PRINCIPLES OF

MANAGEMENT.
TUTORIAL-5
OUTLINE

1.
10. MANAGING TEAMS

11. INNOVATION AND CHANGE

Managing Teams….
• 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
DIFFERENCES BETWEEN TEAMS AND GROUPS
differences between teams and groups and the
differences between group work and teamwork.

• WHAT ARE THE ADVANTAGES OF TEAMS

• DISADVANTAGES OF TEAMS
• WHEN IS A TEAM NEEDED?
A group is defined as two or more individuals who interact
and are independent of each other towards achieving a
certain objective.

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.
 What makes a good team?
1. Clarity of Objectives: when the objective or meaning of
usage is clear.
2.Merging: For tasks that cannot be carried out individually
but through the merging of these individuals.
3.Rewards: can be provided for team work or team
performance.
4.Resource availability: 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.
5. Clear authority in managing and modifying the working
method.
Freedom to determine the working method,

making the work schedule, training and maintenance, or

ways to solve customers’ problems.

A team with clear authority will be able to manage and
perform the task better compared to teams having no
authority.
Advantage Of Teams
• 1. Help to enhance customers’ satisfaction towards
• organisations is by forming a team that is specially trained
to fulfil certain needs of the customers.

• 2. Assist organisations to increase the quality of

products and services.

• 3. Increase the levels of job satisfaction, as it gives

employees the opportunity to enhance their skills;
Disadvantage
• 1. Social loafing: means that a person becomes a
sleeping partner in the team. Social loafing usually
• takes place in a large team;

• 2. The behaviour of self-restriction: is when there are

team members who do not have their own opinions or
views and don’t take part in discussions.
 TYPES OF TEAMS
• 1. 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.
2. Semi-autonomous Team

This team has the authority to make decisions and solve

problems relating to the main tasks of product and
services production.

This team receives information regarding budgets, work

quality,

performance and also information regarding products

produced by competitors.
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.
3. Self-managed Team: A self-managed team differs from a
semi-autonomous team.

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.
4. Self-designed Team:
possesses the characteristics of a self-managed team but
also controls the design of the team, work activities and
team memberships.

involved in operational matters related to the team which

exceeds the self-managed team.

power to determine the work schedule, leave, how and

when a task should be performed,

conducting interviews and other activities.

5. Cross-functional Team
consists of employees from different fields or functions in
the organisation.

able to identify the real problems and see them through

various perspectives, and

Ability to generate more ideas and alternatives.

Can be used in any organisation and can be formed
whether part-time, temporarily or permanently.
6. Virtual Team:
A virtual team has members in different geographical

 areas or organisations and uses ICT 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.
7. Project Team
Project team is a team formed to carry out a task or
project in a particular time period.

Usually used for the purpose of developing new products,

upgrading existing products, developing new information
systems or in building new offices and factories.

Usually led by a project manager who has full

responsibility for planning, membership and team
management.
 Characteristics Of Teams
• 1. Team Norms: Team norms are informal rules or
standards which are agreed upon in order to control the
behaviour of team members;

• 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

• 3. Team Conflict: Conflicts can be caused by fighting

over limited resources, arguments regarding certain
issues, discrepancy in opinions, and others.
• 4. Phases of team development.
Phases of team development
• Development and growth of a team will undergo four
phases.

• forming, storming, norming and performing;

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.
Forming…

This is the beginning of the 1st 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
Storming…
The 2nd 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
3rd phase: Norming…

 Each member will start to resolve any conflict or

misunderstanding as one of their roles as 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.

The teams could face repetition of the storming and

norming phase until they truly find the suitable norms and
start to shift to the next phase.
Performance…
Performing: 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.

HOW DO WE BULD A HIGH PERFORMING TEAM?

Building A High Performance Team
1.Team Size

2. Capability of Team Members;

 Technical skills related to the job.

 Problem-solving skills: in making decisions that can be

identified from the actual problem by generating;

 alternatives, evaluating each alternative and choosing the

best alternative.
- interpersonal skills: good listening skills, ability to solve
conflicts, etc
3. Providing Role Models and Promoting Diversification
• 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.
4. Having a Commitment Towards the Same Purpose
• Building Specific Goals: 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.

5. Suitable Performance Evaluation and Reward Systems

6. Developing Absolute Beliefs:
•

• ---END---
• TOPIC 11. INNOVATION AND CHANGE
Lesson Outline…

• 1.Describe the importance of innovation in organisations

• 2.Explain the ways to manage innovation effectively;

• 3. Discuss four factors that cause change, and ways to

manage the change in organisations; and

• 4. Examine the obstacles to change in organisations.

What is Organisational Innovation?
• Organisational innovation means- success in the
implementation of creative ideas in the organisation.

• Where do creative ideas come from?

Creative ideas come from creativity, that is, the creation
of ideas that are useful for the organisation.

Innovation can bring about many advantages and

benefits to the organisation, but

The main benefit is the creation and retention of

competitive advantage.
• WHY IS INNOVATION IMPORTANT?

• There are several factors that we need to

know as we discuss innovation
INNOVATION:

• 1. Technology Cycle
Technology refers to knowledge, tools and equipment,
and also the techniques and methods used to change
inputs into outputs.

Technology cycle begins with finding a certain new

technology and ends when the technology achieves
certain limits,

becomes outdated and is replaced with new technology

that is more sophisticated.
 MANAGING INNOVATION

Proper management: Innovation must be managed

properly for organizations to enjoy its benefits.

If not properly managed, it will not bring any benefit and
may bring about bad results for the organisation.

What are the methods implemented to manage

innovation in organizations?
• 1. Managing Innovation Resources
Innovation begins with creativity. Therefore, an organisation
needs to establish a creative work environment in order to
generate creativity.

Work Culture: A creative work environment means a

workplace culture where employees believe that new ideas
are evaluated, appreciated and encouraged.
• - challenging work;
• - encouragement from the organisation;
• - encouragement from supervisors;
• - encouragement from the work groups; and
• - freedom
 ORGANISATIONAL CHANGE
• Organisations normally face two types of environments:
stable and dynamic.
It is almost difficult nowadays to find a business environment
that is completely stable.

Organisations nowadays face a dynamic environment where the

environmental factors, either specific or general, change rapidly.

Organisational change is the need for an organisation to change

from one condition to another to take the opportunity or

avoid a threat caused by environmental changes in order to

retain the survival of the organisation.
 Forces of Change
1. Workforce conditions
• - Increase in the number of professionals
• -Increase in cost of workforce
• 2. Technology
• - Use of computer and automation
• -TQM Programmes
• 3. Economy
- Increase in interest rates
- Crisis in currency value
• 4. Competition
- Global competition
- Mergers and acquisitions
5. Social trend chart
- Increase in educated groups of people
- Change in preferences

6. Politics
- international politics
- Change of government
 MANAGING CHANGES
New ways: Changes refer to carrying out something using
new ways and methods compared to before.

Planning: Making changes in organisations without any

planning can lead to the destruction of a particular
organisation.

Planned Changes: Therefore, organisation must make
planned changes.

Planned changes means changing activities that are
necessary and required and these changes have to be goal-
oriented.
 Goals for change
Some of goals that organisations can set?
• (a) Capacity: To increase the capability of the
organisation in order to be able to accept challenges and
changes in the environment; and

• (b) Behavioral change: To change the behaviour of

individuals within the organisation.
• In implementing changes within the organisation, there
are two types of changes,
• that is:
• (a) Change of first order; and
• (b) Change of second order
• 1st Order
• First order change is a linear change, slow in nature and
implemented in stages.

No apparent change in the basic structure of the

organisation.

No Strong Pressure: It is also conducted that way if there

is no strong pressure from the environment.

Strong Culture: if the particular organization has a strong

culture, changes must be implemented slowly and in stages.
• 2nd Order:
The second order change is a change that is
radical in nature, multidimensional and multilevel.
This type of change needs high levels of
leadership in order to realise the changes.
It takes place when there is intense pressure
from the environment that disrupts the survival of
the organisation.
This demands the organisation to make drastic
changes.
 Responsibility for Managing the Activities of
Change in Organisations.
Who will be responsible for managing the activities of
change in organisations.

BY CHANGE AGENTS

• 1. change of structure
• 2. change of physical layout
• 3. change of technology
• 4. change of employees
• WHAT ARE THE BARRIERS TO CHANGE?
An organisation will face obstacles of change from two
parties:
--- the individual employees and
--- the organisation itself

• 1. Individual Barriers
• The source of change barrier for individuals comes from
basic human characteristics itself, such as perception,
personality and needs.

The following are five reasons why an individual opposes

change.
Reasons for resisting change…
• i. Human habit
• ii. Economics
• iii. Developing a new work routine
• iv. Fear of the unknown
• v. Selective nature in processing information.

Individuals only want to hear and process information that

they desire or information that are equal to their
assumptions.
Therefore, when this condition rises, individuals are
usually inclined to have negative thoughts.
2. Organizational Barriers

Structure inertia: When an organisation faces the

need for change, the organisation fears that the
stability felt all this while will be severely affected.
This condition is referred to as
• structure inertia.

Restriction of change focus refers to the condition

where an organisation makes changes on a certain
sub-system only.
Group inertia is one of the sources of organisational
barriers.

 For example, individuals

• have already agreed to accept the changes that will be
made but

• the employee union does not want any change, which

then causes individuals to be forced to oppose the change
and this is referred to as group inertia.
OVERCOMING THE BARRIERS OF CHANGE

• 1. Communication and Learning: Barriers can be reduced

through communication with employees in order to help
them to see the logical aspect of a particular change.

• 2.. Involvement: This tactic assumes that it is difficult for

a person to oppose change if he himself is also involved
in the effort and activities of change.
• 3.. Facilities and Support
• Change agents can offer forms of facilities and support to
reduce barriers.

• When employees have a high level of anxiety, counselling

services and..

• therapy, new skills training or paid leaves are forms of

facilities and support that can be given to employees.
• 4 Negotiation: Change agents can also deal with change
barriers by making valuable exchange in order to reduce
barriers.

• 5.Manipulation and Co-optation: is the combination of

manipulation and involvement.

The act of co-optation will try to a buy group leaders who cause
barriers by providing these leaders important roles in making
change decisions.

• 6. Force: This is the final tactic that can be implemented by

change agents. This is an application that uses threat towards
the person who is a barrier;
Effective management of OC

• Change to be made by a particular organisation must be

managed as properly as possible in order…

• to avoid the occurrence of any negative matters

especially from groups that obstruct change.
•
Effective management…
• Based on the theory by Kurt Lewin, managing OC is the
basis to the process of.. liquidation, change intervention
and freezing.

• Liquidation refers to getting individuals who are affected

by the changes to believe the need for these changes.
• Change intervention refers to the processes used
towards employees and managers in order to change
their behaviour and work practices.
• Freezing refers to supporting and strengthening the
changes that were successfully carried out in order for it
to continue.
What we set out to learn…

• 1.Describe the importance of innovation in organisations

• 2.Explain the ways to manage innovation effectively;

• 3. Discuss four factors that cause change, and ways to

manage the change in organisations; and

• 4. Examine the obstacles to change in organisations.

• END