Introduction
Organizational structures worldwide have been transforming since the last decade and a half. All these transformations are driven by economic, technological, and strategic imperatives, but there is a compelling aspect that concerning individual works and team-based working structures. According to Lawler, Mohrman & Ledford (1995), the increased global competition has brought about pressure in many organizations as try to outdo one another in order to rank the best in the business world. In order to cope with these pressures, managers should develop diverse skills, with a lot of expertise and skills by coming up with strategic plans of winning the global business competition. These plans require quick and working responses that are easier to adopt by the organization members, and at a cost effective manner. Moreover, most organizations, Cuttingedge Ltd included, should develop globalized operations by expanding, merging, or acquiring other businesses in order to improve their culture teams. Forming a team does not necessarily mean it will be successful, but the managers should focus on maintaining the team through carrying out different operations aimed at improving the organization.
In order to form organization teams effectively, the implementers should have a clear understanding of the team formation theories available. Most organizations have captured the new team formation theories as defined by various business researchers all over the world. A team is a group of people with similar interests aiming at improving certain process for their own benefit or for the benefit of others involved. Teams are made of two or more individuals ready tom perform a given organization task, and share common goals (Hackman 1987) For Cuttingedge Ltd to form an effective team work and improve their productivity, they must be ready to undergo organization change in different sectors. The discussion below is the recommendation for Cuttingedge Ltd on how they should manage their organization properly through making use of various organization change methods.
Effective use of teamwork in an organization and team formation theory
Many organizations have found great use of teamwork since it has assisted them in winning the global competition. Team failure leads to an organization incurring a lot of cost compared to the cost of making financial analysis. Teamwork increases productivity and makes workers more flexible in their duties. In United States, 75% of organizations have reported that most of their employees work as a team that leads to the improved productivity. Moreover, 61% of staff members in these organizations are team members. Many organizations have self managed teams, especially the America’s Best Plants who have implemented this strategy (Training Magazine 1995). There are many factors that contributed to failure of teams in Cuttingedge Ltd. The first cause is a satiation whereby the type of tasks given to a certain team shows that the plans should not have been implemented first. Secondly, failure might have resulted from lack of cooperation between different teams. This shows the team development was well implemented although some teams pursue their own objectives whose goals are not contributing to organizational success. There are a number of suggestions that the company should adopt in order to avoid such failure in the future.
According to Harris, companies in United States have reported the benefits of teamwork. They have reported that teamwork increases performance and work quality of individual employee. Teamwork also leads to less failure to report to duties, reduced employee turnover, and substantial improvement in the company’s production cycle by a great percentage (Harris 1992). In the modern business environment, developing teams is an important factor leading to the success of an organization promoted by the need of rapid organizational changes and respond to consumer demands. Before formulating the strategies for a company determining the source of problems should come first. An organization comprises of three segments namely; people, processes, and culprits. Companies always perform an analysis that aids in market entry strategies formulation whereby, market, cost, competitive advantage and government, forms the globalization drivers. This depicts weaknesses and strengths for a business to participate actively in the international market. Multinational business analysis, on the other hand, outlines the potentiality of the business to gain from the market participation. The analysis incorporates strategic levers such as marketing, location and product, and organization analysis such as culture, people, management and structure.
The company should focus on the following outcomes while developing its teams.
Improving profitability
Increasing sales, market share, and return on investments
Maintaining customer satisfaction, corporate image, and becoming consistent with these strategies.
The strategy should fall under the current marketing requirements; take care of the future resources, capabilities, and risks.
Improved speed of implementation through giving employees morale, maintain their safety, and turnover.
Retaining company flexibility, and minimizing the environmental impact.
In order to ensure the above is followed the Cuttingedge Ltd should adopt the following alternatives. First, the senior management should come up with a taskforce comprising of serious employees who should become members of management review committee. The team will be responsible for in analyzing the above failures and coming up with solutions and recommendations to the line managers. In addition, the team should ensure that the management follows the discussed recommendations, and within the set time frame. Many organizations have well implemented teams but find themselves failing to achieve their goals. There are circumstances when teams go wrong and become less effective in an organization. Managers should look at the root of the matter and prevent such situations in the future. Managerial control based on sound accounting principles would be most appropriate in dealing with such cases. Another option that the Cuttingedge Ltd should adopt in developing a perfect team is organizing seminars and workshops for their employees, stakeholders, and managers. Training will enable the company implement all its change plans since every person associated will have an idea of what is expected. Moreover, each individual will get a chance to contribute to decision making, and this comprises the basics of a perfect teamwork.
The management should address issues that are limiting the strategy formulation. The selected team will be liable for outlining responsibilities for each manager aimed at increasing control over one division and reducing the amount of time spent settling the arising conflicts. On the other hand, the company requires hiring business experts who give predictions on the future market trends to avoid instances of other competing companies overtaking them. Moreover, the selected committee should come up with a calendar of events with duties and responsibilities assigned to each team. Development of the calendar enables division managers plan for various departmental events and meet the set deadlines. Calendar of events allows an organization avoid unnecessary inconveniencies, since the management always meet the requirements and set targets (Malmo, 2000).
One of the most important theories of team formation that will assist the company in fulfilling its teamwork objectives is the Formation Storming Norming Performing Model. The theory explains the importance of team development and behavior of employees. The model explains how maturity and ability, relationships establishment of a team leads to change in leadership styles. The theory begins with giving styles that leaders should follow in coming up with effective teams in their organizations. Other strategies explained in the theory is coaching and participating in team formation and establishment. The theory also focuses on team behavior that predicts the success of the new team. The progressions of the team behavior and leadership styles are well elaborated in this theory showing how the authority and freedom influences leaders (Tuckman 1965). The theory makes use of four steps as shown below.
1. Formation stage: on this stage, leaders offer guidance and direction to their followers. In this stage, individuals are not clear of their intensions therefore, leaders are prepared to answer different questions from team members.
2. Storming stage: on this stage, followers make various decisions that take time to make. People brainstorm in an effort to come up with perfect strategies for the success of an organization. Team member should seek positions that attempts to establish themselves among other members and leaders. Leaders always receive many challenges from team members. Teams should focus on their goals and avoid destruction from emotions or relationship issues.
3. Norming stage: On this stage team members come into an agreement in response to their leaders. In addition, the team accepts roles and responsibilities set by the organization while agreeing on big decisions. Moreover, smaller decisions are given to individuals or smaller teams among the groups in order for the main group to focus on the key issues. In this stage, the team comes up with processes and working styles whereby respect for leaders, and leadership characteristics are shared.
4. Performing: at this stage, the team must be aware of its duties and responsibilities. This makes team members aware of their functions in an organization and focuses on achieving set goals. Teams perform their duties in the best way possible to avoid being overtaken by their follow teams. Through this, a competitive environment among teams in an organization leading to improved performances.
The management problems arising from organizational change and how there might be mitigated
Organizational changes are very complex and hard to understand because they involve processes that implementers have no idea of implementing them. According to Geertz, there is no known evidence of change in an organization and the more deep the strategies get, the less complete the situations becomes (1973, 29). Leaders who have practised certain changes always find themselves failing especially with the ever changing business environment. Considering the increased rate of technological knowhow and globalization management today is faced with many challenges. Understanding management in the current environment requires knowledge of the change theories, models, and concepts. Life is filled with many threats and opportunities, demands and constrains thus human beings should possess the power of dealing with these issues. On the other hand, the human ethical imperative claims that in dealing with the above Cuttingedge Ltd management should be efficient, effective, and excellent in performing different tasks. Moreover, they should maintain the organizational culture and ethics to fully develop and employ human potential in learning in an effort of achieving organizational team work objectives (Beauchamp, 1998).
The concept of organization change implies that, a change processe occur in order to come up with a good competing ground. In addition, changes are very rapid and some organizations find it hard coping with the changing environment today therefore opting for a long term change. The idea of developing change in an organization comes into action after the leaders realize the need for more production strategies or after an organization reduces its market share prices. Well informed leaders do not wait for such moments but look ahead and plan for the future in case there are changes in marketing methods or technology (Chartered Management institute Professional Magazine, 2012).
Cuttingedge Ltd leaders should fast in implementing the agreed strategies since manufacturing firms are very competitive and failure to move with the present technology makes an organization lag behind. On the other hand, realizing where the pitfall is in an organization assists in developing perfect strategies that make the organization worldwide competitor in the manufacturing sector. Leaders who look ahead and make change innovations make their businesses more successful (Chartered management Institute Professional magazine 2012). Culture posses many theories that relate to team formation in an organization because the exchange of the present phenomena leads to the formation of new and useful materials. The theory of cultural organization team changes develop from processes aiming at maintaining cultural orders of an organization leading to its transformation. Since an organization culture is a company’s companion, Cuttingedge Ltd should face managing teamwork as variable process that assists in maintain its culture.
The company should also make use of human resource practices such as selection, training, and performance appraisals in order to manage the teams and address them appropriately on all issues. Using performance appraisals ensure that every member of the organization effectively sets and achieves goals. For the company to achieve its goal, the performance appraisal will make sure the poor performers get guidance on how to improve their productivity, and receive a considerable amount of motivation through encouragement. Managers identify areas that need coaching through the performance appraisal. This assists managers in exercising their leadership roles through mentoring their subordinates. In addition, the organization will also be able to decide the workforce they need in the future (Grote 2002). According to Schneider, Smith & Sipe (2000), laying focus on the individual does not provide the organization with the needed information to make an effective decision concerning team formation. Most team formation processes focuses on a certain group since when employees work in groups they encourage other and this leads to improved operations in an organization.
Companies always go through the internal change processes in their operations whereby leaders create plans forcing driving the team into change process. Effective leaders make use of their roles in monitoring both internal and external organizational environment in order to avoid threats and take every opportunity available. Cuttingedge Ltd management has the capability of developing a board consisting of senior managers and leaders who should look on the internal company processes and ensure employees are performing to their high level best. On the other hand, Cuttingedge Ltd should develop changes resulting into structural transformation after which leaders develop different reporting methods in the process of implementing changes.
Coming up with a perfect organization structure contributes a lot in its change strategy and maintaining of organization teams (Miller, 1982). Cuttingedge Ltd’s organization structure should be designed in a manner that every member of the staff has an opportunity to raise any issue arising from the company management. The relevance of the Company’s management team allows implementations to work out well and in accordance with set plans. Moreover, the good relationship and cooperation between organizational staff will contribute a lot to the implementation of the planned changes. The managers should be alert on any emerging opportunity and took the advantage of the good organization structure in planning changes in an organization (Hardy, 1976). From the information provided, the Cuttingedge Ltd started with three staff members. These members should be on the forefront in deterring the type of changes they should except in the organization since they have worked there long enough. Moreover, the organization structure should be designed in a way that all employees will have an opportunity to air their concerns to the immediate leaders.
Research also shows that management today needs leaders to give positive feedbacks to their employees concerning the planned changes. Leaders in various teams should get problems and recommendations on how to improve the company and give them to leaders. When employees here from their leaders about the benefits of organizational change they are likely to follow the change plan. Cuttingedge Ltd managers should be in a position to reveal information on the planned change since it motivates employees towards the direction of change. In addition, change supporting tactics are very important since they assist in strengthening the decided change by bringing about behavioral change among members. Verbal reinforcement is the most useful method for supporting change in any organization. Dialogue enables employees to develop a good reputation towards a given change and forget about the past operations. Change to employees makes them develop good attitude toward it and preach to others on the need for change. Moreover, leaders need to explain to employees how the change is capable of increasing the organizational returns leading to increase in their wages (Robbins 2005).
Conclusion
It has been found out that managing an organization is a hard task because leaders fail to meet the business demands. On the other hand, managing organization change requires leaders who know the present business environment regardless of the situations. Cuttingedge Ltd management has a good opportunity of managing it teams and achieving its production goals through following the above discussed solutions. On the other hand, the theory provides a good example of what processes managers in the organization should follow in selecting and maintaining their team of employees. Detecting and making corrections to problems at earlier stages enables an organization avoid some circumstances that lead to its failure. Coming up with a team mission and goals creates an environment whereby each team ensures they meet their targets. On the other hand, managing teams is accompanied by managing changes within the organization as discussed. Changes assist in improving the organization performance and improving its competitive advantage in global markets.
References list
Beauchamp, T. L. (1998), Case Studies in Business, Society, and Ethics. Fourth edition.
Upper Saddle River, NJ: Prentice Hall
Chartered Management institute Professional Magazine, (2012), Management Today. Retrieved
from:
http://www.slideshare.net/cmi_managers/professional-manager-magazine-may-issue-2011
Geertz, C. (1973), The Interpretation of Cultures. Selected Essays. New York: Basic Books, p.
29
Grote, R., (2002), The performance appraisal question and answer book. United States.
AMACOM Div American Mgmt Assn
Handy, C. (1976), Understanding organizations. The fourth edition. London: Penguin Books.
Lawler, E. E., Mohrman, S. A., & Ledford, G. E., (1992), Employee involvement and total
Quality management: Practices and results in Fortune 1000 companies. San Francisco: Jossey-Bass.
Hackman, J. R., (1987), The design of work teams. In J. Lorsch (Ed.), Handbook of
organizational behavior . New York: Prentice Hall. pp. 315-342
Harris, T. E. (1992), “Toward effective employee involvement: An analysis of parallel and self –
Managing Teams”. Journal of Allied Business Research, 9(1). pp. 25-33.
Miller, D. (1982), “Evolution and Revolution: A Quantum View of Structural Change in
Organizations”, Journal of Management Studies, 19 (2). pp. 131-140
Training Magazine. (1995), Teams in practice. Lakewood Publications, Minneapolis.
Tuckman, B., (1965), ‘Forming-storming-norming-performing’ concept. Retrieved from:
http://www.businessballs.com/tuckmanformingstormingnormingperforming.htm
