Evaluate Successful TeamBased Businesses

Lesson Plan: BMM D7-7

Anticipated Problems
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What is a team-based business? What are the optimal conditions for a team-based business? What are some important characteristics of successful team-based businesses?

Terms
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interpersonal processes organizational context purpose self-managing work team team-based business Team Culture Readiness Survey team performance team values and culture work team
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Team-Based Business
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A work team is an organized group of people in which there is a defined membership with distinguishing boundaries, mutual goal(s), a shared purpose, and interdependence for achieving goals.

Work Teams
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Work Teams have evolved in the United States over the past 70 years.

History of Work Teams

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1940s: Kurt Lewins group dynamic studies and the National Training Laboratories in Bethel, Maine provided a remarkable impetus for the use of teamwork in organizations.

History of Work Teams

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50s and 60s: Team building proliferated in organizational sublevels.

middle managers improve group morale functioned in groups they supervised

History of Work Teams

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70s and early 80s: Economic recession:

companies flattened and cut costs eliminated middle management management functions displaced into teams

History of Work Teams

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90s: Self-managed work teams

technology industry capable of achieving strategic goals positive impact on bottom line (Leonard & Freedman, 2000)

History of Work Teams

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Today, 80 percent of Fortune 500 companies employ half of their employees in work teams.

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History of Work Teams

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Today/Present: In a self-managing work team , the

manager determines the overall purpose or goal of the team, but the team is at liberty to determine the methods by which goals are achieved (Timmerman & Scott -2006).

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History of Work Teams

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Today/Present: A team-based business is structured to

give autonomy, decision-making, and authority to teams so they are able to achieve the business mission, vision, and goals.

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Traditional Organizations
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Characteristics of traditional organizations

Many management levels Policy-/procedure-based Top-down performance appraisal Autocratic leadership

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Team-Based Organizations
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Characteristics of team-based organizations

Few management levels Values/principals-based 360-degree feedback Participative leadership

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Key Barriers in the Transition

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BarriersIn the transition from a traditional to a team-based business, the barriers are:
Unwillingness of managers to relinquish power Unwillingness of employees to accept responsibility

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Key Barriers in the Transition

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Barriers (contd) The Team Culture Readiness Survey

(Bergmann 2000) is an instrument that examines an organizations readiness to operate as a team-based organization.

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Preconditions in the Transition

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Key conditions can be measured:

A clear definition established Adequate monetary and time resources Horizontal lines of communication between teams replace the previous vertical A shift in decision-making and power

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Key Characteristics for Success

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The team effectiveness worksheet (Winum 2000) measures the extent of successful team experiences in the areas of
purpose interpersonal processes team culture and values organizational context team performance

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Key Characteristics for Success

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Purpose is a clear understanding of why the team has come together.

objectives are measurable aligned with organizational mission clearly comprehended by all members share a commitment to a clear/common goal

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Key Characteristics for Success

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Interpersonal processes are the ways in which teammates interact while working and how they get along.
constructive methods resolve team conflicts communicate openly leadership is facilitated by members

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Key Characteristics for Success

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Team values and culture are those beliefs that the team finds important and the ways in which members conduct themselves based on those shared beliefs.
positive team spirit identifies and exhibits core values greater interdependence and synergy cohesion and trust

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Key Characteristics for Success

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Organizational context is the way the team fits into the larger organizations mission and goals.
effective communication and coordination management practices do not negatively affect team decisions consistent with the companys business strategy operates in alignment with the larger context of the organizations vision and values.
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Key Characteristics for Success

Team performance is the degree to which the team meets its mission, purpose, and goals. For example:
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results are meaningful to the organization measuring & tracking performance results synergy (team performs better than the sum of its individuals would perform)

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Review
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In a self managing work team who determines the overall purpose or goal? Compare and contrast a traditional business with a team-based business. What five areas determine the readiness of an organization to transition to a team-based system?

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