Description
With this particular brief paper in regard to engineering entrepreneurship dr. amy hsiao memorial university of newfoundland.
1
ENGI 8150:
Engineering Entrepreneurship
Dr. Amy Hsiao
Lecture 5
Memorial University of Newfoundland
Building a
New Venture
Team
2
New-Venture Team
? Is the group of founders, key employees, and advisors that
move a new venture from an idea to a fully functioning
firm.
? Usually, the team doesn’t come together all at once.
Instead, it is built as the new firm can afford to hire
additional personnel.
? The team also involves more than paid employees.
? Many firms have boards of directors, boards of advisors, and
professionals on whom they rely for direction and advice.
Liabilities of Newness
• New ventures have a high propensity to fail.
• The high failure rate is due in part to liabilities of newness, which
refers to the fact that new companies often falter because the people
involved can’t adjust fast enough to their new roles and because the firm
lacks a track record of success.
• Assembling a talented and experienced management team is one path
that firms can take to overcome these limitations.
3
Choosing a Form of Business Organization
? Sole proprietorship
? Partnership
? Corporation
? Limited Liability Company
Sole Proprietorship
? Form of business organization involving one person,
and the person and business are essentially the same
? Legal: must register or obtain a license to do
business
Advantages:
•Easy and inexpensive to create
•Owner maintains complete control of the
business and retains all profits
•Business losses can be deducted against the
sole proprietor’s other sources of income
•It is not subject to double taxation
•Business is easy to dissolve
Disadvantages:
•Liability on the owner’s part is unlimited
•Relies on skills and abilities of owner to be
successful; can hire employees with additional
skills and abilities
•Raising capital can be difficult
•ends at the owner’s death or loss of interest
•Liquidity of the owner’s investment is low
4
Partnerships
? Form of business organization where two or more
people pool their skills, abilities, and resources to run
a business
Advantages:
•Relatively easy and inexpensive to create
•Skills and abilities of more than one
individual are available to the firm
•More than one owner may make it easier to
raise funds
•It is not subject to double taxation
•Business losses can be deducted against the
partners’ other sources of income
Disadvantages:
•Liability on each owner’s part is unlimited
•Relies on skills and abilities of owners to be
successful; can hire additional skills
•Raising capital can be difficult
•Shared decision making; disagreements
•Business ends at the death or withdrawal of
one partner unless otherwise stated
•Liquidity of the owner’s investment is low
Limited Partnerships
? Includes general and limited partners
? Limited partners are liable for debts and
obligations up to the amount of their investment
? No significant control over the organization
? Formed to raise money or spread the risk of a
venture without forming a corporation
? Common in real estate development, oil and gas
exploration, and motion picture ventures
5
Corporations
? A corporation is a separate legal entity organized under the
authority of legislature.
? Shields its shareholders from personal liability for the debts
and obligations of the corporation beyond amount of
investment.
? Preferred stock: issued to conservative investors who have
preferential rights over common stockholders in regard to
dividends and to the assets of the corporation in the event of
liquidation.
? Common stock: issued more broadly; stockholders have
voting rights and elect the board of directors to the firm; last
to get paid in the event of liquidation.
Corporations
? Public corporations
? Liquid stocks
? Closely held corporations
? Voting rights; stocks traded infrequently or in small
quantity
? Private corporations
? Shares held by management; not publicly traded
6
Limited Liability Company
? Combines the limited liability of the corporation with the tax advantages of
the partnership
? Unlimited number of ‘members’ allowed
? Typically limited to a fixed amount of time
? No tax at entity level if properly structured; income/loss passed through to
the members
? Members share control or appoint manager
? Possible to sell interests, depending on operating agreement
Separate Elements of a New-Venture Team
7
The Founder or Founders
? The characteristics of the founder or founders of a firm and
their early decisions have a significant impact on the
manner in which the new-venture team takes shape.
? Size of the Founding Team
? Studies have shown that 50% to 70% of all new ventures
are started by more than one individual.
? Experts disagree about whether new ventures started by a
team have an advantage over those started by a sole
entrepreneur.
Advantages and Disadvantages of Starting
a Venture as a Team
? Advantages
? Teams bring more talent, resources, and ideas to a new
venture.
? Teams bring a broader and deeper network of social and
professional contacts to a new business.
? The psychological support that the cofounders of a
business can offer one another can be an important
element of a new venture’s success.
8
Advantages and Disadvantages of Starting
a Venture as a Team
? Disadvantages
? Team members may not get along.
? If two or more people start a firm as “equals,” conflicts can
arise when the firm needs to establish a formal structure
and designate one person as the CEO.
? If the founders have similar areas of expertise, they may
duplicate rather than complement one another.
? Team members can easily disagree in terms of work
habits, tolerances for risk, levels of passion for the
business, ideas on how the business should be run, and
similar key issues.
Key Element of a Successful Founding
Team
• Heterogeneous rather than
homogenous teams tend
to be more effective.
• This team is starting an
educational software
company.
• The woman on the left is
a former teacher, the
woman in the middle is a
software engineer, and the
man on the right has a
business background.
9
Qualities of the Founders
? Early days: founders’ knowledge, skills, and
experiences are the most valuable resource the firm has
? Education
? Higher education – creativity, computer skills, discipline
? Area of expertise – engineering, CS, management, physics,
biochemistry
? Prior entrepreneurial experience
? Relevant industry experience
? Networking
? Raise money
? Access to resources
Recruiting and Selecting Key Employees
? Recruiting Key Employees
? Start-ups vary in terms of how quickly they need to add
personnel.
? In some instances, the founders will work alone for a
period of time. In other instances, employees are hired
immediately.
? A skills profile is a chart that depicts the most important
skills that are needed and where skills gaps exist in a new
firm.
10
Drafting a Founder’s Agreement
? Nature of the prospective business
? A brief business plan
? Identity and proposed titles of the founders
? Legal form of business ownership
? Apportionment of stock (or division of ownership, relative split of equity among
the founders)
? Consideration paid for stock or ownership share of each of the founders (may be
cash or ‘sweat equity’)
? How long the founders will have to remain with the firm for their shares to fully
vest
? Identification of any intellectual property signed over to the business by any of the
founders
? Description of the initial operating capital
? Buyback clause, which explains how a founder’s shares will be disposed if s/he
dies, wants to sell, or is forced to sell by court order
Recruiting and Selecting Key Employees
? Every team member must make a valuable contribution
? Not good enough to hire someone who is well intended but
does not precisely fit the job
? Synergy
? Flexibility in fitting in the best role in the venture (instead
of insisting on being the CEO)
? Team player
11
Skills Profile for New Venture Fitness Drinks
The Roles of the Board of the Directors
? Board of Directors
? If a new venture organizes as a corporation, it is legally
required to have a board of directors.
? A board of directors is a panel of individuals who are
elected by a corporation’s shareholders to oversee the
management of the firm.
? A board is typically made up of both inside directors and
outside directors.
? An inside director is a person who is also an officer of the firm.
? An outside director is someone who is not employed by the firm.
12
The Roles of the Board of the Directors
? Formal Responsibility of the Board
? A board of directors has three formal responsibilities.
? Appoint the officers of the firm.
? Declare dividends.
? Oversee the affairs of the corporation.
? Frequency of Meetings and Compensation
? Most boards of directors meet three to four times a year.
? New ventures are more likely to pay their board members
in company stock or ask them to serve on a voluntary basis
rather than pay a cash honorarium.
What a Board of Directors Can Do to Help
a Start-Up Get Off to a Good Start
Function Importance of Function
Provide
Guidance
Lend
Legitimacy
Although a board of directors has formal
governance responsibilities, its most useful role is
to provide guidance and support to the firm’s
managers.
Another function of a board of directors is to lend
legitimacy to a firm. Well-known and respected
board members bring instant credibility to a firm.
13
The Role of the Board of Directors
? Provide guidance
? Lend legitimacy
? Signaling – creating a positive buzz when a well-
known or respected leader is added to the board
? Introductions
? Investors
Guidelines to Forming an Effective Board of
Directors
? Aim high
? Experience, competence, reputation
? Composition
? Diversity, in tune with technology & markets, inside/outside members
? Establish ground rules for making decisions
? Share information
? Use committees
? Motivate board members
? Address liability issues
? Fiduciary duty to the new venture’s shareholders
? Make legal and accounting experts available
14
Rounding out the Team: The Role of
Professional Advisors
Board of Advisors
Other Professionals Lenders and Investors
Board of Advisors
? A board of advisors is a panel of experts who are asked by
a firm’s managers to provide counsel and advice on an
ongoing basis.
? Unlike a board of directors, an advisory board possesses
no legal responsibility for the firm and gives nonbinding
advice.
? An advisory board can be established for general purposes
or can be set up to address a specific issue or need.
15
Board of Advisors
? Many people are more willing to serve on a company’s
board of advisors than its board of directors because it
requires less time and there is no potential legal liability
involved.
? Like the members of a board of directors, the members of
a company’s board of advisors provide guidance and lend
credibility to the firm.
Board of Advisors
? Guidelines to Organizing a Board of Advisors
? Advisors will become disillusioned if they don’t play a
meaningful role in the firm’s development and growth.
? A firm should look for board members who are compatible
and complement one another in terms of experience and
expertise.
? When inviting people to serve on its board of advisors, a
company should carefully spell out to the individuals
involved the rules in terms of access to confidential
information.
16
Lenders and Investors
? Lenders and investors have a vested interest in the
companies they finance, often causing them to become
very involved in helping the firms they fund.
? Like the other non-employee members of a firm’s new-
venture team, lenders and investors help new firms by
providing guidance and lending advice.
? In addition, a firm’s lenders and investors assume the
natural role of providing financial oversight.
Ways Lenders and Investors Add Value to
an Entrepreneurial Firm
Help identify and recruit key
management personnel
Provide insight into the
markets that the new venture
plans to enter
Help the venture fine-tune its
business model
Serve as a sounding board
for new ideas
Provide introductions to
additional sources of capital
Serve on the new venture’s
board of directors or board of
advisors
17
Ways Lenders and Investors Add Value to
an Entrepreneurial Firm
Recruit customers
Help to arrange business
partnerships
Serve on the board of
directors or board of advisors
Provide a sense of stability
and calm
Other Professional Advisers
? Lenders and Investors
? Help identify and recruit key management personnel
? Recruit customers
? Help the venture fine-tune its business model
? Help to arrange business partnerships
? Experience can provide calm in emotional roller-coaster ride
that many new venture teams experience
18
Other Professional Advisors
? Consultant
? An individual who gives professional or expert advice
? Can tackle depth-intensive tasks
? Feasibility study
? Industry analysis
? Building a product prototype
? Paid
? IBM Global Services, Bearing Point (KPMG), Accenture
? Non-profit or government provided consultants
Choosing an Attorney for a Firm
? Contact the local bar association for attorneys who specialize in
business start-ups
? Interview and check references
? Select one familiar with the start-up process
? Select one who may help in raising money for your venture
? Track record of completing work on time
? Talk about fees – if attorney is not clear on costs, keep looking
? Trust your intuition
? Stay in control – learn as much about the legal process of starting a
business yourself
19
? Business Consultants
? A business consultant is an individual who gives
professional or expert advice.
? Business consultants fall into two categories: paid
consultants and consultants who are available for free or at
a reduced rate through a nonprofit or governmental agency.
New Venture Team
Founder or
founders
of a
venture
Key
employees
Board of
directors
Other
professionals
Lenders
and
investors
Management
team
Board of
advisors
20
Organizational Charts
CEO, Co-founder COO, Co-Founder
President, CEO, Co-founder
COO, Co-Founder VP of Marketing CFO
Outside
Sales
Inside Sales
Engineer
Manager,
Team Member
Organizational Charts
? Can also be based:
? Regions
? Products
? Matrix structure
21
Matrix Structure
Marketing
Manager
Manufacturing
Manager
Product Design
Manager
Manager of
Project A
Engineer Engineer
Engineer
Manager of
Project B
Engineer Engineer
Engineer
Manager of
Project C
Engineer Engineer
Engineer
Organizational Culture
? The pattern of shared values, beliefs, and
assumptions considered to be the appropriate
and correct way to think and act on problems
and opportunities facing an organization.
? Culture is shared.
? Culture helps members solve problems.
? Culture is taught to newcomers.
? Culture strongly influences behavior.
22
Layers of Culture
Artifacts of
Organizational
Culture
Material Symbols
Language
Rituals
Stories
Organizational
Culture
Beliefs
Values
Assumptions
Levels of Culture
? Artifacts
? Aspects of an organization’s culture that you see, hear, and feel.
What are some examples?
? Beliefs
? The understandings of how objects and ideas relate to each other.
? Values
? The stable, long-lasting beliefs about what is important.
? Assumptions
? The taken-for-granted notions of how something should be in an
organization.
23
Characteristics of
Organizational Culture
? Innovation and risk-taking
? The degree to which employees are encouraged to be innovative and take risks.
? Attention to detail
? The degree to which employees are expected to exhibit precision, analysis, and
attention to detail.
? Outcome orientation
? The degree to which management focuses on results or outcomes rather than on
technique and process.
? People orientation
? The degree to which management decisions take into consideration the effect of
outcomes on people within the organization.
Characteristics of Organizational
Culture
? Team orientation
? The degree to which work activities are organized around teams rather
than individuals.
? Aggressiveness
? The degree to which people are aggressive and competitive rather than
easygoing.
? Stability
? The degree to which organizational activities emphasize maintaining the
status quo in contrast to growth.
24
Culture’s Functions
? Social glue that helps hold an organization
together.
? Provides appropriate standards for what employees
should say or do.
? Boundary-defining.
? Conveys a sense of identity for organization
members.
Culture’s Functions
? Facilitates commitment to something larger
than one’s individual self-interest.
? Enhances social system stability.
? Serves as a “sense-making” and control
mechanism.
? Guides and shapes the attitudes and behaviour of
employees.
25
Strong Culture
? Organization’s core values are intensely held and
widely shared
? Demonstrates high agreement among members
about what the organization stands for
? Unanimity of purpose builds cohesiveness,
loyalty, and organizational commitment.
? Creating of strong ethical culture
Weak Culture
? Employees do not feel any great attachment to
their organization or their co-workers
? Do not take pride in their work
? Service and retail experiences: customers are
ignored by employees, environment is unfriendly
or unclean
26
Signs of an Organization’s Culture
? Stories
? Tell about founders, reactions to past mistakes, rule breaking,
rags-to-riches successes
? Rituals
? Repetitive sequences of activities that express and reinforce the
key values of the organization
? What goals are most important and which ones are expendable
? The Wal-Mart chant: “gimme a W, gimme an A, gimme an L,
gimme a squiggle, give me an M,A,R,T!”
Signs of an Organization’s Culture
? Ceremonies
? Planned and usually dramatic
displays of organizational culture,
conducted specifically for the
benefit of the audience
? Material Symbols
? Layout of corporate headquarters
? Dress codes
? Size of offices and use of offices
? Intel example
? Mountain Equipment Co-Op
? Language
? Baristas at Starbucks call drinks tall,
grande, and vente, not small,
medium, or large
27
How Organizational Culture Forms
Selection
criteria
Socialization
Organization's
culture
Philosophy
of
organization's
founders
Top
management
Culture Creation
? Founders hire and keep employees who think and feel the way
they do
? Founders indoctrinate and socialize employees on their way of
thinking and feeling
? Founders’ behavior act as role model, encouraging employees to
identify with founders and internalize their beliefs, values, and
assumptions.
? Bill Gates (Microsoft)
? Ted Rogers (Rogers Communications)
? Frank Stronach (Magna International)
? Richard Branson (Virgin Group)
? Anita Roddick (The Body Shop)
? Ingvar Kamprad (IKEA)
28
Creating and Sustaining Culture:
Keeping a Culture Alive
? Selection
? Identify and hire individuals who will fit in with the
culture.
? Top Management
? Senior executives establish and communicate the norms of
the organization.
? Socialization
? The process that adapts new employees to the
organization’s culture; teaches the culture to new
employees.
A Socialization Model
Prearrival Encounter Metamorphosis
Socialization Process Outcomes
Commitment
Productivity
Turnover
29
Pre-arrival Stage
? Period of learning in the socialization process
that occurs before a new employee joins the
organization
? Learn about the job and the organization
? Form employment relationship expectations
Encounter Stage
? The stage in the socialization process in
which a new employee sees what the
organization is really like and confronts the
possibility that expectations and reality may
diverge
? Test expectations against perceived realities
30
Metamorphosis Stage
? The stage in the socialization process in
which a new employee adjusts to the work
group’s values and norms.
? Becomes comfortable with job/role
? Internalized the norms
? Feels accepted and trusted by colleagues
? Confident about ability to complete his/her job
? Understands what is expected and how she/he will
be evaluated
Socialization Outcomes
? Higher motivation
? Higher loyalty
? Higher satisfaction
? Lower stress
? Lower turnover
31
Entry Socialization Options
? Formal vs. Informal
? Specific orientation and training programs are formal examples;
immersion into new job with little or no attention is informal entry
? Individual vs. Collective
? Individual or grouped (as in boot camp)
? Fixed vs. Variable
? Rotational training, probationary periods, variable schedules “when
you are ready”
Sources: Based on J. Van Maanen, “People Processing: Strategies of Organizational Socialization,” Organizational Dynamics, Summer 1978, pp. 19-36; and E. H. Schein, “Organizational
Culture,” American Psychologist, February 1960, p. 116.
Entry Socialization Options
? Serial vs. Random
? Apprenticeships and mentoring programs (serial); no role models to help
new employee figure things out (random)
? Investiture vs. Divestiture
? Newcomer’s qualities and qualifications are the necessary ingredients for
job success (investiture)
? Recruit has certain characteristics that must be stripped away
(fraternity/sorority)
Sources: Based on J. Van Maanen, “People Processing: Strategies of Organizational Socialization,” Organizational Dynamics, Summer 1978, pp. 19-36; and E. H. Schein, “Organizational
Culture,” American Psychologist, February 1960, p. 116.
32
Two Dimensions of Organizational Culture
? Sociability
? Measure of friendliness
? High people and team orientation
? Focus on processes rather than outcomes
? Solidarity
? People can overlook personal biases and rally behind common
interests and goals
? High attention to detail
? High aggressiveness
Four-Culture Typology
Fragmented
Networked
Low
High
Solidarity
Mercenary
Low
High
Communal
S
o
c
i
a
b
i
l
i
t
y
Source: Adapted from R. Goffee and G. Jones, The Character of a Corporation: How Your Company’s Culture Can Make or Break Your Business (New York: HarperBusiness, 1998), p. 21.
33
Networked Culture (high on
sociability, low on solidarity)
? View members in the organization as family
and friends
? People know and like each other
? People are willing to give assistance and
opening share information
? Focus on friendships can lead to a tolerance for
poor performance and creating of political
cliques.
Mercenary Culture (low on sociability,
high on solidarity)
? Fiercely goal-oriented culture
? Members have a zest for getting things done
quickly and a powerful sense of purpose
? Organization culture is about ‘destroying the
enemy’, not just winning
? Can lead to an almost inhumane treatment of
people who are perceived as low performers
34
Fragmented Culture (low on
sociability, low on solidarity)
? Members are individualists
? Commitment to individual first and his/her job
task
? Little or no identification with the organization
? Judged solely on productivity and quality of
work
? Can lead to excessively critiquing of others and
an absence of collegiality and cooperation
Communal Culture (high on
sociability, high on solidarity)
? Organizations with this type of culture value
both friendship and performance
? Feeling of belonging and ruthless focus on goal
achievement
? Leaders are inspirational and charismatic with
clear vision
? Can lead to “cult-like” work climate
35
The Liabilities of Culture
? Culture can have dysfunctional aspects in some
instances.
? Culture as a Barrier to Change
? When organization is undergoing change, culture may impede
change.
? Culture as a Barrier to Diversity
? Strong cultures put considerable pressure on employees to
conform.
? Culture as a Barrier to Mergers and Acquisitions
? Merging the cultures of two organizations can be difficult, if not
impossible.
Strengthening
Organizational
Culture
Maintaining a
stable workforce
36
A Look at Different Organizational Cultures
? Nike
?http://nikeinc.com/pages/history-heritageCirque du Soleil
? Intel
?http://www.intel.com/jobs/workplace/values.htm
? Starbucks
?http://www.starbucks.ca/careers/working-at-starbucks
Organizational Culture
? What Artifacts of Organizational Behavior do you observe?
? Rituals
? Stories
? Ceremonies
? Language
? What Aspects of Organizational Culture do you observe?
? Beliefs
? Values
? Assumptions
? What Characteristics of Organizational Culture do you observe?
? Innovation and risk-taking
? Attention to detail
? Outcome orientation
? People orientation
? Team orientation
? Aggressiveness
? Stability
37
Groups and Teamwork
? Groups
? Two or more people with a common relationship.
? Teams
? A small number of people who work closely
together toward a common objective and are
accountable to one another.
Shaping Team Players
? Individuals on a team need to understand their roles and
then work together to create a set of group norms.
? A role is a set of expected behavior patterns associated with someone
occupying a given position in a social unit.
? Role Expectations
? How others believe a person should act in a given situation.
? Role Conflict
? A situation in which an individual is confronted by divergent role expectations.
? Role Ambiguity
? A person is unclear about his or her role.
? Role Overload
? Too much is expected of someone.
? Role Underload
? Too little is expected of someone, and that person feels that he or she is not contributing
to the group.
38
Roles
? Task-oriented roles
? Roles performed by group members to ensure that the tasks of
the group are accomplished.
? Maintenance roles
? Roles performed by group members to maintain good relations
within the group.
? Individual roles
? Roles performed by group members that are not productive for
keeping the group on task.
Roles That Build Task Accomplishment
Initiating Stating the goal or problem, making proposals
about how to work on it, setting time limits
Seeking information and
opinions
Asking group members for specific factual
information related to the task or problem
Providing information and
opinions
Sharing information or opinions related to the task
or problems
Clarifying Helping one another understand ideas and
suggestions that come up in the group
Elaborating Building on one another’s ideas and suggestions
Summarizing Reviewing the points covered by the group and the
different ideas stated so that decisions can be
based on full information
Consensus Testing Periodic testing about whether the group is nearing
a decision or needs to continue discussion
Source: “Team Processes,” in Managing for the Future, ed. D. Ancona, T. Kochan, M. Scully, J. Van Maanen, and D. E. Westney (Cincinnati, OH: South-Western College Publishing, 1996), p. 9.
39
Roles That Build and Maintain a Team
Harmonizing Mediating conflict among other members,
reconciling disagreements, relieving tensions
Compromising Admitting error at times of group conflict
Gatekeeping Making sure all members have a chance to express
their ideas and feelings and preventing members
from being interrupted
Encouraging Helping a group member make his or her point.
Establishing a climate of acceptance in the group
Source: “Team Processes,” in Managing for the Future, ed. D. Ancona, T. Kochan, M. Scully, J. Van Maanen, and D. E. Westney (Cincinnati,
OH: South-Western College Publishing, 1996), p. 9.
Shaping Team Players
? Norms
? Acceptable standards of behavior within a group that are shared
by the group’s members.
? Performance
? How hard to work, what kind of quality, levels of tardiness
? Appearance
? Personal dress, when to look busy, when to "goof off," how to show
loyalty
? Social arrangement
? How team members interact
? Allocation of resources
? Pay, assignments, allocation of tools and equipment
40
How Norms Develop
? Explicit statements
? The group leader might, for instance, specifically say that no personal
phone calls are allowed during working hours or that coffee breaks
must be no longer than 10 minutes.
? Critical events
? Critical events in the group’s history: These set important precedents.
? Initial patterns of behaviour
? Carry-over behaviour
Why Norms Are Enforced
? Facilitate group survival.
? Make behaviour predictable.
? Minimize embarrassment.
? Express central values.
? Clarify the group’s identity.
Conformity: Adjusting one’s behavior to align with the norms of a group.
41
Characteristics of an Effective Team
? Clear purpose
? Informality
? Participation
? Listening
? Civilized disagreement
? Consensus decisions
? Open communication
? Clear rules and work
assignments
? Shared leadership
? External relations
? Style diversity
? Self-assessment
Source: G. M. Parker, Team Players and Teamwork: The New Competitive Business Strategy (San Francisco: Jossey-Bass, 1990), Table 2, p. 33.
Copyright © 1990 by Jossey-Bass Inc., Publishers. Reprinted by permission of John Wiley & Sons, Inc.
A Model of Team Effectiveness
Team
effectiveness
Context
• Adequate resources
• Leadership and structure
• Climate of trust
• Performance evaluation
and rewards
Work design
• Autonomy
• Skill variety
• Task identity
• Task significance
Composition
• S kills
• Personality
• Roles
• Diversity
• Size
• Member flexibility
• Member preference for
teamwork
Process
• Common purpose
• Specific goals
• Team efficacy
• Managed level of conflict
• Accountability
42
Group Size
? Research shows that:
? Smaller groups are faster at completing tasks.
? When problem solving, larger groups do better.
? Social Loafing
? The tendency for individuals to expend less effort when
working collectively than when working individually.
? To reduce social loafing, teams should not be larger than
necessary, and individuals should be held accountable for their
actions.
Creating Effective Teams
? Effective teams need to work together and take collective
responsibility to complete significant tasks. They must be more
than a “team-in-name-only.”
? Member Flexibility
? The ability of team members to complete each others’ tasks.
? Members’ Preference for Teamwork
? Team members who would prefer to work on their own threaten the
team’s morale.
? Cohesiveness
? The degree to which team members are attracted to each other and
motivated to stay on the team
? Icebreakers
? Time and events
? Success
43
Shaping Team Players
? Selection
? Care should be taken to ensure that candidates can fulfill
their team roles as well as technical requirements.
? Training
? A large proportion of people raised on the importance of
individual accomplishment can be trained to become team
players.
Shaping Team Players
? Performance Evaluation
? Performance as a team member has to be evaluated alongside
“individual” performance.
? Tie the team’s results to the organization’s goals.
? Begin with the team’s customers and the work process that the
team follows.
? Measure both team and individual performance.
? Train the team to create its own measures.
? Rewards
? Reward systems need to be reworked to encourage cooperative
efforts rather than competitive ones.
44
Stages of Group Development
Stages of Group and Team Development
? Stage I: Forming
? Characterized by uncertainty
? Stage II: Storming
? Characterized by intragroup conflict
? Stage III: Norming
? Characterized by close relationships and
cohesiveness
45
Stages of Group and Team Development
? Stage IV: Performing
? The stage when the group is fully functional
? Stage V: Adjourning
? The final stage in group development for temporary
groups, characterized by concern with wrapping up
activities rather than task performance
Putting the Five-Stage Model
Into Perspective
? Groups do not necessarily progress clearly through the stages
one at a time.
? Groups can sometimes go back to an earlier stage.
? Conflict can sometimes be helpful to the group.
? Context can matter: airline pilots can immediately reach
performing stage.
46
Teams Aren’t Always the Answer
? Teams work best when the answer is yes:
? Can the work be done better by more than one person?
? Does work create a common purpose or set of goals for the
people in the group that is more than the aggregate of
individual goals?
? Are members of the group interdependent?
doc_161532388.pdf
With this particular brief paper in regard to engineering entrepreneurship dr. amy hsiao memorial university of newfoundland.
1
ENGI 8150:
Engineering Entrepreneurship
Dr. Amy Hsiao
Lecture 5
Memorial University of Newfoundland
Building a
New Venture
Team
2
New-Venture Team
? Is the group of founders, key employees, and advisors that
move a new venture from an idea to a fully functioning
firm.
? Usually, the team doesn’t come together all at once.
Instead, it is built as the new firm can afford to hire
additional personnel.
? The team also involves more than paid employees.
? Many firms have boards of directors, boards of advisors, and
professionals on whom they rely for direction and advice.
Liabilities of Newness
• New ventures have a high propensity to fail.
• The high failure rate is due in part to liabilities of newness, which
refers to the fact that new companies often falter because the people
involved can’t adjust fast enough to their new roles and because the firm
lacks a track record of success.
• Assembling a talented and experienced management team is one path
that firms can take to overcome these limitations.
3
Choosing a Form of Business Organization
? Sole proprietorship
? Partnership
? Corporation
? Limited Liability Company
Sole Proprietorship
? Form of business organization involving one person,
and the person and business are essentially the same
? Legal: must register or obtain a license to do
business
Advantages:
•Easy and inexpensive to create
•Owner maintains complete control of the
business and retains all profits
•Business losses can be deducted against the
sole proprietor’s other sources of income
•It is not subject to double taxation
•Business is easy to dissolve
Disadvantages:
•Liability on the owner’s part is unlimited
•Relies on skills and abilities of owner to be
successful; can hire employees with additional
skills and abilities
•Raising capital can be difficult
•ends at the owner’s death or loss of interest
•Liquidity of the owner’s investment is low
4
Partnerships
? Form of business organization where two or more
people pool their skills, abilities, and resources to run
a business
Advantages:
•Relatively easy and inexpensive to create
•Skills and abilities of more than one
individual are available to the firm
•More than one owner may make it easier to
raise funds
•It is not subject to double taxation
•Business losses can be deducted against the
partners’ other sources of income
Disadvantages:
•Liability on each owner’s part is unlimited
•Relies on skills and abilities of owners to be
successful; can hire additional skills
•Raising capital can be difficult
•Shared decision making; disagreements
•Business ends at the death or withdrawal of
one partner unless otherwise stated
•Liquidity of the owner’s investment is low
Limited Partnerships
? Includes general and limited partners
? Limited partners are liable for debts and
obligations up to the amount of their investment
? No significant control over the organization
? Formed to raise money or spread the risk of a
venture without forming a corporation
? Common in real estate development, oil and gas
exploration, and motion picture ventures
5
Corporations
? A corporation is a separate legal entity organized under the
authority of legislature.
? Shields its shareholders from personal liability for the debts
and obligations of the corporation beyond amount of
investment.
? Preferred stock: issued to conservative investors who have
preferential rights over common stockholders in regard to
dividends and to the assets of the corporation in the event of
liquidation.
? Common stock: issued more broadly; stockholders have
voting rights and elect the board of directors to the firm; last
to get paid in the event of liquidation.
Corporations
? Public corporations
? Liquid stocks
? Closely held corporations
? Voting rights; stocks traded infrequently or in small
quantity
? Private corporations
? Shares held by management; not publicly traded
6
Limited Liability Company
? Combines the limited liability of the corporation with the tax advantages of
the partnership
? Unlimited number of ‘members’ allowed
? Typically limited to a fixed amount of time
? No tax at entity level if properly structured; income/loss passed through to
the members
? Members share control or appoint manager
? Possible to sell interests, depending on operating agreement
Separate Elements of a New-Venture Team
7
The Founder or Founders
? The characteristics of the founder or founders of a firm and
their early decisions have a significant impact on the
manner in which the new-venture team takes shape.
? Size of the Founding Team
? Studies have shown that 50% to 70% of all new ventures
are started by more than one individual.
? Experts disagree about whether new ventures started by a
team have an advantage over those started by a sole
entrepreneur.
Advantages and Disadvantages of Starting
a Venture as a Team
? Advantages
? Teams bring more talent, resources, and ideas to a new
venture.
? Teams bring a broader and deeper network of social and
professional contacts to a new business.
? The psychological support that the cofounders of a
business can offer one another can be an important
element of a new venture’s success.
8
Advantages and Disadvantages of Starting
a Venture as a Team
? Disadvantages
? Team members may not get along.
? If two or more people start a firm as “equals,” conflicts can
arise when the firm needs to establish a formal structure
and designate one person as the CEO.
? If the founders have similar areas of expertise, they may
duplicate rather than complement one another.
? Team members can easily disagree in terms of work
habits, tolerances for risk, levels of passion for the
business, ideas on how the business should be run, and
similar key issues.
Key Element of a Successful Founding
Team
• Heterogeneous rather than
homogenous teams tend
to be more effective.
• This team is starting an
educational software
company.
• The woman on the left is
a former teacher, the
woman in the middle is a
software engineer, and the
man on the right has a
business background.
9
Qualities of the Founders
? Early days: founders’ knowledge, skills, and
experiences are the most valuable resource the firm has
? Education
? Higher education – creativity, computer skills, discipline
? Area of expertise – engineering, CS, management, physics,
biochemistry
? Prior entrepreneurial experience
? Relevant industry experience
? Networking
? Raise money
? Access to resources
Recruiting and Selecting Key Employees
? Recruiting Key Employees
? Start-ups vary in terms of how quickly they need to add
personnel.
? In some instances, the founders will work alone for a
period of time. In other instances, employees are hired
immediately.
? A skills profile is a chart that depicts the most important
skills that are needed and where skills gaps exist in a new
firm.
10
Drafting a Founder’s Agreement
? Nature of the prospective business
? A brief business plan
? Identity and proposed titles of the founders
? Legal form of business ownership
? Apportionment of stock (or division of ownership, relative split of equity among
the founders)
? Consideration paid for stock or ownership share of each of the founders (may be
cash or ‘sweat equity’)
? How long the founders will have to remain with the firm for their shares to fully
vest
? Identification of any intellectual property signed over to the business by any of the
founders
? Description of the initial operating capital
? Buyback clause, which explains how a founder’s shares will be disposed if s/he
dies, wants to sell, or is forced to sell by court order
Recruiting and Selecting Key Employees
? Every team member must make a valuable contribution
? Not good enough to hire someone who is well intended but
does not precisely fit the job
? Synergy
? Flexibility in fitting in the best role in the venture (instead
of insisting on being the CEO)
? Team player
11
Skills Profile for New Venture Fitness Drinks
The Roles of the Board of the Directors
? Board of Directors
? If a new venture organizes as a corporation, it is legally
required to have a board of directors.
? A board of directors is a panel of individuals who are
elected by a corporation’s shareholders to oversee the
management of the firm.
? A board is typically made up of both inside directors and
outside directors.
? An inside director is a person who is also an officer of the firm.
? An outside director is someone who is not employed by the firm.
12
The Roles of the Board of the Directors
? Formal Responsibility of the Board
? A board of directors has three formal responsibilities.
? Appoint the officers of the firm.
? Declare dividends.
? Oversee the affairs of the corporation.
? Frequency of Meetings and Compensation
? Most boards of directors meet three to four times a year.
? New ventures are more likely to pay their board members
in company stock or ask them to serve on a voluntary basis
rather than pay a cash honorarium.
What a Board of Directors Can Do to Help
a Start-Up Get Off to a Good Start
Function Importance of Function
Provide
Guidance
Lend
Legitimacy
Although a board of directors has formal
governance responsibilities, its most useful role is
to provide guidance and support to the firm’s
managers.
Another function of a board of directors is to lend
legitimacy to a firm. Well-known and respected
board members bring instant credibility to a firm.
13
The Role of the Board of Directors
? Provide guidance
? Lend legitimacy
? Signaling – creating a positive buzz when a well-
known or respected leader is added to the board
? Introductions
? Investors
Guidelines to Forming an Effective Board of
Directors
? Aim high
? Experience, competence, reputation
? Composition
? Diversity, in tune with technology & markets, inside/outside members
? Establish ground rules for making decisions
? Share information
? Use committees
? Motivate board members
? Address liability issues
? Fiduciary duty to the new venture’s shareholders
? Make legal and accounting experts available
14
Rounding out the Team: The Role of
Professional Advisors
Board of Advisors
Other Professionals Lenders and Investors
Board of Advisors
? A board of advisors is a panel of experts who are asked by
a firm’s managers to provide counsel and advice on an
ongoing basis.
? Unlike a board of directors, an advisory board possesses
no legal responsibility for the firm and gives nonbinding
advice.
? An advisory board can be established for general purposes
or can be set up to address a specific issue or need.
15
Board of Advisors
? Many people are more willing to serve on a company’s
board of advisors than its board of directors because it
requires less time and there is no potential legal liability
involved.
? Like the members of a board of directors, the members of
a company’s board of advisors provide guidance and lend
credibility to the firm.
Board of Advisors
? Guidelines to Organizing a Board of Advisors
? Advisors will become disillusioned if they don’t play a
meaningful role in the firm’s development and growth.
? A firm should look for board members who are compatible
and complement one another in terms of experience and
expertise.
? When inviting people to serve on its board of advisors, a
company should carefully spell out to the individuals
involved the rules in terms of access to confidential
information.
16
Lenders and Investors
? Lenders and investors have a vested interest in the
companies they finance, often causing them to become
very involved in helping the firms they fund.
? Like the other non-employee members of a firm’s new-
venture team, lenders and investors help new firms by
providing guidance and lending advice.
? In addition, a firm’s lenders and investors assume the
natural role of providing financial oversight.
Ways Lenders and Investors Add Value to
an Entrepreneurial Firm
Help identify and recruit key
management personnel
Provide insight into the
markets that the new venture
plans to enter
Help the venture fine-tune its
business model
Serve as a sounding board
for new ideas
Provide introductions to
additional sources of capital
Serve on the new venture’s
board of directors or board of
advisors
17
Ways Lenders and Investors Add Value to
an Entrepreneurial Firm
Recruit customers
Help to arrange business
partnerships
Serve on the board of
directors or board of advisors
Provide a sense of stability
and calm
Other Professional Advisers
? Lenders and Investors
? Help identify and recruit key management personnel
? Recruit customers
? Help the venture fine-tune its business model
? Help to arrange business partnerships
? Experience can provide calm in emotional roller-coaster ride
that many new venture teams experience
18
Other Professional Advisors
? Consultant
? An individual who gives professional or expert advice
? Can tackle depth-intensive tasks
? Feasibility study
? Industry analysis
? Building a product prototype
? Paid
? IBM Global Services, Bearing Point (KPMG), Accenture
? Non-profit or government provided consultants
Choosing an Attorney for a Firm
? Contact the local bar association for attorneys who specialize in
business start-ups
? Interview and check references
? Select one familiar with the start-up process
? Select one who may help in raising money for your venture
? Track record of completing work on time
? Talk about fees – if attorney is not clear on costs, keep looking
? Trust your intuition
? Stay in control – learn as much about the legal process of starting a
business yourself
19
? Business Consultants
? A business consultant is an individual who gives
professional or expert advice.
? Business consultants fall into two categories: paid
consultants and consultants who are available for free or at
a reduced rate through a nonprofit or governmental agency.
New Venture Team
Founder or
founders
of a
venture
Key
employees
Board of
directors
Other
professionals
Lenders
and
investors
Management
team
Board of
advisors
20
Organizational Charts
CEO, Co-founder COO, Co-Founder
President, CEO, Co-founder
COO, Co-Founder VP of Marketing CFO
Outside
Sales
Inside Sales
Engineer
Manager,
Team Member
Organizational Charts
? Can also be based:
? Regions
? Products
? Matrix structure
21
Matrix Structure
Marketing
Manager
Manufacturing
Manager
Product Design
Manager
Manager of
Project A
Engineer Engineer
Engineer
Manager of
Project B
Engineer Engineer
Engineer
Manager of
Project C
Engineer Engineer
Engineer
Organizational Culture
? The pattern of shared values, beliefs, and
assumptions considered to be the appropriate
and correct way to think and act on problems
and opportunities facing an organization.
? Culture is shared.
? Culture helps members solve problems.
? Culture is taught to newcomers.
? Culture strongly influences behavior.
22
Layers of Culture
Artifacts of
Organizational
Culture
Material Symbols
Language
Rituals
Stories
Organizational
Culture
Beliefs
Values
Assumptions
Levels of Culture
? Artifacts
? Aspects of an organization’s culture that you see, hear, and feel.
What are some examples?
? Beliefs
? The understandings of how objects and ideas relate to each other.
? Values
? The stable, long-lasting beliefs about what is important.
? Assumptions
? The taken-for-granted notions of how something should be in an
organization.
23
Characteristics of
Organizational Culture
? Innovation and risk-taking
? The degree to which employees are encouraged to be innovative and take risks.
? Attention to detail
? The degree to which employees are expected to exhibit precision, analysis, and
attention to detail.
? Outcome orientation
? The degree to which management focuses on results or outcomes rather than on
technique and process.
? People orientation
? The degree to which management decisions take into consideration the effect of
outcomes on people within the organization.
Characteristics of Organizational
Culture
? Team orientation
? The degree to which work activities are organized around teams rather
than individuals.
? Aggressiveness
? The degree to which people are aggressive and competitive rather than
easygoing.
? Stability
? The degree to which organizational activities emphasize maintaining the
status quo in contrast to growth.
24
Culture’s Functions
? Social glue that helps hold an organization
together.
? Provides appropriate standards for what employees
should say or do.
? Boundary-defining.
? Conveys a sense of identity for organization
members.
Culture’s Functions
? Facilitates commitment to something larger
than one’s individual self-interest.
? Enhances social system stability.
? Serves as a “sense-making” and control
mechanism.
? Guides and shapes the attitudes and behaviour of
employees.
25
Strong Culture
? Organization’s core values are intensely held and
widely shared
? Demonstrates high agreement among members
about what the organization stands for
? Unanimity of purpose builds cohesiveness,
loyalty, and organizational commitment.
? Creating of strong ethical culture
Weak Culture
? Employees do not feel any great attachment to
their organization or their co-workers
? Do not take pride in their work
? Service and retail experiences: customers are
ignored by employees, environment is unfriendly
or unclean
26
Signs of an Organization’s Culture
? Stories
? Tell about founders, reactions to past mistakes, rule breaking,
rags-to-riches successes
? Rituals
? Repetitive sequences of activities that express and reinforce the
key values of the organization
? What goals are most important and which ones are expendable
? The Wal-Mart chant: “gimme a W, gimme an A, gimme an L,
gimme a squiggle, give me an M,A,R,T!”
Signs of an Organization’s Culture
? Ceremonies
? Planned and usually dramatic
displays of organizational culture,
conducted specifically for the
benefit of the audience
? Material Symbols
? Layout of corporate headquarters
? Dress codes
? Size of offices and use of offices
? Intel example
? Mountain Equipment Co-Op
? Language
? Baristas at Starbucks call drinks tall,
grande, and vente, not small,
medium, or large
27
How Organizational Culture Forms
Selection
criteria
Socialization
Organization's
culture
Philosophy
of
organization's
founders
Top
management
Culture Creation
? Founders hire and keep employees who think and feel the way
they do
? Founders indoctrinate and socialize employees on their way of
thinking and feeling
? Founders’ behavior act as role model, encouraging employees to
identify with founders and internalize their beliefs, values, and
assumptions.
? Bill Gates (Microsoft)
? Ted Rogers (Rogers Communications)
? Frank Stronach (Magna International)
? Richard Branson (Virgin Group)
? Anita Roddick (The Body Shop)
? Ingvar Kamprad (IKEA)
28
Creating and Sustaining Culture:
Keeping a Culture Alive
? Selection
? Identify and hire individuals who will fit in with the
culture.
? Top Management
? Senior executives establish and communicate the norms of
the organization.
? Socialization
? The process that adapts new employees to the
organization’s culture; teaches the culture to new
employees.
A Socialization Model
Prearrival Encounter Metamorphosis
Socialization Process Outcomes
Commitment
Productivity
Turnover
29
Pre-arrival Stage
? Period of learning in the socialization process
that occurs before a new employee joins the
organization
? Learn about the job and the organization
? Form employment relationship expectations
Encounter Stage
? The stage in the socialization process in
which a new employee sees what the
organization is really like and confronts the
possibility that expectations and reality may
diverge
? Test expectations against perceived realities
30
Metamorphosis Stage
? The stage in the socialization process in
which a new employee adjusts to the work
group’s values and norms.
? Becomes comfortable with job/role
? Internalized the norms
? Feels accepted and trusted by colleagues
? Confident about ability to complete his/her job
? Understands what is expected and how she/he will
be evaluated
Socialization Outcomes
? Higher motivation
? Higher loyalty
? Higher satisfaction
? Lower stress
? Lower turnover
31
Entry Socialization Options
? Formal vs. Informal
? Specific orientation and training programs are formal examples;
immersion into new job with little or no attention is informal entry
? Individual vs. Collective
? Individual or grouped (as in boot camp)
? Fixed vs. Variable
? Rotational training, probationary periods, variable schedules “when
you are ready”
Sources: Based on J. Van Maanen, “People Processing: Strategies of Organizational Socialization,” Organizational Dynamics, Summer 1978, pp. 19-36; and E. H. Schein, “Organizational
Culture,” American Psychologist, February 1960, p. 116.
Entry Socialization Options
? Serial vs. Random
? Apprenticeships and mentoring programs (serial); no role models to help
new employee figure things out (random)
? Investiture vs. Divestiture
? Newcomer’s qualities and qualifications are the necessary ingredients for
job success (investiture)
? Recruit has certain characteristics that must be stripped away
(fraternity/sorority)
Sources: Based on J. Van Maanen, “People Processing: Strategies of Organizational Socialization,” Organizational Dynamics, Summer 1978, pp. 19-36; and E. H. Schein, “Organizational
Culture,” American Psychologist, February 1960, p. 116.
32
Two Dimensions of Organizational Culture
? Sociability
? Measure of friendliness
? High people and team orientation
? Focus on processes rather than outcomes
? Solidarity
? People can overlook personal biases and rally behind common
interests and goals
? High attention to detail
? High aggressiveness
Four-Culture Typology
Fragmented
Networked
Low
High
Solidarity
Mercenary
Low
High
Communal
S
o
c
i
a
b
i
l
i
t
y
Source: Adapted from R. Goffee and G. Jones, The Character of a Corporation: How Your Company’s Culture Can Make or Break Your Business (New York: HarperBusiness, 1998), p. 21.
33
Networked Culture (high on
sociability, low on solidarity)
? View members in the organization as family
and friends
? People know and like each other
? People are willing to give assistance and
opening share information
? Focus on friendships can lead to a tolerance for
poor performance and creating of political
cliques.
Mercenary Culture (low on sociability,
high on solidarity)
? Fiercely goal-oriented culture
? Members have a zest for getting things done
quickly and a powerful sense of purpose
? Organization culture is about ‘destroying the
enemy’, not just winning
? Can lead to an almost inhumane treatment of
people who are perceived as low performers
34
Fragmented Culture (low on
sociability, low on solidarity)
? Members are individualists
? Commitment to individual first and his/her job
task
? Little or no identification with the organization
? Judged solely on productivity and quality of
work
? Can lead to excessively critiquing of others and
an absence of collegiality and cooperation
Communal Culture (high on
sociability, high on solidarity)
? Organizations with this type of culture value
both friendship and performance
? Feeling of belonging and ruthless focus on goal
achievement
? Leaders are inspirational and charismatic with
clear vision
? Can lead to “cult-like” work climate
35
The Liabilities of Culture
? Culture can have dysfunctional aspects in some
instances.
? Culture as a Barrier to Change
? When organization is undergoing change, culture may impede
change.
? Culture as a Barrier to Diversity
? Strong cultures put considerable pressure on employees to
conform.
? Culture as a Barrier to Mergers and Acquisitions
? Merging the cultures of two organizations can be difficult, if not
impossible.
Strengthening
Organizational
Culture
Maintaining a
stable workforce
36
A Look at Different Organizational Cultures
? Nike
?http://nikeinc.com/pages/history-heritageCirque du Soleil
? Intel
?http://www.intel.com/jobs/workplace/values.htm
? Starbucks
?http://www.starbucks.ca/careers/working-at-starbucks
Organizational Culture
? What Artifacts of Organizational Behavior do you observe?
? Rituals
? Stories
? Ceremonies
? Language
? What Aspects of Organizational Culture do you observe?
? Beliefs
? Values
? Assumptions
? What Characteristics of Organizational Culture do you observe?
? Innovation and risk-taking
? Attention to detail
? Outcome orientation
? People orientation
? Team orientation
? Aggressiveness
? Stability
37
Groups and Teamwork
? Groups
? Two or more people with a common relationship.
? Teams
? A small number of people who work closely
together toward a common objective and are
accountable to one another.
Shaping Team Players
? Individuals on a team need to understand their roles and
then work together to create a set of group norms.
? A role is a set of expected behavior patterns associated with someone
occupying a given position in a social unit.
? Role Expectations
? How others believe a person should act in a given situation.
? Role Conflict
? A situation in which an individual is confronted by divergent role expectations.
? Role Ambiguity
? A person is unclear about his or her role.
? Role Overload
? Too much is expected of someone.
? Role Underload
? Too little is expected of someone, and that person feels that he or she is not contributing
to the group.
38
Roles
? Task-oriented roles
? Roles performed by group members to ensure that the tasks of
the group are accomplished.
? Maintenance roles
? Roles performed by group members to maintain good relations
within the group.
? Individual roles
? Roles performed by group members that are not productive for
keeping the group on task.
Roles That Build Task Accomplishment
Initiating Stating the goal or problem, making proposals
about how to work on it, setting time limits
Seeking information and
opinions
Asking group members for specific factual
information related to the task or problem
Providing information and
opinions
Sharing information or opinions related to the task
or problems
Clarifying Helping one another understand ideas and
suggestions that come up in the group
Elaborating Building on one another’s ideas and suggestions
Summarizing Reviewing the points covered by the group and the
different ideas stated so that decisions can be
based on full information
Consensus Testing Periodic testing about whether the group is nearing
a decision or needs to continue discussion
Source: “Team Processes,” in Managing for the Future, ed. D. Ancona, T. Kochan, M. Scully, J. Van Maanen, and D. E. Westney (Cincinnati, OH: South-Western College Publishing, 1996), p. 9.
39
Roles That Build and Maintain a Team
Harmonizing Mediating conflict among other members,
reconciling disagreements, relieving tensions
Compromising Admitting error at times of group conflict
Gatekeeping Making sure all members have a chance to express
their ideas and feelings and preventing members
from being interrupted
Encouraging Helping a group member make his or her point.
Establishing a climate of acceptance in the group
Source: “Team Processes,” in Managing for the Future, ed. D. Ancona, T. Kochan, M. Scully, J. Van Maanen, and D. E. Westney (Cincinnati,
OH: South-Western College Publishing, 1996), p. 9.
Shaping Team Players
? Norms
? Acceptable standards of behavior within a group that are shared
by the group’s members.
? Performance
? How hard to work, what kind of quality, levels of tardiness
? Appearance
? Personal dress, when to look busy, when to "goof off," how to show
loyalty
? Social arrangement
? How team members interact
? Allocation of resources
? Pay, assignments, allocation of tools and equipment
40
How Norms Develop
? Explicit statements
? The group leader might, for instance, specifically say that no personal
phone calls are allowed during working hours or that coffee breaks
must be no longer than 10 minutes.
? Critical events
? Critical events in the group’s history: These set important precedents.
? Initial patterns of behaviour
? Carry-over behaviour
Why Norms Are Enforced
? Facilitate group survival.
? Make behaviour predictable.
? Minimize embarrassment.
? Express central values.
? Clarify the group’s identity.
Conformity: Adjusting one’s behavior to align with the norms of a group.
41
Characteristics of an Effective Team
? Clear purpose
? Informality
? Participation
? Listening
? Civilized disagreement
? Consensus decisions
? Open communication
? Clear rules and work
assignments
? Shared leadership
? External relations
? Style diversity
? Self-assessment
Source: G. M. Parker, Team Players and Teamwork: The New Competitive Business Strategy (San Francisco: Jossey-Bass, 1990), Table 2, p. 33.
Copyright © 1990 by Jossey-Bass Inc., Publishers. Reprinted by permission of John Wiley & Sons, Inc.
A Model of Team Effectiveness
Team
effectiveness
Context
• Adequate resources
• Leadership and structure
• Climate of trust
• Performance evaluation
and rewards
Work design
• Autonomy
• Skill variety
• Task identity
• Task significance
Composition
• S kills
• Personality
• Roles
• Diversity
• Size
• Member flexibility
• Member preference for
teamwork
Process
• Common purpose
• Specific goals
• Team efficacy
• Managed level of conflict
• Accountability
42
Group Size
? Research shows that:
? Smaller groups are faster at completing tasks.
? When problem solving, larger groups do better.
? Social Loafing
? The tendency for individuals to expend less effort when
working collectively than when working individually.
? To reduce social loafing, teams should not be larger than
necessary, and individuals should be held accountable for their
actions.
Creating Effective Teams
? Effective teams need to work together and take collective
responsibility to complete significant tasks. They must be more
than a “team-in-name-only.”
? Member Flexibility
? The ability of team members to complete each others’ tasks.
? Members’ Preference for Teamwork
? Team members who would prefer to work on their own threaten the
team’s morale.
? Cohesiveness
? The degree to which team members are attracted to each other and
motivated to stay on the team
? Icebreakers
? Time and events
? Success
43
Shaping Team Players
? Selection
? Care should be taken to ensure that candidates can fulfill
their team roles as well as technical requirements.
? Training
? A large proportion of people raised on the importance of
individual accomplishment can be trained to become team
players.
Shaping Team Players
? Performance Evaluation
? Performance as a team member has to be evaluated alongside
“individual” performance.
? Tie the team’s results to the organization’s goals.
? Begin with the team’s customers and the work process that the
team follows.
? Measure both team and individual performance.
? Train the team to create its own measures.
? Rewards
? Reward systems need to be reworked to encourage cooperative
efforts rather than competitive ones.
44
Stages of Group Development
Stages of Group and Team Development
? Stage I: Forming
? Characterized by uncertainty
? Stage II: Storming
? Characterized by intragroup conflict
? Stage III: Norming
? Characterized by close relationships and
cohesiveness
45
Stages of Group and Team Development
? Stage IV: Performing
? The stage when the group is fully functional
? Stage V: Adjourning
? The final stage in group development for temporary
groups, characterized by concern with wrapping up
activities rather than task performance
Putting the Five-Stage Model
Into Perspective
? Groups do not necessarily progress clearly through the stages
one at a time.
? Groups can sometimes go back to an earlier stage.
? Conflict can sometimes be helpful to the group.
? Context can matter: airline pilots can immediately reach
performing stage.
46
Teams Aren’t Always the Answer
? Teams work best when the answer is yes:
? Can the work be done better by more than one person?
? Does work create a common purpose or set of goals for the
people in the group that is more than the aggregate of
individual goals?
? Are members of the group interdependent?
doc_161532388.pdf