UNIVERSITY OF FORT HARE

FACULTY OF MANAGEMENT & COMMERCE

DEPARTMENT OF INDUSTRIAL PSYCHOLOGY

SURNAME: QWABE

INITIALS: N. P.

TOPIC: GROUP DYNAMICS AND WORK TEAMS

Contents Page
1. INTRODUCTION .............................................................................................................................. 1

2. DEFINITION ...................................................................................................................................... 1

3. THE REASON WHY PEOPLE FORM GROUPS ............................................................................. 1

3.1. Basic needs................................................................................................................................... 1

3.2. Security needs .............................................................................................................................. 2

3.3. Social needs ................................................................................................................................. 2

3.4. Esteem needs................................................................................................................................ 2

3.5. Self realisation needs ................................................................................................................... 2

3.6. Satisfaction of needs .................................................................................................................... 2

3.7. Proximity and attraction ............................................................................................................... 2

3.8. Goals of the group ........................................................................................................................ 2

3.9. Economic rewards ........................................................................................................................ 2

4. TYPES OF GROUPS ......................................................................................................................... 3

4.1. Formal group................................................................................................................................ 3

4.2. Informal group ............................................................................................................................. 3

5. GROUP CHARACTERISTICS .......................................................................................................... 4

5.1. Structure ....................................................................................................................................... 4

5.2. Status hierarchy............................................................................................................................ 4

5.3. Roles ............................................................................................................................................ 4

5.4. Norms and standards .................................................................................................................... 4

5.5. Leadership .................................................................................................................................... 4

5.6. Followers and members ............................................................................................................... 5

5.7. Cohesiveness ................................................................................................................................ 5

5.8. End result ..................................................................................................................................... 5

6. GROUP DEVELOPMENT................................................................................................................. 5

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 6.1. The five stage model of group development ................................................................................ 5

6.2. The punctuated equilibrium model .............................................................................................. 6

7. EFFECTIVE GROUP FUNCTION .................................................................................................... 7

7.1. Group leadership .......................................................................................................................... 7

7.2. Roles ............................................................................................................................................ 8

7.3. Group norms and conformity ....................................................................................................... 8

7.4. Status ............................................................................................................................................ 8

7.5. Group size and composition......................................................................................................... 9

7.6. Decision-making in groups .......................................................................................................... 9

7.7. Communication .......................................................................................................................... 10

7.8. Conflict ...................................................................................................................................... 10

8. INDIVIDUAL PERFORMANCE IN GROUPS .............................................................................. 10

8.1. Social facilitation: Working in the presence of others ............................................................... 11

8.2. Social loafing in computer-monitored groups............................................................................ 11

8.3. Social loafing: “free riding” when working with others ............................................................ 11

9. WAYS OF OVERCOMING SOCIAL LOAFING ........................................................................... 12

9.1. Make each performer identifiable .............................................................................................. 12

9.3. Reward individuals for contributing to their group performance .............................................. 12

9.4. Use punishment threats .............................................................................................................. 12

10. WORK TEAMS .............................................................................................................................. 12

11. WORK TEAM PURPOSE ............................................................................................................. 13

12. TYPES OF TEAMS ........................................................................................................................ 13

12.1. Informal teams ......................................................................................................................... 13

12.2. Traditional teams ..................................................................................................................... 13

12.3. Problem-solving teams ............................................................................................................. 14

12.4. Leadership teams ..................................................................................................................... 14

12.5. Self-directed teams................................................................................................................... 14

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 12.6. Virtual teams ............................................................................................................................ 14

13. CHARACTERISTICS OF EFFECTIVE TEAMS ......................................................................... 15

13.1. Clear direction.......................................................................................................................... 15

13.2. Clear responsibility .................................................................................................................. 15

13.3. Knowledgeable members ......................................................................................................... 15

13.4. Reasonable operating procedures............................................................................................. 15

13.5. Interpersonal relationships ....................................................................................................... 16

13.6. Sharing success and failures .................................................................................................... 16

13.7. External relationship ................................................................................................................ 16

14. DEVELOPING TEAMS SUCCESSFULLY.................................................................................. 16

14.1. Clear goals ............................................................................................................................... 17

14.2. Decision making authority ....................................................................................................... 17

14.3. Accountability and responsibility ............................................................................................ 17

14.4. Effective leadership ................................................................................................................. 17

14.5. Training and development ....................................................................................................... 18

14.6. Resources ................................................................................................................................. 18

14.7. Organisational support ............................................................................................................. 18

14.8. Rewards for team success ........................................................................................................ 18

15. SELECTING THE TEAM MEMBERS ......................................................................................... 19

16. ORGANIZATIONAL BENEFITS OF TEAMS............................................................................. 20

16.1. Improved quality of work life .................................................................................................. 20

16.2. Lower absenteeism turnover .................................................................................................... 21

16.3. Increased innovation ................................................................................................................ 21

16.4. Organisational adaptation and flexibility ................................................................................. 21

17. CHALLENGES PRESENTED BY TEAMWORK ........................................................................ 22

18. CONLUSION ................................................................................................................................. 23

19. REFERENCES ............................................................................................................................... 24

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1. INTRODUCTION
In every competitive environment, organisations realise that they can only achieve goals
through the combined efforts of everybody involved in the organisation which is why groups
and work teams have become a prominent feature in organisations. Group and work teams
allow for greater participation and increased performance and ultimately influence the
motivation and satisfaction of employees.

2. DEFINITION
According to Cronje, Matlatla, and De Marias (2003); a group is two or more individuals in a
regular interaction who work for a common purpose.

Groups are defined as collections of individuals who interact with each other to achieve a
common goal, whose behaviour is directed by a common set of norms and share a common
identity (Gerber, Nel and Van Dyk 2001).

According to Greenburg and Baron (2008); groups are a collective of two or more interacting
individuals with a stable pattern of relationships, between them who share common goals,
and who perceive themselves as being a group.

A work team is a cross-functional, multi-skilled and self directed group of employees

responsible for its assignment, cost, control, goals, quality control, work order, work schedule
and other such as duties and tasks.

A team is a collection of individuals organised to accomplish a common purpose, who are

independent and who can be identified by themselves and observers as a team (Steward,
Manz and Sims 2000)

3. THE REASON WHY PEOPLE FORM GROUPS

In the case of business, the goals and objectives that the groups strive for constitute the
reasons for its existence. Groups in the working place come into being for various reasons,
but they are usually related to the needs of individual members. According to Gerber, Nel and
Van Dyk (2001) based on Maslow‟s hierarchy of needs, it can be said that groups are formed
for the following reasons:

3.1. Basic needs: to satisfy basic needs individuals may join a group that will demand a
higher pay.
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3.2. Security needs: when an individual has insufficient power to bring about change, he or
she tends to form a group along with other individuals in the same plight. The trade union
movement came into existence because individual employees felt themselves at the mercy of
employers and exploited.

3.3. Social needs: these needs occur to some extent in any group. The group itself is a social
phenomenon that is involved with others, to feel that they belong. Indeed, one of the severest
punishments that can be inflicted on people is to keep them in isolation.

3.4. Esteem needs: some people aspire to join a group or occupy a position which in their
opinion carries greater social prestige.

3.5. Self realisation needs: groups are often formed to promote communication between
members of the same profession and a sense of personal development and competence is
consolidated by the “shop-talk” and professional jargon bandied about such association.

The membership of a group does not satisfy one particular set of needs alone, in many cases
all five of the identified needs are satisfied to some extent by one group. Apart from
Maslow‟s hierarchy of needs; Ivancevich and Matteson (1999) states that people form groups
in order to satisfy their needs, because of proximity and attraction, goals of the group and also
for economic rewards.

3.6. Satisfaction of needs: individuals form groups because they want to satisfy a particular
need. According to the individuals, satisfying those needs would be difficult alone or working
as individuals.

3.7. Proximity and attraction: in many cases interpersonal attraction can result in group
formation. Proximity involves physical distance between the individuals. Individuals can
form groups because the like each other and they stay closer to each other.

3.8. Goals of the group: individuals form groups because they want to achieve the goals of
that group thus in achieving those goals their own goals will be achieved as well.

3.9. Economic rewards: people form or join groups if they believe or there is a perception
that they are going to derive economic benefits for themselves.

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4. TYPES OF GROUPS
According to Greenberg and Baron (2008); there are two types of groups and these are:

4.1. Formal group

A formal group is established through the formal organisation, whose goals and activities are
directed to the achievement of the declared organisational goals. Formal groups are part of
the structure of an organisation and are formed during the organisational process and they
maybe departments, sections, tasks groups, committees.

4.2. Informal group

An informal group is one that, as a result of the daily activities, interactions and feelings of
its members develops spontaneously to satisfy their needs. Informal groups evolve naturally.
The main goal of the group is social satisfaction and it serves as a source of identification,
motivation, status, power, communication and security for its members.

Apart from Greenberg and Baron (1998) classifies groups as follows:

The command group: this group is usually characterised by a formal organogram and a line
of authority. It is specified by the organisation chart and is made up of the subordinates who
report directly to a given supervisor.

Task group: this group is created for a specific task or project and as soon as the project has
been completed, the group disbands.

Standing committees: these are committees that are permanent, existing over time. It may be
composed of personnel specialists, corporate vice presidents and workers from the shop floor.
For example, a company may have a committee on equal employment opportunities whose
members monitor the fair hiring practices of the organisation.

The interest group: in this group the emphasis is on the needs of the group itself. The group
members may not be from the same command group or departments along as they have the
same interest they may join i.e. unions.

The friendship group: this group develops because the members have common
characteristics. The group may be based on similar age, ethnic heritage, and support for
soccer or any other shared characteristic.

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5. GROUP CHARACTERISTICS
According to Cronje, Du Toit, Matlatla and de Marias (2003) groups have characteristics and
they are as follows:

5.1. Structure
Whether it‟s a formal or informal group along the way that group takes up a structure and
once the group has a structure, group members are differentiated by the roles they play. Each
member in the group occupies a specific position.

5.2. Status hierarchy

The status that is assigned to a particular individual is the constant of the characteristics that
you have as an individual. In the work situation we give status because of seniority, age,
expertise.

5.3. Roles
Each position in the structure of the group has an associated role. Each role consists of a
certain behaviour that is expected from that individual in that particular role she or he is
playing. In this instinct there are two types of roles and these are perceived role and enacted
role. Perceived role: is a set of behaviour that a person in a position believes he or she should
act out. Enacted role: is a behaviour that a person actually caries out.

5.4. Norms and standards

The interaction between members of a group will eventually create group norms or generally
accepted standards of behaviour which every member is expected to maintain. These norms
are important to the group members and are designed for things that are significant to the
group members. Norms may be written or not and are accepted by the members of the group
in different degrees.

5.5. Leadership
A group will need a leader as he or she is the one who influences and guides the group. The
success of the leader depends on the leadership qualities she or he possesses. In an informal
group it is important that the leader makes his or her objectives the same as those of the
business.

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5.6. Followers and members
The success of the leader depends on whether group members are willing to accept his or her
leadership. It is important therefore that managers and supervisors should also be good
leaders.

5.7. Cohesiveness
Both formal and informal groups possess some form of closeness or commonness of attitude,
behaviour and performance. The closeness then is referred to as cohesiveness. Cohesiveness
then can be referred to as some form of force that is pulling the group members towards a
common goal. Cohesiveness in a group may lead to higher performance.

5.8. End result

Groups exist because they want to achieve a common goal and members need to work
together in order to achieve those goals. To any group the end result is what is important
because that is where they get to evaluate if the group is indeed effective or not.

6. GROUP DEVELOPMENT
There are different opinions that exist in terms of how groups develop. According to Kreitner
and Kinicki (1998) there is the five stage model of group development and according to
Robbins (1991) there is also the punctuated- equilibrium model which high-light a consistent
time-frame, within which groups change during their existence.

6.1. The five stage model of group development

Forming

This stage is characterised by uncertainty. The members are not certain of what is expected
of them and are often scared that they will not measure up. The members are also not sure of
the structure, leadership and roles in the group. They perform better once they start to see
themselves as part of the group.

Storming

This stage is characterised by interpersonal conflict as group members will be competing

against each other. Group‟s progress successfully through this stage when a clear leader has
been chosen and accepted and a relatively clear hierarchy exist.

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Norming

This stage is marked by cooperation and collaboration. During this stage members become
aware of what behaviour is accepted or not. Members share information openly and are
willing to listen to others. Close relationships develop and cohesiveness increases. The group
progresses successfully through this stage when the group structure is relatively established,
behavioural expectations are clear and the group is ready to function fully.

Performing

It is characterised by fully participation of all group members. Energy and effort are spent on
the task at hand. The success of this stage is marked by goal attainment.

Adjourning

This stage marks the end of the group‟s existence. Emotions vary from satisfaction with
achievements to a feeling of loss of friendship.

6.2. The punctuated equilibrium model

The punctuated equilibrium model has two phases:

The 1st phase: in this phase the first meeting sets the group‟s direction. Behavioural patterns
and norms are firmly established. The behaviour at this first meeting will set the tone for their
future interaction and behaviour. If the members “goof off” a lot and concentrate little on the
task at hand, this will become the behavioural pattern for the future. If they strongly speak out
against a member who is not present at the meeting, everyone will know that attendance is
very important at future meetings. The group then becomes locked in a fixed course of action.
A transition takes place at the end of the 1st phase, when the group has used up half of its
allotted time. Exactly half way between the first meeting and the official deadline, members
of the group realise that they have either done very little or taken the wrong course of action.
Members tend to criticise each other and open conflict can occur. Heighten level of energy
and activity mark this transition. New expectations are determined; goals are viewed, new
perspectives adopted and alterative action taken.

Phase two: phase two is a new equilibrium or period. During this phase, plans adopted
during the transition phase are carried out. The group is once again locked in fixed course of
action. The group‟s last meetings is characterised by a burst of energy. Final changes have to
6
be negotiated, separated parts need to be integrated and everyone is anxious that they
complete and reach the targeted goals.

When comparing the five stage model with the punctuated-equilibrium model one can say
that the group goes through forming, norming and storming during the first meeting, followed
by a stage of low performance then goes through another phase of storming and norming,
followed by a phase of high performance before finally adjourning.

7. EFFECTIVE GROUP FUNCTION

Not every collection of people satisfies the definition of a group or functions effectively. The
internal functioning of a group (i.e. its goals and patterns of interaction) develops over time
and largely determines the success of the group in achieving its goals and satisfying the needs
of its members. Effective groups have the following characteristics:

 The group knows the reason for existence

 There are guidelines or procedures for decision-making

 There is communication between the group members

 The members receive and render mutual assistance

 The members handle conflict within the group in a constructive manner

 The members diagnose their process and improve their own functioning

According to Nel, Van Dyk, aasbroek, G.D., Schultz, Sono and Werner (2006); there are
various factors that influence the effectiveness and performance of a group and these are:

7.1. Group leadership

A leader is someone who has the ability to inspire group members to achieve group goals
voluntarily and enthusiastically. Leadership influence depends on the type of power that a
leader can exercise over followers, which vary from reward, coercive power, and legitimate
power and expect power. Effective leaders have a concern for the task, as well as for the
members of the group. Task behaviour expected from leaders includes planning, decision-
making, organising and monitoring. People-function includes individual functions (such as
meeting the needs of individual members, giving recognition, developing skills, and

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providing opportunities). One most important function of a leader is to facilitate the
developmental process of group members so that they can make a meaningful contribution to
the attainment of group goals and experience satisfaction.

7.2. Roles
A role refers to a set of expected behaviour patterns associated with someone in a given
position in a group (Mullins 1996). Each role has associated attitudes and behaviours which
create role identity. Once group members know what their roles as well as the behaviours are
that goes with those roles they find it easy to do their allocated work?

7.3. Group norms and conformity

The interaction within the group leads to the development of group norms. A norm is
generally accepted standard of behaviour that each member of the group is supposed to
maintain. Norms can be defined as accepted standards of behaviour within a group that are
shared by the group‟s members (Robbins,1991). Norms may be formal and explicitly stated
by the group leader and they can also be informal and based on interaction between group
members. The success and continued existence of a group may depend on whether the
members adhere to the group norms. Groups that lack strong norms are unlikely to be as
stable, long-lived or satisfying for their members as groups with well-developed norms that
are strongly supported by the members.

Conformity refers to the acceptance of a group‟s norms by its members. A group member can
react to group norms in three different ways: he or she may reject them, conform to them, or
only accept the important ones and ignore the ones that he or she thinks are not that
important. The extent to which people conform to norms depends on a number of factors such
as their values, personality, status and needs. Norms preserve a group‟s existence and
survival; however blind conformity may counteract innovation as the creative ability of a
member will be lost to the group conformity.

7.4. Status
Status refers to the relative social position a person has in comparison to other in the group
(Stewart, Manz and Sims 2000). Status is important because it is a motivational factor and
also influences the behaviour of those who experience disparity between what they believe

8
their status is and what they believe other perceive their status to be. Status can be formal or
informal and is awarded as follows:

 Scalar status refers to status obtained through one‟s formal position in a group. A
supervisor has status due to the authority associated with his position.

 Functional status is earned through the task one has to fulfil in the group.

 Achieved status is earned through hard work and effort and is based on one‟s
qualifications and achievements.

 Ascribed status refers to inborn characteristics over which we have limited or no

control such as attractiveness, gender, build and age.

7.5. Group size and composition

Size influences a group‟s overall performance, depending on the purpose of the group. Large
groups (fifteen or more members) are generally preferred when a group has to produce
divergent ideas or alternatives. A large group offers a greater range of combined experience
and ideas. One negative aspect of a bigger group is social loafing. On the other hand smaller
groups work faster and responsibility is more explicitly given to individuals.

Group composition relates to the extent to which group members are alike. A homogenous
group share a number of similar characteristics such as race, gender, socio-economic
background, education, age, and work experience or culture orientation. A heterogeneous
group on the other hand, is composed of individuals who have few or no similar
characteristics. A heterogeneous group will most likely be able to perform at a higher level in
terms of creativity. However, for the group to reach high levels effectiveness, the group has
to manage conflict constructively (Mullins, 1996).

7.6. Decision-making in groups

Groups are formed to make decisions and in order to get the most of group decision-making,
appropriate decision-making techniques should be utilised namely:

Brainstorming: this process is frequently used to provide the maximum number of ideas in a
short period of time.

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Nominal group technique: this technique is excellent for ensuring full participation without
individual domination.

Delphi technique; this technique is used where the group members are physically dispersed.
Participants never meet face to face. A facilitator presents members with a carefully designed
questionnaire to provide potential solutions to a well-defined problem. The questionnaires are
completed independently and returned to the facilitator who summarises the results. These
results are circulated back to the members who offer a second round input. The process is
then continued until members reach consensus.

7.7. Communication
The only way through which we can establish and maintain relationships with other people is
through communication. Communication is important in a group as it is the glue that binds
the members together.

7.8. Conflict
In all groups some conflict is inevitable. Conflict can be defined as the process in which
individuals feel that other individuals have frustrated their ability to achieve their goals (Nel,
Van Dyk, Haasbroek, Schultz, Sono and Werner 2006). Conflict in groups can be positive or
negative depending on its consequences. Positive conflict is an energising force that spurs
members to better alternatives and higher goals. It stimulates creative thinking and
innovation. In a group where there is little or no conflict due to high level of cohesion and
conformity, performance tends to be low. The status quo is seldom challenged. Negative
conflict on the other hand occurs when goal attainment is frustrated because energy is spent
on highlighting or resolving interpersonal differences rather than on goal attainment.
Negative conflict can lead to chaos and a negative attitude that hinders constructive problem
solving. In any group the levels of conflict must be minimal as too high and too low conflict
leads to low performance.

8. INDIVIDUAL PERFORMANCE IN GROUPS

Individual performance in groups specifically looks at two issues; how people‟s work
performance is affected by the presence of others and how performance is affected by the
group size.

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8.1. Social facilitation: Working in the presence of others
According to Greenberg and Baron (2008), social facilitation is the tendency where the
presence of others sometimes to enhance an individual‟s performance and at times to impair
it (i.e. IDOLS). This happens as a result of several basic psychological processes and
together these processes or ideas are known as the drive theory of social facilitation.
According to this theory, the presence of others increases arousal, which increases the
tendency to perform the most dominant responses. If these responses are corr6ect, the
resulting performance will be enhanced; if they are incorrect, the resulting performance will
be impaired. Based on the process, performance may either be helped (if the task is well
learned) or hindered (if the task is not well learned).

Even though people perform better on tasks in the presence of others if the task is very well
learned and poorly if it is not; evaluation apprehension also influence one‟s performance.
Evaluation apprehension is the fear of being evaluated or judged by another person
(Greenberg and Baron 2008). For example; lower level employees may suffer evaluation
apprehension if they are worried about what their supervisor thinks of their work.

8.2. Social loafing in computer-monitored groups

With the use of computers in today‟s workplace, it is not unusual for the presence of others to
be “virtual” rather than physical in nature. That is, instead of having an individual who is
physical present, to observe one‟s work, computerized performance monitoring makes it
possible to observe others indirectly by computer an “electronic presence”.

8.3. Social loafing: “free riding” when working with others

In free riding group members exert less individual effort on a group task. The phenomenon of
social loafing is explained by social impact theory. According to this theory, the impact of
any social force acting on a group is divided among its members. The larger the size of the
group, the lower is the impact of its force on any one member. As a result, the more people
who might contribute to the group‟s product, the less pressure each person faces to perform
well that is, the responsibility for doing the job is diffused over more people thus social
loafing occurs. Social loafing occurs because people are more interested in themselves
(getting the most for themselves while doing the least) than their fellow group members (who
are forced to do their work for them).

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9. WAYS OF OVERCOMING SOCIAL LOAFING
According to Greenberg and Baron (2008) social loafing is a serious problem in
organisations thus he came up with several ways in which social loafing can be overcome:

9.1. Make each performer identifiable

Social loafing may occur when people feel they can get away with taking it easy so in order
to overcome that the company can display each individual‟s contribution where it can be seen
by others (i.e. weekly sales figures posted on notice board) then people are less likely to slack
off than when overall group performance is made available.

9.2. Make work tasks more important and interesting

People are unlikely to go along for free rides when the task they are performing is believed to
be vital to the organisation; for example the less meaningful salespeople believe their jobs
are, the more they engage in social loafing especially when they think their supervisors know
little about how well they are working. To help in this regard, corporate officials should
deliberately attempt to make jobs more intrinsically interesting to employees.

9.3. Reward individuals for contributing to their group performance

Rewarding individuals will encourage their interest in their group‟s performance. Doing this
may help employees focus more on collective concerns and less on individual concerns,
increasing their obligations to their fellow group members. This is important, of course, in
that the success of an organisation is more likely to be influenced by the collective efforts of
groups than by the individual contribution of any one member.

9.4. Use punishment threats

Social loafing is a potent force and one that can be a serious threat to the organisation
performance. But, it can be controlled by making punishment threats thus eliminating the
social loafing effect.

10. WORK TEAMS

In general, work teams are most useful where job content changes frequently and employees
with limited skills and a specific set of duties are unable to cope. Teams exist within a larger
organisation and interact with other teams and with the organisation. Teams are one way for
organisations to gather input from members and to provide organisation members with a
12
sense of involvement in the pursuit of organisational goals. Further, teams allow
organisations flexibility in assigning members to projects and allow for cross-functional
teams to be formed.

11. WORK TEAM PURPOSE

According to Stott and Walker (1995); the purpose of creating teams is to provide a
framework that will increase the ability of employees to participate in planning, problem
solving and decision making to better serve customers. Increased participation promotes

 Better understanding of decision

 More support for participation in implementing plans

 Increased contribution to problem solving and decision making

 More ownership of decisions, process and changes

12. TYPES OF TEAMS

According to Johnson, Heiman and O‟Neill (2001), there is six major types of work teams
and these are:

12.1. Informal teams

Informal teams are generally formed for social purposes. They can help to facilitate employee
pursuits of common concern, such as improving work conditions. More frequently however,
these teams form out of set of common concern and interest, which may or may not be the
same as the organisations. Leaders of these teams generally emerge from the membership
and are not appointed by anyone in the organisation.

12.2. Traditional teams

Traditional teams are the organisational teams commonly thought of as departments or
functional areas. Leaders or managers of these teams are appointed by the organisation and
have legitimate power in the team. The team is expected to produce a product, deliver a
service or perform a function that the organisation has assigned.

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12.3. Problem-solving teams
Problem-solving teams or task force are formed when a problem arises that cannot be solved
within the standard organisational structure. These teams are generally cross-functional; that
is, the members come from different areas of the organisation and are charged with findings
solution to the problem.

12.4. Leadership teams

Leadership teams are generally of management brought together to span the boundaries
between different functions in the organisation. In order for a product to be delivered to
market, the head of finance, production and marketing must interact and come up with a
common strategy for the product. At top management level, teams are used in developing
goals and strategies direction for the firm as a whole.

12.5. Self-directed teams

Self-directed teams are given autonomy over deciding how a job will be done. These teams
are provided with a goal by the organisation and then determine how to achieve that goal.
Frequently there is no assigned manager or leader and very few, if any, status differences
exist among the team members. These teams are commonly allocated to choose new team
members, decide on work assignments and may be given responsibility for evaluating team
members. They must meet quality standards and interact with both buyers and suppliers, but
otherwise have great freedom in determining what the team does. Teams form around a
particular project and a leader emerge for that project.

12.6. Virtual teams

Technology is impacting how teams meet and function. Collaborative software and
conferencing systems have improved the ability for employees to meet, conduct business,
share documents and make decisions without ever being in the same location. While the basic
dynamics of other types of teams may still be relevant, the dynamics and management of
virtual teams can be very difficult. Issues can arise with a lack of facial or auditory clues;
members must be taken at their word, even when video-conferencing tools are used.
Accountability is impacted by taking a team virtual each member is accountable for their
tasks and to the team as a whole usually with minimum supervision. Key factors in the
success of a virtual team are effective formation of the team, trust and collaboration between
members and excellent communication.
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13. CHARACTERISTICS OF EFFECTIVE TEAMS
According to Gold (2005); some characteristics of effective teams are clear direction and
responsibilities, knowledgeable members, reasonable operating procedures, good
interpersonal relationships, shared success and failures, and good external relationships.

13.1. Clear direction

Clear direction means that the team is given a clear and distinct goal. The team may be
empowered to determine how to achieve that goal, but management, when forming the team,
generally sets the goal. A clear direction also means that team outcomes are measurable.

13.2. Clear responsibility

Clear responsibilities means that each team member understands what is expected of her or
him within the team. The roles must be clear and interesting to the team members. Each team
member needs to be able to rely on all the other members to carry out their roles so that the
team can function effectively. Otherwise, one or two team members come to feel that they are
doing all the work. This is one of the reasons so many individuals are initially reluctant to
join teams.

13.3. Knowledgeable members

An effective team will be comprised of individuals who have the skills and knowledge
necessary to complete the team's task. Cooperation is essential at an early stage in
inventorying the skills and knowledge each member brings to the team, and working to
determine how to utilize those skills to accomplish the team task.

13.4. Reasonable operating procedures

All teams need a set of rules by which they operate. Sports teams for example, operate
according to a clearly laid-out set of rules about how the game is played. Similarly, work
teams need a set of procedures to guide meetings, decision making, planning, division of
tasks, and progress evaluation. Setting, and sticking to, procedures helps team members
become comfortable relying on one another.

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13.5. Interpersonal relationships

Teams are composed of diverse individuals, each of whom comes to the team with his or her
own set of values. Understanding and celebrating this diversity helps to make a stronger,
more effective team.

13.6. Sharing success and failures

Everyone wants to feel appreciated. Within a team, members should be willing to express
their appreciation, as well their criticisms, of others' efforts. Similarly, the organization must
be willing to reward the team for successful completion of a task and hold all members
responsible for failure.

13.7. External relationship

In the process of building a strong team, groups external to the team are frequently ignored.
In order for the team to successfully complete its task, it cannot operate in isolation from the
rest of the organization. Teams need help from people within the organization who control
important resources. Establishing clear lines of communication with these people early on
will facilitate the completion of the team's task.

14. DEVELOPING TEAMS SUCCESSFULLY

Although there is no one best way of developing a successful team (Kirkman and Shapiro
1997), stated the following 8 aspects:
 Clear goals
 Decision making authority
 Accountability and responsibility
 Effective leadership
 Training and development
 Resources
 Organisational support
 Rewards for team success

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14.1. Clear goals
Goals should be specific enough to give the team direction. For example, to raise market
share by ten percent in six months provides more guidance than simply to raise market share.
A goal should also state the ends, rather than the means. This gives teams the freedom to
work out how best to achieve the goal (Carr, 1992). Associated with providing clear goals is
the development of meaningful and acceptable performance measures so that the team
members can feel confident in their own achievements.

14.2. Decision making authority

Teams require decision making authority and, therefore, a certain level of empowerment in
order to carry out their work efficiently. Without this authority they would need to get
approval for their ideas and these ideas may be rejected before they are either proven or not
proven. For innovation to occur, teams must be allowed to experiment. However, to avoid
costly mistakes, it is appropriate to give teams this authority within certain boundaries. It may
also be necessary to hand over authority on a gradual basis so team members are not
overwhelmed by their newly-acquired authority (Brower, 1995). People are able to empower
themselves through a clear focus and the removal of the sense of fear in what they do
(Wilson, 1996).

14.3. Accountability and responsibility

If teams are to enjoy decision making authority, they must also be prepared to be accountable
and responsible for their actions. This does not suggest that some failures are not permitted. It
does suggest that teams need to monitor customer expectations and also their own
performance. If their goals are not being met or customer expectations are not being satisfied,
then their approach and methods will need some adjustment (Brower, 1995). The acceptance
of accountability and responsibility is also associated with the establishment of a positive and
productive set of team norms. Work teams can behave similarly to adults in a family
environment by developing norms that improve cohesion of the team (Wilson, 1996). Such
norms may include sensibility, responsibility, supporting each other, and having fun.

14.4. Effective leadership

Managers and supervisors who become team leaders experience a significant change of role.
Team leaders do not direct or control work, but instead work as coaches and mentors (Carr,
1992). Effective communication, leadership and consulting skills will be required which may
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necessitate training and development. A new mindset is also required. Team leaders
concerned with a loss of power need to understand that their new role is pertinent to the
success of the teams, and that their knowledge is required now more than ever. The issue is
not about the erosion of power, but a shift in the source of power — from legitimate to
knowledge based (Robbins, 1991).

14.5. Training and development

In any work team, team members are likely to require training. Employees may need to learn
new skills such as budgeting, computing, public relations and marketing, as well as skills
which allow them to work together effectively, such as effective communication, confliction
resolution and problem solving. Training and development are enabling factors that allow
team members and leaders to take on new responsibilities. Where team members possess
inadequate work skills and knowledge, teams are less likely to succeed.

14.6. Resources
For teams to operate effectively they must have access to resources. These resources can
include money, time, equipment, technology, people and information (Robbins, 1991).
Provision of resources requires trust on the part of the organisation and responsibility on the
part of the team members. Like authority, resources should not, and cannot, be unlimited and
should perhaps be given to employees gradually. (Brower, 1995)

14.7. Organisational support

Teams cannot operate without the support and commitment of middle and upper
management, (Brower, 1995). Therefore, changes must be initiated by those from the top of
the organizational hierarchy, rather than those on the shop floor. Any improvements that
result from a shop floor initiative may be seen as management incompetence and are not
likely to be supported by management (Robbins, 1991). A nurturing environment with a
collaborative climate provides the support and encouragement that teams need for job
performance (Margulies and Kleiner; 1995).

14.8. Rewards for team success

An emphasis on individual rewards undermines the effectiveness of team-based work and
encourages team members to strive for individual performance goals that may not be
congruent with the goals of the team. A team-based reward system should reward employees
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for teamwork and contributions to team success. One example of such a system is a gain
sharing plan whereby ideas that are successful and profitable result in the entire team being
rewarded (Margulies and Kleiner; 1995).

A problem that may occur with team-based rewards is the problem of social loafing.
This occurs when the efforts of one or more members of the team decreases and is more
likely to occur in teams that are excessively large (Greenberg and Baron, 2008). Where team-
based rewards are used, social loafers are rewarded similarly to other team members who are
responsible for the group performance. This is not an argument for a reward system based on
individual efforts, but rather an argument for the necessity of team-based discipline to
accompany the team-based reward system.

15. SELECTING THE TEAM MEMBERS

According to Stewart, Manz & Sims (2000); forming an effective team is more complex than
simply throwing a group of people together, assigning them a task, and hoping for the best.
Potential team members need to be interviewed and their skills and knowledge should be
assessed. Issues to consider in selecting team members include: the individual's motivation
with respect to both the team and the task at hand; the attitudes and goals of potential team
members; potential problems with intra-group relationships; and potential problems with
relationships with external groups.

The organization needs to first assess what the skills, knowledge, and attitudes of potential
team members should be. What are the tasks that need to be accomplished for the team to be
successful? Have managers analyzed the jobs and developed an inventory of required skills
and knowledge?

Once these steps have been completed, potential team members can be interviewed. Among
the issues the interview process should cover are:

 What strengths does the individual bring to the team?

 What is she or he is willing to work on improving?
 What problem solving style does the individual employ?
 Can she or he share information in an effective manner?

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  Does the individual have good listening skills?
 Can the individual provide constructive feedback?

It is important to remember that effective teams are generally made up of a variety of

personalities. The selection process needs to be structured so that it is not biased toward one
personality type. An effective team needs both the thoughtful, detail-oriented individuals, as
well as the outgoing, insightful individuals. Additional considerations for building an
effective team should be identified. There are four important factors to consider when
selecting team members and these are: years of professional work experience; frequency of
team participation; type of team training and situational entry to team assignments
(volunteered, assigned, and requested). These factors can be effectively utilized by
management when selecting team members to increase the opportunity for overall success.

16. ORGANIZATIONAL BENEFITS OF TEAMS

The major impetus for organizations to embrace the team concept is the effort to improve
productivity and quality. Teams are a key component of many total quality management
programs. In addition to improved productivity and quality, some of an organization's major
benefits from the use of teams are improved quality of work life for employees, reduced
absenteeism and turnover, increased innovation, and improved organizational adaptability
and flexibility. Effective implementation of teams can also improve office politics by
improving the communication and trust between the team members. (Stott, and Walker,
1995)

16.1. Improved quality of work life

Effective teams frequently improve the quality of work life for the employees. An effective
team is generally one in which members are empowered to make decisions about how to get
work done. Giving team members authority and control over the work processes reduces the
amount of external control and increases the sense of ownership and accountability for the
work being done. This helps to create a satisfying and rewarding work environment.

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16.2. Lower absenteeism turnover
A satisfying and rewarding work environment helps to lower absenteeism and turnover.
Teams are particularly effective in this area. Membership in a work team gives an employee a
sense of belonging, interaction with others on a regular basis, and recognition of
achievements. All of these help to eliminate a sense of isolation within the organization.
Team members identify with and feel pride in the work they are doing and come to rely on
one another being there. At some companies, employees are evaluated based on their
contribution to their team's efforts.

16.3. Increased innovation

Johnson and Johnson is an excellent example of a firm that utilizes the team concept and has
a strong record of innovation. J&J is a multinational company structured around the concept
of small plants (no more than 250 employees) where everyone works in teams. Everyone is
allowed to experiment with the products and develop new uses. The result is that J&J has a
continuous stream of patent applications and has been successful in developing new products
in areas as diverse as baby products, body lotion, and face products

16.4. Organisational adaptation and flexibility

During the 1980s Ford was able to reduce its automobile design cycle by implementing Team
Taurus. Through the early involvement of employees from planning, designing, engineering,
and manufacturing, the company was able to eliminate some of the bottlenecks that had
delayed the design process. The involvement of suppliers and assembly workers helped to
decrease the number of parts involved and lower costs. Reducing the time from design to
manufacture helped Ford to be more responsive to market changes and increase its market
share in the 1980s and '90s.

Teams are not appropriate for all organizations or in all types of businesses. Behavioral
scientists are still working to determine exactly when teams will be most effective, what
motivates team members, what types of business can best benefit from the implementation of
teams, and so on. (Heap, 1996)

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17. CHALLENGES PRESENTED BY TEAMWORK
According to (Nel, Van Dyk, Haasbroek, Schultz, Sono, and Werner, 2006); the
implementation of teams is, fundamentally, an organizational change and development
process. Teams are, therefore, susceptible to all the challenges that can occur during any
organizational change process. In particular, employee resistance may result where
employees are required to work with other employees with whom they are unfamiliar and one
way in which this can be overcome is through teambuilding. Teambuilding attempts to
„improve group performance by improving communication, reducing conflict, and generating
greater cohesion and commitment among work group members‟.

Employee resistance may also result for other reasons. For example, teamwork may require
job enlargement. This often occurs when individuals are required to perform their
conventional roles as well as their team duties. In this situation, it may be necessary to either
reduce some of their duties or to change the system of compensation and rewards. Along with
job enlargement, teamwork is often associated with empowerment, ownership and added
responsibility. Managers often assume that individuals prefer to be involved in decision
making, rather than simply being told what to do. While this may be true in most cases, it is
not true in all cases. This may result in alienation for some employees, which may then lead
to job dissatisfaction, labour turnover and or decreased performance. While there is no simple
remedy for this problem, training or a change of position within the organisation may be
possible.

Another problem associated with teams occurs when the teams are not trusted enough to
make major decisions. As a result, teams and the organization to which they belong, are not
reaching their full potential. Where teams are required to seek permission before
implementing ideas, timeliness and ownership are reduced.
Innovation is also reduced as teams are forced to suggest solutions that are likely to be
accepted (Nahavandi and Aranda; 1994). Furthermore, team members may believe that
management is merely paying lip service to the fundamental ideas of teamwork. This will
almost certainly reduce employee morale.

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18. CONLUSION
To implement and support groups and work teams within an organization, considerable
organizational change needs to occur and many issues need to be considered. The changes
affect not only the group and team members, but also the roles of supervisors and managers,
the organisational structure, culture, work processes and methods, and social relationships.
Because of the depth and scope of these changes, the implementation of groups and work
teams is often a lengthy process which presents many challenges. However, it appears that
despite the challenges, groups and teams are able to provide a productive and conducive work

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19. REFERENCES
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Organisations, vol. 3, no. 1, pp. 13-25.

Carr, C. (1992), „Planning Priorities for Empowered Teams‟, Journal of Business

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Cronje, G.J.J., du Toit, G.S., Motlatla, M.D.C. and de Marias, A. (2003). Introduction to
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Gerber, P.D., Nel, P.S. and Van Dyk, P.S. (2001). Human Resource Management. 5th edition.
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Greenberg, J. and Baron, R.A.(2008). Behaviour in Organisations. 9th Edition. New Jersey:
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Gold, N. (2005) Teamwork: An Interdisciplinary Approach. New York: Palgrave Macmillan.

Ivancevich, J. M and Matteson, M. T. (1999). Organisational Behaviour and Management.

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Heap, N. (1996), „Building the Organisational Team‟, Industrial and Commercial

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Johnson, P., Heimann V. And O'Neill, K. (2001) "The 'Wonderland' of Virtual Teams."
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Stewart, G. L., Manz, C. C. and Sims, H. P. (2000) Team Work and Group Dynamics. New
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