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15.660 Strategic Human Resource ManagementEliciting EffortMini-LectureEffective Use of Team-Based SystemsWhat is a Team?Working Groups Versus TeamsCommon Team ResponsibilitiesCosts/Benefits of Using TeamsWhat is the role of the leader in a team-based system?What Effective Team Leaders DoTeam DevelopmentWhat types of skills and training are required for a team-based system?Training for Team EffectivenessEvidence on Team EffectivenessLessons Learned:Implementing Team-based SystemsSome Lessons Learned the Hard WayTakeawaysConclusion15.660 Strategic Human Resource ManagementMIT Sloan School of ManagementEliciting Effort? Pay? Benefits? Promotion? Monitoring? By Peers? By Management? CultureMini-LectureTeamsEffective Use of Team-Based Systems? What is a team-based system?? Costs and benefits of using teams?? What is the leader’s role in a team-based organization?? What skills are needed for teams to function effectively?? How can you introduce a team-based system?? Overall lessons learned?What is a Team?A team is a small number of peoplewith complementary skills who arecommitted to a common purpose,performance goals, and approachfor which they hold themselvesmutually accountable.A team is a small number of peoplewith complementary skills who arecommitted to a common purpose,performance goals, and approachfor which they hold themselvesmutually accountable.John Katzenbach and Douglas Smith, McKinsey & CompanyThe Wisdom of TeamsHarvard Business School Press, 1993Working Groups Versus TeamsWORKING GROUP? Strong, clearly-focused leader? Individual accountability? Group’s purpose is same as the organization’s? Individual work products? Runs efficient meetings? Measures performance in terms of larger firm? Discusses, decides, and delegatesTEAM? Shared leadership roles? Individual and mutual accountability? Specific purpose for which the team is responsible? Collective work products? Open-ended meetings for problem-solving? Performance measured on team products? Discuss, decide, and work togetherCommon Team Responsibilities? Quality improvement 100%? Cross-training 85%? Scheduling (Production) 80%? Safety 70%? Process improvement 70%? Measurement/goal-setting 75%? Budget/expense control 50%? Selection 55%? Coordination with others 50%? Customers and suppliers 60%? Performance appraisal 50%Manz and Sims (1993)Costs/Benefits of Using TeamsBenefits? Bring together complementary skills and experiences? Provides for flexibility? Social benefits: fun, commitment? Less resistant to changeCosts? Coordination costs? Personal discomfort and conflict? Diffusion of responsibility (free-riders and social loafing)? Risk seekingWhat is the role of the leader in a team-based system?• Ask questions• Get the group to solve problems• Promote real participation• Help resolve conflict• Train others• Positive reinforcement• Encourage high performance goals• Encourage self-evaluation• Tell the truth, even when it’s disagreeable• Liaison with higher managementWhat Effective Team Leaders Do? Keep purpose, goals, and approach relevant and meaningful? Build commitment and confidence? Manage the level and mix of skills? Manage relationships with outsiders? Create opportunities for others? Do real workTeam DevelopmentSSSSStart - upStart - up= SupervisorSMatureExperiencedTransitionalC. Manz & H. SimsBusiness Without BossesJohn Wiley, 1993What types of skills and training are required for a team-based system?Training for Team Effectiveness? Meeting skills, time management? Conflict management? Problem-solving, TQM? Group dynamics, team building? Change management? Coaching and feedback? Business knowledge (e.g., customer service) ? Technical skillsEvidence on Team Effectiveness? Cost savings (labor, materials) ? Productivity ? Quality? Customer service? Speed and cycle time? Innovation? Safety? Decreased absenteeism and turnover? Decreased worker’s compensation claimsPros and Cons of a Team-Based Approach?Pros and Cons of a Team-Based Approach?Pros ConsLessons Learned:Implementing Team-based SystemsHighPerformanceTeamRealTeamWorking GroupPsuedo-TeamPotentialTeamImpactTeam PerformanceSome Lessons Learned the Hard Way? Organizations often expect too much, too soon.? Things often get worse before they get better.? Managers and supervisors are threatened.? A new perspective on leadership is required. ? Need to begin with a clear philosophy and purpose.? Technical people often see themselves as losers.? Implementation needs careful planning.? Employees need technical and behavioral skills.? Greenfield sites are easier than retrofits.? Continuous training is essential.? Stability is crucial; turnover is deadly.? May need new systems - especially MIS.? Facilitation can help at the beginning.Takeaways? Teams need to be driven by a clear vision and purpose--why are we using them?? Training and group process skills are important for groups to succeed.? Team-based organizations need team-based systems, culture, and leadership--not just structure.Conclusion? Next Class:? Eastern


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