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Team-Based Organizations
Team-Based Organizations
Introduction
Team-based organizations have changed the way organizational structures and management are carried out in the 21st century. Companies such as HP Development Company, Google, and Cape Coral Hospital, Florida are all examples of organizations that focus heavily on teams. For these three examples, a close leadership structure is created and enhanced. By using teams, Abner & Agbaeze (2018) points to how organizations create flexibility and creating a structure that resembles a flat organizational framework that is intended to create employee involvement and decision making. A team-based structure groups a variety of employees together on the basis of their responsibilities and talents, enabling work processes to be handled by said groups that have a specific project and objective with a timeline established to attain goals. It gives employees more autonomy and authority to make key decisions without necessarily involving the management.
Evaluation of Organizations that Rely on Self-Managed Teams
In the three organizations above (HP, Google and Cape Coral Hospital), employees work within specialized groups that are tasked with responsibilities or projects. For a majority of their roles, the teams are all self-managed. Annosi, Monti, & Martini (2020) note that self-managed teams have some of the best performances and results based on measured outcomes such as completion of tasks within set timelines, teamwork, group spirit, and ensuring that the attainment of goals surpasses personal interests and desires. For these teams, employees share the responsibilities link to management of tasks. Because employees have the authority to make decisions that are typically left for supervisors and managers in the traditional structure, the involvement levels are very high compared to other organizational structures. Employees are able to establish performance standards, goals and milestones, independent of any management. Team-based organizations, therefore, are able to make every team member understand management and come up with approaches to meet the requirement of carrying both the role of a supervisor and an employee.
For team-based companies, there is an advantage of better communication in the organization. For example, Cape Coral Hospital’s lack of line level managers has enabled a better flow of information between employees, thus creating effectiveness when performing various tasks. The organization that use team-based structure also enjoy the benefits of a lack of several layers that employees use in the traditional structure in order to convey or receive information and implement new policies and ideas. Additionally, Wei & Miraglia (2017) found that team-based organizations resolve issues faster compared to traditional organizational structures. The improved communication between employees in various teams means that there is a faster rate of transfer of information, which in turn yields quicker responsiveness.
Another notable benefit that team-based organizations enjoy is an empowered and flexible workforce. A majority of traditional organizational structures are very limiting and do not motivate employees to do anything beyond their duties and responsibilities. However, team-based companies are able to achieve employee empowerment and motivation because of the ability to learn on the job and maximize sills. Their motivation levels remain high because of a challenging environment and trust created through such empowering structures. Ideally, team-based organizations are better at implementing change and in making managerial maneuvers as employees are a part and parcel of the decision-making process.
Despite the aforementioned advantages, it is important to note that team-based organizations may suffer when some employees do not fit well in teams. Additionally, under-performing workers are likely to hide behind the performance of a team. Not every employee is suited to work in a team. Some perform really well where individual brilliance and effort are noticed and appreciated. As a result, being part of a group that does not recognize individual efforts can be demoralizing. Additionally, some workers do not care for good performance and are happy to ride on the wave of a team’s effort. A lack of effort is therefore rewarded through the team spirit. Such characters are likely to infect the trust and understanding that a team has set for itself and its members. In the end, these teams may be discouraged to do better, thus preferring going back to a more supervised system.
Effectiveness of Team Leadership and Ways to Optimize Operations
Team leadership complements a team-based organizational structure. Tea leadership fosters mutual accountability for results and employee behavior. By having all team members as leaders, organizations are able to institutionalize accountability. It is also easier to ensure that every team member is committed to ensuring top performance at every level and for every task. The structure creates cohesion through open communication and involvement in the workplace. The effectiveness of team leadership is also seen through faster assimilation through increased understanding of requirements and shared accountability. Players in a team-based organization have a faster capability to identify primary strengths and know how to best build on these strengths to contribute to better outcomes for the organization and attain higher satisfaction levels and team success.
Team-based organizations operate in primary units that are made up of a collection of employees sharing responsibilities for specific outcomes in a department or an organization. To optimize operations in team-based organizations, it is required that employees be group according to their fits, this does not necessarily mean those with similar personality traits but rather individuals with personal differences yet understand how to fit together in a team. The traditional organizational structure places employees at the very bottom of the hierarchy of leadership, management, and decision making. In the vertical approach, there is reduced effectiveness of team leadership due to the barriers created by layers of different structures (Tripathy, 2018). Grouping people together by roles and responsibilities, while factoring in how well an individual fits a role and a team, is the most effective way to optimize performance. Other ways include holding lively and more engaging meetings, brainstorming ideas, focus meetings, strategy formulation conferences, training, and a combination of one or more of these suggestions. Additionally, information sharing, coordination of tactical operations, and strategic decision making and dialogue must be conducted to improve outcomes at the team as well as the organizational level.
References
Abner, I. P., & Agbaeze, E. K. (2018). Team Based Management Approach and Organisational
Performance. European Journal of Social Sciences, 56(1), 29-36.
Annosi, M. C., Monti, A., & Martini, A. (2020). Individual learning goal orientations in self‐
managed team‐based organizations: A study on individual and contextual variables. Creativity and Innovation Management, 29(3), 528-545.
Tripathy, M. (2018). Building quality teamwork to achieve excellence in business
organizations. International research journal of management, IT and social sciences, 5(3), 1-7.
Wei, Y., & Miraglia, S. (2017). Organizational culture and knowledge transfer in project-based
organizations: Theoretical insights from a Chinese construction firm. International Journal of Project Management, 35(4), 571-585.
Team Presentation
Team Presentation
Context:
WellTech was recently acquired by an international healthcare technology company based in South Africa. As part of the acquisition process, WellTech’s senior leadership team will travel to South Africa for a week of introductions, meetings, and negotiations regarding how WellTech will operate once acquired. These are high-stakes meetings, and the leadership team wants to both build a good relationship and come away from the negotiations well-positioned.
To help them prepare, leadership has assembled your team to research the communication differences between the cultures and to prepare a presentation that covers the following:
An overview of how culture affects business communication preferences
Specifics on the foreign country’s preferences (contrasted with US norms) for:
Written communication
Spoken communication
Meetings (arrangements and how they are conducted)
Decision-making
Specific recommendations on how to adapt to the other country’s norms, including resources for learning more
Leadership wants the presentation to be 5 minutes or less, clear, informative, and research based.
Presentation:
Research your chosen country’s communication preferences and prepare a 5-minute presentation on your findings for the WellTech leadership team.
In your presentation:
every team member must speak for roughly equivalent time
your researched claims should include a citation on the relevant slide
your transitions should be smooth between presenters
PowerPoint:
Create a PowerPoint presentation to accompany your presentation to the leadership team.
Your PowerPoint presentation must:
Include a title slide and a closing slide
Give citations for researched material
Of course, your PowerPoint should align with the principles in your Week 9 lectures.
Team assignments Recommended Roles:
Project Manager – arranges and leads team meetings, introduces and concludes presentation, arbitrates differences of opinionResearch Lead – sources credible information for report
Slide Design Lead – creates first draft of ppt, leads revisions
Proofreader/Document Handler – proofs PPT for best practices, assists with edits; submits documents
Facts about South Africa:
South Africa is known as being the “Rainbow Nation” because:
The mix of cultures and people living there
11 official spoken languages: English, Afrikaans, isiZulu, isiXhosa, IsiNdebele, Sesotho, Northern Sotho, Setswana, SiSwati, Tshivenda, Xitsonga.
South Africa is the only country in the world with three capitals
South African government is divided into 3 sections:
Cape Town judicial capital
Pretoria administrative capital
Bloemfontein legislative capital
Worlds first heart transplant was complete in Cape Town, South Africa
Citation for all this https://expatexplore.com/blog/interesting-facts-south-africa/
South Africa Business Culture:
Largest economy in Africa & the economic health of its neighbors are linked with South Africa’s commercial sector
Many companies are doing business and moving their businesses to South Africa
Because of the complex mix of cultures, races, & languages there are different approaches to business
WellTech needs to be flexible and observant in South Africa there’s no “one size fits all” process that will work in South Africa’s complex environment
WellTech must learn about South Africa before going on a business trip
Citation of this: https://www.worldbusinessculture.com/country-profiles/south-africa/business-meetings/
South Africa’s written communication:
South Africa consists of different spoken languages, but English is mostly used as a business language
Humor defines South African business communication
Embraced in communication as releasing tension
For contractsis not expressively clear because:
most businesses are concerned primarily with forming a personal relationship with one another. It is thought that business will proceed with a relationship than formal communication available on the contract
Report formatsare either statistically based or not
Reports are often presented in business meetings to enable the business to make decisions. Participants are given time to express their views openly and finally, a decision is made.
Citation: https://ivypanda.com/essays/us-and-south-african-written-and-visual-communication/
South Africa’s spoken communication:
South Africans have a DIRECT style of communication
VERBAL:
They speak confidently & straight to the point
Ex: they are likely to openly point out when you’re wrong or disagree with you on the spot
South Africans speak at a louder volume than Americans
Raised voices
Silence is interpreted as a sign that the convo. Is not engaging or something is wrong
South Africans are uncomfortable when there’s a long period of silence
Spoken communication depends on the location and formality
Ex: In a small town it’s rude when people refer to elders without using the prefix “oom” (uncle) or “tannie” (auntie)
Ex: In Urban environments use the formal “Meneer”, “Mevrou”, or “Juffrou” (Mr, Mrs, or Miss) referring to older people
NON-Verbal:
Comfortable with physical contact lack of physical contact is interpreted as unfriendly or lack of trust
Hands
Some ethnic groups may find it impolite to make gestures w. the left hand SIMILAR TO U.S.
Black South Africans: favor the right hand
White South Africans: comfortable with using left & right hand
Hands in pocket interpreted as disrespectful
Eye contact have steady eye contact throughout the convo. (shows respect)
Personal space:
Black south Africans sit and stand close to each other Americans may consider this to be uncomfortably close
Point at someone RUDE
Prefer face to face communication
Citations: https://culturalatlas.sbs.com.au/ , https://ivypanda.com/essays/us-and-south-african-written-and-visual-communication/
South Africa’s meeting arrangements and how they’re conducted:
Meeting styles differ depending upon who you’re dealing with (a traditional, white-dominated business, a start-up black African company or the subsidiary of a multi-national located in Johannesburg or Cape Town)
However, here are tips to keep in mind when it comes to meetings:
1. South Africans expect you to have a good idea of the current situation on the ground in South Africa.
Show that you have done your research and that you have adapted your policies or ideas to meet the local conditions.
South Africans are well prepared with a plan and structure of how they want the meeting to go
2. take time in the meeting to try to develop a good relationship with the people you are doing business with
This is important within all sections of South African society as relationships have always formed the basis of good business – regardless of cultural background.
3. avoid anything that could be considered a hard sell approach
It’s much better to be understated and patient with South African contacts as being too pushy will probably alienate people.
South Afrikaners Negotiations and expectations of what will be achieved:
they appreciate and value directness for the sake of clarity and mutual understanding.
During the meeting: Give your full attention to the person speaking and listen courteously. (RESPECT IS HUGE)
DO NOT INTERRUPT like U.S.
Expect negotiations to move slowly
Negotiations: win-win results is the ideal outcome of a meeting for a South African
Citation: https://www.worldbusinessculture.com/country-profiles/south-africa/business-meetings/ , https://culturalatlas.sbs.com.au/Arrive on time (be punctual), greet everyone in the room individually https://culturalatlas.sbs.com.au/FORMAL BUSINESS INTRODUCTIONS exchange business cards and take a moment to examine the content of the card before putting it away https://culturalatlas.sbs.com.au/INITIAL MEETINGS often used for partners to familiarize themselves with one another and establish business relationships
South Africa’s decision making in business:
Strategy: planning short term (1 year) to medium term (5 year) basis
Organizational structure a pyramid
Decision-making is passed up the hierarchy
Decisions:
Avoid unnecessary delays (important for negotiations with the person who has the authority to make decisions)
Citations: https://www.labourmobility.com/wp-content/uploads/2011/07/Management-culture-in-South-Africa.pdf (PDF)
Recommendations on how to adapt to the other country’s norms, including resources for learning more:
https://www.labourmobility.com/wp-content/uploads/2011/07/Management-culture-in-South-Africa.pdf (PDF)
A good website of comparing U.S. & South Africa: https://ivypanda.com/essays/us-and-south-african-written-and-visual-communication/
LMB0403-01
Team Presentation
BANK 5018 (SP2, 2021)
Behavioral Finance
How CarParts.com Managed to Beat Top Auto Companies amidst a Pandemic
Introduction
Market anomalies are defined as an occurrence in the market where the actual results are different from the expectations of a predictive model or analysis (Latif et al., 2011). Anomalies serve to counter assumptions and models that are not as true in practice as it would have been predicted. Efficient market hypothesis (EMH) is used to identify market anomalies, usually involving distortions in returns contrary to predictive patterns (Salas-Molina et al., 2021). In this report, the small cap effect, where smaller companies outperform larger organizations, is evident as CarParts.com outperformed larger players in the industry to attain a 90% growth.
Case Summary
CarParts.com posted a $119.7 million earnings in its report, a 90% revenue growth from the expected $92 million estimated by market analysts (Bowman, 2021). Consequently, its stocks prices rose significantly against all finance market predictions. Since early 2019, the company made a management change that has defined its path ever since, combining all of its brands under a single nameplate. The company also added new distribution locations to make deliveries quicker and shut down all unprofitable business lines. For larger companies in the auto industry, revenue reduced significantly since 2020 as consumers battled an uncertain future over the COVID-19 pandemic.
Neoclassical Finance Explanations of the Anomaly
In neoclassical finance, the pillars of the concept include efficient markets, the principle of asset pricing, and risk neutral pricing and the no arbitrage market concept. In the case of CarParts.com outperforming more established and larger firms in 2020 and so far in 2021 (Bowman, 2021), neoclassical finance provides that efficient markets include a set of hypotheses that explain the intuition that information available players in a market will be captured in asset pricing (Ross, 2002).
Neoclassical Finance Explanations of the Anomaly…
The theory provides that prices are directly related to the actions of agents. In this theory, analysing markets does not provide enough information for participants to act. The neoclassical theory suggests that the preferences of consumers are invariant in relation to their consumption.
The Behavioural Finance Explanations of the Anomaly
The behavioural finance explanation to CarParts.com puzzling revenue growth compared to its larger competitors is explained with the theory that individual preferences and consumption are dependent on reference points. According to Angner & Loewenstein (2007), reference point is equal to a consumer’s current endowment. Behavioural finance looks at consumption as a function of reference point. Individual consumers are opposed to negative departures from reference points. It is also true that they would prefer positive departures.
The Behavioural Finance Explanations of the Anomaly…
Behavioural finance theories portray a pattern that may be depicted as kink in indifference curves and value function at the consumers’ current endowment points (Angner & Loewenstein, 2007). Loss aversion can be, therefore, used to explain how consumers (currently) prefer to keep cars in their possession, performing minor repairs, as opposed to buying new cars with the uncertainties and market unpredictability of the COVID-19 period. This can explain the anomaly in revenue growth for CarParts.com.
Best Interpretation
I find the behavioural finance position to be a better interpretation of the CarParts.com market anomaly. The principles of the behavioural finance theories best capture the reality of the matter, explaining why the company experienced a 90% increase in revenue from 2019 to 2021. The position that people act according to their reference points is true. One of the notable reference points that propelled CarParts.com is the reality of the COVID-19 pandemic and the consumers’ realization of the fact that there are so many uncertainties requiring more saving than spending. As a result, using what was already in their possession rather than acquiring more assets was logical. In this occurrence, CarParts.com benefited by selling more parts to information-rich consumers.
Manifestation of Market Anomalies/Puzzles
The COVID-19 pandemic has created unique market conditions that have not been witnessed in the recent past. As a result, anomalies and puzzles in the market are likely to happen outside of capital markets.
Manifestation of Market Anomalies/Puzzles
Some of the areas likely to experience anomalies include:
The corporate world
The technology industry
In the tourism, travel, and hospitality sector
In the financial services sector as more tech companies enter the market
In e-commerce
Examples of Likely Market Anomalies
New players in the financial services sector such as Stripe are likely to outdo larger firms such as Skrill, Payoneer, and PayPal. As the financial services market expands due to the need to work online and from home, new entrants will come up with better functionality and offerings, leading to more consumption of their products.
Domestic companies operating in the tourism, travel, and hospitality sector are outdoing larger conglomerate as they have better markets at home amidst the international travel restrictions during the pandemic
New entrants in e-commerce market such as WayFair are likely to outdo established brands such as eBay as the smaller firm has more specialized goods and has fair pricing and better regulation.
References
Angner, E., & Loewenstein, G. (2007). Behavioral economics. Handbook of the philosophy of science: Philosophy of economic, 641-690.
Bowman, J. (March 10, 2021). Why CarParts.com Is Set to Beat the Market Again This Year. The Motley Fool. Available at https://www.fool.com/investing/2021/03/10/the-simple-reason-carpartscom-will-beat-the-market/
Latif, M., Arshad, S., Fatima, M., & Farooq, S. (2011). Market efficiency, market anomalies, causes, evidences, and some behavioral aspects of market anomalies. Research journal of finance and accounting, 2(9), 1-13.
Ross, S. A. (2002). Neoclassical finance, alternative finance and the closed end fund puzzle. European Financial Management, 8(2), 129-137.
Salas-Molina, F., Pla-Santamaria, D., Mayor-Vitoria, F., & Vercher-Ferrandiz, M. L. (2021). A Multicriteria Extension of the Efficient Market Hypothesis. Mathematics, 9(6), 649.