Groups are deliberately planned and created by management as part of the formal
organisation structure. However, groups will also arise from social processes and the
informal organisation which was discussed in Chapter 4. The informal organisation
arises from the interaction of people working within the organisation and the develop-
ment of groups with their own relationships and norms of behaviour, irrespective of
those defined within the formal structure. This leads to a major distinction between
formal and informal groups.
Groups are formed as a consequence of the pattern of organisation structure and
arrangements for the division of work, for example the grouping together of common
activities into sections. Groups may result from the nature of technology employed and
the way in which work is carried out, for example the bringing together of a number
of people to carry out a sequence of operations on an assembly line. Groups may
also develop when a number of people of the same level or status within the organisa-
tion see themselves as a group, for example departmental heads of an industrial
CHAPTER 13 THE NATURE OF WORK GROUPS AND TEAMS
525
up-to-date information. Conflict arising from misinformation
tended to escalate into interpersonal resentment.
Jean Kahwajy, a management consultant with the
California-based Strategic Decision Group and an author of
the HBR study, says: ‘Nasty fights mean there will be too
much politicking and wasted time.’ The study recommended
that team members prepare for meetings by focusing on the
facts. All members should have detailed knowledge of the
issues at hand and work with the same information.
An emphasis on individualism
Teams failed to deliver desired results at Apple Computer in
the 1980s, says Beer, because of the emphasis the com-
pany placed early in its existence on individualism. While
individual creativity served the company well in its initial
phase, growth heightened the need for communication
between employees.
Workers were assigned to cross-functional teams to set
corporate strategy. It did not work, according to Beer, and
the failure of Apple’s research and development, marketing
and manufacturing departments to work together under-
mined the corporation. ‘When the dominant culture
stresses the value of individual achievement and accounta-
bility, rather than collective accomplishment, team
structures won’t be effective,’ he says.
Even companies that value collective efforts may under-
mine teams by basing salaries and promotion more on
individual than on collective accomplishments. ‘Unless the
team’s success is important to the employees’ career, they
probably won’t pay much attention to it,’ says Kahwajy.
A feeling of powerlessness
To work well, teams must be able to influence decisions. Jay
Bourgeois, a professor at the University of Virginia’s business
school and co-author of the recent HBR article, says: ‘The
team that has no power ends up writing a meaningless
memo. You can only do that so many times before your
workers decide it’s not worthwhile.’ Empowerment can help
convince reluctant members of the importance of a project.
When Unifi, a company that guarantees fax delivery, asked
employees to form a team to set out Internet strategy, initial
reluctance was eventually overcome when it was made clear
that the group was helping to form corporate strategy.
The failure of senior management to work well together
This creates problems because team members may walk
into meetings with different priorities. ‘Teams can’t sort out
problems that have been created at a higher level,’ says
Beer. ‘Members can be expected to be loyal to their
bosses, and if their bosses have very different priorities,
there will be little common ground.’
Meeting-itis
Teams should not try to do everything together. Excessive
time spent in meetings not only means wasted hours, it
also means the group will be exposed to less diversity of
thought. ‘If everyone goes in with prepared thoughts and
ideas, developed on their own, discussion will be lively, and
the group will have more options,’ says Kahwajy. ‘If every-
thing is done together, a couple of lead people may end up
running the show.’ Kahwajy warns that too much homo-
geneity in teams can also stifle creativity.
Seeing teams as the solution for all problems
Bourgeois says he is working with a corporation that
expects its country managers – who are scattered all over
the world – to work as a team. ‘They have very little contact
and they don’t share the same goal, except in the very
vague sense of serving the same corporation,’ says
Bourgeois. ‘It’s silly to see them as a team.’ Moreover,
there are probably some tasks that are more readily
accomplished by individuals, rather than groups. ‘You
probably don’t want to have a group decision when you’re
landing an aircraft at Heathrow,’ he says. ‘Sometimes a
project is best carried out by a single person.’
(Reproduced with permission from the Financial Times Limited, © Financial Times)
Formal groups
FORMAL AND INFORMAL GROUPS