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This chapter looks at an area of study with a rich history in the field of management – the study of groups and teams.
This is an important area of study because many of us begin working in teams at a young age
and many companies and organizations require considerable work in groups to function effectively.
But the idea of group projects or working in a group at all is something that makes many folks cringe,
so learning to manage groups and teams effectively is important.
It’s important to make a distinction between the concept of a group and a team.
Groups are simply collectives of individuals, but teams are formed to help organize individuals to accomplish goals that would be difficult if pursued individually.
This chapter was a fun one to write because we were able to provide a little backstory about how Atlas and David first met as members of a youth soccer team.
And as we go through this backstory we use it as the context to explain a well know model of group development stages that explains how groups evolve over time.
Stage 1 includes group formation, where members get together for the first time.
Generally there is excitement mixed with some guardedness as members aren’t sure what to expect next.
Generally group members try to figure out the rules of the game without exposing too much about themselves or taking other actions to become too vulnerable.
During the second stage, storming, members become more authentic and argumentative as they explore their power and influence and learn more about other members.
In this stage, members seek to differentiate themselves from other rather than seeking out common ground.
Discussions can become heated as different points of view are brought out by group interactions.
Although members may become more defensive, jealous, or competitive – this stage is necessary to bring out deeper thoughts and feelings.
Groups that weather the storm move to the norming stage, where group members are more committed to each other and the group’s goals.
In this stage, the group may let subgroups handle little decisions and only rely on the group for bigger decisions.
Mutual respect and even friendship may occur at this stage, as was the case with Atlas and David.
At the performing stage, the group kicks it into high gear and accomplishes the work that brought them together in the first place.
The group should now be more mature, competent, autonomous, and insightful.
In the final stage, all good things must come to an end and eventually most groups disband.
In this stage, leaders should show sensitivity and compassion given the bonding that may have occurred in the group.
An ideal form of closure at this stage could include setting aside time to celebrate a job well done.
A postmortem is a term used to describe examinations commonly conducted after an individual’s death.
In contrast, one technique to help better manage groups before anything bad happens is to conduct a premortem to see where groups might fail.
For example, wise managers work to normalize conflict as some elements of conflict are part of a group’s healthy development.
Managers should also be inclusive and make sure all members feel included and heard.
Heated discussions should be facilitated to help participants understand each other and support all group member.
Pre-empting the formation of antagonistic cliques within the group and remaining positive will help keep members motivated to remain active within the group.
Although it may be painful, don’t rush the group’s development because getting through the storming phase takes time.
Groups often move forward with bursts of change after long periods of no change.
Because of this natural process known as punctuated equilibrium, managers should be judicious in their use of meetings and make sure meetings are effectively run.
First, managers should determine if the meeting is needed at all.
If so, create and distribute an agenda in advance so members know the point of the meeting.
To be respectful to everyone involved, make sure the meeting starts on time and don’t wait for others unless absolutely necessary.
Stay on track with the agenda and after the meeting concludes, follow up with members regarding their action items.
When the team is forming, creating a team contract can establish norms and serve as a standard operating procedures for the team.
We see Atlas use this strategy fairly effectively in this chapter.
Elements of the contract might include specifics on team values, goals, leadership, decision making, and communication.
A number of specific groups are common to large public corporations.
The top management team, composed of the CEO, President, and other top officials in the company represent one such group commonly found in corporations.
The boards of the directors consists of many top management team members as well as individuals that are generally elected based on votes from shareholders.
A conflict of interest can exist between the board and top management team because owners may want managers to take more risks, increasing the possible return on investment.
But managers may fear taking risks for fear of failure and being fired if things don’t work out.
This is called an agency problem because incentives aren’t always very well aligned.
For example, because considerable CEO pay is based on stock that might encourage CEOs to take actions leading to short-term gains rather than actions
that will positively impact the company in the long run.
Fortunately, there are a few things that can help keep CEO power in check.
First, it might be helpful avoid CEO duality – a situation that occurs when the CEO is also chairman of the board.
When the CEO holds both roles this can simply be too much power for one person.
Another way to keep top management in check in large corporations is to be sure to include both insiders –
those with intimate knowledge of the firm that might work for the company, as well as outsiders –
those that have a less biased perspective on the company’s operations – as part of the board.
Including both insiders and outsiders can also help minimize groupthink – a phenomena that occurs in cohesive groups when ideas go largely unchallenged.
Most individual shareholders lack the ability and power to effectively monitor the CEO.
In the US, large block shareholders are groups that own more than 5% of very large public corporations.
Making sure these groups – which often include retirement funds or investment funds –
have representation on the board of directors is generally a good idea
since they are motivated to encourage actions of a company that would lead to long-term performance outcomes.
Alignment of CEO pay to the goals of the firm is often accomplished by paying CEOs in stock options rather than large cash salaries.
If the company does not provide effective governance to keep the CEO in line, often the market will do the job.
For example, if the CEO leads the firm to a situation where the stock price of the company has dropped –
it could encourage another management team to buy enough stock to gain control of the company and then replace the CEO.
This is referred to as the market for corporate control because the stock market, rather than management internal to the firm, is the catalyst for change.
In this chapter we also touch on different elements concerning how team members interact with one another.
One way of categorizing looks at the different levels of interdependence among team members.
Task interdependence refers to the degree to which team members are dependent on each other for information,
support, materials, and other knowledge to support their objectives.
We see fairly marked differences in different types of team sports.
Pooled interdependence exists when team members work independently and then combine their efforts to create the team’s output.
We see this to a large extent in football because each member generally has a specific ‘assignment’
determined in advance that are brought together to run a particular play.
You might use this technique in groups where each person is responsible for a different part of a group presentation.
Sequential interdependence exists when one person’s output becomes another’s input.
This occurs in baseball when the ball is relayed around to create a double play.
Reciprocal interdependence exists when team members work on each task simultaneously.
In basketball, each of the five players must constantly be aware that the ball could come their way,
and then they might need to quickly make another pass, shoot the ball, or transition to defense in a moment’s notice.
We also discuss a number of group decision making techniques in this chapter.
For example, majority rule occurs when each member in a group is given a single vote.
A decision is accepted when over 50% of the votes are in agreement.
This technique is relatively quick and easy, but those in the minority may not support the final decision.
More acceptance of the decision can occur with consensus where all group members agree on the decision, but this can take more time and create more frustration.
Nominal group technique can be effective to structure meetings when members are having difficulties with problem solving or idea generation.
This method ensures participation and helps avoid groupthink. It involves four steps.
First, everyone in the group silently writes down their ideas. Second, ideas are gathered into a single list.
Third, each idea is discussed. Fourth, everyone votes for their favorite idea.
So, contrary to Atlas’s suggestion that this technique would be good for kickball, nominal group technique is more useful for complex,
high stakes decisions that require considerable thought.
The Delphi technique uses questionairres to generate information when bringing together a group of experts would be expensive or practically impossible.
This technique begins with generally broad questions and then questions become more focused over time. Ideally, over time, consensus can be reached.
French engineer Max Ringelmann discovered what is known as the Ringelman effect in 1913 when he studied individuals pulling rope in a tug of war game.
He found the total pulling force became less efficient as more individuals were added to each group.
So, as group size increases the group could actually become less efficient.
So this idea of social loafing is one Atlas is fairly familiar with.
You can combat this tendency by clearly defining each group member’s tasks in front of the entire group and by creating individual accountability within the group context.
When the group is cohesive and tasks are fun and rewarding, and all individuals feel they are needed – group performance will improve.
In conclusion, while we are all familiar with groups and many of us have engaged in them since childhood –
I hope this chapter provides a fresh perspective on some tips and techniques that help you explain the natural evolution of groups,
as well as techniques to help make them more effective and rewarding.