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The Effect of Self-Managing Teams

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Why Examine Self-Managing Teams?How Self Managing Teams FunctionPotential Advantages and DrawbacksAdvantagesDrawbacksA Study of Teams in ClubsPurposeParticipantsSample Selection, Strategy, And ProceduresDemographicsTitleLocationClub TypeMarital StatusOwnershipTime Planning to Stay at ClubOrganizational TenureMembership SizeHours WorkedEducationGenerationAttendance at Board or Committee MeetingsGenderFrequency of Evaluation or Performance ReviewInstrumentationTraditionally Managed TeamsSelf-Managing TeamsCommitmentValidityReliabilityFindings and DiscussionRecommendations for Future Study and ConclusionWorks CitedThe Effect of Self-Managing Teams on Manager Commitment and Organizational Tenure in Private Clubs Edward A. Merritt California State Polytechnic University, Pomona Dennis E. Reynolds Cornell University With the time, effort, and cost involved in developing self-managing teams, we conducted an empirical study of the private club industry to help determine whether differences exist in terms of organizational tenure and commitment between managers who use self-managing teams and managers who use traditionally managed teams. Findings suggest that managers who use self-managing teams are more committed to the private club industry than managers who use traditionally managed teams and that managers who use self-managing teams enjoy increased organizational tenure over managers who do not use them. Why Examine Self-Managing Teams? A survey of Fortune 1000 firms in 1997 revealed that just seven percent of the workforce was organized into self-managing teams. However, one half of the organizations stated that they would be implementing self-managing teams during the next five years (Dumaine, 1998). Such a response suggests that this self-managing team concept is worth investigating. Teams have existed successfully within private clubs for years. However, we have noticed an increase in today’s management literature, which extols the virtues of self-managingteams as being the wave of the future. After examining the advantages as well as the drawbacks to self-managing teams, we examined whether, from a management perspective, self-managing teams in private clubs are worth the effort. Reviews of the literature on self-managing teams conducted by Goodman, Devadas, & Hughson (1998) and Pearce & Ravlin (1987) suggest that self-managing teams lead to enhanced organizational effectiveness. Some longitudinal case studies of organizations that implemented self-managing teams found improvements in commitment and performance (e.g., Goodman, 1979; Hackman, 1990; Walton, 1977). However, much of the evidence is anecdotal. Only a small number of experimental or quasi-experimental field studies have been conducted to evaluate the worth of self-managing teams. Pasmore (1978) describes a study whereby self-managing teams were introduced into one unit, and jobs were enriched in the other unit at a food company. Job satisfaction increased in both units; however, only self-managing teams demonstrated a productivity increase. Wall (1986) conducted a longitudinal study at a U.K. food company which found that employees in self-managing teams were more satisfied than employees in traditionally managed work teams. However, there was no difference in commitment or performance. Cordery, Mueller, and Smith (1991) found that employees in self-managing teams over time were more satisfied and had higher commitment than employees in traditionally managed teams. Cohen and Ledford (1991) found that self-managing teams had higher job satisfaction and were rated more effective by management than employees in traditionally managed teams. No differences were found in commitment or performance. Before we examine potential advantages and drawbacks of self-managing teams, we will introduce a framework for how self-managing teams function.How Self Managing Teams Function Self-managing teams combine the attributes of formal and informal teams. Generally chartered by management, they often take on lives of their own as team members take responsibility for their day-to-day workings. In self-managing teams much of the responsibility and authority for making management decisions are turned over to a group of people who perform interdependently in order to accomplish an assigned task (Katzenbach, 1993). The overarching goal of self-managing teams is to find solutions to problems. Self-managing teams are often associated with terms describing high performance and autonomy. Perhaps the most self-managing of self-managing teams is the concept of self-directed work teams (SDWTs). A self-directed work team is an intact group of employees responsible for an entire work process or segment that delivers a product or service (Wellins, 1991). We pay special attention to this type of self-managing team because many club managers are searching for ways to cut costs without cutting service. SDWTs may reduce the need for extra layers of management and thus can help control costs. They also provide flexibility, facilitate communications, and reduce bureaucracy in order to anticipate or respond to member needs. Potential Advantages and Drawbacks Advantages As noted earlier, self-managing teams offer a number of potential advantages over traditionally managed teams, including stronger commitment, improved quality, enhanced efficiency, and faster product and service development. Moreover, some research suggests moresatisfied employees, lower turnover, and lower absenteeism. Having team members cross-trained to do various jobs increases the flexibility of the team in dealing with personnel shortages. Their knowledge of work processes helps team members solve problems and develop improvements. Drawbacks For all of their apparent advantages, self-managing teams suffer certain limitations. Here is a non-exhaustive list of some of the noteworthy drawbacks: - Self-managing teams are difficult to implement, and they risk failure when used in inappropriate situations or without sufficient leadership and support (Hackman, 1986). - A ruling by the National Labor Relations Board (NLRB) regarding teams making decisions regarding pay and security (Robbins, 1996) suggests that management groups must allow teams considerable discretion with regard to the composition and selection of members, the latitude of issues to be handled, and the continued existence of the team. - Some organizations have been disappointed with the results from


The Effect of Self-Managing Teams

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