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Managing Team Performance:Managing Team Performance:OverviewOverview

• Definition and Importance of Teams• Types of Teams and Implications for PM• Purposes and Challenges of Team PM• Including Team Performance in the PM

System• Rewarding Team Performance

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Definition of TeamDefinition of Team

Two or more people – Interact

• Dynamically• Independently

– Share common and valued• Goal, Objective or Mission

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Importance of TeamsImportance of Teams

• Global pressures• Flexibility in flatter organizations• Complexity of products and services• Rapidly changing environments

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Performance Management & TeamsPerformance Management & Teams

• PM systems should target:– Individual performance– Individual’s contribution to team performance– Performance of entire team

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General principles of PM relating to teamsGeneral principles of PM relating to teams

1. Design and implement best possible system2. Consider dangers of poorly implemented

system

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Managing for Improved Team PerformanceManaging for Improved Team Performance

• Don’t limit team processes with other task or organizational requirements

• Provide good team design and organizational support

• Give feedback only on processes that the team members can control

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Types of TeamsTypes of Teams

• Classified by– Complexity of task– Membership configuration

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Complexity of Task ranges from:Complexity of Task ranges from:

• Routine– Well defined– Few deviations in how work is done– Outcomes easily assessed

- to -• Non-routine

– Not defined well– No clear specifications on how to do the work– Outcomes are long term and difficult to assess

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Membership Configuration includesMembership Configuration includes

• Length of time team expects to work together• Stability of team membership

Static Dynamic

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Types of Teams Based on Types of Teams Based on Membership Configuration and Task ComplexityMembership Configuration and Task Complexity

Dynamic ° Network

Teams Membership Configuration

° Project Teams

Static ° Work and

Service Teams

Routine Non-Routine Task Complexity

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Types of TeamsTypes of Teams

• Work or Service Teams• Project Teams• Network Teams

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Work or Service TeamsWork or Service Teams

• Intact • Routine tasks• Share similar skill sets

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Project TeamsProject Teams

• Assembled for specific purpose• Tasks outside core product or service • Members from different functional areas

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Network TeamsNetwork Teams

• Membership not constrained by – Time or space– Organizational boundaries

• Teams may include– Temporary or full-time workers– Customers– Vendors– Consultants

• Work is extremely non-routine

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Examples of PM Approaches by Type of TeamExamples of PM Approaches by Type of Team

• Type of Team– Work & Service Team

– Project Team

– Network Team

• Type of PM Approach– Peer ratings

– Ongoing measurements

– Development of competencies

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Purposes of Team PMPurposes of Team PM

• Traditional goals of any PM System• Specific to Team performance:

– Make all team members accountable– Motivate all team members to have a stake in team

performance

Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006

Challenges of Team PMChallenges of Team PM

• How do we assess relative individual contribution?

• How do we balance individual and team performance?

• How do we identify individual and team measures of performance?

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Including Team Performance in the PM SystemIncluding Team Performance in the PM System

• Prerequisites• Performance Planning• Performance Execution• Performance Assessment• Performance Review• Performance Renewal and Re-Contracting

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Performance Management ProcessPerformance Management Process

Performance Review

Performance Renewal and

Re-contracting

Performance Assessment

Performance Execution

Performance PlanningPrerequisites

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PrerequisitesPrerequisites

• Knowledge of mission– Organization– Team

• Knowledge of job to be performed by the team

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Performance PlanningPerformance Planning

• Results expected of the team• Behaviors expected of team members• Developmental objectives to be achieved by

team and its members

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Performance ExecutionPerformance Execution

Team responsibilities1. Commit to goal achievement2. Seek feedback from

• Each other• Supervisor

3. Communicate openly & regularly4. Conduct regular & realistic peer-

appraisals

Herman Aguinis, University of Colorado at DenverPrentice Hall, Inc. © 2006

Performance ExecutionPerformance Execution

Supervisor responsibilities1. Observe and document

• Team performance• Relative contribution of team members

2. Update team on any changes in goals of the organization

3. Provide resources & reinforcement

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Performance AssessmentPerformance Assessment

Types of Assessments• Self-appraisals• Peer evaluations• Supervisor evaluation• Outsider appraisals (if appropriate)

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Performance AssessmentPerformance Assessment

Kinds of Performance to be Assessed• Individual task performance• Individual contextual performance• Team performance

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Dimensions of Team Performance to assess:Dimensions of Team Performance to assess:

• Effectiveness• Efficiency• Learning and growth• Team member satisfaction

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Performance ReviewPerformance Review

• Two meetings with supervisor or review board– Team meeting– Individual meeting

• Emphasis on past, present and future

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Team meetingTeam meeting

• Discuss overall team – Performance– Results

• Information comes from:– Team members– Other teams/outsiders– Supervisor’s evaluation

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Individual meetingIndividual meeting

• Discuss how individual behavior contributed to team performance

• Information comes from:– Self-appraisal– Peer ratings– Supervisor’s evaluation

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Performance Renewal and Re-ContractingPerformance Renewal and Re-Contracting

• Make adjustments to performance plan• Include plan for individual performance as it

affects team functioning

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Making Team-based Rewards EffectiveMaking Team-based Rewards Effective

• All employees should be eligible• Rewards should be

– Visible– Contingent– Reversible

• Avoid factors which cause reward systems to fail

• Consider variable pay systems (in addition to individual bonuses)