Topic Managing

Teams
10
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1. Examine the differences between groups and teams;
2. Identify the strengths and weaknesses of teams;
3. Appraise the best time to form teams;
4. Distinguish the types of teams available in the current
environment;
5. Evaluate the characteristics of teams; and
6. Discuss the factors involved in building high-performance teams.

INTRODUCTION
For the past 20 years, organisations such as Volvo and Toyota have introduced
the concept of teams in their production tasks processes. This condition is
considered as something new since there were no other organisations that were
willing to do so before. Nowadays, organisations that do not implement the
concept of teamwork are considered outdated.

The technique of teams is implemented nowadays because there is evidence

showing that teams are more efficient in performing tasks compared to
individuals when dealing with tasks that require a variety of skills,
considerations and experiences. Many organisations have altered their structures
in order to develop teams to utilise the talents of the employees optimally.
Besides that, some management have discovered that a team is more flexible and
responsive towards changes in the environment compared to traditional
structures. A team can be instantly formed, moved and disbanded whenever
needed. This discussion will try to provide understanding and clarify matters
related to teams.
 TOPIC 10 MANAGING TEAMS ! 161

10.1 DIFFERENCES BETWEEN TEAMS AND

GROUPS

SELF-CHECK 10.1

In an organisation, a particular task is carried out in a group or a team.

In your opinion, what is the difference between a team and a group?

Teams and groups are not the same entities. This section will clarify the
differences between teams and groups and the differences between group work
and teamwork.

A group is defined as two or more individuals who interact and are independent
of each other towards achieving a certain objective.

A work group is generally a group that shares information and makes decisions
in order to assist the members to perform their jobs well in the relevant field.
Work groups do not need to or do not have the opportunity to be involved in
task collection which involves merging and integrating efforts. Performance will
be assessed based on individual contribution to the group. In other words, the
performance of the group is the total contribution of each member of the group.

A team is an interdependent and complementary entity in all aspects among the

members, with a partnership commitment towards achieving the same goals.
Moreover, teamwork generates positive synergy through co-ordination efforts.
Thus, a team is an entity that exceeds a group. Performance is not based on
individual contribution but instead it depends on the performance of the team.
The definition above clarifies that the success of a team depends on the
interdependent relationships and collective effort of the team members.
Therefore, team members have mutual influence and significant impact on each
other when working together.

ACTIVITY 10.1

Based on what has been explained to you, apply your understanding in

identifying the differences between groups and teams in the form of a
table. Discuss your answer with your friends.
162 TOPIC 10 MANAGING TEAMS

EXERCISE 10.1

Describe briefly the differences between teamwork and group work.

10.2 ADVANTAGES OF TEAMS

Organisations these days are inclined towards the concept of teams since teams
are able to enhance customersÊ satisfaction, quality of products and services,
speed and efficiency in product development, job satisfaction of employees or
workers, and in making quality decisions.

One of the ways teams help to enhance customersÊ satisfaction towards

organisations is by forming a team that is specially trained to fulfil certain needs
of the customers. Through this method, customers are directly connected to the
team in order to fulfil their needs. Organisations also form problem-solving
teams, and teams that involve employees who conduct research in order to boost
customersÊ satisfaction and prepare suggestions for enhancement. This type of
teams usually hold weekly or monthly meetings.

Teams also assist organisations to increase the quality of products and services.
Unlike organisations with traditional structures where the management is fully
responsible towards decisions and performances, teams take direct responsibility
regarding the quality of products and services produced.

One thing that makes the concept of teams popular these days is the need for
speed and efficiency in designing and producing products. In the present
business environment, prompt changes in customersÊ preferences demand that
an organisation has speed and efficiency. In traditional organisational structures,
product development and production take a long time. Since teams have
members with various functions, speed and efficiency in designing and
producing products are achieved.

The implementation of teams can also increase the levels of job satisfaction. It
gives employees the opportunity to enhance their skills. This is done by cross
training. Cross training is an exercise that trains team members to perform all or
most of the work done by other workers. This exercise allows teams to function
under normal conditions with no interruptions even with the absence or
resignation of a team member. The advantage for the employees is that they are
able to broaden their skills and become more competent and confident in
performing their jobs.
 TOPIC 10 MANAGING TEAMS ! 163

Team members always enjoy job satisfaction due to leadership responsibility

which cannot be gained from traditional organisations. Teams are allowed to
determine their working manner, scheduling, maintenance, equipment, leave
schedule, quality control and others. This freedom is very meaningful to the
workers. Besides that, due to the rotation of leadership responsibility among
team members, each member has the opportunity to develop their leadership
skills.

Teams share various advantages especially in the aspect of decision making.

Problems can be viewed from various perspectives since a team consists of
individuals having different knowledge, skills, abilities and experience. Diversity
from this angle is able to increase the probability of solving the real problem.
Increase in knowledge and information makes it easier for teams to generate
various choices of solutions that can lead to quality solutions. Since each member
is involved in the process of decision making, they are considered as being more
committed to achieving the solution to a particular problem. In many cases, a
team is able to perform better compared to an individual worker.

10.3 DISADVANTAGES OF TEAMS

The implementation of teams brings numerous benefits to an organisation but
the organisation also has to face a few disadvantages of teams. Some of the
disadvantages are high turnover rate at the initial stages, social loafing and the
behaviour of self-restriction. Table 10.1 exposes you to the disadvantages of
teams.

Table 10.1: Disadvantages of Teams

Disadvantages of Teams
Disadvantages Description

High turnover Turnover rate is high especially at the initial stage of a team
rate formation. A team is not necessarily accepted by everyone.
Inability to adapt to other members and the internal environment
of a team are the main factors for high turnover rates at the initial
stage of team formation. Besides that, inability to take
responsibility, inability to contribute effort and lack of experience
are some other factors that contribute to this disadvantage.
164 TOPIC 10 MANAGING TEAMS

Social loafing This happens when employees fail to contribute towards job
sharing. In other words, social loafing means that a person
becomes a sleeping partner in the team. Social loafing usually
takes place in a large team where it is difficult to identify and
monitor the efforts contributed by each member of the team. In
other words, members that practice social loafing will try hard to
hide their activities and this condition causes the phenomenon of
social loafing difficult to be detected.

The behaviour of The condition that leads to the behaviour of self-restriction is

self-restriction when there are team members who do not have their own
opinions or views and donÊt take part in discussions. All these can
diminish the performance levels of the team. This matter is seen to
be similar to the condition of social loafing but actually it is not.
Social loafers try to ensure that other members do not know about
their activities but the behaviour of self-restriction does not.

ACTIVITY 10.2
You are clear about the advantages and disadvantages of an
organisation practising teamwork. Using your own understanding,
identify the five advantages and give your answer in the form of a table.
Discuss your answer with your friends.

EXERCISE 10.2

List the advantages and the disadvantages of teams that you know.

10.4 WHEN IS A TEAM NEEDED?

ACTIVITY 10.3

In your opinion, how important are teams in organisations? Why canÊt a

task be carried out by an individual?
 TOPIC 10 MANAGING TEAMS ! 165

This section will discuss the time and conditions when a team must be used in
order to maximise its benefits.

Firstly, a team can be used when the objective or meaning of usage is clear. Many
organisations implement the concept of teams because it is popular or due to the
assumption that a team is able to solve all kinds of problems. However, a team
will only succeed when team members know the reason why the team is formed
and what they are required to do.

Secondly, a team is needed for tasks that cannot be carried out individually but
through the merging of these individuals. This means that a team is needed when
a task is complex, needing diversity of perspectives or requiring repetitive
interaction with other people in order to complete it. Nevertheless, if a task is
simple and does not require diversity of perspectives or repetitive interaction
with other people, a team is not required.

Thirdly, a team can be used when rewards can be provided for team work or
team performance. Team rewards depend on the team performance rather than
individual performance. This is the key to providing rewards for the team
behaviour or effort. If the level of reward is not in line with the level of
performance, the team will not be able to function as required. If a particular task
is more inclined towards individual work rather than teamwork, the following
problems will arise. Fast workers will give pressure to slow workers in order to
increase the speed of production. Since payment is determined by team
performance, fast workers will find that their payment declines compared to
before while slow workers will find that their payment increases. This condition
can result in the reduction of overall productivity.

Fourthly, a team can be used when there are many resources readily available.
Resources needed by teams include training, time, place and collaboration
methods, equipment and consistent information and feedback regarding
teamwork processes and work performance. Failure in obtaining these resources,
such as lack of training to support the transition from individual work to
teamwork, and insufficient time to learn the methods of operating machines, will
result in the failure of team implementation. The most perceptible problem is the
difficulty faced by management in helping or transferring resources to a team
that causes the team not to be able to function as required.

Finally, a team is needed when it has a clear authority in managing and

modifying the working method. This means the team is given the freedom to
determine the working method, making the work schedule, training and
maintenance, or ways to solve customersÊ problems. A team with clear authority
will be able to manage and perform the task better compared to teams having no
authority.
166 TOPIC 10 MANAGING TEAMS

Table 10.2 shows when teams can or cannot be used.

Table 10.2: When Teams Can or Cannot be Used

Use Teams WhenÚ Do Not Use Teams WhenÚ

The objectives and reasons of its
formation are clear
Work cannot be carried out
individually
Rewards can be given based on
team work
Plenty of resources available
Team has the power to manage
and alter the working methods
carried out
The objectives and reasons of its
formation are not clear
Work can be carried out individually
Rewards are only given based on
individual effort and performance
Resources needed are not available
The management is still monitoring
and influencing the working methods
being carried out

EXERCISE 10.3

Based on your understanding, describe the condition where the use of a

team is unnecessary.

10.5 TYPES OF TEAMS

An organisation can choose the type of team to be formed. What should be kept
in mind is the reason why the team needs to be formed. The type of team must be
suitable for the reason and type of tasks that need to be carried out. Figure 10.1
illustrates the seven types of teams which exist in our environment today.
 TOPIC 10 MANAGING TEAMS ! 167

Figure 10.1: Types of teams in a particular organisation

(a) Employee Involvement Team

This is a team that provides advice and suggestions to management relating
to certain matters. Meetings among members of the team are held during
working hours and are done periodically. Issues such as safety at the
workplace, customer relations or quality of product are often raised by this
team. This team can only give advice and suggestions but does not have the
power to make decisions. Membership in this team is voluntary but
selection is from the circle of experts. The idea of forming this type of team
is that the person closest to a particular problem or the real working
situation is the best person to give advice and suggestions. These advice
and suggestions are given to management and it is up to management to
make its decisions.
(b) Semi-autonomous Team
This team has the authority to make decisions and solve problems relating
to the main tasks of product and services production is known as a semi-
autonomous team. This team receives information regarding budgets, work
quality, performance and also information regarding products produced by
competitors. Team members are trained in various skills and tasks. This
team has the power to make decisions just like a supervisor or a manager
but the authority received is not complete. The management still plays a
role but lesser compared to the traditional work group.
(c) Self-managed Team
A self-managed team differs from a semi-autonomous team. A self-
managed team is a team that manages and controls the overall main tasks
in the production of products and services. This team can do anything
related to production without having to refer to or wait for instructions
from management. This includes matters in managing and controlling the
allocation of materials, product making, providing services, ensuring the
accuracy of delivery and others.
168 TOPIC 10 MANAGING TEAMS

(d) Self-designed Team

This is a team that possesses the characteristics of a self-managed team but
also controls the design of the team, work activities and team memberships.
This type of team is involved in operational matters related to the team
which exceeds the self-managed team. This team has the power to
determine the work schedule, leave, how and when a task should be
performed, besides determining the membership in the team by conducting
interviews and other activities.
(e) Cross-functional Team
This team consists of employees from different fields or functions in the
organisation. Since team members have different functions, knowledge and
experiences, a cross-functional team is able to identify the real problems
and see them through various perspectives, and are able to generate more
ideas and alternatives. This type of team can be used in any organisation
and can be formed whether part-time, temporarily or permanently.
(f) Virtual Team
A virtual team has members in different geographical areas or
organisations and uses telecommunications and information technology to
carry out activities of the organisation. Meetings among team members are
not conducted face to face but instead use a combination of communication
and information technology. This type of team is still new and can become
a reality with the development of communication technology such as e-
mail, the Internet, video conferencing and more. Since members do not
meet in physical locations, entry of suppliers, customers and influential
groups can be carried out.

The advantage of this team is that it is a flexible team. Team members can
work with one another without having to meet face to face, without
considering the time limit or organisation. The weakness of this team is that
team members have to learn how to voice out new approaches since
physical meetings in this group no longer exists.
(g) Project Team
Project team is a team formed to carry out a task or project in a particular
time period. This type of team is usually used for the purpose of
developing new products, upgrading existing products, developing new
information systems or in building new offices and factories. A project team
is usually led by a project manager having full responsibility in planning,
membership and team management.

A project team is made up of members from different functions and also

involves members from suppliers and customers. The advantage of this
team is that it is able to eliminate communication barriers among
functional areas since its membership consists of members having
 TOPIC 10 MANAGING TEAMS ! 169

different functional areas. Besides that, this team is flexible where it can be
disbanded or moved to a new project after the completion of a particular
project.

EXERCISE 10.4

From the description below, state the type of team based on the
characteristics given:
(a) A team having the authority to determine the memberships in
the team.
(b) A team where its members are in different geographical areas
or organisations.

10.6 CHARACTERISTICS OF TEAMS

SELF-CHECK 10.2
To ensure the smooth running of tasks and prolonged level of
motivation in a team, team members must unite and cooperate with
each other. In your opinion, how can unity be developed in a team?

The understanding of characteristics of teams is crucial to ensure the success of a

particular team formation in an organisation. The four characteristics you need to
know are team norms, team unity, team conflict and phases of team
development.

10.6.1 Team Norms

Team norms are informal rules or standards which are agreed upon in order to
control the behaviour of team members. Team norms have a strong influence on
work behaviour. An effective work team develops norms that are related to work
quality and accuracy, presence, safety and sincerity in giving opinions or ideas.
Besides that, it is able to develop commitment towards team work, trust in
management and job satisfaction. Usually, team norms are related to positive
decisions but team norms can also bring negative influences towards the team.
Teams having negative norms can influence team members to become more
inclined towards behaving negatively.
170 TOPIC 10 MANAGING TEAMS

10.6.2 Team Unity

Team unity refers to how far team members are attracted to becoming members
of the team and motivated to stay permanently in the team. Team unity is able to
sustain and reduce the turnover rate of team membership. When teams possess
high unity levels, each member is more motivated to contribute to the team and
expect guarantees from other team members. This will accelerate the
achievement of high performance.

In order to develop unity in teams, organisations must ensure the involvement of

each member in the team activities or meetings. Secondly, the organisation must
create opportunities so that team members can cooperate with each other by
modifying work schedules or work place layouts. Thirdly, get the team members
to be involved in off-work activities.

10.6.3 Team Conflict

Conflicts and misunderstandings do exist in any teams. What causes conflicts to
arise? Conflicts can be caused by fighting over limited resources, arguments
regarding certain issues, discrepancy in opinions, and others. Usually, conflict is
viewed as a negative matter. The key here is that, rather than trying to avoid
conflicts in a team, try to ensure that a team faces a suitable conflict instead.

10.6.4 Phases of Team Development

Development and growth of a team will undergo four phases. The phases consist
of forming, storming, norming and performing as depicted in Figure 10.2.
However, not all teams who undergo these four phases are able to produce high
levels of performance. If a team is not perfectly managed, the team will face a
downturn and go through the phases of de-norming, de-storming and de-
forming.
 TOPIC 10 MANAGING TEAMS ! 171

Figure 10.2: Phases of team development

Source: Williams, C. (2000). Management. SouthWestern-Thomson Learning

(a) Forming is the first phase in the development process of a particular team.
This is the beginning of the first meeting among team members, forming
the first perceptions and trying to discover the feelings and conditions if
they continue to become members of the team. This phase also forms
several team norms where team members start searching for behaviours
that will be accepted or rejected by the team.

The team leader must provide time frames for team members to get to
know each other, and set up the basic rules and team structure.

(b) Storming is the second development phase that is characterised by conflicts

and disagreement where team members have different opinions regarding
with, what and how a task should be carried out.

This situation takes place when team members start working together,
resulting in a clash of personalities and work styles. Besides that, as team
members, they have to sacrifice a lot of their own personal needs. In this
phase, team members will start voicing their opinions and needs besides
trying to build up positions or roles they desire in the team. Moreover, team
members will start to show an attitude of uneasiness towards what needs to
be done by the team and how it should be done. Team performance at this
level is low and there are some who are totally ineffective. At this point, the
role of the team leader is very much needed in order to generate the teamÊs
focus towards the goals and performance levels. Team members need to be
more patient and more tolerant towards each other too.

(c) Norming is the third phase in the development of a team. Each member
will start to resolve any conflict or misunderstanding as one of their roles as
172 TOPIC 10 MANAGING TEAMS

a member of the team. Positive norms will begin to bloom and team
members should know what is expected from each member of the team.
Misunderstandings start to be resolved, team spirits start to build up and
unity becomes stronger. At this level, members will start to accept the goals
of the team, move together as a unit and start to show increase in
performance and work together effectively. There are certain conditions
where teams will face repetition of the storming and norming phase until
they truly find the suitable norms and start to shift to the next phase.

(d) Performing is the final phase in the team development process. During this
phase, performance will start to increase since the team becomes more
matured and fully functional. At this stage, members must be fully
committed and start thinking as a member of the team. Members become
loyal to one another and start to feel responsible towards the success and
failure of the team. At this phase, members already feel the joy of being part
of the team.

After a certain time gap, if a team is not perfectly managed, performance will
start to decline and the team will go through the phases of de-norming, de-
storming and de-forming.

(a) In de-norming, which is the repetition of the norming phase, team

performance starts to decline in terms of time, size, scope, goal and
membership. For example, when there are new members joining the team,
existing members will become defensive when matters regarding the
methods of performing certain tasks are questioned by the new members.
Expression of ideas and opinions are no longer open. This is further added
by the condition of new members actively or passively rejecting the roles
and behaviour of the team which was formed before.

(b) De-storming is a condition where the team comfort starts to decline. Team
unity becomes weaker when team members refuse to follow the team
norms and do not participate in team activities. Feelings of anger will rise
when the team falls into conflicts and the team starts to move into the final
stage known as de-forming.

(c) In the de-forming phase, members of the team will position themselves in
order to control fragmentation in the team. Thus, factions start to form in
the team. Members will avoid meeting each other and the team leader.
Team performance decreases at a maximum level when members no longer
think about team performance.
 TOPIC 10 MANAGING TEAMS ! 173

If a team is managed as properly as possible, the decline in team development

will not arise. A manager needs to identify the influences that can lead to the
downturn of the team. He can take initial steps to prevent bad influences from
continuing to threaten the team.

EXERCISE 10.5

Based on your understanding, state the phases involved in team

development.

10.7 TOWARDS BUILDING A HIGH-

PERFORMANCE TEAM

SELF-CHECK 10.3

We have already identified the phases of formation and the downturn

of a team. Based on your understanding of what you have learned so
far, what are the factors that influence the level of performance in
teamwork?

There are seven issues related to teams that you need to know in detail. These
issues can influence the level of performance of teamwork. This can be seen in
Figure 10.3.

Figure 10.3: The seven issues that influence the performance levels of teamwork
174 TOPIC 10 MANAGING TEAMS

(a) Team Size

The best team is the one made up of a small number of members. When the
number of members exceeds 10 or 12, it is difficult to perform tasks
successfully. This is because the team will face interaction problems on
issues related to the job. A large number of members might also fail to
develop the necessary unity, commitment and accountability needed to
achieve a high level of performance. Hence, in forming a team, the manager
needs to ensure that the number of team members does not exceed 12
people.
(b) Capability of Team Members
In order to perform a task efficiently, a team needs three types of different
skills. The first type comprises technical skills related to the job. The second
type comprises skills in solving problems and making decisions that can be
identified from the actual problem by generating alternatives, evaluating
each alternative and choosing the best alternative. The third type involves
good listening skills, ability to solve conflicts and other interpersonal skills.
No team can achieve its actual potential without developing these three
skills.
(c) Providing Role Models and Promoting Diversification
A team possesses different needs and team members must be chosen based
on their personalities and priorities. A high-performance team is a team
that is able to match its team members to suitable roles. Matching members
with suitable positions based on what they have provides opportunity for
the members to contribute their best to the teamÊs overall performance.
Therefore, teams need diversity of skills and this can be achieved by
diversifying members of the team without the existence of any form of
discrimination.
(d) Having a Commitment Towards the Same Purpose
A successful team provides direction, momentum and commitment to its
members. The same purpose will result in members knowing their roles,
direction and guidance in contributing efforts towards the purpose agreed
upon together.
(e) Building Specific Goals
A successful team is able to change its purpose into specific goals which can
be measured and achieved. These specific goals provide clear
communication space and assist the team in maintaining their focus.
(f) Suitable Performance Evaluation and Reward Systems
Traditionally, performance evaluation and granting of rewards are only
dedicated to individuals but when a team is formed, the system of
performance evaluation and reward scheme needs to be modified. Suitable
performance evaluation systems and reward schemes which are based on
 TOPIC 10 MANAGING TEAMS ! 175

teamwork rather than individuals will generate effort and commitment

among the members of the team.
(g) Developing Absolute Beliefs
A successful team is a team that has absolute beliefs among its members.
Team members believe in integrity, characters and the capability of the
other members. These developed beliefs will assist members to perform
their work better. This is because each member believes that the other
members have the capability and ability in solving the assigned tasks.
Therefore, the result from this combination of beliefs and contribution will
assist in the success of the team.

EXERCISE 10.6

Essay Question
1. Explain briefly why the number of members in a team should be
kept small.
2. Explain the meaning of team work and give your comments on
why this concept is becoming more popular these days.

Multiple Choice Questions

1. ___________ refers to the training of team members on how to

perform all or most of the tasks performed by other members.

A. Cross training
B. Job enlargement
C. Horizontal training
D. Job enrichment

2. Which of these following statements is TRUE regarding the

characteristics of a high-quality team?

A. Having members with technical skills related to the job.

B. Having a large number of members.
C. Having members who can afford to be independent to
perform the job individually.
D. Having members who become social loafers.
176 TOPIC 10 MANAGING TEAMS

3. All the following statements are true about teams EXCEPT:

A. A team with a large number of members will not be able to show
good performance.
B. The strategies of organisations must be drafted according to the
conditions of the teams.
C. Teams are needed when the goals are clear.
D. A team will become weak if there are members who restrict
themselves from participating in team activities.

4. Which of these following statements is TRUE about teams?

A. A team is the same entity as a group.
B. Teams cannot be used when resources are limited.
C. Semi-autonomous teams possess more power compared to self-
managed teams.
D. Project team is the type of team that is the most difficult to be
disbanded.

5. High turnover rate in teams take place especially in the __________

phase of team development.
A. forming
B. storming
C. norming
D. performing

TRUE (T) or FALSE (F) Statements

1. Teams can help organisation in increasing the quality of products and

services produced by the organisation.

2. Team members with the behaviour of self-restriction will try to ensure

that no other members of the team know about their activities but this
does not occur for a social loafer.

3. A team that can only give advice and suggestions but does not have
the power in making decisions is referred to as an employee
involvement team.

4. Team unity is considered as informal in the aspect of the agreed upon

rule or standard that regulates the behaviour of team members.

5. A large-sized team made up of between 15 to 20 people is considered

as a good team because it is able to generate diversity in contributing
views and opinions.
 TOPIC 10 MANAGING TEAMS ! 177

A team is an entity that is able to provide synergy to the development of

organisations.
It has its own advantages and disadvantages. If a team is formed at the right
time, the advantages gained might exceed the disadvantages.
The formation of a team must be carried out with proper planning to
maximise its advantages.
Therefore, knowledge regarding the types of teams and understanding on the
team characteristics are very important for the purpose.
Besides that, organisations also need to have knowledge regarding the issues
that will help towards forming high-performance teams.

De-norming Storming
De-storming Team norms
Forming Team unity
Norming Teamwork
Social loafing