LECTURE 8bLECTURE 8bNew Organizational Forms and SDWTs:New Organizational Forms and SDWTs:
Changes in Workplace Control, Changes in Workplace Control, Organizational Structures,Organizational Structures,
and Leadershipand Leadership
Dave SeiboldDave Seibold
Professor of Communication,Division of Social Sciences (L&S)
Co-Director, Graduate Program in Management PracticeTechnology Management Program (CoE)
COMM 122: “Micro- and Macro-Organizational Communication”COMM 122: “Micro- and Macro-Organizational Communication”Lecture 8b November 16, 2009Lecture 8b November 16, 2009
Preview: Lecture 8b Preview: Lecture 8b (modification to p. 67)(modification to p. 67)
A. OVERVIEWB. EMPOWERED ENVIRONMENTSC. QUALITY CIRCLES
1. HISTORY & FEATURES of QCs2. FINDINGS re:QCs; PROBLEMS with QCs
D. CHANGES in CONTROL, STRUCTURE, LEADERSHIPE. NEW DESIGN PLANTS
1. CHARACTERISTICS2. REASONS FOR/TRENDS TOWARD NEW PLANTS
F. SDWTs1. History & Trends re:SDWTs2. Transition to Team-Based Organizations
Overview Overview (p. 68)(p. 68)
Low Worker Autonomy High
High Managerial Control Low
Ind. Level Enriched Empowered Environment Environment
Grp Level Quality Circles SDWT’s
Org Level Scanlon Plans New Plants
Overview Overview (p. 68)(p. 68)
Low Worker Autonomy High
High Managerial Control Low
Ind. Level Enriched Empowered Environment Environment
Grp Level Quality Circles SDWT’s
Org Level Scanlon Plans New Plants
Changing Involvement, Participation, Changing Involvement, Participation, & Control & Control (p. 69)(p. 69)
Overview Overview (p. 68)(p. 68)
Low Worker Autonomy High
High Managerial Control Low
Ind. Level Enriched Empowered Environment Environment
Grp Level Quality Circles SDWT’s
Org Level Scanlon Plans New Plants
Characteristics of Characteristics of EmpoweredEmpowered
Collaborative EnvironmentsCollaborative Environments 1. Power & opportunity widely distributed2. Full, open, decentralized communication system3. Integrative problem solving used4. Negative feedback communicated in environment of
trust5. Rewarded/recognized in ways that encourage high
performance and self responsibility6. Personal wisdom/org learning result from org
ambiguity, uncertainty, and paradox
Overview Overview (p. 68)(p. 68)
Low Worker Autonomy High
High Managerial Control Low
Ind. Level Enriched Empowered Environment Environment
Grp Level Quality Circles SDWT’s
Org Level Scanlon Plans New Plants
Quality CirclesQuality Circles
HistoryHistoryPost-WWII JapanPost-WWII Japan
FeaturesFeaturesSmall, intact work groupsSmall, intact work groupsGiven time to interact & solve work problemsGiven time to interact & solve work problemsUsually volunteersUsually volunteersEvolved from blue collar to white collar CFTsEvolved from blue collar to white collar CFTs
Quality CirclesQuality Circles
FindingsFindings
1. QC members attitudes toward program 1. QC members attitudes toward program positive positive (due to increased voice)(due to increased voice)
2. QC members attitudes toward the organization, 2. QC members attitudes toward the organization, and their job satisfaction, and their job satisfaction, not more positivenot more positive
Quality CirclesQuality Circles
FindingsFindings
3. 1/2 QC studies show that productivity is enhanced3. 1/2 QC studies show that productivity is enhanced(cohesion + decision making -> + productivity)(cohesion + decision making -> + productivity)
but 1/2 show no increase (yet no erosion either)but 1/2 show no increase (yet no erosion either) 4. Mngt has more positive attitudes toward employees who 4. Mngt has more positive attitudes toward employees who
are members of QCs (knowledge demonstrated ->are members of QCs (knowledge demonstrated ->increased confidence in employees -> increased confidence in employees ->
+attitudes) +attitudes)
Quality CirclesQuality Circles
Problematic AspectsProblematic Aspects
1. Volunteerism1. Volunteerism
2. Creates a parallel structure2. Creates a parallel structure
3. Group members often lack problem solving & 3. Group members often lack problem solving & interpersonal skillsinterpersonal skills
Overview Overview (p. 68)(p. 68)
Low Worker Autonomy High
High Managerial Control Low
Ind. Level Enriched Empowered Environment Environment
Grp Level Quality Circles SDWT’s
Org Level Scanlon Plans New Plants
Changing Organizational Changing Organizational StructuresStructures
Traditional WorkplaceTraditional Workplace
Control by managersControl by managers
Pyramid designPyramid design
Vertical, chain-of-command Vertical, chain-of-command relationshipsrelationships
““Stovepipe” operationsStovepipe” operations
Rigid bureaucratic proceduresRigid bureaucratic procedures
Supervised work groupsSupervised work groups
Co-present, F-to-F membersCo-present, F-to-F members
National, homogeneous National, homogeneous employeesemployees
Changing WorkplaceChanging Workplace
Workers’ participation managingWorkers’ participation managing
Lattice designLattice design
Lateral, collaborative Lateral, collaborative relationshipsrelationships
Cross-functional arrangementsCross-functional arrangements
Employee empowermentEmployee empowerment
Semi-autonomous work teamsSemi-autonomous work teams
Distributed, virtual work groupsDistributed, virtual work groups
Global, culturally diverse, Global, culturally diverse, membersmembers
New Design PlantsNew Design Plants as a New Organizational Form as a New Organizational Form
ExEx: P&G, Kraft, Saturn, Honeywell, Caterpillar, Boeing: P&G, Kraft, Saturn, Honeywell, Caterpillar, Boeing
Flattened hierarchies Flattened hierarchies
Layers of mid-management eliminatedLayers of mid-management eliminated
Wide spans of control, employees organized in “teams”Wide spans of control, employees organized in “teams”
Reduction of staff support functionsReduction of staff support functions
Absence of assigned authorityAbsence of assigned authority
New Design PlantsNew Design Plants as a New Organizational Form as a New Organizational Form
Decision making pushed downwardDecision making pushed downward
Reduced reliance on formal communication channelsReduced reliance on formal communication channels
Empowered employeesEmpowered employees
Flexible, self-designed role descriptionsFlexible, self-designed role descriptions
Removal of status markersRemoval of status markers
New Design PlantsNew Design Plants as a New Organizational Form as a New Organizational Form
Skill-based pay, cross-trainingSkill-based pay, cross-training
Open access to informationOpen access to information
Individual initiative and innovation rewardedIndividual initiative and innovation rewarded
Profit-sharing plans for employeesProfit-sharing plans for employees
High levels of business integration High levels of business integration (versus functional divisions)(versus functional divisions)
New Design PlantsNew Design Plants as a New Organizational Form as a New Organizational Form
Reasons for Popularity of New Design PlantsReasons for Popularity of New Design Plants
1. Increase in diversity in the workforce2. Increase in competition (esp international)3. Increase in labor costs4. Increasing education level of workforce5. Increased legislation re: employee rights6. Increased support for participative workplace
Changes in Changes in ManagingManaging Organizations Organizations
“Bosses’” Behaviors in Traditional Firms
Planning Work
Staffing with Workers
Directing Employees
Controlling Work
Evaluating Productivity
“Leaders’” Activities in Participative Groups
Setting Goals
Involving Members
Guiding Participants
Rewarding Performance
Assessing Achievement
“Leadership” Processes in Collaborative Teams
Creating Vision
Building Teams
Inspiring Teamwork
Enabling Innovativeness
Monitoring Responses
Changes in ManagingChanges in Managing
“Bosses’” Behaviors
Staffing with Workers
Recruit
Select
Train
“Leaders’” Activities
Involving Members
Solicit Input
Motivate Members
Develop Individuals’ Capabilities
“Leadership” Processes
Building Teams
Create Roles That Are Desirable/Fulfilling
Facilitate Norms That Encourage Effectiveness
Expand Resources
Changes in ManagingChanges in Managing
“Bosses’” Behaviors
Directing Employees
Give Orders
Assign Work
Vertical Reporting
“Leaders’” Activities
Guiding Participants
Recommend
Rotate Tasks
Lateral Linkages
“Leadership” Processes
Inspiring Teamwork
Share Responsibilities
Facilitate Shared Commitments
Semi-Autonomous Teams
SDWTsSDWTs and Changing Organizational and Changing Organizational FormsForms
Self-Directed Work Teams (SDWTs)Self-Directed Work Teams (SDWTs)
1940s European Coal Mines and Factories1940s European Coal Mines and Factories
1950s Japanese Quality Circles1950s Japanese Quality Circles
1960s US Plants introduce SDWTs: 1960s US Plants introduce SDWTs:
ADM, Cummins Engines, P&G, General FoodsADM, Cummins Engines, P&G, General Foods
1990s >300 US firms w/SDWTS: Martin Marietta, 1990s >300 US firms w/SDWTS: Martin Marietta, GM, Xerox, MotorolaGM, Xerox, Motorola
2000s 83% of 2000s 83% of Fortune 400Fortune 400 Companies plan to introduce Companies plan to introduce SDWTs or expand useSDWTs or expand use
SDWTs and New Organizational FormsSDWTs and New Organizational Forms
2001 Study of SDWTs in 7 Countries Revealed2001 Study of SDWTs in 7 Countries Revealed
93% = Improved Productivity93% = Improved Productivity
86% = Decreased Operating Costs86% = Decreased Operating Costs
85% = Increased Quality 85% = Increased Quality
Work Teams and New Organizational FormsWork Teams and New Organizational Forms
Ex: “World Class Manufacturing” ReorganizationEx: “World Class Manufacturing” Reorganization
To obtain superior business resultsTo obtain superior business results
To carry out the strategy of IIS and PolystyreneTo carry out the strategy of IIS and Polystyrene
To align teams with major work processesTo align teams with major work processes
To improve response time and gain productivity through To improve response time and gain productivity through empowered people working in empowered teamsempowered people working in empowered teams
Work Teams and New Organizational FormsWork Teams and New Organizational Forms
Ex: Previous Organizational Structure at Joliet PlantEx: Previous Organizational Structure at Joliet Plant
Vertical structure organized around traditional Vertical structure organized around traditional departments like Operations and Maintenancedepartments like Operations and Maintenance
Traditional vertical structureTraditional vertical structure– Six levels of authority Six levels of authority – Aligned by functionAligned by function
Work Teams and New Organizational FormsWork Teams and New Organizational Forms
Ex: New “Ideal State” Organizational StructureEx: New “Ideal State” Organizational Structure
““Teams” as the basic working unit in the plantTeams” as the basic working unit in the plant
Designed from the bottom, upDesigned from the bottom, up
Aligned by common product/serviceAligned by common product/service– Common focus/goalsCommon focus/goals– Cross-functional teamsCross-functional teams
Improved communicationImproved communicationImproved efficiencyImproved efficiency
Work Teams and New Organizational FormsWork Teams and New Organizational Forms
Ex: New “Ideal State” Organizational Structure (con’t)Ex: New “Ideal State” Organizational Structure (con’t)
Only three levels of authorityOnly three levels of authority– Plant managerPlant manager– Area managersArea managers– AssociatesAssociates
Enabled throughEnabled through– Empowered teamsEmpowered teams– Expanded roles and responsibilitiesExpanded roles and responsibilities– Extended skill and training requirementsExtended skill and training requirements
Work Teams and New Organizational FormsWork Teams and New Organizational Forms
Work Teams and New Organizational FormsWork Teams and New Organizational Forms
Team-Based OrganizationsTeam-Based Organizations
A. Organizational Infrastructure to Support TeamsA. Organizational Infrastructure to Support Teams
Predictors of Successful Transitions to Team-Based Predictors of Successful Transitions to Team-Based Organizations (Lawler, 1999)Organizations (Lawler, 1999)
• • Organizational philosophyOrganizational philosophy• • Top management practicesTop management practices• • Job design/redesignJob design/redesign• • Performance appraisal systemPerformance appraisal system• • Group-based reward/recognitionGroup-based reward/recognition• • Group skills trainingGroup skills training
Team-Based OrganizationsTeam-Based Organizations
Characteristics of Formal Work "Groups”Characteristics of Formal Work "Groups”
1. Small number of members.1. Small number of members. 2. Perceive selves as group.2. Perceive selves as group. 3. Common characteristics.3. Common characteristics. 4. Members are interdependent.4. Members are interdependent. 5. Ostensible common goal.5. Ostensible common goal. 6. Interaction among members.6. Interaction among members. 7. Mutual influence among members.7. Mutual influence among members. 8. Net positive value associated with membership.8. Net positive value associated with membership. 9. Role differentiation and emergent norms.9. Role differentiation and emergent norms.10. Organizational structure and formal rules.10. Organizational structure and formal rules.11. History that provides precedents for decision making.11. History that provides precedents for decision making.
Team-Based OrganizationsTeam-Based Organizations
VersusVersus Characteristics of Groups/Teams with Characteristics of Groups/Teams with TeamworkTeamwork (p. 70)(p. 70)
1. Members share and can articulate a team 1. Members share and can articulate a team visionvision.. 2. Members have defined, valued, and accepted 2. Members have defined, valued, and accepted rolerole expectations. expectations. 3. Members have role-related 3. Members have role-related autonomyautonomy.. 4. Members set high 4. Members set high standardsstandards for themselves and are self-disciplined. for themselves and are self-disciplined. 5. Members develop a 5. Members develop a structurestructure that is responsive to environmental that is responsive to environmental
demands, yet appropriate for the organization.demands, yet appropriate for the organization. 6. 6. Decision-makingDecision-making is conducted within the team. is conducted within the team. 7. Team 7. Team leaderleader advocates for team, is liaison w/other groups,
encourages team, and works to secure resources that the team , and works to secure resources that the team needs to excel.needs to excel.
8. Members share 8. Members share information and interpretationsinformation and interpretations freely. freely. 9. Members 9. Members acknowledgeacknowledge and reinforce others' contributions/ support. and reinforce others' contributions/ support.10. Members convey and display mutual 10. Members convey and display mutual respect and trust.respect and trust.
Team-Based OrganizationsTeam-Based Organizations
Criteria for Effective Teams (Hackman, 1990; 2006)
1. Prereqs to function as a “team”( clear task and objectives from mngt)
2. Balance between managerial and team authority (ends/means; changes)
3. Structures that enable success (motivating task,effective composition,
metrics to track performance/alignment work with business indicators)
4. Organizational systems that support teamwork
a. reward system that reinforces collective performance
(team-based evaluation/rewards, not individual)
b. training system that supplements members’ skills on ongoing basis
(as needed by members, not ‘train first’, not one-shot training)
c. information system that provides members access to team-specific information and open culture w/access to senior management
d. material resources that enable members
to execute tasks (equipment, $, staff, space)
5. Effective leadership that supports teamwork in real time, and at key points
Team-Based OrganizationsTeam-Based Organizations
Which dimension of team effectiveness to address Which dimension of team effectiveness to address first first in team buildingin team building? (Seibold, 1995)? (Seibold, 1995)
Vision?Vision?
Roles?Roles?
Task Task Operations/Procedures/Structures/Resources?Operations/Procedures/Structures/Resources?
Relationships?Relationships?
Team-Based OrganizationsTeam-Based Organizations
Which dimension of team effectiveness to address Which dimension of team effectiveness to address first first in team buildingin team building? (Seibold, 1995)? (Seibold, 1995)
Task Operations/Procedures/Structures/Resources!Task Operations/Procedures/Structures/Resources!
Team-Based OrganizationsTeam-Based Organizations
Steps in Team Building (Seibold, 1995)Steps in Team Building (Seibold, 1995)
Seek to integrate 4 traditional team-building approaches/”designs”:Seek to integrate 4 traditional team-building approaches/”designs”: Problem-solving designs (Structure/Processes/Resources)Problem-solving designs (Structure/Processes/Resources)
Goal-setting designs (Vision)Goal-setting designs (Vision)
Designs to re-shape member roles (Roles)Designs to re-shape member roles (Roles)
Designs to improve interpersonal relationships (Relationships)Designs to improve interpersonal relationships (Relationships)
Team-Based OrganizationsTeam-Based Organizations
Steps in Team Building (Seibold, 1995)Steps in Team Building (Seibold, 1995)
1. Create an agenda by categorizing 1. Create an agenda by categorizing problemsproblems facing facing the group the group
(i.e., goals, roles, operations/procedures, and relationships)(i.e., goals, roles, operations/procedures, and relationships)
Using methods that are both quantitative (e.g., TEP Using methods that are both quantitative (e.g., TEP Instrument) Instrument)
and qualitative (e.g., members' responses to open-ended and qualitative (e.g., members' responses to open-ended questionsquestions
such as such as "What is preventing this team from accomplishing "What is preventing this team from accomplishing all that it is capable of?” . . .all that it is capable of?” . . .
Team-Based OrganizationsTeam-Based Organizations
Steps in Team Building (Seibold, 1995)Steps in Team Building (Seibold, 1995)
2. Use 2. Use member involvementmember involvement to improve to improve structure, operations, and structure, operations, and proceduresprocedures..
What operational/procedural problem can members resolve quickly and on their What operational/procedural problem can members resolve quickly and on their own?own?
Member involvement (e.g., ad hoc task forces) will ensure problems most Member involvement (e.g., ad hoc task forces) will ensure problems most important to the members themselves will be addressed, and members important to the members themselves will be addressed, and members will feel responsible for results.will feel responsible for results.
Increased commitment to the group and the rest of the team building process is Increased commitment to the group and the rest of the team building process is likely, since members will see they are capable of effecting change likely, since members will see they are capable of effecting change concerning matters they face and consider important.concerning matters they face and consider important.
Team-Based OrganizationsTeam-Based Organizations
Steps in Team Building (Seibold, 1995)Steps in Team Building (Seibold, 1995)
3. Revisit 3. Revisit goalsgoals and help members create a shared and help members create a shared visionvision
Do members all know where they are headed?Do members all know where they are headed?
Do they concur?Do they concur?
Are they capable of more than has been asked of them, or Are they capable of more than has been asked of them, or than they have produced (or are those goals than they have produced (or are those goals unrealistic)?unrealistic)?
Team-Based OrganizationsTeam-Based Organizations
Steps in Team Building (Seibold, 1995)Steps in Team Building (Seibold, 1995)
4. Help members consider 4. Help members consider rolerole requirements with their vision. requirements with their vision.
Do they each understand and accept others' expectations re:their role?Do they each understand and accept others' expectations re:their role?
How will members’ need for performing How will members’ need for performing outsideoutside those role expectations those role expectations be dealt with?be dealt with?
What are the implications of these role expectations for creating a What are the implications of these role expectations for creating a status hierarchy?status hierarchy?
How will members deal with that?How will members deal with that?
Team-Based OrganizationsTeam-Based Organizations
Steps in Team Building (Seibold, 1995)Steps in Team Building (Seibold, 1995)
5. Aid members to improve 5. Aid members to improve relationshipsrelationships within the team. within the team.
What are the ongoing relational problems in the group?What are the ongoing relational problems in the group?
How can interpersonal communication be improved?How can interpersonal communication be improved?
Skill building: listening, communicating non-defensively, and communicating Skill building: listening, communicating non-defensively, and communicating criticism. Supplemented with coaching.criticism. Supplemented with coaching.
Team-Based OrganizationsTeam-Based Organizations
Brief Approach to Team BuildingBrief Approach to Team Building (“Work Out”) (“Work Out”)
- Interviews w/each member before off-site retreat- Interviews w/each member before off-site retreat
- Compile list of strengths and issues- Compile list of strengths and issues
- Distribute/discuss team strengths- Distribute/discuss team strengths
- Personal affirmations and acknowledgments- Personal affirmations and acknowledgments
- Review characteristics of “teamwork”- Review characteristics of “teamwork”
- Distribute/discuss team issues- Distribute/discuss team issues
- Refine issues list (Worksheet #1)- Refine issues list (Worksheet #1)
- Personal actions to improve team (Worksheet #2)- Personal actions to improve team (Worksheet #2)
- Others’ actions to improve team (Worksheet #3)- Others’ actions to improve team (Worksheet #3)
- Summarize, continuing work by team- Summarize, continuing work by team
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