Motivation - Weeblymrpronan.weebly.com/uploads/3/7/8/3/37835975/moti… · Web viewExpectancy theory is the approach to motivation that attempts to explain behaviour in terms of an

MotivationMotivation Theories

Motivation is the willingness to put forth effort in pursuit of organisational objectives.

Taylorism – Taylor’s Scientific Management

Frederick Taylor wrote the book Principles of Scientific Management. In it he outlined his

view point that the scientific method, which provides a logical framework for the analysis

of problems, could be applied to the management process. The method consists of:

Defining the problem;

Gathering data;

Analyzing the data;

Developing alternatives;

Selecting the best alternative.

Taylor believed that the use of the scientific method would direct the manager to the most

efficient way work could be performed. Taylor’s philosophy is summarized as follows:

Taylor proposed applying the scientific method to the practice of management to

find the one best way to perform work.

He suggested the use of scientific approaches to select employees who are best

suited to perform a given job.

He advanced the proposition that employees should be provided with scientific

education, training and development.

He encouraged friendly interaction and cooperation between management and

employees, but with a clear separation of duties between managers and workers.

He advocated that managers take charge of all work that they are better prepared

to accomplish, ending the pattern of placing most of the work and the greater part

of the responsibility on the workers.

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Taylor believed that scientific management practices would benefit not only the employer,

through increased output, but the workers as well, through increased income.

Thus Taylor felt that workers were motivated purely by money. Thus he would advocate a

performance related pay structure in a services-oriented organisation, and a piece-rate

pay scheme (paid a certain fixed amount for very unit produced) in a manufacturing unit.

Question

The ideas and principles established by the well-known theorist F.W.Taylor have

implications for both operations and management even today. Describe briefly FIVE

of these ideas and principles.

Elton Mayo and the Hawthorne Effect

Elton Mayo and his associates conducted their famous Hawthorne studies in the 1920s

and 1930s at Western Electric’s Hawthorne facility, in Chicago, USA. Their research

demonstrated that the attitudes and feelings of workers significantly influence

productivity. This illogic of sentiments turned out to be just as important as Taylor’s logic

of efficiency.

The Hawthorne Effect is the hypothesis that workers were motivated and their

productivity improved by having their working conditions improved – paid lunch breaks,

shorter working hours and attention being paid to their work by management personnel.

Team spirit and group dynamics should be promoted.

People’s attitude should be analysed during recruitment process.

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Hawthorne Experiment

Elton Mayo’s team conducted a number of experiments involving six female workers. Over

the course of five years, Mayo’s team altered the female workers’ working conditions and

monitored how the change in working conditions affected the workers morale and

productivity. The changes in working conditions included changes in working hours, rest

brakes, lighting, humidity, and temperature. The changes were explained to the workers

prior to implementation.

Hawthorne Experiment Results

At the end of the five year period, the female worker’s working conditions, reverted back

to the conditions before the experiment began. Unexpectedly the workers morale and

productivity rose to levels higher than before and during the experiments. The

combination of results during and after the experiment (ie the increase in the workers

productivity when they were returned to their original working conditions) led Mayo to

conclude that workers were motivated by psychological conditions more than physical

working condition.

Hawthorne Experiment conclusions

After analysing the results from the Hawthorne experiments Mayo concluded that

workers were motivated by more than self interest and the following had an impact too:

1. Psychological Contract

There is an unwritten understanding between the worker and employer regarding what is

expected from them; Mayo called this the psychological contract.

2. Interest in Workers

A worker’s motivation can be increased by showing an interest in them. Mayo classified

studying the workers (through the experiments) as showing an interest in the workers.

3. Work is a Group Activity

Work is a group activity, team work can increase a worker’s motivation as it allows people

to form strong working relationships and increases trust between the workers. Work

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groups are created formally by the employer but also occur informally. Both informal and

formal groups should be used to increase productivity as informal groups influence the

worker’s habits and attitudes.

4. Social Aspect of Work

Workers are motivated by the social aspect of work, as demonstrated by the female

workers socialising during and outside work and the subsequent increase in motivation.

5. Recognise Workers

Workers are motivated by recognition, security and a sense of belonging.

6. Communication

The communication between workers and management influences workers’ morale and

productivity. Workers are motivated through a good working relationship with

management.

Conclusion

The traditional view of how to motivate employees is that you offer monetary rewards

(pay increases, bonuses etc) for work completion. However the Hawthorne experiments

may suggest that motivation is more complicated than that. Advocates of the "Hawthorne

Effect" will state that the Hawthorne experiment results show that motivation can be

improved through improving working relationships and social interraction.

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Maslow’s Hierarchy of Needs

Abraham Maslow stated that individuals are motivated to satisfy certain unsatisfied

needs. His theory of human motivation is based on the following assumptions:

Unsatisfied needs motivate or influence behaviour

Satisfied needs doe not motivate behaviour.

Needs are arranged in a hierarchy.

Needs at any level of the hierarchy emerge as a significant motivator only when the

lower-level needs are reasonably well satisfied.

Maslow’s advice to managers was to focus motivational efforts on the lowest-level

category of needs that is substantially satisfied.

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Maslow stated that an average person might be:

85% satisfied in physiological needs

70% satisfied in safety and security needs

50% satisfied in love and belonginess

40% satisfied in esteem needs and

10% satisfied in self-actualisation

The above information implies that the manager of the average person should pay

attention to the love and belonginess, and self-esteem needs.

Criticisms of Maslow’s Hierarchy of Needs

Certain studies suggest that needs fall into only two or three distinct categories, not

five.

Some critics say that the order of fulfilment may not always be the same.

According to Maslow, a need that has been relatively well satisfied ceases to

motivate. But this may not be true of self-esteem and self-actualisation needs.

Herzberg’s Two-Factor Theory6

He attempted to find out what motivated people at work

Hygiene Factors

Hygiene factors, Herzberg, stated were capable of creating dissatisfaction but not positive

motivation. They relate to the job context – the interrelated conditions in which the job is

done. These factors related to the bottom three levels of Maslow’s Hierarchy of Needs and

include:

Pay

Status

Security

Working conditions

Fringe benefits

Policies and administrative practices

Interpersonal relations

Herzberg concluded that hygiene factors cannot promote motivation but can cause

dissatisfaction. Herzberg suggested that an organisation that meets only the hygiene

needs of its employees will eliminate dissatisfaction but will not get superior

performance. 7

Motivators

Motivators include challenging work, recognition for accomplishment, and the feeling of

achievement. Herzberg’s motivators are concerned mainly with the job content (internal

to the job). They would be aligned to Maslow’s top two levels in the hierarchy of needs

and are as follows:

Meaningful and challenging work.

Recognition for accomplishment

Feeling of achievement

Increased responsibility

Opportunities for growth and advancement.

The job itself.

Herzberg contended that most managers give inadequate attention to the motivators,

focusing instead on employee pay, benefits, and working conditions. Hygiene factors tend

to be tangible and measurable. Motivators, on the other hand, are intangible and generally

unquantifiable.

But hygiene factors, Herzberg said, cannot produce positive motivation. To achieve

excellence, he believed, organisations must satisfy the needs related to both hygiene

factors and motivators. The obvious implication is that management should show

relatively more concern for providing challenging work, increased responsibility,

recognition and other motivators.

According to Herzberg, management should focus on rearranging work so that motivator

factors could take effect. He suggested three ways in which this could be done:

1. Job Enlargement

2. Job Rotation

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3. Job Enrichment

1. Job enlargement involves expanding the job of an employee that has them doing more

work of a similar nature to what they already do.

2. Job rotation involves allowing employees to change the nature of their job periodically.

3. Job Enrichment involves giving the job-holder more decision-making responsibility;

greater freedom about how the job should be done; Encourage employee feedback in the

planning process and be seen to reflect that feedback in real change; and give the

employee regular feedback

Question

Explain the relationship between Frederick Herzberg's dual (two) factor motivation theory and job enrichment

McGregor’s Theory X Theory Y

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Theory X is the assumption that people dislike work and responsibility, lack ambition and

creative ability and mainly want security and money. McGregor pointed out that

managers who hold such a view think they must coerce, control and threaten employees

in order to motivate them.

Theory Y is the assumption that expending physical and mental effort is natural; that

people can be self-directed if achievement brings rewards and that most can exercise

imagination, ingenuity and creativity and learn to seek responsibility.

Thus McGregor believed that employees do not require coercion or excessive control to

perform effectively.

Theory X managers may follow:

Centralised decision-making

Productivity is driven by threats to the labour force

Singular tasks set

Consistent monitoring of the workforce (narrow span of control)

Fixed working contracts and schedules

Loyalty/seniority is more valued.

Theory Y managers may follow:

Decentralised/ Participative decision-making

Job enrichment – level of responsibility given to the employees will be high.

Workers are seen as sources of innovation.

Low supervision of workers (wide span of control)

Flexible working practices

McClelland’s Needs Theory

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The research of David McClelland emphasises that certain needs are learned and socially

acquired as the individual interacts with the environment. McClelland’s needs theory is

concerned with how individual needs and environmental factors combine to form three

basic human needs:

Need for achievement

Need for Power

Need for affiliation.

Need for achievement – A person with a high need for achievement is one who:

Wants to take personal responsibility for finding solutions to problems.

Is objective-oriented.

Seeks a challenge and establishes moderate, realistic and attainable objectives that

involve risk but are not impossible to attain.

Desires concrete feedback on performance.

Has a high level of energy and is willing to work hard.

Need for Power – A high need for power means that an individual seeks to influence or

control others. Such an individual tends to be one whom

Is concerned with acquiring, exercising or retaining power or influence over others.

Likes to compete with others in situations that allow him or her to be dominant.

Enjoys confrontation with others.

Need for affiliation – A high need for affiliation is related to a desire for affection and for

establishing friendly relationships. A person with a high need for affiliation tends to be

one who:

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Seeks to establish and maintain friendships and close emotional relationships with

others.

Wants to be liked by others.

Enjoys social activities.

Seeks a sense of belonging by joining groups or organizations.

To varying degrees, each person possesses all three needs; however, one of the needs

tends to be more characteristic of the individual than the other two.

McClelland concluded that the most effective managers have:

High need for power

Moderate need for achievement

Low need for affiliation

These managers tend to use their power in a participative manner for the good of the

organisation. They have a moderate need for achievement, one not strong enough to

interfere with the management process.

Victor Vroom’s Expectancy Theory

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Expectancy theory is the approach to motivation that attempts to explain behaviour in

terms of an individual’s objectives and choices and the expectations of achieving the

objectives.

Vroom argued that when faced with alternative approaches to dealing with a certain task

individuals choose the option with the greatest motivation force.

Motivation force is composed of three parts:

1. Expectancy – refers to a person’s perception of the probability that effort will lead

to performance. A person who perceives that he or she will produce more by

working harder has a high expectancy that hard work leads to productivity.

2. Instrumentality – refers to a person’s perception of the probability that certain

outcomes, positive or negative, will be attached to performance. A person that

perceives he or she will receive greater pay or benefits for producing well has high

instrumentality.

3. Valence – refers to a person’s perception of the value of the projected outcomes –

that is, how much the person likes or dislikes receiving those outcomes.

An individual with high esteem needs generally will attach a high valence to a new

job title or a promotion.

An individual with strong security needs will value pension and retirement

programs or the awarding of tenure.

An individual with self-actualization needs will view challenging jobs or increased

responsibility as motivating because of the high valence.

Motivation = Expectancy x Instrumentality x Valence

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Question

Expectancy Theory has several implications for managers. Suggest two.

Adams’ Equity Theory

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Equity Theory is the motivation theory that people assess their performance and attitudes

by comparing both their contribution to work and the benefits they derive from it to the

contributions and benefits of comparison others whom they select and who in reality may

be like or unlike them.

Equity Theory further states that a person is motivated in proportion to the perceived

fairness of the rewards received for a certain amount of effort as compared to what others

receive.

“I’m going to stop working so hard – I work harder than Susan and she gets all the bonuses”

According to Equity Theory, individuals are motivated to reduce any perceived inequity.

They strive to make the ratios of outcomes to inputs equal.

When inequity exists, the person making the comparison strives to make the ratios equal

by changing either the outcomes or the inputs.

Psychological Contracts

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A psychological contract exists between individuals in an organization and the

organization itself. Handy suggested that they are based on what each party wants and

what they are prepared to give for it.

Three types of psychological contract can be identified:

1. Coercive contract – this is a contract in which the individual considers that they

are being forced to contribute their efforts and energies involuntarily, and that the

rewards they receive in return are inadequate compensation.

2. Calculative contract – this is a contract, accepted voluntarily by the individual, in

which they expect to do their job in exchange for a readily identifiable set of

rewards. With such psychological contracts, motivation can only be increased if the

rewards to the individual are improved. If the organization attempts to demand

greater efforts without increasing the rewards, the psychological contract will

revert to a coercive one, and motivation may become negative.

3. Co-operative contract – this is a contract in which the individual identifies

themselves with the organization and its goals, so that they actively seek to

contribute further to the achievement of those goals. Motivation comes out of

success at work, a sense of achievement, and self-fulfilment.

Psychological contracts are particularly relevant when considering staff turnover and

retention rates. Employees are more likely to stay and be loyal to an organization where

they perceive to have a co-operative contract rather than a coercive one.

Question

An individual employee's productivity level is influenced by a number of factors including those within the control of the organisation and those unique to a particular individual. Describe briefly FIVE factors unique to a particular individual that are likely to influence an employee's productivity

Reward Systems Intrinsic and extrinsic rewards

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Employee rewards are usually classified under two broad headings i.e. intrinsic rewards

and extrinsic rewards. Intrinsic rewards spring from the job itself and include things such

as autonomy, responsibility and challenge. Extrinsic rewards are more tangible in nature

and include pay, job security and working conditions. The relative importance of intrinsic

over extrinsic rewards and vice versa is a much debated area, rooted in the various

theories of motivation.

An organisation’s reward system will attempt to incorporate the motivational principles

underlying the various theories in an attempt to improve or reinforce performance.

Lawler (1977) concluded that five key factors influence satisfaction with a reward:

Satisfaction with a reward depends on the amount received versus the amount the

individual feels he or she should receive

Comparisons with what happens to others influence people’s feelings of satisfaction

Employees’ satisfaction with both the intrinsic and extrinsic rewards received from

their jobs affects overall job satisfaction; individuals who are dissatisfied with the

reward system are likely to express dissatisfaction with the jobs overall.

People differ widely in the rewards they desire and in what value they attach to

those rewards. Effective reward systems should meet workers’ needs

Many extrinsic rewards satisfy workers only because they lead to other rewards; for

example, increased pay may satisfy because of what it can buy

Contribution of an effective reward system to strategy achievement

Armstrong (1991) highlights a number of areas where an effective reward system can

make a significant contribution to the achievement of corporate and functional objectives:

Develop a positive culture

Underline the organisation’s values, especially those concerned with excellence,

performance, teamwork and quality

Convey a message to prospective high-calibre employees that the organisation will

satisfy their reward expectations

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Ensure that the right mix and levels of reward are provided in line with the culture

of the organisation, the needs of the business, the needs of employers and economic,

competitive, and market environment in which the business operates

Link reward policies, systems and procedures to the key business and human

resource strategies for innovation, growth, development and the pursuit of

excellence.

Develop a strong orientation towards the achievement of sustained high levels of

performance throughout the organisation by recognising successful performance

and increases in levels of competence, contributing to the process of improving,

enhancing and energising all employees

Indicate to existing employees what types of behaviour will be rewarded and how

this will take place, thus increasing motivation and improving performance.

Factors influencing reward levels There are many factors, which influence the type of reward system found in an

organisation.

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1. Comparable rates/levels elsewhere: these influence an organisation’s ability to

attract and retain employees

2. Labour market conditions: if the labour market exhibits tight properties e.g. skill

shortages, limited labour mobility, this tends to push wages upwards. The converse

occurs in situations where the labour market is loose and where a skills surplus

exists

3. Government action: will assert a strong influence on pay levels, both indirectly

through incomes policy and directly through what state/public sector employees

are paid

4. Organisational/technology change: organisations with advanced technology tend

to emphasise group payment systems, and organisations may use financial rewards

in order to get changes introduced

5. Existing differentials/ custom and practice: categories of employees will be

anxious to maintain their differential

6. Supranational body like European Union: the EU particularly through legislative

and equality initiatives may have a strong influence here when devising pay rates

7. Bargaining strength of trade union: the greater the trade union influence in an

organisation, the stronger will be its ability to influence both the type of payment

system and the level of payment received

8. Organisation’s ability to pay: many national pay agreements and plant level

agreements have ‘ability to pay’ clauses included in them. This may result in certain

negotiated increases not being paid.

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Characteristics of different payment systems The money, which a person receives for carrying out work is a major source of motivation

and therefore it is imperative that the organisation maintains an appropriate and

equitable wage and salary structure. A pay structure consists of the rates paid for jobs

within an organisation. The ideal structure should have the minimum number of grades

required to accommodate the differentiated levels of skill and responsibility that exist in

the organisation.

Pay is part of the reward system and can be a motivator in certain circumstances.

However, this depends on the value individuals ascribe to pay and the way in which

incentive schemes are implemented. Pay is usually considered a hygiene factor.

Employees need an income to live and most probably have two basic concerns – to earn

enough money and that their pay should be fair.

Payment Systems

At the organisational (strategic) level, payment systems have the following goals.

Aid recruitment

Retain employees

Reward employees for performance

At the managerial level, payment systems are used to:

Attract and retain staff of a suitable quality

Reward and motivate employees fairly and consistently

Further the organization’s objectives by providing competitive rewards

Encourage performance and progression through development

Recognize non-performance factors such as skill and competence

Ensure salary costs are controlled.

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The assumption behind most payment systems is that money is the prime motivating

factor. As Herzberg suggested it is more likely to be a cause of dissatisfaction. As

expectancy theory indicates, pay is only likely to motivate a worker to improved

performance if there is a clear and consistent link between performance and monetary

reward and if monetary reward is valued.

Pay differentials are often key to determining salaries for employees. To calculate pay

differentials an organization should refer to market rates for the roles and decide a policy

of how its pay levels will reflect the market rate. The points-factor evaluation scheme and

ranking/market method may be used in determining pay rates.

Types of Financial Reward

1: Salary

A salary is a form of periodic payment from an employer to an employee, which may be

specified in an employment contract. It is contrasted with piece wages, where each job,

hour or other unit is paid separately, rather than on a periodic basis. From the point of a

view of running a business, salary can also be viewed as the cost of acquiring and

retaining human resources for running operations, and is then termed personnel expense

or salary expense. In accounting, salaries are recorded in payroll accounts.

2: Wages

A wage is monetary compensation (or remuneration) paid by an employer to an employee

in exchange for work done. Payment may be calculated as a fixed amount for each task

completed (a task wage or piece rate), or at an hourly or daily rate, or based on an easily

measured quantity of work done.

3: Commission

The payment of commission as remuneration for services rendered or products sold is a

common way to reward sales people. Payments often will be calculated on the basis of a

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percentage of the goods sold. This is a way for firms to solve the principal–agent problem,

by attempting to realign employees' interests with those of the firm.[1]

4: Profit-related Pay

Profit-related pay exists where there is an element of reward linked to some definition of

profit and where both will rise and fall together. Although group-based, the expectation is

that such schemes will improve employee motivation. This will be done directly by the

incentive to produce more to raise profits, but also by educating employees in the role of

markets, costs and prices.

5: Fringe Payments

Employee benefits and benefits in kind (also called fringe benefits, perquisites, or perks)

include various types of non-wage compensation provided to employees in addition to

their normal wages or salaries.[1] In instances where an employee exchanges (cash) wages

for some other form of benefit is generally referred to as a 'salary packaging' or 'salary

exchange' arrangement. In most countries, most kinds of employee benefits are taxable to

at least some degree.

Examples of these benefits include: housing (employer-provided or employer-paid),

group insurance (health, dental, life etc.), disability income protection, retirement

benefits, day-care, tuition reimbursement, sick leave, vacation (paid and non-paid), social

security, profit sharing, funding of education, and other specialized benefits.

6: Incentive Schemes

The purpose of incentive schemes is to improve performance by linking it to reward. It is

believed that performance incentives take effect in several ways.

Staff members’ effort and attention are directed to where they are most needed –

performance

Commitment and motivation are enhanced. This is particularly important when

there are cultural obstacles to improvement.

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Achievement can be rewarded separately from effort, with advantages for the

recruitment and retention of high quality employees.

A further advantage is that labour costs are linked to organizational performance.

Schemes may be based on individual performance or on group performance.

There are three main types of incentive scheme:

Performance related pay (prp)

Bonus schemes

Profit-sharing

(a) Performance related pay

The most common individual PRP scheme for wage earners is straight piecework;

payment of a fixed amount per unit produced, or operation completed. The SMART

criteria should be applied:

Key results will be identified and specified, for which merit awards will be paid

There will be a clear model for evaluating performance and knowing when, or if,

targets have been reached and payments earned.

The exact conditions and amounts of awards can be made clear to the employee, to

avoid uncertainty and later resentment.

For service and other departments, a PRP scheme may involve bonuses for achievement

of key results, or points schemes, where points are awarded for performance on various

criteria. However, Otley discovered that employees become de-motivated if they fail to

meet targets, resulting in a high degree of performance reduction.

(b) Bonus schemes

Bonus schemes are supplementary to basic salary, and have been found to be popular

with entrepreneurial types, usually in marketing and sales. Bonuses are both incentives

and rewards.

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Group incentive schemes typically offer for a group, which achieves or exceeds specified

targets. Typically, bonuses would be calculated monthly on the basis of improvements in

output per man per hour against standard, or value-added.

(c) Profit sharing schemes and employee shareholders

Profit-sharing schemes offer employees perhaps in the form of shares in the company,

related directly to profits. The formula for determining the amounts may vary, but in

recent years a straightforward distribution of a percentage of profits above a given target

has given way to a value-added related concept.

Profit sharing is in general based on the belief that all employees can contribute to

profitability and that that contribution should be recognized. If it is, the argument runs,

the effects may include profit-consciousness and motivation in employees, commitment to

the future prosperity of the organization and so on.

The actual incentive value and effect on productivity may be wasted, however, if the

scheme is badly designed.

a) A perceivably significant sum should be made available to employees once

shareholders have received appropriate return on their investment

b) There should be a clear, and not overly delayed, link between performance and

reward.

c) The scheme should only be introduced if profit forecasts indicate a reasonable

chance of achieving the target.

d) The greatest effect on productivity arising from the scheme may in fact arise from

its use as a focal point for discussion with employees, about the relationship

between their performance and results as well as areas and targets for

improvement.

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Difficulties associated with incentive schemes

Incentive schemes have the following potential difficulties:

1. Increased earnings simply may not be an incentive to some individuals. An

individual who already enjoys a good income may be more concerned with

increasing leisure time.

2. Workers are unlikely to be in complete control of results: external factors such as

general economic climate, interest rates and exchange rates may play a part in

profitability. In these cases, the relationship between an individual’s efforts and

their reward may be indistinct.

3. Greater specialisation in production processes means that particular employees

cannot be specifically credited with the success of particular products. This may

lead to frustration amongst employees who think their own profitable work is being

adversely affected by inefficiencies elsewhere in the organisation.

4. Even if employees are motivated by money, the effects may not be altogether

desirable. An instrumental orientation may encourage self-interested performance

at the expense of teamwork. It may encourage quantity over quality and a drive for

lowering standards so that targets are met.

5. It is often all too easy to manipulate the rules of the incentive scheme, especially

where there are allowances for waiting time, when production is help up by factors

beyond the control of the people concerned.

6. Poorly designed schemes can produce labour cost increases out of proportion to

output improvements.

Question

Identify one type of employee you would expect to be paid with each of these systems.7.

System Example of employeeFlat rate only Individual incentive Group incentive Company wide incentive Merit rating Gain sharing Piecework

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Types of non-financial rewards

Job redesign, rotation, enlargement and enrichment

a) Job redesign aims to improve performance through increasing the understanding

and motivation of employees. Job redesign also aims to ensure that an individual’s

job suits them in terms of what motivates them and their need for personal growth

and development.

b) Job rotation allows for a little variety by moving a person from one task to another.

Employees often do this spontaneously. Job rotation permits the development of

extra skills, but does not develop depth of skill.

c) Job enlargement increases the width of the job by adding extra, usually related,

tasks. It is not particularly popular with workers.

d) Job enrichment increases the depth of responsibility by adding elements of

planning and control to the job, therefore increasing its meaning and challenge. The

worker achieves greater autonomy and growth in the role.

Team working and empowerment

Empowerment involves giving people greater control over their working lives. Organising

the labour force into teams with a high degree of autonomy can achieve this. This means

that employees plan their own work, take their own decisions and solve their own

problems. Teams are set targets to achieve and may receive rewards for doing so.

Empowered teams are an increasingly popular method of organising employees at work.

Question

Discuss what an organisation could do to motivate its workforce without offering

financial incentives

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Teamwork

A team meets the following criteria:

The output of the group is greater than the sum of the outputs of the individuals e.g.

a team can engage in creative processes (idea generation) far more effectively than

a collection of individuals;

A greater range of options can be considered by exploiting differences in individual

thought processes

Decision-making by the team is likely to be better

Other characteristics of teams include:

More openness to taking risks, as the risk is shared between the team rather than

carried by one individual

Higher overall level of motivation, as there is an inherent responsibility to others in

the team and a desire not to let them down

Better support for the individuals within the team, who are more likely to be

included in a greater range of activities than they would normally be exposed to, but

without them having to work alone.

Typically, a team consists of 2 to 20 people, though most managers recognize that

effectiveness will decrease once the numbers go above 10.

Life cycles of Teams Stage Characteristics Collection The bringing together of individuals into a

group with a collective task or problem to solve. The participants have a degree of eagerness and initial enthusiasm and generally rely on the authority and hierarchy to provide a degree of certainty in this uncertain environment. They will use

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this initial phase to establish themselves and find what is expected of them

Entrenchment As the group starts work they begin to find out where each person stands on various issues. The entrenchment comes when people arrive with pre-conceived ideas as to how the project should be proceeding and are unwilling to be persuaded of the merits of allowing the group to decide on the course of action. This phase can be very destructive and is generally fairly unproductive. The reasons for this unproductiveness are issues such as disillusionment with the goals of the project, competition for power or attention within the group, or general confusion as the work being undertaken bears little relationship to the goals of the project.

Resolution/accommodation The disagreements begin to be resolved, and characteristics such as mutual trust, harmony, self-esteem and confidence are seen. This is where the team starts to put the negative social effects aside and move to being more productive.

Synergy Based on Ansoff (1969) synergy is defined as the output of the whole is greater than what would be obtained from the component parts, otherwise stated as 2+2=5. This is the peak of effectiveness of the team, leadership is shared, and there is a new motivation to complete the tasks at hand.

Decline At some point the team will hit an event when its effectiveness starts to decline – this can be through the nature of the task being undertaken not changing or the focus of the activities being allowed to move towards a social group.

Break-up If this occurs naturally before the task is finished, there can be problems in getting a new team to take up the remaining work. They will be expected to get ‘up to speed’ very quickly and have an additional pressure on them. Where the group finishes its task and it is during one of the earlier stages of development, either in resolution

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or synergy, the effects on future projects can be highly beneficial as the participants go away with good memories of the work they have done

Effective Teamwork

Larson and Lafasto (1989) identify eight characteristics, most of which are under the

control of the project manager, which can ensure that project success, at least as far as can

be managed through the team, is achieved. These are:

1. A clear, elevating goal – a sense of mission must be created through the

development of an objective which is understood, important, worthwhile and

personally or collectively challenging;

2. Provide a results-driven structure – the structure and composition of the team

should be commensurate with the task being undertaken

3. Competent team members – need to balance personal with technical competence

4. Unified commitment – create the environment of ‘doing what has to be done to

succeed’

5. Foster a collaborative climate – encourage reliance on others within the team

6. Standards of excellence – through individual standards, team pressure, knowledge

of the consequences of failure;

7. External support and recognition – where good work is performed, recognize it.

It is likely to be absent from the other stakeholders, so will be the responsibility of

the project manager to provide it

8. Institute principled leadership

Question

29

Suggest four problems associated with team activities

30