Chapter 10

Leadership in Teams and

Decision Groups
 The Nature of Teams:
◼ Growing trend in organizations:
◼ To give more responsibility for important
activities to teams.
◼ “Empowered teams:” Teams with the
authority and responsibility to make
decisions previously made by individual
managers.

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 Nature of Teams (continued):

◼ “Team:” A small task group:

◼ Members have a common purpose.
◼ They have interdependent roles.
◼ They have complementary skills.
◼ A team is an interacting group of
members.

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 Types of Teams:
◼ Four key types of ◼ These team types
teams: have varying
◼ Functional degrees of influence
◼ Cross-Functional over:
◼ Self-managed ◼ Mission
◼ To Executive ◼ Membership
◼ Duration of the team
◼ Work process
◼ Leader authority

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Types of Teams and Common
Characteristics

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 Key Characteristics
Differentiating Teams:
◼ Existence of a formal leader position.
◼ Process used to select a leader.
◼ Duration of the team’s existence.
◼ Stability of team members over time.
◼ Functional diversity of members.
◼ Physical location of team members.
◼ Autonomy in determining team’s mission.
◼ Autonomy in determining work processes.
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 Variables that Impact
Team Performance:
◼ Commitment to shared objectives:
◼ Task commitment is higher when the
members:
◼ Consider the objectives important.
◼ Have confidence in the ability of the team to
achieve them – “collective efficacy”.
◼ Member skills and role clarity:
◼ Training and coaching are important.

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 Variables (continued):
◼ Performance strategies:
◼ Performance strategies determine how
efficiently the group completes its work.
◼ Choice of a performance strategy is most
important when:
◼ The work is complex.
◼ The work can be done in many different ways

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 Variables (continued):
◼ Internal organization and coordination:
◼ Team members must be given tasks for
which their skills are relevant.
◼ Inter-dependent activities must be
synchronized.
◼ Leader must actively monitor the team’s
performance.

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 Variables (continued):
◼ External coordination:
◼ The team must adjust its activities to be
consistent with activities of inter-
dependent units inside and / or outside the
organization.
◼ Accurate information is needed about:
◼ Client needs
◼ Outside events that affect the work of the team

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 Variables (continued):
◼ Resources and political support:
◼ A dependable supply of resources is
especially important when:
◼ The work cannot be done without these
resources.
◼ No substitute for the resources is available.

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 Variables (continued):

◼ Mutual trust and cooperation:

◼ Most difficult to attain in teams that:
◼ Are newly-formed.
◼ Have frequent membership changes.
◼ Have culturally diverse members
◼ Have emotionally immature members.
◼ Have members from competing units.
◼ Have members who work in close proximity for
extended time periods under stressful
conditions.

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 Variables (continued):
◼ Collective efficacy:
◼ This refers to the shared belief of members
that the team is capably of successfully
carrying out its mission.
◼ A confident team is more likely to have a
positive mood.
◼ Prior success can increase collective
efficacy.

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 Functional Operating Team
◼ Members are likely to be part of the
same basic function.
◼ However, they may have jobs that are
somewhat specialized.
◼ They exist for a long duration.
◼ Membership is relatively stable.
◼ There is usually an appointed leader.

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 Functional Team (continued):

◼ Leadership responsibilities are usually

concentrated in a formal leader.
◼ Leader’s goal: To improve the variables or
processes that determine team
effectiveness.

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 Functional Teams
Objective autonomy Low
Work autonomy Low to Moderate
Internal leader High
authority
Existence duration High
Membership stability High
Member functional Low
diversity

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 Cross Functional Teams
◼ Increasingly used in organizations to:
◼ Improve the coordination of inter-
dependent activities among sub-units.
◼ Membership:
◼ Representative from each sub-unit.
◼ Possibly external representatives:
◼ Suppliers
◼ Clients
◼ Joint venture partners.

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Cross Functional Teams (cont.)

◼ Purpose: To plan and conduct a

complex activity.
◼ Duration: Most are temporary.
◼ They exist until they complete their
mission.
◼ Most members also are
members of a functional
sub-unit.

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 Potential Benefits:
◼ Allow flexibility & efficient use of
resources and personnel.
◼ Functional expertise is preserved.
◼ May produce a better decision, due to
team member expertise.
◼ Improves coordination.
◼ Diversity of members fosters creativity.
◼ Members learn new skills.
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 Leadership Challenges:
◼ Team meetings are time consuming.
◼ Members may not participate
sufficiently.
◼ I.e., must maintain their functional
responsibilities.
◼ Possible communication barriers.
◼ Conflict among represented sub-units.

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 Leader of a Cross-Functional
Team:
◼ Desirable characteristics:
◼ Leader should have some position power.
◼ Good interpersonal skills.
◼ The leader is typically is formal leader.
◼ Selected by higher management.
◼ Research indicates this type of team is
less likely to be effective
if it is self-managed.

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Desirable Skills for the Leader:

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 Key Research:
◼ Barry (1991): Four leadership roles
essential for teams:
◼ Envisioning: Provides a shared objective.
◼ Organizing: Helps the team decide how to
obtain the objective.
◼ Social integrating: Maintains internal
cohesiveness.
◼ External spanning: Compatibility of group
decisions with external stakeholders.

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Key Research (cont)

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Successful Leadership in Cross
Functional Teams:
◼ More likely to be effective if members
share some leadership responsibilities
with the formal leader.
◼ Requires support from top
management, who provide:
◼ A clear mission.
◼ Necessary resources.
◼ Political support.

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 Cross-Functional Teams
Objective autonomy Low to Moderate
Work autonomy High
Internal leader Moderate to High
authority
Existence duration Low to Moderate
Membership stability Low to Moderate
Member functional High
diversity

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 Self-Managed Work Teams:
◼ Much of the responsibility and authority
usually given to a manager is turned over to
team members.
◼ Members have highly inter-dependent
activities.
◼ Typically responsible for producing a distinct
product or service.
◼ Members usually have the same functional
background.

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 Self-Managed Teams (cont.):

◼ Most often used for:

◼ Manufacturing work.
◼ I.e., the Saturn plant of General Motors.
◼ Process production.
◼ Increasingly being
used for service work

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Self-Managed Teams (cont.):
◼ The parent organization typically
determines the:
◼ Mission
◼ Scope of operations
◼ Budget
◼ The team usually has authority and
responsibility for operating decisions.

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 Decision-Making:
◼ Higher-level management must usually
approve requests for large purchases.
◼ Team can approve expenditures for
small purchases.
◼ Team has primary responsibility for
personnel decisions.

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 Advantages of
Self-Managed Teams:
◼ Team members have stronger commitment.
◼ More effective management of problems.
◼ Improved efficiency.
◼ More job satisfaction
◼ Less turnover & absenteeism
◼ Greater flexibility if members are cross-
trained.
◼ Reduced need for managers & staff
specialists.

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Self-Managed Team Outcomes
◼ Self-managed teams are difficult to
implement.
◼ Difficult to differentiate between:
◼ Internal leadership role: Managerial
responsibilities assigned to the team.
◼ External leadership role: Managerial
responsibilities NOT assigned to the team.

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 Internal Leadership Role:
◼ Typically shared by group members.
◼ Often the internal leader is elected by team
members.
◼ This leader does NOT replace the former
first-line manager.

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 External Leadership Role:
◼ Primary role is to serve as a coach,
facilitator, and consultant.
◼ This individual does NOT directly
supervise the team’s work.
◼ Determines the direction for the team:
◼ Communicates objectives and priorities.
◼ Articulates a vision.
◼ Champion and advocate for the team.

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Desirable Conditions for Success:
◼ Clearly defined ◼ Access to
objectives information
◼ Complex and ◼ Appropriate
meaningful task recognition and
rewards
◼ Small size and stable ◼ Strong support by
membership top management
◼ Substantial authority ◼ Adequate
and discretion interpersonal skills

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Self-Managed Work Teams
Objective autonomy Low to moderate
Work autonomy High
Internal leader Low
authority
Existence duration High
Membership stability High
Member functional Low
diversity

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 Percentage of Companies that Delegate
Responsibility to Self-Managed Teams

Set work schedules 69%

Deal directly with external customers 59
Set performance targets 57
Conduct training 55
Purchase equipment or services 47
Deal with vendors or suppliers 46
Prepare budgets 35
Hire team members 29
Fire team members 21 37
 Top Executive Team
Objective autonomy High
Work autonomy High
Internal leader High
authority
Existence duration High
Membership stability High
Member functional High
diversity

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 Virtual Teams

◼ Members are geographically separate

◼ Most communication is through
computers and telecommunications
technology.
 Growth of Virtual Teams
◼ Rapid pace of globalization
◼ Increased inter-organization cooperation
◼ Employee desire for flexible work
arrangements
◼ I.e., telecommuting

◼ Emphasis on service and knowledge

management.
◼ Need for flexibility & innovation in product
development.
◼ Delivery of customized services.
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 Virtual Teams (continued):

◼ Most similar to a cross functional team.

◼ A virtual team can be either:
◼ Temporary to complete a specific task.
◼ On-going.
◼ Membership is often very fluid.
◼ Leaders have many of the same
challenges as those facing cross
functional teams.

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Difficulties of Leading a Virtual Team:
◼ Lack of face-to-face contact makes it
more difficult for the leader to:
◼ Monitor the performance of members.
◼ Influence members
◼ Develop mutual trust
◼ Develop collective identification.

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 Procedures for Facilitating
Team Learning

After-Activity Reviews: Dialogue Sessions:

Collectively Team members must
analyzing the understand one
process used and another and the
resulting outcome of team’s goals.
a team activity.

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 Dialogue Sessions (continued):

◼ Session is best conducted by an outside

facilitator.
◼ Goal: To develop “integrative problem
solving”.
◼ Full disclosure of the following are required:
◼ Member assumptions.

◼ Member preferences.

◼ Information about the

problem.

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 Team Building:
◼ Purpose: To increase the following
within the group:
◼ Cohesiveness
◼ Mutual cooperation
◼ Identification with the group.
◼ Research indicates team building can be
beneficial under some circumstances.

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Guidelines for Team Building
Emphasize common interests and values.
Use ceremonies, rituals, and symbols to develop
identification with the group.
Encourage and facilitate social interaction.
Tell people about group activities and
achievements.
Conduct process analysis sessions.
Increase incentives for mutual cooperation.
Hold practice sessions under realistic conditions.

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 Group Decision-Making:
◼ Advantages: ◼ Disadvantages:
◼ Members may have ◼ Requires more time
more relevant ideas ◼ Members may have
and knowledge, incompatible
resulting in better objectives, so no
decisions. agreement may be
◼ Member reached.
understanding and ◼ Process problems
commitment may undermine
increases. decision quality.

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Decision Making in Groups
Group Size
Status Differentials
Cohesiveness
Possible problem: “group think”.
Membership Diversity
Emotional Maturity
Physical Environment
Communication Technology

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Leadership Functions in
Meetings

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 Leadership Functions in
Meetings (continued):
◼ Both of the following behaviors are
essential for the effectiveness of
decision groups:
◼ Task-oriented behavior
◼ Group maintenance behavior

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 Guidelines for Leading
Meetings:
Inform people about necessary meeting
preparations.
Share essential information with group.
Describe the problem without implying cause
or solution.
Allow ample time for idea generation and
evaluation.
Separate idea generation from idea
evaluation.

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 Guidelines for Leading
Meetings (continued):
Encourage and facilitate participation.
Encourage positive restatement and
idea building.
Use systematic procedures for solution
evaluation.
Two-column procedure listing advantages
and disadvantages.
Cost / benefit analysis.

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 Guidelines for Leading
Meetings (continued):
Look for an integrative solution.
Encourage consensus but don’t insist on
it.
Clarify responsibilities for
implementation.
Assign responsibilities for implementation.
Arrange for follow-up meetings, if needed.
Distribute meeting minutes.

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 Summary
Teams are increasingly being used to improve
quality, efficiency, and adapt to change.
The benefits of teams depend on the quality
of leadership.
The success of a team also depends on after-
activity reviews and dialogue sessions.
Leadership functions can be task-oriented or
group-maintenance.

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