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9.1: The Value of Teams in Business; Why Teamwork Matters

  • Page ID
    134877
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    Learning Objectives
    • Explain the value of teamwork and collaboration in business communication

    Understanding Teams and Groups

    Businesses rely on teams to achieve goals, especially as more organizations become virtual and global. Unlike groups, which share a common interest but lack collective accountability, teams have mutual responsibility for achieving goals. For example, an accounting department is a group, while a committee standardizing financial procedures is a team.

    team inside an office
    Figure 9.1.1 : Team Members

    Types of Teams

    Organizations use various types of teams to accomplish goals. Below are some common workplace teams and their characteristics.

    Cross-Functional Teams

    A cross-functional team is just what it sounds like—a team that pulls its members from across different areas of an organization. For example, cross-functional teams may include employees from production, sales, marketing, finance, and legal. Because its members have different backgrounds, education, and experience, cross-functional teams are typically adept at problem solving and decision making.

    Cross-functional teams may be used to implement new solutions in the workplace. For example, a group of instructors want to use grant money to purchase security cameras for their classrooms. To avoid unexpected difficulties and pitfalls, the instructors invite representatives from Campus Engineering and IT Security to join their team. Without this cross-functional team, the teachers might have overlooked the special electrical considerations or the special campus security software that must be installed. Including other departments leads to greater project success.

    Unfortunately, the very factors that give cross-functional teams strength can also lead to weaknesses. Without a strong leader and specific goals, teams may find it difficult to foster social cohesion and to create a system of accountability.

    Self-Managed Teams

    A self-managed team is a group of employees that is responsible for all or most aspects of generating a product or delivering a service. Traditional organizations assign tasks to employees depending on their skills or functional department (sales, finance, production). A self-managed team carries out the supporting tasks as well, such as planning and scheduling the technical workflow, and human-resource tasks such as managing paid time off. Team members may take turns leading and assuming technical responsibilities.

    An example of a self-managed team is a remote group of engineers that double-checks technical sales data. Rather than wait for a supervisor to assign tasks to the group, the group manages job assignments based on availability and skills. The group then works with project managers to implement solutions, again based on the team's rather than a supervisor's decision. Team members handle any difficulties or disagreements themselves.

    Because of the autonomy given to self-managed teams, members have greater ownership of the jobs they perform. Some benefits of self-managed teams are that team members share accountability for what they accomplish, individuals have greater commitment to the task because they’re responsible for its results, and team members take on some of their manager’s work so he or she can work on other tasks.

    However, self-managed teams are not without problems. Groupthink occurs more frequently with these teams. Members may struggle during the transition from supervisor-led management to self-management for a variety of reasons, including lack of interpersonal and managerial skills. Not surprisingly, the most effective self-managing teams are found in companies where the corporate culture supports democratic decision making, and the employees are generally well-educated.

    Task Forces

    A task force is a group or committee, usually of experts or specialists, formed for analyzing, investigating, or solving a problem. It is usually formed to address a specific problem or event, and once the job is done, the task force is disbanded. Task force team members provide solutions and support; they also suggest preventative measures to ensure the problem does not recur.

    For example, a task force might be used to assess the causes for declining customer traffic at a store location. The task force might include team members from marketing who will analyze competitors in the area and operational members who will review internal procedures related to stock management and customer interactions.

    Task forces are often created to address issues such as violence prevention, workforce bullying, employee training, customer relationships, and employee job satisfaction. A project team is similar to a task force, but a project team is often ongoing and covers a wider range of tasks.

    Virtual Teams

    Virtual teams are groups of individuals working together with a common purpose but in different locations. Virtual teams by definition may overlap with the team types listed above. People may be in different time zones or even different organizations. The obvious advantage of a virtual team is the low cost, both in time and money, to maintain it. Meeting in virtual space increases flexibility for team members (people can attend from wherever they are) and allows the organization to use the talent of employees around the globe.

    When considering virtual teams, remember that working across cultures can be as challenging as working cross-functionally. Working with team members from different cultures means working with potentially different leadership styles and decision-making processes. In the United States, managers tend to gather data, make quick decisions, and move forward, making corrections as need. Northern Europeans prefer to build consensus slowly, whereas the French are taught to debate and confront from the time they’re in primary school. Some business consultants will tell you that decisions in Japan are made in small, informal conversations before the formal meeting ever takes place.

    In spite of these barriers, many companies have had great success leveraging virtual teams. Some of these companies include SAP, IBM, Google, and Zapier.

    Virtual Meeting sharing whiteboard brainstorming
    Figure 9.1.1 : Virtual Meeting
    Examples: Challenges and Solutions in Virtual Teams

    Virtual teams often face difficulties due to time zone differences, cultural variations in problem-solving, and differing expectations on how opinions should be expressed.

    Example of a Global Team Unsuccessfully Managing These Challenges
    In 2018, a major software development project at IBM involved team members in the U.S., India, and Germany. The project encountered issues due to time zone differences because meetings were scheduled at times that were inconvenient for at least one of the regions. Additionally, cultural differences emerged in the way problems were addressed—German team members preferred a structured, detailed approach, while the U.S. team was more focused on quick conversations. Meanwhile, Indian team members hesitated to challenge higher-ranking colleagues' opinions, leading to delays in addressing software bugs. These misalignments caused frustration, miscommunication, and project delays.

    Example of a Global Team Successfully Managing These Challenges:
    In contrast, Microsoft's international product teams have successfully navigated these challenges by implementing strategies such as rotating meeting times to accommodate different time zones, setting clear communication standards, and fostering a culture where team members feel comfortable expressing their ideas. For instance, they established a "follow-the-sun" model, where teams in different regions hand off tasks at the end of their workday, ensuring continuous progress. They also provided cultural awareness training to help teams understand and respect different communication styles and decision-making processes.

    These examples highlight the importance of intentional scheduling, cultural sensitivity, and structured communication in ensuring the success of virtual teams.

    Advantages of Teams

    Teams bring together diverse skills, fostering creativity and efficiency. Benefits include:

    • Improved motivation – Teamwork enhances autonomy and job satisfaction
    • Enhanced communication – Members share insights across departments
    • Greater innovation – Diverse perspectives lead to better solutions
    • Higher quality outcomes – Teams ensure accountability and collective effort

    Disadvantages of Teams

    Working in a team can be rewarding but it may also come with challenges. By recognizing and addressing these challenges, teams can work more effectively and avoid common pitfalls. Disadvantages and possible solutions include

    Poor Leadership

    A weak leader can create confusion and frustration. Without clear direction, teams may struggle to make decisions, stay on task, or resolve conflicts. A good strategy is to support the leader while tactfully suggesting better approaches, such as assigning a devil’s advocate to explore alternatives.

    Lack of Focus

    Without a shared goal, teams can become unproductive. Using an agenda and assigning roles keeps the team aligned and ensures accountability.

    Dominant Personalities

    Some team members may overpower discussions, discouraging others from contributing. Sticking to structured meetings, using an agenda, and having a strong facilitator can ensure everyone participates.

    Bad Communication

    Misunderstandings, unclear expectations, or lack of updates can cause setbacks. Keeping records, assigning tasks, and encouraging open dialogue can prevent confusion and keep everyone informed.

    Groupthink

    If no one challenges the majority opinion, the team may overlook better solutions. Assigning the role of a devil’s advocate and fostering open debate can prevent groupthink.

    Social Loafing

    Some team members may contribute less and expect others to do their share. This can lead to resentment and lower productivity. Setting clear expectations, tracking contributions, and holding individuals accountable can help prevent "social loafing,"

    Summary

    Successful teams require strong leadership, clear goals, and an understanding of interpersonal dynamics. Organizations that cultivate effective teams experience better collaboration, increased employee engagement, and overall improved performance.

    Contributors and Attributions

    Footnotes

    [1] Global Workplace Analytics. "2018 Alternative Workplace Strategies Fifth Biennial Benchmarking Study." Global Workplace Analytics. Accessed March 08, 2019. https://globalworkplaceanalytics.com/telecommuting-statistics.

    [2] Monteiro Marinho, Marcelo Luiz, Alexandre José Henrique de Oliveira Luna, and Sarah Beecham. "Global Software Development: Practices for Cultural Differences." In Product-Focused Software Process Improvement: 19th International Conference, PROFES 2018, Wolfsburg, Germany, November 28–30, 2018, Proceedings, edited by Jürgen Münch, Ye Yang, Wilhelm Schäfer, and Niels Paech, 299–317. Lecture Notes in Computer Science, vol. 11271. Cham: Springer, 2018. https://doi.org/10.1007/978-3-030-03673-7_22.

    [3] Join DART. Microsoft Community Hub, December 2024. https://techcommunity.microsoft.com/blog/microsoftsecurityexperts/looking-for-a-career-in-incident-response-consider-the-dart-infrastructure-engin/4280124.


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