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  1. Consequences

  2. Consequences • Glossary • Case Study • Solutions to Problems • Changes in Interpersonal Relations • Improved Information Flow • Organizational Change • The Systems Approach

  3. Glossary • Acceptance of Solutions—there are three different types of solutions for problems: (1) high quality, low acceptance, (2) high acceptance, high quality, and (3) high acceptance, low quality. • Quality of Solutions—groups have the potential to make better-quality decisions than the same individuals in those groups would make if working alone.

  4. Case Study North West Aerospace 1. What would you do if you were Robert? 2. What would you do first? 3. Whom would you talk to to get things started? 4. What will be the consequences if you are not successful? 5. What lessons from this case can you apply to your own work experience?

  5. Solutions to Problems • Quality of Solutions • Groups have the potential to make better-quality decisions than the same individuals would make if working alone. • In those instances when group performance does not surpass individual performance, the group process has been counterproductive.

  6. Solutions to Problems • Quality of Solutions (continued) • Teams can help increase value: • By performing the same function at a lower cost. • By increasing function while reducing costs. • By increasing function while increasing costs by a proportionally smaller amount. • By decreasing function while decreasing cost by a proportionally greater amount. • It has been found that groups are better at solving complicated tasks requiring reasoning and elimination of poor solutions.

  7. Solutions to Problems • Acceptance of Solutions • For solutions to be effective, they must be of high quality and they must be accepted by those who must carry them out. • Three types of problem situations can be identified: • Problems requiring high quality but low acceptance are best solved by persons with a high level of technical knowledge and expertise. • Problems requiring high acceptance but low quality may include all individuals who may be affected by the results of the decision. • Problems requiring high quality and high acceptance should utilize problem-solving groups.

  8. Solutions to Problems • Acceptance of Solutions (continued) • People generally are resistant to changes that affect their lives, especially if these changes are initiated by others. • Group decision making and “people involvement” can be powerful assets in increasing satisfaction and overcoming resistance to change.

  9. Solutions to Problems • Acceptance of Solutions (continued) • There are several factors to remember in overcoming resistance to change. • People will accept changes that they have a part in planning. • Changes will be accepted if they do not threaten our security. • Changes will be more readily accepted when people are involved in gathering the facts that indicate the need for change. • Greater acceptance and commitment will result when the changes are kept open to further revision based on the success or failure of the new procedures.

  10. Solutions to Problems • Acceptance of Solutions (continued) • For long-term success, teams must function in a responsible manner, and management must possess a high degree of trust and confidence in the system.

  11. Changes in Interpersonal Relations • Meetings designed to share perceptions of one another to inform each other of particular problems can potentially clear up and reduce areas of misperception and misunderstanding. • Cohesion is a result of group interaction, but it in turn influences other things • Small group interaction has the potential of increasing interpersonal relations and cohesiveness.

  12. Changes in Interpersonal Relations • Team Building • Larson and LaFasto (1989) identified eight dimensions of team excellence: 1. Clear, evaluating goal 2. Results-driven structure 3. Competent team members 4. Unified commitment 5. Collaborative climate 6. Standards of excellence 7. External support and recognition 8. Principled leadership

  13. Changes in Interpersonal Relations • Team Building • A group’s performance is a function of its collective abilities, motivations, and opportunities. • Group members will have an understanding of the group’s role in the organization and learn to recognize threats from the larger system and the opportunities it affords.

  14. Improved Information Flow • Communication in small groups can result in an increased knowledge level and increased coordination among group members based on the sharing of information. • Rogers (1995) finds that some people by nature are earlier adopters of new ideas whereas others are more resistant to change.

  15. Improved Information Flow • Another factor is the tendency for subgroups to form so that information that passes between groups is restricted. • Lawrence and Lorsch (1969) have referred to problems of this nature as differentiation-integration problems.

  16. Improved Information Flow • Adopter Categorization on the Basis of Innovativeness

  17. Organizational Change • The Ten Commandments of Implementing Changes: 1. Analyze the organization and its need for change. 2. Create a shared vision and common direction. 3. Separate from the past. 4. Create a sense of urgency. 5. Support a strong leader role.

  18. Organizational Change • The Ten Commandments . . . (continued) 6. Line up political sponsorship. 7. Craft an implementation plan. 8. Develop enabling structures. 9. Communicate, involve people, and be honest. 10. Reinforce and institutionalize change. Source: Jick, 1993, p. 195.

  19. Organizational Change • Peter Drucker (1999) has offered the following advice for leaders on managing change: 1. Introduce change on a small scale. 2. Budget for change. 3. Balance change and continuity.

  20. Organizational Change

  21. Organizational Change • The Strategic Doom Cycle

  22. Organizational Change— Practical Tips Hitchcock and Willard (1995) offer the following practical tips for using teams to help create organizational change. • The business concept must be viable. • Recognize that the right to make a decision is separate from the competency to implement it. • Clarify what decisions should be made at certain levels, and establish a mechanism to move decisions among these levels.

  23. Organizational Change— Practical Tips • Hitchcock and Willard . . . (continued) • Codify the principles that will guide you, and establish a mechanism to hold everyone accountable for carrying out those principles. • Devise a system for resolving conflicts and differences. • Establish an equitable way for distributing profits or rewards that is consistent with the egalitarian nature of democracy.

  24. Organizational Change • Rogers (1995) and his colleagues found that people accept change along a distribution that is a bell-shaped curve. • Innovators • Early adopters • Early majority • Late majority • Laggards

  25. The Systems Approach • Four potential consequences of group interaction are: (1) solutions to problems, (2) changes in interpersonal relations, (3) improved information flow, and (4) organizational change. • Small group interaction must be viewed as a system of interrelated variables in which a change in any one variable creates changes in the other variables in the system.

  26. The Systems Approach • Information flow may be improved as a result of interaction; but with a highly structured communication network and authoritarian leadership, communication flow might actually diminish. • Numerous studies have shown that it takes a comprehensive (systems) approach to successfully create large-scale organizational change.