Teamwork And Positive Performance Outcome - Case Study Example

Teamwork And Positive Performance Outcome Introduction The rapid globalization and technological advancement of the recent time has greatly revolutionized the labour processes. With the advent of technology, the collective production has become more complex. There is a significant paradigm shift in the technical division of labour from direct to indirect model that is focused on regulation, administration, improvement and innovation to meet the challenges of the changing time. With the changing societal norms that is moving towards multicultural environment, creating and organizing an effective workforce that is able to make valuable contribution becomes extremely crucial. Thus, good organizational leadership makes concerted efforts to promote effective team building to achieve its wider goals and objectives. Need for teamwork Effective team work constitutes one of the most important factors that make valuable contribution to the organization promoting a sense of togetherness and collective responsibility that reflects in the increased output and improved performance of the organization. It is for these reasons that good leadership always strives to inculcate team spirit among the team members that helps to put team interests over individual interest so that collectively they can contribute towards achieving team targets. The workforce needs to be looked from a wider perspective of providing the invaluable human capital that can meet the challenges of the rapid globalization and advancing technology. The team building process therefore, becomes the major challenge that brings together diverse ideologies and interests of the workforce to promote common goals. Citigroup is a case in point. When Prince took over the stewardship of Citigroup, it was under tremendous pressure from the Federal Regulation Authority and had huge demoralizing repercussions from the event of Japan and MTS. Under his leadership, he created visions and goals and inspired the workforce to work towards achieving them. By introducing unique Citigroup culture of shared responsibility and improving communication, Prince, not only provided an intangible stability among the employees and facilitate integration with the system, but his leadership style also encouraged collective vision of the organization and provided the necessary impetus to the employees to strive towards it (Paine et al., 2008). Thus teamwork promotes positive outlook that reflects on the improved performance outcome of the organization. Leadership and effective teamwork The globalization has given a new perspective to the business which needs to look beyond the local interests and operate on a wider platform based on common goals and universal value system. Since employees are the pillar of the organization, the role of organizational leadership becomes crucial in the employment of its workforce. Mullin (2008) has convincingly asserted that managerial leadership approach to organizational behaviour is the vital factor for organizational effectiveness and work performance. In the emerging challenges of the changing business equations, when the labour deployment is undergoing quantitative and qualitative transformations, organizational leadership redefines strategic goals to create versatility and flexibility of the contemporary work environment. Factors that promote improved performance within teamwork Motivation and collective goals A team is characterized by the concept of shared leadership. This helps to promote smooth functioning of the various processes that help to define team work. A well defined structure of leaders and followers are intrinsic for effective resolution of conflicts may arise due different value system, interests or misunderstood information so that team members are sufficiently motivated towards collective goals. Argote(1999) claims that team learning processes involve collective acquisition, combination, creation and sharing of knowledge and that they are considerable influenced by the internal team dynamics. Arnold et al. have defined motivation as ‘an intervening process or an individual state of an organism that impels it or drives it to action. In this sense motivation is an energizer of behaviour’ (Arnold et al. 2005). Leaders within the team inspire and motivate the team members to work together to produce a cohesive output. Leadership within the team inspires others to achieve common goals through persuasive communication skill. Leadership motivates and encourages that target group within the group that plays a crucial part in the development processes. Team learning Gibson & Vermeulen have asserted that leadership training, feedback and technology are also major factors that significant impact team learning (G&V, 2003). They facilitate in overcoming the barriers to teamwork. The empirical relationship of leaders and the emerging changes become critical for a given situation and a better informed leader is capable of taking initiative and at the same time, he is also able to inculcate confidence in his people to move forward. Group dynamics It is equally true that group dynamics play crucial role in the smooth functioning of the organizations. The rapid globalization has ushered in an era of multicultural society with people from different race, culture and nationality. Workplace diversity has become common feature and understanding of cross cultural values for mutual trust building has become important. Group dynamics are characterized by unique code of behaviour that is specific to the group that is developed over a period of time. Vroom (1959) asserts that participation within the group has positive effect on both attitude and job performance. Workforce as resource capital Sjostrand and Tyrstrup, in one of their article, have argued that managerial leadership needs to be approached as a relational, ongoing social construction process rather than as a single clear cut phenomenon (2001). Indeed, for any organization to expand and succeed, it is crucial that its people are recognized as vital part of its strategy and organizational goals and objectives be interpreted in the context of the changing paradigms of the times. The contemporary times requires dynamic managerial leadership that evolves with the changing business environment. Effective leaders are versatile and are adept at exploiting the potential of their followers or workers as per the demands of the situation to create effective team that is capable of overcoming the barriers of cross cultural values, self interest and lack of understanding (Kotter, 1990). Role of human feeling and human interaction in team building Emotions and feelings are intrinsic part of human behaviour and emotional stability of the person in an organization is extremely important for rationalized decision making processes within the work environment. Eminent scholar William Whyte has said that effective business people are logical, reasoned and rational decision maker (Whyte, 1956). Quick et al. have also stressed ‘it is possible that psychological well-being and employee performance are related’ (Quick et al, 1997). Effective team therefore ensures positive outcome of conflicts, resulting in improved performance. Hence it becomes imperative that leaders understand the wider implications of the human behaviour to encourage understanding of cross cultural value system within the team members. A well developed leadership within the organizational structure understands that whatever is actively repressed from the conscious thought processes results in illogical behaviour and conflicts. Emotional intelligence is an important attribute of leadership. According to Mayer et al., it is the ‘ability to recognize the meanings of emotions and their relationships, and to reason and problem-solve on that basis’ (2000, p. 267). It therefore, makes efforts to analyze and understand the individual’s behaviour and facilitates integration of diverse ideologies and personal conflicts. Dynamic business strategy and diversity within team Montgomery’s assertion that strategy needs to be dynamic to encompass the changing paradigms of the times is not only relevant but essential in the contemporary environment of competitive business (Montgomery, 2008). McDonald truly stands out in promoting dynamic strategies and building effective team that are able to meet the challenges of the time. McDonald’s is one of the largest fast food chain with more than 32,000 outlets across the world. The core values of the company are primarily people-centric and are important and sincere declaration of its objectives and aims. They encourage diversity within and outside the work and promote cross cultural values within its teamwork. Indeed, the success of McDonald’s can be contributed to the long term vision and strong belief in building strong and committed teamwork that works towards customers’ satisfaction (McDonald). The leaders within the organizations promote team spirit and collective vision for improved performance outcome. Effective communication Effective communication is one of the most important factors of teamwork. The good leadership ensures effective communication with the employees and promotes shared vision of the new strategy thus promoting better understanding among the employees for easy adaptability to change. According to prominent social scientists, research studies in the area of leadership approach has tried to find the traits, behaviour and leadership style that turned them into more efficient and successful than others (Stogdill 1974; Yuki 2002). Leaders with strong communication skills significantly have more influence over their followers. AIG is scintillating example of leadership initiatives in promoting successful teamwork. AIG is one of the world’s leading insurance and financial services with operations in more than 130 countries across the globe (aig.com). The workforce is the backbone of an organization that thrives on successful teamwork. The workforce is looked as resource that can be tapped to improve and improvise the performance of the organization in the fiercely competitive business setting. People are encouraged to share mutual knowledge and ideas and at the same time, they are also involved into collective decision making to work towards common goals. Hence, it is imperative that managerial leadership becomes part and parcel of organizational culture that promotes team building and cohesive group structure. Creativity within teamwork Emergent theory emphasizes the need to exploit the informed choices, gained through the accumulated knowledge regarding the changing trends and preferences of the people and market conditions. According to Slater and Narver, markets thrive on the processes of the learning organization which ‘continuously acquire, process, and disseminate throughout the organization knowledge about markets, products, technologies, and business processes’ (Slater and Narver, 1995). The new leadership encourages creativity and innovative practices that give a unique perspective to participatory approach of management and employees. The study of Apple Inc. by Yoffie and Slind (2007) asserts that the leadership initiatives by Steve Jobs of Apple Inc., in 1997 greatly facilitated the huge transformation of the fortunes of the company. He inculcated confidence in his workforce to move forward and help build strong teams that were motivated towards innovation and creative inputs. He also forged alliance with its rival Microsoft and introduced low cost PCs and peripherals which were compatible with window based machines. By 2006, it had regained its position in the market and made significant inroads into new areas of digital audio players, mobile pones and retailing. The new CEO showed exemplary leadership initiatives in widening its business vision and strategic goals to maintain competitive advantage. Encouraging organization culture Indeed, understanding of organizational behaviour is essential ingredient of organizational communication which motivates people to better performance, leading to higher productivity. The emerging new managerial leadership has encompassed a very important aspect of organizations, that of making effort to involve employees in the decision making process. The leadership has recognized the importance of people’s participation in the overall strategy of having collective goals through shared learning. Thus making it an intrinsic part of the work methodology which is characterized by the stability provided by the system and the integrated approach of the workers. Hence, leaders within the team encourage interaction within the team members by means of informal chats and small talk that facilitates exchange of important information, ideas and ideologies. It helps promote better understanding of members’ aspirations and expectations from the company. It also inspires them to excel. Barrier to effective teamwork The most significant barrier to teamwork is the resistance to adapt changes within their work culture. Hitt et al, have cited four basic causes of resistance to change: lack of understanding; different assessment; self interest; and low tolerance (Hitt el al, 2005). The first factor normally happens when the employees and staff are not clear about the changes that need to be made which creates fear of the unknown among the persons who need to adapt to the changes. The second factor is crucial because the workforce may resist to the change as a result of assessing the change in a different perspective, mainly due to lack of communication on the part of management. This type of resistance develops when organization is in the process of adopting newer technology which creates self doubt of the new technology and at the same time they become unsure about their own ability to successfully adapt the changes in their work practice. As a result of their irrational fear, they fight against any change to defend their position and job in the organization, keeping their self interest in mind. The leaders of the organization must facilitate and disseminate information regarding the changes so people are better able to understand and hence participate into the changing environment. Low tolerance for change is usually observed when people in the organization do not anticipate changes and therefore often undergo different modes of emotional resistance before accepting the changes. Emotions like anger, frustration and reluctant acceptance makes non-congenial atmosphere for work. A good leader ensures that all types of changes must be gradually introduced with full participation of the employees so that at each stage, they are able to understand the necessity and viability of the changes that must be enforced, in order to meet the broader aims and objectives of the organization. ‘The changes required by the welfare of the business become everybody's business and get made’ (Marrow, 1957, p. 66). Therefore, the managerial leadership must make efforts to develop consensus through proper dissemination of information and promote understanding within the workforce so that effective teams can be created. Conclusion It can thus be concluded that teamwork is always positive because the very objective of creating teams is to promote and encourage mutual respect and cross cultural understanding that hugely facilitated improved performance outcome. Empowerment of its team members through well designed process of problem solving and self learning through mutual cooperation and innovative management approach that motivates them to excel in their work. Indeed, one needs to accept the challenge of creating a cohesive and encouraging atmosphere for building effective team that is prepared to meet the challenges of the time. (2333) Reference AIG. Available from: [Accessed 10 December, 2009]. Argote, L. (1999). Organizational Learning: Creating, retaining and transferring Knowledge. Norwell MA: Kluwer Academic. Arnold, J., Silvester, J., Patterson, F., Robertson, I., Cooper, C. & Burnes, B. (2005). Work Psychology Understanding Human Behaviour in the Workplace. (4th Edn.). Harlow: Prentice Hall. 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