Groups & Teams Overview
The content included in this chapter is adapted from two Open University chapters: Working in Groups and Teams and Groups and Teamwork
What is a team?
The term ‘work group’ (or ‘group’) is often used interchangeably with the word ‘team,’ although a team may be thought of as a particularly cohesive and purposeful type of work group. We can distinguish work groups or teams from more casual groupings of people by using the following set of criteria (Adair, 1983). A collection of people can be defined as a work group or team if it shows most, if not all, of the following characteristics:
- A definable membership: a collection of three or more people identifiable by name or type;
- A group consciousness or identity: the members think of themselves as a group;
- A sense of shared purpose: the members share some common task or goals or interests;
- Interdependence: the members need the help of one another to accomplish the purpose for which they joined the group;
- Interaction: the members communicate with one another, influence one another, and react to one another;
- Sustainability: the team members periodically review the team’s effectiveness;
- An ability to act together.
Usually, tasks and goals set by teams cannot be achieved by individuals working alone due to time or resource constraints, as few individuals possess all the relevant competencies and expertise.
Teamwork is usually connected with project work. Teamwork is particularly useful when you have to address risky, uncertain, or unfamiliar problems where there is a lot of choice and discretion surrounding the decision to be made. In the area of voluntary and unpaid work, where pay is not an incentive, teamwork can help to motivate support and commitment because it can offer opportunities to interact socially and learn from others. Furthermore, people are more willing to support and defend the work they helped create (Stanton, 1992).
What is a group?
Our tendency to form groups is a pervasive aspect of organizational life. In addition to formal groups, committees, and teams, there are informal groups, such as cliques and factions.
Formal groups are used to organize and distribute work, pool information, devise plans, coordinate activities, increase commitment, negotiate, resolve conflicts, and conduct inquests. Group work allows the pooling of people’s individual skills and knowledge, and helps compensate for individual deficiencies. Estimates suggest most managers spend 50 percent of their working day in one sort of group or another, and for top management of large organizations, this can rise to 80 percent. Thus, formal groups are clearly an integral part of the functioning of an organization.
No less important are informal groups. These are usually structured more around the social needs of people than around the performance of tasks. Informal groups usually serve to satisfy the needs of affiliation and act as a forum for exploring self-concept as a means of gaining support, and so on. However, these informal groups may also have an important effect on formal work tasks, for example by exerting subtle pressures on group members to conform to a particular work rate, or as ‘places’ where news, gossip, etc., are exchanged.
By contrast, groups are less clearly focused on an external task. In some instances, the growth and development of the group itself is its primary purpose; the process is more important than the outcome. Many groups are reasonably fluid and less formally structured than teams. In the case of work groups, an agreed and defined outcome is often regarded as a sufficient basis for effective cooperation and the development of adequate relationships.
Importantly, groups and teams are not distinct entities. Both can be pertinent in personal development as well as organizational development and managing change. In such circumstances, when is it appropriate to embark on team building rather than relying on ordinary group or solo working?
In general, the greater the task uncertainty then the more important teamwork is, especially if it is necessary to represent the differing perspectives of concerned parties. In such situations, the facts themselves do not always point to an obvious policy or strategy for innovation, support, and development: decisions are partially based on the opinions and the personal visions of those involved.
There are risks associated with working in teams as well. Under some conditions, teams may produce more conventional, rather than more innovative, responses to problems. The reason for this is that team decisions may regress towards the average, with group pressures to conform canceling out more innovative decision options (Makin, Cooper, & Cox, 1989). It depends on how innovative the team is, in terms of its membership, its norms, and its values.
Teamwork may not be the best when you want a fast decision. Team decision-making is usually slower than individual decision-making because of the need for communication and consensus about the decision taken. Despite the business successes of Japanese companies, it is now recognized that promoting a collective organizational identity and responsibility for decisions can sometimes slow down operations significantly, in ways that are not always compensated for by better decision-making.
Is a team or group really needed?
There may be times when a group working – or simply working alone – is more appropriate and more effective. For example, decision-making in groups and teams is usually slower than individual decision-making because of the need for communication and consensus. In addition, groups and teams may produce conventional rather than innovative responses to problems, because decisions may regress toward the average, with the more innovative decision options being rejected (Makin et al., 1989).
In general, the greater the ‘task uncertainty’, the less obvious and more complex the task, and the more important it will be to work in a group or team rather than individually. This is because there will be a greater need for different skills and perspectives, especially if it is necessary to represent the different perspectives of the different stakeholders involved.
Table 1 lists occasions when it will be appropriate to work in teams, in groups, or alone.
| When working alone or in groups | When to build teams |
| For simple tasks or problems | For highly-complex tasks or problems |
| When cooperation is sufficient | When decisions by consensus are essential |
| When minimum discretion is required | When there is a high level of choice and uncertainty |
| When fast decisions are needed | When high commitment is needed |
| When few competencies are required | When a broad range of competencies and different skills are required |
| When members’ interests are different or in conflict | When members’ objectives can be brought together towards a common purpose |
| When an organization credits individuals for operational outputs | When an organization rewards team results for strategy and vision building |
| When innovative responses are sought | When balanced views are sought |
Table 1 When to work alone, in groups or in teams
Types of teams
Different organizations or organizational settings lead to different types of teams. The type of team affects how it is managed, the communication needs of the team, and, where appropriate, what aspects the project manager needs to emphasize. A working group or team may be permanent, forming part of the organization’s structure, such as a top management team, or temporary, such as a task force assembled to see through a particular project. Members may work as a group continuously or meet only intermittently. The more direct contact and communication team members have with each other, the more likely they are to function well as a team. Thus, getting a group to function well is a valuable management aim.
The following section defines common types of teams. Many teams may not fall clearly into one type but may combine elements of different types. Many organizations have traditionally been managed through a hierarchical structure. This general structure is illustrated in Figure 1, and consists of:
- staff performing similar tasks – grouped together and reporting to a single supervisor;
- Junior managers – responsible for a number of supervisors and their groups;
- groups of junior managers – reporting to departmental heads;
- departmental heads – reporting to senior managers, who are responsible for wide-ranging functions such as manufacturing, finance, human resources, and marketing;
- senior managers – reporting to the managing director, who may then report to the Board.
The number of levels clearly depends upon the size and to some extent on the type of the organization. Typically, the ‘span of control’ (the number of people each manager or supervisor is directly responsible for) averages about five people, but this can vary widely. As a general rule, it is bad practice for any single manager to supervise more than 7-10 people.
While the hierarchy is designed to provide a stable ‘backbone’ to the organization, projects are primarily concerned with change, and so tend to be organized quite differently. Their structure needs to be more fluid than that of conventional management structures. There are four commonly used types of project teams: the functional team, the project (single) team, the matrix team, and the contract team.
The Functional Team
The hierarchical structure described in Figure 1 divides groups of people along largely functional lines: people working together to carry out the same or similar functions. A functional team is one in which work is carried out within such a functionally organized group. This can be project work. In organizations in which the functional divisions are relatively rigid, project work may be handed from one functional team to another in order to complete the work. For example, work on a new product can pass from marketing, which has the idea, to research and development, which sees whether it is technically feasible, then to design and finally manufacturing. This is sometimes known as ‘baton passing.’
The project (single) team
The project, or single, team consists of a group of people who come together as a distinct organizational unit in order to work on a project or project. The team is often led by a project manager, though self-managing and self-organizing arrangements may be used. Quite often, a team that has been successful on one project will stay together to work on subsequent projects. This is particularly common where an organization engages repeatedly in projects of a broadly similar nature – for example, developing software, or in construction. Perhaps the most important issue in this instance is to develop the collective capability of the team since this is the currency for continued success. People issues are often crucial in achieving this.
The closeness of the dedicated project team normally reduces team communication problems. However, care should be taken to ensure that communications with other stakeholders (senior management, line managers, and other members of staff in the departments affected, and so on) are not neglected, as it is easy for ‘us and them’ distinctions to develop.
The matrix team
In a matrix team, staff reports to different managers for different aspects of their work. Matrix structures are often, but not exclusively, found in projects. Matrix structures are more common in large and multi-national organizations. In this structure, staff are responsible to the project manager for their work on the project while their functional line manager may be responsible for other aspects of their work such as appraisal, training, career development, and ‘routine’ tasks. This matrix project structure is represented in Figure 2. Notice how the traditional hierarchy is cross-cut by the ‘automated widget manufacturing configuration.’
In the Matrix form of organization, staff from various functional areas (such as design, software development, manufacturing or marketing) are loaned or seconded to work on a particular project. Such staff may work full or part-time on the project. The project manager thus has a recognizable team and is responsible for controlling and monitoring its work on the project.
However, many of the project staff will still have other duties to perform in their normal functional departments. The functional line managers they report to will retain responsibility for this work and for the professional standards of their work on the project, as well as for their training and career development. It is important to overcome the problems staff might have with the dual reporting lines (the ‘two-boss’ problem). This requires building good interpersonal relationships with the team members and regular, effective communication.
The contract team
The contract team is brought in from outside in order to do project work. Here, the responsibility to deliver the project rests very firmly with the project manager. The client will find such a team harder to control directly. On the other hand, it is the client who will judge the success of the project, so the project manager has to keep an eye constantly on the physical outcomes of the project. A variant of this is the so-called ‘outsourced supply team’, which simply means that the team is physically situated remotely from the project manager, who then encounters the additional problem of ‘managing at a distance’.
Mixed structures
Teams often have mixed structures:
- Some members may be employed to work full-time on the project and be fully responsible to the project manager. Project managers themselves are usually employed full-time.
- Others may work part-time, and be responsible to the project manager only during their time on the project. For example, internal staff may well work on several projects at the same time. Alternatively, an external consultant working on a given project may also be involved in a wider portfolio of activities.
- Some may be part of a matrix arrangement, whereby their work on the project is overseen by the project manager and they report to their line manager for other matters. Project administrators often function in this way, serving the project for its duration, but having a career path within a wider administrative service.
- Still, others may be part of a functional hierarchy, undertaking work on the project under their line manager’s supervision by negotiation with their project manager. For instance, someone who works in an organization’s legal department may provide the project team with access to legal advice when needed.
In relatively small projects the last two arrangements are a very common way of accessing specialist services that will only be needed from time to time.
Modern teams
In addition to the traditional types of teams or groups, recently there has been a growing interest in three other important types of teams: ‘self-managed teams’, ‘self-organizing teams’, and ‘dispersed virtual teams.’
A typical self-managed team may be permanent or temporary. It operates in an informal and non-hierarchical manner and has considerable responsibility for the way it carries out its tasks. It is often found in organizations that are developing total quality management and quality assurance approaches. The Industrial Society Survey observed that: “Better customer service, more motivated staff, and better quality of output are the three top motives for moving to [self-managed teams], managers report.”
In contrast, organizations that deliberately encourage the formation of self-organizing teams are comparatively rare. Teams of this type can be found in highly flexible, innovative organizations that thrive on creativity and informality. These are modern organizations that recognize the importance of learning and adaptability in ensuring their success and continued survival. However, self-organizing teams exist, unrecognized, in many organizations. For instance, in traditional, bureaucratic organizations, people who need to circumvent the red tape may get together in order to make something happen and, in so doing, spontaneously create a self-organizing team. The team will work together, operating outside the formal structures, until its task is done and then it will disband.
Table 2 shows some typical features of self-managed and self-organizing teams.
| Self-managed team | Self-organizing team |
| Usually part of the formal reporting structure | Usually outside the formal reporting structure |
| Members are usually selected by management | Members usually self-selected volunteers |
| The informal style of working | The informal style of working |
| Indirectly controlled by senior management | Senior management influences only the team’s boundaries |
| Usually a permanent leader, but may change | Leadership variable – perhaps one, perhaps changing, perhaps shared |
| Empowered by senior management | Empowered by the team members and supportive culture and environment |
Table 2: Comparing Self-managed and Self-Organizing Teams
Many organizations set up self-managed or empowered teams to improve performance. They are often used to introduce a continuous improvement approach. These teams tend to meet regularly to discuss and put forward ideas for improved methods of working or customer service in their areas. Some manufacturers have used multi-skilled self-managed teams to improve manufacturing processes, enhance worker participation and improve morale. Self-managed teams give employees an opportunity to take a more active role in their working lives and to develop new skills and abilities. This may result in reduced staff turnover and less absenteeism.
Self-organizing teams are usually formed spontaneously in response to an issue, idea, or challenge. This may be the challenge of creating a radically new product or solving a tough production problem. In Japan, the encouragement of self-organizing teams has been used as a way of stimulating discussion and debate about strategic issues so that radical and innovative new strategies emerge. By using a self-organizing team approach companies were able to tap into the collective wisdom and energy of interested and motivated employees.
Increasingly, virtual teams are also common. A virtual team is one whose primary means of communicating is electronic, with only occasional phone and face-to-face communication, if at all. However, there is no single point at which a team ‘becomes’ a virtual team (Zigurs, 2003). Table 3 contains a summary of the benefits virtual groups provide to organizations and individuals, as well as the potential challenges and disadvantages virtual groups present.
| The Organization Benefits | The Individual Benefits | Possible Challenges and Disadvantages |
| People can be hired with the skills and competencies needed regardless of location | People can work from anywhere at any time | Communicating effectively across distances |
| In some cases, working across different time zones can extend the working day | Physical location is not a recruitment issue; relocation is unnecessary | Management lacks the planning necessary for a virtual group |
| It can enable products to be developed more quickly | Traveling expenses and commuting time are cut | Technology is complicated and/or unfamiliar to some or all members |
| Expenses associated with travel and relocation can be cut; Carbon emissions can be reduced. | People can work from anywhere at any time | Difficult to coordinate times and hard to squeeze all the information into a more narrow time slot |
Table 3. Teams have organizational and individual benefits, as well as possible challenges and disadvantages
Why do (only some) teams succeed?
The determinants of a successful team are complex and not equivalent to following a set of prescriptions. However, the results of poor teamwork can be expensive, so it is useful to draw on research, experience, and case studies to explore some general guidelines. What do I mean by ‘team effectiveness’? – the achievement of goals alone? Where do the achievements of individual members fit in? and How does team member satisfaction contribute to team effectiveness?
Borrowing from Adair’s 1983 leadership model, the left-hand side of Figure 3 shows the main constituents of team effectiveness: the satisfaction of individual membership needs, successful team interaction, and the achievement of team tasks. These elements are not discrete, Figure 3 shows them as overlapping. For example, team member satisfaction will be derived not only from the achievement of tasks but also from the quality of team relationships and the more social aspects of team working: people who work almost entirely on their own, such as teleworkers and self-employed business owner-managers, often miss the opportunity to bounce ideas off colleagues in team situations. The experience of solitude in their work can, over time, create a sense of isolation, and impair their performance. The effectiveness of a team should also relate to the next step, to what happens after the achievement of team goals.
The three elements could be reconfigured as an iceberg, most of which are below the water’s surface (the right-hand side of Figure 3). Superficial observation of teams in organizations might suggest that most, if not all, energy is devoted to the explicit task (what is to be achieved, by when, with what budget, and what resources). Naturally, this is important. But too often the concealed part of the iceberg (how the team will work together) is neglected. As with real icebergs, shipwrecks can ensue.
For instance, if working in a particular team leaves its members antagonistic towards each other and disenchanted with the organization to the point of looking for new jobs, then it can hardly be regarded as fully effective, even if it achieves its goals. The measure of team effectiveness could be how well the team has prepared its members for the transition to new projects, and whether the members would relish the thought of working with each other again.
In addition to what happens inside a team, there are external influences that impact team operations. The factors shown in Figure 4 interact with each other in ways that affect the team and its development. We don’t fully understand the complexity of these interactions and combinations. The best that we can do is discuss each factor in turn and consider some of the interactions between them and how they relate to team effectiveness. For instance, discussions about whether the wider culture of an organization supports and rewards teamworking, whether a team’s internal and/or external customers clearly specify their requirements, and whether the expectations of a team match those of its sponsor will all either help or hinder a team’s ongoing vitality.
Conclusion
This reading has addressed four questions: what characterizes a group, what characterizes a team, how project teams are organized, and what can make teams ineffective. Groups can be formal or informal depending on the circumstances. Workgroups or teams are generally more focused on particular tasks and outcomes and use processes that aim to achieve a unity of purpose, communication, and action. We looked at six major types of teams: functional, project, matrix, contract, self-managing, self-organizing, and virtual teams. Each form has strengths and weaknesses that suit particular types of projects within particular organizational cultures, and teams often involve a mixture of different forms. Team effectiveness is shaped by internal influences – task achievement, individual membership, and team interaction – as well as external influences, such as customers, sponsors, other teams, and organizational culture.
References
- Adair, J. (1983) Effective Leadership, Gower.
- Industrial Society (1995) Managing Best Practice: Self Managed Teams. Publication no. 11, May 1995, London, Industrial Society.
- Makin, P., Cooper, C. and Cox, C. (1989) Managing People at Work, The British Psychological Society and Routledge.
- Stanton, A. (1992) ‘Learning from the experience of collective teamwork’, in Paton R., Cornforth C, and Batsleer, J. (eds) Issues in Voluntary and Non-profit Management, pp. 95–103, Addison-Wesley in association with the Open University.