Dave Seibold Professor of Communication,Division of Social Sciences (L&S)

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

Changing Involvement, Participation, Changing Involvement, Participation, & Control & Control (p. 69)(p. 69)

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

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


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


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)


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

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


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


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)


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


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


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


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

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


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.


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.


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


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?


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!


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)



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?” . . .



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.



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)?



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?



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.


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

Dave Seibold Professor of Communication,Division of Social Sciences (L&S)

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