Chapter 8 Managerial Decision Exercises

1. You are the general manager of a floral supplies distributor that provides independent florists with things that they need for their business, such as vases, ribbons, and balloons. You have read that many organizations use incentive pay plans that reward employees when the organization does well. You have 6 drivers, 12 warehouse workers, 3 inside salespeople, and an assistant that reports to you. What types of incentive plan would you propose for an organization like yours?

2. You are the HR manager at a midsized auto parts manufacturer. What are the pros and cons of establishing a 360-degree performance appraisal system in your organizations? Write a memo to the CEO outlining what you think should be done

Chapter 9 Group Cohesiveness

In the fast-moving innovative car industry, it is always important to be thinking about improving and staying ahead of the competition. For Ford and Chevrolet however, they have such popular vehiclesthe F-150 and the hybrid Volt, respectivelythat finding ways to improve them without taking away the qualities that make them popular is key. With the F-150, Ford had one of the best-selling vehicles for more than 30 years, but improving upon their most popular vehicle came with its challenges. In 2015, the team wanted to introduce an economically six-cylinder EcoBoost engine, and an all-aluminum body. The team was worried about the marketplace and hoped that the customers would accept the change to their beloved truck. The planning started 18 months before, working in parallel work teams on various parts of the project. Each team was responsible for a piece of the overall project, and they frequently came together to make sure that they were working cohesively to create a viable vehicle. The most successful piece of the dynamic for Ford was teams' ability to share feedback. Pete Reyes expresses the teamwork mentality: "Everybody crosses boundaries, and they came back with all of the feedback that shaped what we are going to do." Having team cohesiveness was ultimately what brought Ford to the finish line. With over 1,000 members of the overall team, employees were able to accomplish a truly viable vehicle that weighed 700 pounds less, as well as countless other innovations that gave the truck 29 percent more fuel economy. "We stuck to common goals . . . I don't think I'll ever work on a team that tight again," stated Reyes about his team of developmental managers. As a result of their close teamwork, Ford announced thirdquarter earnings of 1.9 billion, an increase of 1.1 billion from 2014. Sources: J. Motivalli, " 5 Inspiring Companies That Rely on Teamwork to Be Successful," Success, February 16, 2016, https://www.success.com/5-inspiring-companies-that-rely-on-teamwork-to-be-successful/; "All300 Chapter 9 Group and Intergroup Relations This OpenStax book is available for free at http://cnx.org/content/col29124/1.5 9.3 Managing Effective Work Groups 3. How do managers develop group cohesiveness, which facilitates organizational goal attainment? We have examined in detail the nature and structure of work groups, noting that work groups differ along such dimensions as size, norms, and roles. Some groups are more cohesive than others. In view of these differences, it is interesting to ask how managers can facilitate increased work group effectiveness. To answer this question, we will make use of Hackman's model of group effectiveness.26 According to this model, illustrated in Exhibit 9.9, the effectiveness of a work group is influenced by environmental factors, design factors, and task-related interpersonal processes. These three factors combine to influence what are called intermediate criteria, which, in turn, combine with the nature of the work technology to determine ultimate group effectiveness. New 2015 F-150 Most Patented Truck in Ford History - New Innovations Bolster Next-Generation LightDuty Pickup," Ford Media Center, May 23, 2014, https://media.ford.com/content/fordmedia/fna/us/en/ news/2014/05/23/all-new-2015-f-150-most-patented-truck-in-ford-history--new-inno.html; P. Friedman, "Body of Work," Ford Corporate Website, accessed, December 13, 2018, https://corporate.ford.com/ innovation/f-150-body-of-work.html.

Questions:

1. What challenges does a large project like Ford's F-150 project have to take into account for success? 2. What kind of work teams did Ford employ throughout its project to get the best results?

3. Can Ford's successes be translated into other smaller teams? How would you apply its best practices to a work environment of your own?

Chapter 10 Critical Thinking Case Diverse Teams Hold Court

Diverse teams have been proven to be better at problem-solving and decision-making for a number of reasons. First, they bring many different perspectives to the table. Second, they rely more on facts and use those facts to substantiate their positions. What is even more interesting is that, according to the Scientific American article "How Diversity Makes Us Smarter," simply "being around people who are different from us makes more creative, diligent, and harder-working." One case in point is the example of jury decision-making, where fact-finding and logical decision-making are of utmost importance. A 2006 study of jury decision-making, led by social psychologist Samuel Sommers of Tufts University, showed that racially diverse groups exchanged a wider range of information during deliberation of a case than all-white groups did. The researcher also conducted mock jury trials with a group of real jurors to show the impact of diversity on jury decision-making. Interestingly enough, it was the mere presence of diversity on the jury that made jurors consider the facts more, and they had fewer errors recalling the relevant information. The groups even became more willing to discuss the role of race case, when they hadn't before with an all-white jury. This wasn't the case because the diverse jury members brought new information to the groupit happened because, according to the author, the mere presence of diversity made people more open-minded and diligent. Given what we discussed on the benefits of diversity, it makes sense. People are more likely to be prepared, to be diligent, and to think logically 344 Chapter 10 Understanding and Managing Work Teams This OpenStax book is available for free at http://cnx.org/content/col29124/1.5 about something if they know that they will be pushed or tested on it. And who else would push you or test you on something, if not someone who is different from you in perspective, experience, or thinking. "Diversity jolts us into cognitive action in ways that homogeneity simply does not." So, the next time you are called for jury duty, or to serve on a board committee, or to make an important decision as part of a team, remember that one way to generate a great discussion and come up with a strong solution is to pull together a diverse team.

Critical Thinking Questions

1. If you don't have a diverse group of people on your team, how can you ensure that you will have robust discussions and decision-making? What techniques can you use to generate conversations from different perspectives?

2. Evaluate your own team at work. Is it a diverse team? How would you rate the quality of decisions generated from that group?

Sources: Adapted from Katherine W. Phillips, "How Diversity Makes Us Smarter," Scientific American, October 2014, p. 7-8.

Chapter Review 10 Questions

1. What are the key differences between a team and a working group?

2. At what stage of team development does the team finally start to see results?

3. What can cause a team to digress to an earlier stage of team development?

4. What can a team leader do to manage the team's boundaries?

5. How does managing conflict help a team learn and grow?

6. What are some strategies to make conflict more productive?

7. Why are diverse teams better at decision-making and problem-solving?

8. Why do diverse teams utilize data more often than homogeneous teams?

9. What are some of the challenges that multicultural teams face?

10. What are the key sources of cultural intelligence?

Chapter Review Questions 9

1. What are the various types of groups often found in work situations?

2. Why do people join groups?

3. Describe the stages of group development.

4. How does work group size influence individual and group behavior?

5. Discuss the role of work group norms in the work situation.

6. Consider how groups influence conformity and deviance in work situations.

7. What is the major conclusion of Asch's experiment on group pressure and individual judgment?

8. Define a role episode.

9. Why is knowledge of role relationships important for managers?

10. What purposes are served by status differentiations in work organizations? What problems emerge from these differentiations?

11. What determines group cohesiveness, and what impact does it have on group behavior?

12. Discuss how managers can improve intergroup relations and performance. Provide examples from your own experience to defend your arguments.