Yönetim Esasları - II Groups, Teams, and Corporate Culture (2) 1 Chapter 17 Groups, Teams, and Corporate Culture 1. Groups A group is not simply a gathering of people. Rather, it is any numbers of people who (1) interact with one another, (2) are psychologically aware of one another, and (3) per ceive themselves to be a group. 2. Kinds of Groups 2a. Formal Groups A formal group is a group that exists within an organization by virtue of management decree to perform tasks that enhance the attainment of organizational objectives. Organizations are made up of a number of formal groups that exist at various organizational levels. The coordination of and the communication among groups is the responsibility of managers . Kinds of formal groups: There are command groups and task groups. Command groups are outlined in the chain of command on an organization chart. They handle routine activities. Task groups are groups of organization members who interact with one another to accomplish most of the organization ’ s nonroutine tasks. They consist of people from different levels in the organization hierarchy and segments of an organization. For example, a task group considering the feasibility of manufacturing some new product includes representatives from production, market research and sales. Examples of formal groups: There are two formal groups, committees and work teams. Committees are groups of individuals charged with performing some type of specific activity and classified as a task group. There are four major reasons to establish committees in organizations: To allow organizational members to exchange ideas ? To generate suggestions and recommendations that can be offered to other units ? To develop new ideas to solve organizational problems ? To assist in the development of organizational policies ? The committees have several uses in organizations: They can improve the quality of decision-making. Many people can discuss strengths and ? weaknesses of various alternatives in greater detail. They encourage the expression of honest opinions. Committee members always reflect their real ? thoughts. They increase organization members ’ participation in decision-making and thereby enhance the ? chances of widespread support of decisions. They ensure the representation of important groups in the decision-making process. Members are ? chosen wisely that should reflect the opinions of all interest groups in the organization. Managers should also help the committee members avoid groupthink — that is the mode of thinking that group members engage in when the desire for agreement dominates the group that it overrides the need to realistically appraise alternative problem solutions. Work teams evolved out of the problem-solving teams consisting of 5 to 15 volunteer members from different areas of the department who meet weekly to discuss to improve quality and efficiency. Stages of formal group development: Group development is a four-stage process. The acceptance stage—it occurs only after the initial mistrust melts and the group transformed ? into one characterized by mutual trust and acceptance. The communication and decision-making—group members can communicate frankly that ? provides the basis for establishing and using group decision-making mechanism. The group solidarity stage—members become more involved in-group activities and cooperate ? rather than compete with one another. Belonging to the group becomes satisfying. The group control stage—members attempt to maximize the group ’ s success by matching ? individual abilities with group activities and by assisting one another. 2b. Informal Groups This is a collection of individuals whose common work experiences result in the development of a system of interpersonal relations that extend beyond those established by management. There are two types of informal groups. First, interest groups gain and maintain membership primarily because of a common concern members have about a specific issue. For example, a group of workers pressing management for better pay or working conditions. Once the interest is instigated, the group will probably disband. Second, friendship groups form in organizations because of the personal affiliation members have with one another. Such personal factors as recreational interests, race, gender, and religion serve as foundations for friendship groups . There are benefits of informal group membership: Perpetuation of social and cultural values that group members consider important ? Status and social satisfaction that people might not enjoy without group membership ?2 Increased ease of communication among group members ? Increased desirability of the overall work environment ? 3. Managing Work Groups There are two prerequisites for managing groups effectively in organizations. First one is to determine the group existence and second one is to appreciate the evolution of informal groups. 3a. Determining Group Existence Managers need to determine what informal groups exist within the organization and who their members are. Sociometry is an analytical tool managers can use to do this. Internal working of an informal group, including the identity of the group leader, relative status of group members, and group ’ s communication networks are identified through sociometry. Information on informal groups with an understanding of the formal groups will give managers a complete picture of the organization ’ s group structure.In the sociometric analysis, a sociogram is constructed to summarize the informal relationships among group members. Sociograms are diagrams that visually link individuals within the population queried according the number of times they were chosen and whether the choice was reciprocated. 3b. Understanding the Evolution of Informal Groups Informal group is established to provide satisfaction and growth for its members. At the same time, the sentiments, interactions, and activities that emerge within an informal group result from the sentiments, interactions, and activities that already exist within a formal group. It follows that feedback on the functioning of the informal group can give managers ideas about how to modify the formal group so as to increase the probability that informal group members will achieve the satisfaction and growth they desire. The ultimate consequence will be the solidarity and productiveness of the formal group. 4. Teams 4a. Groups versus Teams A group consists of any number of people who interact with one another, are psychologically aware of one another, and think of themselves as a group. A team is a group whose members influence one another toward the accomplishment of an organizational objective. Not all groups are teams but all teams are groups. 4b. Types of Teams in Organizations There are three types of teams in organizations: problem-solving teams, self-managed teams, and cross- functional teams. Problem-solving teams: it is a team to help eliminate a specified problem within the organization. It has five to twelve members and is formed to discuss ways to improve quality in all phases of the organization, to make organizational process more efficient, or to improve the overall work environment. After reaching consensus the team makes recommendations to management to deal with the specified problem. Management implements them either entirely or modifies them if necessary. Self-managed teams: They are teams that plan, organize, influence and control their own work situation with only minimal intervention and direction from management. They are highly integrated groups of several skilled individuals who are cross-trained and have the responsibility and authority to perform some specified activity. Activities include creating work schedules, establishing work pace and breaks, developing vacation schedules, evaluating performance, determining the level of salary increases and rewards received by workers, and ordering materials to be used in the production process. Self-managed team is an important new way of structuring, managing and rewarding work. They free managers to pursue other management activities. Managers should carefully choose and train its members for the success of the team. Cross-functional teams: They are work teams composed of people from different functional areas of the organization—marketing, finance, human resources, and operations who are all focused on a specified objective. They may or may not be self-managed, though self-managed teams are generally cross- functional. Because cross-functional team members are from different departments within the organization, the team possesses the expertise to coordinate all the department activities. They choose and implement new technologies throughout the organization; to improve marketing effectiveness; and to control production costs. 4c. Stages of Team Development There are five stages of team development in organizations: Forming—forming is the stage of the team development process. Members become acquainted ? with one another. They explore issues related to the new job situation such as what is expected of them, who has what kind of authority within the team, what kind of people they are and what skills team members possess. This stage is characterized by stress and uncertainty. Storming—this stage is characterized by conflict and disagreement. Members continually ?3 challenge the way the team functions. The members should discuss their own view fully and honestly. Norming — this stage is characterized by agreement among team members on roles, rules, ? acceptable behavior while working on team. Conflicts generated in storming stage are resolved at this stage. Teams develop their norms and values that that are critical to the work team ’ s future productivity. Performing—at this stage the team fully focuses on solving organizational problems and on ? meeting assigned challenges. Teams know themselves and have settled on team roles, expectations and norms. Adjourning—at this stage the team finishes its job and prepares to disband. This stage occurs only ? in teams established for some special purpose to be accomplished in a limited time period. Special committees and task groups are examples of such teams. The management should recognize the team members ’ disappointment and sense of loss as normal and assure them that other challenging and exciting organizational opportunities await them. 4d Team Effectiveness People-related steps: Trying to make the team ’ s work satisfying ? Developing mutual trust among team members and between the team and management ? Building good communication from management to the team and within the team ? Minimizing unresolved conflicts and power struggles within the team ? Dealing effectively with threats toward and within the team ? Building the perception that jobs of team members are secure ? Organization-related steps: Building a stable company structure that team members view as secure ? Becoming involved in team events and demonstrating interest in team progress and functioning ? Properly rewarding and recognizing teams for their accomplishments ? Setting stable goals and priorities for the team ? Task-related steps: Developing clear objectives, directions, and project plans for the team ? Providing proper technical direction and leadership for the team ? Establishing autonomy for the team and challenging work within the team ? Appointing experienced and qualified team personnel ? Encouraging team involvement ? Building visibility within the within the organization ? At the end of these steps, teams come up with innovative ideas, accomplish their goals, adapt to change, commit to both the team and organizational goals, and be valued by upper management and rewarded for their accomplishments. 5. Corporate Culture Corporate culture is a set of shared values and beliefs that organization members have regarding the functioning and existence of their organization. The following factors are detrimental to the emergence of corporate culture in organizations. Status Symbols: the external signs of social position that are associated with the various positions ? in the firm reflect the organization ’ s social hierarchy. The size and location of an organization member ’ s office, access to executive clubs, and reserved parking indicate the status level of the member. Traditions and History: They determine how workers act on a daily basis. What is expected of ? workers will be made clear. Physical Environment: open culture has open office doors, and extensive common areas, by ? contrast closed culture has closed offices and few common areas. The Significance of Corporate Culture4 There are five primary mechanisms for developing and reinforcing the desired corporate culture. What leaders pay attention to, measure, and control—leaders can communicate what the vision of ? the organization is and what they want done by consistently emphasizing same issues in meetings, questions and in strategy discussions. Leaders ’ reaction to critical incidents and organizational crises —if an organization faces a ? financial crisis, but does not lay off employees, the message is that the organization sees itself as a family that looks out for its members. Deliberate role modeling, teaching, and coaching—if the CEO regularly works very long hours and ? on weekends, other managers will probably respond by spending more time at work so. Criteria for allocation of rewards and status—if a weekly bonus is given for exceeding production ? or sales quotas, employees will recognize the value placed on these activities and focus their efforts on them. Criteria for recruitment, selection, promotion and retirement of employees—if managers are ? action-oriented and who implement strategies effectively consistently move up the organizational ladder, the organizational priorities will come through loud and clear to other managers. April 21, Wednesday ……… . Quiz/Case Study: Chapter 16 Motivation April 26, Monday …………… .. Lecture: Attitudes, Perception, and Learning (Chap. 18) April 28, Wednesday ……… Quiz/Case Study Chapter 17 Groups, Teams, Culture May 3 Monday... …………… ... Midterm Exam 2 nd ( Multiple Choice 25 Quests.) It will include following Ccapters; Motivation (Chap. 16) 1- Groups Teams And Culture (Chap. 17) 2- Attitudes, Perception, and Learning (Chap. 18) 3- May 5 Wednesday …………… Principles of Controlling (Chap. 19)