the organization as part of the formal organization
structure.
a. A vertical team is composed of a manager and subordinates in the formal chain
of command. These teams are also called functional or command teams and may
b. A horizontal team is composed of employees from about the same hierarchical
level but from different areas of expertise. A cross-functional team, or task force,
is a group of employees from different departments formed to deal with a specific
task, existing only until the task is completed.
(1) A committee is generally long-lived and may be a permanent part of the
Spotlight on Skills: JetBlue
All airlines face the problem of unpredictable weather, and how effectively they manage and
recover from these events dramatically affects performance and customer satisfaction. JetBlue
suffered a serious customer satisfaction crisis when severe snowstorms paralyzed New York
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B. Self-Directed Teams
1. Self-directed teams typically consist of 5 to 12 employees from the same department
who voluntarily meet to improve quality, efficiency, and work environment.
a. The most widely known application is quality circles, first used by the Japanese.
b. Self-directed teams typically include the following elements:
IV. INNOVATIVE USES OF TEAMS
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A. Virtual Teams
1. A virtual team is made up of geographically or organizationally dispersed members
linked through advanced information and telecommunications technologies.
a. Though some virtual teams include only organizational members, they may also
2. Virtual teams are highly flexible and dynamic. Team leadership is typically shared or
3. One advantage of a virtual team is the ability to assemble the best group to complete a
Discussion Question #4: Imagine yourself as a potential member of a team responsible for
designing a new package for breakfast cereal. Do you think interpersonal skills would be
equally important if the team is organized face to face versus a virtual team? Why or why not?
Might different types of interpersonal skills be required for the two types of teams? Be specific.
4. Managers should address the following critical areas when leading virtual teams.
a. Using technology to build relationships is critical for effective virtual teamwork.
Exhibit 14.5: What Effective Virtual Team Leaders Do
Spotlight on Skills: Nokia
London Business School researchers found that Nokia’s teams were among the most effective in
a study of 52 virtual teams in 15 leading multinational companies, even though they were made
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B. Global Teams
1. Global teams are cross-border work teams made up of members of different
nationalities whose activities span multiple countries. Global teams fall into two
categories.
a. Global teams can present enormous challenges for team leaders, who have to
bridge gaps of time, distance, and culture. Members of global teams may speak
V. TEAM CHARACTERISTICS
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A. Size
1. Research suggests that smaller teams perform better than larger teams, but that it may
be impossible to specify an optimal team size.
2. Teams must be large enough to take advantage of diverse skills, enable members to
B. Diversity
1. Research shows that diverse teams are more innovative.
a. Diversity may contribute to a healthy level of conflict that leads to better decision
2. Racial, national and ethnic diversity can also be good for teams, but in the short term
these differences might hinder team interaction and performance.
C. Member Roles
2. The requirements for task performance and social satisfaction are met by the
emergence of two types of roles: task specialist and socioemotional.
3. People who play the task specialist role help the team reach its goal and do the
following:
a. Initiate ideas.
4. Employees who adopt a socioemotional role support team members’ emotional
needs and do the following:
a. Encourage.
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b. Harmonize.
Discussion Question #7: When you are a member of a team, do you adopt a task specialist or
socioemotional role? Which role is more important for a team’s effectiveness?
VI. TEAM PROCESSES
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Exhibit 14.6: Five Stages of Team Development
A. Stages of Team Development
1. Forming
a. The forming stage of development is a period of orientation and getting
acquainted.
2. Storming
a. During the storming stage, individual personalities emerge and conflict and
3. Norming
a. During the norming stage, conflict is resolved, team harmony and unity develop,
4. Performing
a. During the performing stage, the major emphasis is on problem solving and
5. Adjourning
a. The adjourning stage occurs in teams that have a limited task to perform and are
Discussion Question #3: Suppose you are the leader of a team that has just been created to
develop a new registration process at your college or university. How can you use an
understanding of the stages of team development to improve your team’s effectiveness?
B. Team Cohesiveness
1. Team cohesiveness concerns the extent to which members are attracted to the team
and motivated to remain in the team. High cohesiveness is normally considered a
positive feature of teams.
a. Determinants of team cohesiveness