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Team Effectiveness and Reward Structures
Transcript of Team Effectiveness and Reward Structures
and Reward Structures J. Richard Hackman
Department of Psychology
Harvard University Why Teams Don't Work "Research evidence shows that teams usually do less well - not better - than the sum of their members."
- Hackman p. 246 Teams vs. Individuals Actual Productivity AP= PP - PL
Actual Productivity = Potential Productivity - Process Losses Potential Productivity
Resources Process Losses
Loss of Synergy (Steiner, 1972) Actual Productivity AP= PP - PL + PG
Actual Productivity = Potential Productivity - Process Losses + Process Gains Process Gains
Synergistic Benefits (Hackman, 246) Mistakes that Managers Make Why do some teams work while others do not? "It is a mistake - a common one and often a fatal one -to use a team for work that requires the exercise of powers that reside within and are best expressed by individuals human beings"
- Hackman p.249 Mistake 1: Use a Team for Work That is Better Done by Individuals "Creating and launching real teams is a significant challenge in organizations such as airlines that have deeply rooted polices and practices that are oriented primarily towards individuals rather than teams."
-Hackman p. 250 Mistake 2: Call the Performing Unit a Team but Really Manage Members as Individuals "To maintain an appropriate balance of authority between managers and teams requires that anxieties be managed rather than minimized."
-Hackman p. 251 Mistake 3: Fall Off the Authority Balance Beam Structuring a Cohesive Group Mistake 4: Dismantle Existing Organizational Structures So That Teams Will Be Fully "Empowered" to Accomplish the Work Key Supports Mistake 5: Specify Challenging Team Objectives, but Skimp on Organizational Supports "A strict hands-off stance, however, can limit a team's effectiveness when members are not already skilled and experienced in teamwork..."
- Hackman p. 254 Mistake 6: Assume That Members Already Have All the Skills They Need to Work Well as a Team The Obstacles Roots of Obstacles Do not upset the corporate "applecart!" The Corporate Obstacle Instructive Failures The Co-Op Obstacle "When direction is absent or unclear, members may wallow in uncertainty about what they should be doing and may even have difficulty generating the motivation to do much of anything."
-Hackman p.251 Sustain member motivation
Small group (as small as possible)
Clear and explicit norms Reward System
Material resources "...an unsupportive organizational context can undermine even teams that are otherwise quite well directed and well structured." Coaching
End Endless debates
Equity and Equality vs. Delegation
Ideological Considerations Rhetoric and Training
Form "Real " Teams ...one typically sees encouraging results early in the lives of the new teams, followed by a gradual diminution of both team performance and member commitment as the teams encounters obstacles rooted in longstanding and team-unfriendly organizational arrangements.
-Hackman p. 260 Institutional forces - Too similar over time (DiMaggio & Powell, 1983; Zucker, 1977) "Countering institutional forces is not management as usual. Nor do such forces yield gracefully to planned organizational change programs of the flipchart and to-do-list variety"
-Hackman p. 261 Structure
Education and Information systems
Team Friendly Rewards What it Takes Who Decides?
Who is responsible?
Opportunity Structure Fostering Team Effectiveness Stabilized Approach Thinking about Teams Differently The Folly of Rewarding A, While Hoping for B - The extent to which this occurs depends on the perceived attractiveness of the rewards offered Organisms seek information concerning what activities are rewarded, and then seek to do those things. Nevertheless, many reward systems exist that do not reward desired actions and even reward undesired actions. - Occurs in society, organizations, and profit making firms. "To be stabilized on approach is to have basic conditions established such that the natural course of events leads to the desired outcome..."
-Hackman p. 265 Individuals seek to establish simple, quantifiable standards to measure and reward performance.
Can work for highly predictable areas within an organization.
But are likely to cause goal displacement when applied anywhere else. Why Does This Occur? 1) Fascination with an “Objective” Criterion 2) Overemphasis on Highly Visible Behaviors Qualities that are not highly visible or hard to measure are not emphasized.
i.e. teamwork, creativity 3) Hypocrisy
Rewarders publicly claim they want one thing but actually reward another
Consideration of other factors can prevent the establishment of a system which rewards behaviors desired by the rewarder Why Does This Occur? Class Examples Is your case caused by:
1) Fascination with an “objective” criterion
2) Overemphasis on highly visible behaviors
4) Politics Members of organizations and society possess divergent goals and motives.
Therefore, it is unlikely that managers and their subordinates will seek the same outcomes.
3 remedies Modern Organization Theory 1) Selection
- Organizations can try to employ only those individuals whose goals and motives are wholly consonant with those of management.
- Very little evidence this can be successful
- Through training and socialization one can alter employee goals to make them align with management
- Very little evidence this can be successful Remedies 3) Change Reward System
- You are an OD Practitioner and the managers are complaining that their workers are not motivated. What might be your first step? Questions? Steven Kerr
Ohio State University