Decades ago, when companies such as W. L. Gore, Volvo, and General Foods introduced teams into their production processes, it made news because no one else was doing it. Today, it’s just the opposite. The organization that doesn’t use teams has become newsworthy. Teams are everywhere. How do we explain the current popularity of teams? As organizations have restructured themselves to compete more effectively and efficiently, they have turned to teams as a better way to use employee talents. Teams are more flexible and responsive to changing events than traditional departments or other forms of permanent groupings. They can quickly assemble, deploy, refocus, and disband. But don’t overlook the motivational properties of teams. Consistent with our discussion in Chapter 7 of employee involvement as a motivator, teams facilitate employee participation in operating decisions. So another explanation for their popularity is that they are an effective means for management to democratize organizations and increase employee motivation. The fact that organizations have turned to teams doesn’t necessarily mean they’re always effective. Decision makers, as humans, can be swayed by fads and herd mentality. Are teams truly effective? What conditions affect their potential? How do members work together? These are some of the questions we’ll answer in this chapter.
1 Analyze the growing popularity of teams in organizations.
Why Have Teams Become So Popular?
Differences Between Groups and Teams