Successful Teams in Organizations - Business Decision Making - ثاني ثانوي

Chapter 7 Managing Teams to Support Decisions in Organizations Imagine you have been given an important job to do, such as developing a new sustainable and high-tech community center for your local area. You will need an effective team of people, working together on the project, to achieve the same aim. Organizations are not simply collections of individuals going their own way. Clearly, teamwork provides benefits over working independently. All organizations are made up of various individuals and groups that must work together and coordinate their activities to accomplish objectives. Much work in organizations is interdependent, which means that individuals and departments rely on other individuals and departments for information or resources to complete their work. LEARNING OBJECTIVES Once you have completed this chapter, you should be able to: 1 2 3 Understand how to build teams to support an organization Understand how to manage conflicts in organizations Understand negotiation skills وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 195 Managing Teams to Support Decisions in Organizations. 195 30/06/2023 14:28

196 7 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 196 When tasks are highly interdependent, a team can be the best approach to ensuring the level of coordination, information sharing, and exchange of mate- rials necessary for successful task accomplishment. This chapter addresses the key considerations in building a successful team, and managing teams to sup- port decision making. 30/06/2023 14:28

Lesson 1 Chapter 7 www.ien.edu.sa QUICK TIP Trust is crucial in team- work. All members must be willing to collaborate and sacrifice individual objec- tives for the larger goal, with confidence that oth- ers will do the same. Successful Teams in Organizations 1-1 What are Teams? A team is a unit of two or more people who interact and coordinate their work to accomplish a common goal to which they are committed and hold them- selves mutually accountable. The definition of a team has three components. First, two or more people are required. Second, people in a team interact regu- larly. People who do not interact (e.g., people standing in line at a lunch counter or riding in an elevator) do not compose a team. Third, people in a team share a performance goal, whether it is to design a new smartphone, build an engine, or complete a class project. Putting together a team and building teamwork aren't the same thing. Figure 7-1 shows the elements of effective teamwork. Teamwork requires bringing together the right set of personalities, specialties, and skills; clearly defining roles and responsibilities; focusing everyone on a well-defined mission; establishing clear channels of communication and information sharing so that team members communicate their objectives and needs in all directions; and getting everyone to sublimate their individual egos and pull together in the same direction. وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 197 DEFINITION Team: A unit of two or more people who interact and coordinate their work to accomplish a goal to which they are committed and hold themselves mutually accountable. Managing Teams to Support Decisions in Organizations. 197 30/06/2023 14:28

How are these two team members working together effectively? 198 7 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 198 FIGURE 7-1: Requirements for effective teamwork Focus on a shared mission Pull together in the same direction Team Members Trust one another Discuss goals and needs Are willing to sacrifice for the team Effective teams in business and other organizations are those in which members trust one another and are willing to forgo their individual objectives if necessary to accomplish a shared goal. 1-2 Contributions of Teams Effective teams can provide many advantages, as illustrated in Figure 7-2 and as described in the following list. These contributions of teams lead to stronger competitive advantage and higher overall organizational performance. 30/06/2023 14:28

QUICK TIP Learn from those who inspire you. Observe other individuals in school teams you are involved with to establish the positive quali- ties they bring to the team as a whole. 1. Creativity and innovation Because teams include people with diverse skills, strengths, experiences, and perspectives, they contribute to a higher level of creativity and innovation in the organization. 2. Improved quality One criterion for organizational effectiveness is whether products and ser- vices meet customer requirements for quality. Perhaps nowhere is this more essential than in healthcare. Organizations that provide the highest quality of patient care are those in which teams of closely coordinated professionals provide an integrated system of care. 3. Speed of response Tightly integrated teams can manoeuvre incredibly fast. A well-known tech- nology company's close-knit team has changed pricing as late as 48 hours before the launch of a new product, which would be inconceivable at most companies. In addition, teams can speed product development, respond more quickly to changing customer needs, and solve cross-departmental problems more quickly. 4. Higher productivity and lower costs Effective teams can unleash enormous energy from employees. Social facilitation refers to the tendency for the presence of others to enhance one's performance. Simply being around others has an energizing effect. In addition, the blend of perspectives enables creative ideas to develop. 5. Enhanced motivation and satisfaction People have needs for belongingness and affiliation. Working in teams can meet these needs and create greater camaraderie across the organization. Teams also reduce boredom, increase people's feelings of dignity and self- worth, and give people a chance to develop new skills. Individuals who work in an effective team cope better with stress, enjoy their jobs more, and have a higher level of motivation and commitment to the organization. وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 199 DEFINITION Social facilitation: The tendency for the presence of other people to influence an individual's motivation and performance. Managing Teams to Support Decisions in Organizations. 199 30/06/2023 14:28

200 7 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 200 FIGURE 7-2: Five contributions teams make Creativity Quality Competitive advantage Contributions Speed of teams Productivity/ Lower costs Higher organizational performance Employee satisfaction 1-3 Types of Teams and Virtual Teams Organizations use many types of teams to achieve the advantages discussed in the previous section. Two common types of teams in organizations are func- tional and cross-functional, as illustrated in Figure 7-3. Organizations also use self-managed teams to increase employee participation. FIGURE 7-3: Functional and cross-functional teams in an organization President Project Control Finance Engineering Production Marketing Cross-functional team for L21 modification project Functional engineering team 1. Functional Teams A functional team is composed of a manager and their subordinates in the formal chain of command. Sometimes called a command team, the func- tional team in some cases may include three or four levels of hierarchy within a functional department. Typically, the team includes a single department in an organization. A financial analysis department, a quality control depart- ment, an engineering department, and a human resources department can all have functional teams. Each is created by the organization to attain spe- cific goals through members' joint activities and interactions. 30/06/2023 14:28

QUICK TIP One use of special-purpose teams is for developing new products or services. You might need to assem- ble such a team if you ever start and grow your own business. 2. Cross-Functional Teams . A cross-functional team is composed of employees from about the same hierarchical level but from different areas of expertise. One type of cross-func- tional team is a task force, which is a group of employees from different departments formed to deal with a specific activity and existing only until the task is completed. For example, after one of its suppliers went out of busi- ness, an aerospace company created a task force to solve the problem of an unexpected loss of key parts needed to keep the aircraft assembly going. Another type of cross-functional team, the special-purpose team, is created outside the formal organization structure to undertake a project of special importance or creativity. Sometimes called a project team, a special- purpose team is still part of the formal organization structure, but members perceive themselves as a separate entity. Companies are increasingly using special-purpose teams, bringing people together for large, complex projects that require many people with complementary skills. Rather than having defined, long-term jobs, employees apply their skills and abilities in short- term, project-based teams. DEFINITIONS Functional team: A team composed of a manager and his or her subordinates in the formal chain of command. Cross-functional team: A team made up of employees from about the same hierarchical level, but from different areas of expertise. Special-purpose team: A team created outside the formal structure to undertake a project of special importance, such as developing a new product. QUICK TIP Self-managed teams typi- cally consist of 5 to 20 multiskilled workers who have the autonomy to per- form a range of tasks. 3. Self-Managed Teams The third common type of team used in organizations is designed to increase the participation of workers in decision making and conducting their jobs, with the goal of improving performance. In self-managed teams, mul- tiskilled workers rotate jobs to produce an entire product or service or at least one complete aspect of a product or service (e.g., engine assembly or insur- ance claim processing). وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 201 Managing Teams to Support Decisions in Organizations. 201 30/06/2023 14:28

202 7 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 202 A self-managed team is a permanent team that typically includes the follow- ing elements: The team includes employees with several skills and functions, and its com- bined skills are sufficient to perform a major organizational task. For example, in a manufacturing plant, a team may include members from the foundry, machining, grinding, fabrication, and sales departments with members. cross-trained to perform one another's jobs. The team eliminates barriers among departments, enabling excellent coordination to produce a product or service. The team is given access to the resources, such as information, equipment, machinery, and supplies needed to perform the complete task. The team is empowered with decision-making authority, which means that members have the freedom to select new members, solve problems, spend money, monitor results, and plan for the future. Self-managed teams can enable employees to feel challenged, find their work meaningful, and develop a stronger sense of identity with the organization. Virtual Teams An exciting new approach to teamwork has resulted from advances in IT, shifting employee expectations, and the globalization of business. A virtual team is a group made up of geographically or organizationally dispersed members who are linked primarily through advanced information and telecommunications technologies. A virtual team can be local, national, or global with members com- ing from one firm or many. According to recent surveys, nearly half of all organizations use virtual teams, and about 80% of responding employees say they have worked in a virtual team at some time. Most managers expect that the use of virtual teams will continue to grow. In a virtual team, members use groupware, e-mail, instant messaging, telephone and text messaging, wikis and blogs, videoconferencing, and other technology tools to collaborate and perform their work, although they also might meet face to face at times. Although some virtual teams are made up of only organizational members, virtual teams often include contingent workers, members of partner organizations, customers, suppliers, consultants, or other outsiders. Many virtual teams are also global teams. A global team is a cross-bor- der team made up of members of different nationalities whose activities span multiple countries. 30/06/2023 14:28

QUICK TIP On a practical level, orga- nizations can save employ- ees time and cut travel expenses when people meet in a virtual rather than physical space. One of the primary advantages of virtual teams is the ability to assemble the most talented group of people to complete a complex project, solve a particular problem, or exploit a specific strategic opportunity. The diverse mix of people can fuel creativity and innovation. DEFINITIONS Self-managed team: A team consisting of multiskilled employees who rotate jobs to produce an entire product or service, often led by an elected team member. Virtual team: A team made up of members who are geographically or organizationally dispersed, rarely meet face to face, and interact to accomplish their work primarily using advanced information and tele- communications technologies. Global team: A group made up of employees who come from, and whose activities span, multiple countries. What type of team is this employee working in? وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 203 1-4 Team Characteristics Team characteristics of particular concern are size and diversity. 1. Size One investigation of team size based on data from 58 software development teams found that the best-performing teams ranged in size from three to six members. Teams need to be large enough to incorporate the diverse skills needed to complete a task, enable members to express good and bad feel- ings, and proactively solve problems. However, they also should be small enough to permit members to feel like an intimate part of the team and to communicate effectively and efficiently. Managing Teams to Support Decisions in Organizations. 203 30/06/2023 14:28

QUICK TIP Diversity, in terms of func- tional area and skills, think- ing styles, and personal characteristics is often a source of creativity. 2. Diversity Because teams require a variety of skills, knowledge, and experience, it seems likely that heterogeneous teams (those that are diverse) would be more effective than homogeneous teams (those that are made up of the same types of skills, knowledge, experience, or social backgrounds). In general, research supports this idea, showing that diverse teams produce more innovative solutions to problems. In addition, diversity may contribute to a healthy level of disagreement that leads to better decision making. Research studies have confirmed that both functional diversity and demo- graphic diversity can have a positive impact on work team performance. For example, recent research suggests that gender diversity leads to better per- formance. Ethnic, national, and racial diversity can sometimes hinder team interaction and performance in the short term, but with effective leadership, these problems fade over time. 204 7 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 204 DEFINITIONS Heterogeneous team: A diverse team made up of members with a variety of skills, knowledge, experience, and social backgrounds. Homogeneous team: A team made up of people with the same types of skills, knowledge, experience, and social backgrounds. 1-5 Team Decision-Making Methods A range of methods can be utilized to aid decision making in teams. 1. Brainstorming Brainstorming uses a face-to-face interactive group to spontaneously sug- gest as many ideas as possible for solving a problem. Brainstorming has been found to be highly effective for quickly generating a wide range of alterna- tives, but it does have some drawbacks. For one thing, people in a group often want to conform to what others are saying. Others may be concerned about pleasing the boss or impressing colleagues. In addition, many creative people simply have social inhibitions that limit their participation or make it difficult to come up with ideas in a group setting. In fact, one study found that when four people are asked to "brainstorm" individually, they typically come up with twice as many ideas as a group of four brainstorming together. 2. Electronic Brainstorming One recent approach, electronic brainstorming, takes advantage of the group approach while overcoming some disadvantages. Electronic brain- 30/06/2023 14:28

QUICK TIP The Delphi method can be adapted to non-anony- mous groups in organiza- tional settings. storming brings people together in an interactive group over a computer network. One member writes an idea, another reads it and adds other ideas, and so on. Studies show that electronic brainstorming generates about 40% more ideas than individuals brainstorming alone, and 25 to 200% more ideas than regular brainstorming groups, depending on group size. Because the approach is anonymous, it avoids possible social inhibitions, so more people actively participate. Electronic brainstorming also allows people to write down their ideas immediately, thus avoiding the possibility that a good idea might slip away while the person is waiting for a chance to speak in a face-to-face group. Another advantage is that electronic brainstorming can be done with groups made up of employees from around the world, which further increases the diversity of alternatives. 3. The Nominal Group Technique (NGT) As noted, brainstorming has its share of critics. Some say it prevents quiet people from participating, and that a group can be too easily influenced by the ideas of some of the dominant players. In response, a number of brain- storming alternatives have been developed. The nominal group technique (NGT) is another approach to brainstorming that seeks to address its limita- tions through a structured process. Group members are asked to write down their ideas independently, rather than airing them in a group discussion. Ideas are then evaluated, prioritized (ranked), and selected through a vote. There is a focus on identifying the problem, generating solutions and then ultimately making the decision. It is regarded as a way of ensuring that every- one participates in generating ideas and quick decisions are made through voting. 4. The Delphi method Another approach is the Delphi method, in which a panel of experts express their views and possible solutions to a problem through a facilitator. The facilitator collates and moderates the contributions which are fed back to the panel for another stage (or round) of evaluation, until a consensus is reached. In some instances, multiple rounds are carried out until the solution is estab- lished and refined. Throughout the process, opinions and ideas are expressed anonymously, to prevent bias or a dominant personality or viewpoint from influencing others. وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 205 Managing Teams to Support Decisions in Organizations. 205 30/06/2023 14:28

DEFINITIONS Brainstorming: A creativity tool for generating ideas and alterna- tives. A brainstorming session usually starts by defining a problem, and then listing possible solutions as they occur to you, whether they are obvious, impractical, or far-fetched. The goal is quantity, not quality. Electronic brainstorming: A technique that brings people together in an interactive group over a computer network rather than meeting face to face. Nominal Group Technique (NGT): A structured approach to brain- storming, in which all participate in generating ideas which are ranked and voted on to reach a quick decision. Delphi method: A structured technique involving stages of individual input from members of an expert group, followed by evaluation, then more individual input based on this evaluation, until a resolution is reached. Fun and games get serious One of Saudi Vision 2030's aims is the development of innovative and state-of-the-art technologies within the Kingdom. This includes 3D virtual worlds that let users interact with one another online. Most of these applica- tions started as games. The gaming industry is one of the fastest growing industries worldwide, attracting many new start-ups as well as established companies. Several technology companies have introduced virtual world applications for business teams. Virtual worlds are especially suited to training for emergencies and immersive team-building exercises. In a virtual world, you can simulate a disaster such as a hurricane or flood, and then record the responses. An entire company can learn from the simulated event and from their mistakes, which don't have real consequences in a virtual world. YOU TRY IT In a group of students from your class, try the different approaches to idea generation and decision making through brainstorming, electronic brainstorm- ing, Nominal Group Technique, and the Delphi method. Explain which method you found was the most effective, giving reasons for your answer. 206 7 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 206 30/06/2023 14:28

REVIEW QUESTIONS وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 207 1. Which of the following is a team created outside the formal structure to undertake a project of particular importance, such as developing a new product? a. a self-managed team b. a cross-functional team c. a global team d. a special purpose team 2. A cross-border team made up of members of different nationali- ties whose activities span multiple countries is known as a: a. local team b. global team c. regional team d. national team Managing Teams to Support Decisions in Organizations. 207 30/06/2023 14:28