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Chapter 8

BUS 272 Chapter Notes - Chapter 8: Transactive Memory, Punctuated Equilibrium, Nominal Group Technique


Department
Business Administration
Course Code
BUS 272
Professor
Sam Thiara
Chapter
8

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LO1 Teams and Informal Groups
Teams are groups of two or more people who interact and influence each other,
are mutually accountable for achieving common goals associated with
organizational objectives, and perceive themselves as a social entity within an
organization.
Why exist?
1. All teams exist to fulfill some purpose.
2. Interdependent—interact and influence each other.
3. Mutually accountable for achieve common goals.
4. Perceive themselves as a social entity.
Team permanence: how long that type of team usually exists.
Skill differentiation: the degree to which individuals bring diverse skills and
knowledge to the team. In contrast, most functional departments consist of
employees with very similar skills.
Authority differentiation: the degree that decision-making responsibility is
distributed throughout the team or is vested in one or a few members of the
team.
Departmental teams: have high authority differentiation because they typically
have a formal manager.
Self-directed teams have low authority differentiation because the entire team
makes key decisions. The team leader, if there is one, does not have final
decision-making.
INFORMAL GROUPS (not a real group)
Groups include people assembled together, whether or not they have any
interdependence or organizationally focused objective. The terms are used
interchangeably, teams has largely replaced groups in the language of business
when referring to employees who work together to complete organizational
tasks.
Why do informal groups exist?
Social enjoyment
Social identity theory applies
Stressful situations bring people together to comfort each other.
Informal groups and Organization Outcomes
Informal groups potentially minimize employee stress.
Social networks, important sources of trust building, information sharing, power,
influence, and employee well being in the workplace.

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Team advantage:
Together teams make better decisions
Develop better products—collaboration
Better customer service—divers experiences
Create a more engaged workforce
Potentially more motivated when working in teams
1. Employees have a drive to bond and are motivated to fulfil the goals of
groups to which they belong.
2. Accountable to fellow team members, who monitor performance more
closely than a traditional supervisor.
3. Under some circumstances performance improves when employees
work near others.
Disadvantages
If you have all knowledge and skills, then you can work on your own
Work can not be divided
Process losses- cost of team development
If you add a team member- takes time and resources to get them up to speed
Social loafing- people exert less effort
THE CHALLENGES OF TEAMS
Process losses—resources expended toward team development and
maintenance rather than the task.
New team members consume time and effort figuring out how to work well
with other team members. Performance also suffers among current team
members because they divert attention to accommodating and integrating
the newcomer. Process losses increase even after new members are
integrated because the larger team requires more coordination, more time
for conflict resolution, and so forth.
Social Loafing
People exert less effort in teams than when
working alone. Social loafing is higher when
individual performance is hidden or difficult to
distinguish from the performance of others. Less
prevalent when the task is interesting, because
individuals are more motivated by the work itself
to perform their duties. Social loafing is also less
common when the team's objective is important. Finally, social loafing
occurs less frequently among members who value team membership and
believe in working toward the team's' objectives

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LO2 A Model of Team Effectiveness
Teams effective when it benefits the organization and its members and survives
long enough to accomplish its mandate. First, most teams exist to serve some
organizational purpose, so effectiveness is partly measured by the achievement
of those objectives. Second, a team's effectiveness relies on the satisfaction and
well being of its members. People join groups to fulfilment their personal needs,
so effectiveness is partly measured by this need fulfilment. Finally, team
effectiveness includes the team's ability to survive long enough to fulfil its
purpose.
Effectives teams: fulfill objectives, meet member needs and survive.
Meta-model each component includes its own set of theories and models to
explain how that component operates.
ORGANIZATIONAL AND TEAM ENVIRONMENT
The environment that the organization creates and provides for the
team to start and grow.
Want the organization creates.
External competition is an environmental condition that affects team
dynamics, such as by increasing motivation of team members to work
together.
Changing societal expectations, such as higher safety standards, which
require teams to alter their norms of behaviour.
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