AbstractIt is a well known fact that team work is thefoundation for enhancing the overall results of organizational performance.Currently, organizations worldwide are striving to improve the effectivenesstheir teams so as to be globally competitive. For teams to perform optimally managers have to align with the organizationalstructural change to further enhance performance. The basic purpose of this review article is tovisit extensive literature and research studies that have been studied earlierin order to examine the effects of teamwork on organizational performance.Hence, the result shows that working in team has positive influence onenhancing organizational performance. It also reveals team based organizationalstructure has significant effect on organizational performance.
The articlerecommends organizations should adopt team work activities so as to furtherimprove their performance, Finally, the review concludes by indicating researchgaps that prospective studies could address. Keywords: Teamwork, effects, organization performance. INTRODUCTIONTeam work has emerged in recent years as one of the important ways in which work is beingreorganized. Human relation management, modern sociotechnical theory, businessprocess re-engineering and lean production all embraced the core principles ofteam working( Benders and hootegem, 1999). It also has an important link withorganizational performance. In line with this, many claims have been made byscholars, management consultants and journalists about the positive benefits ofworking in teams in organization more specially teams said to contribute tobetter outcomes for business organization as it improves performance ofemployees, productivity or organizational responsiveness and flexibility(Greenberg,2008). To this end, organizations continue to rely on teams withinthe work place to achieve through taskperformance. In the new business world managers are assigning more teamprojects to employees with the opportunities to strengthen their knowledge and develop skills (Hertenien,2003).
Team work enhances organizational cohesion orintegration consequently giving rise to harmonization of efforts among theemployed resulting in higher performance. In a similar way ( Heggs,1996)asserts that higher integration among employees institutional objective resultsin better organizational health. Recent studies shows that employees workingwith the team can produce more outputs as compared to the individuals. Workingin team empowers people and helps them to develop autonomy, which is a sourceof profound job satisfaction and reduce stress (Hayes, 2005). Research done bypsychologists have affirmed that team can expand the outputs of individualsthrough collaboration and that employees who are working in teams becomestandard for organization performance( Flick, 2006). It also the mostappropriate means of improving manpower utilization and potentially raisingperformance of individuals within the organization. The essenceof team work is that work load is reduced and break in to pieces of work foreveryone to take part. It is a fuel that allows people to attain common goals.
A collective action is widely recognized as a positive force for team work inany organization to succeed. Getting to gather with others also can allowindividuals to better understand the importance of team work and how theorganizations operate as well as promote the culture of team work success. Thisreview concentrated on the effect of team work on organizational performance soas understand how team work can contribute to the accomplishment organizational goals.2.
Research Method The objective of the study is to examine the effectsof team work on organizational performance. This study is purely qualitativeliterature review on the issue of team work and its effects on organizationaleffectiveness. To realize this previous studies pertaining to team work andorganizational performance are reviewed from different journals, books andconference proceedings.
In the proceeding part literatures and relevant studiesto the issue under review will be discussed in detail and then conclusion aboutthe overall review will be given at the end. 3. Discussion3.1 Team Work in Organization Team works are viewed as an essential features ofmodern management theory and practices (Dhurup & et al, 2015). Most organizational activities of today become complex due toadvancement in technology therefore teamwork is a major focus of many organizations.
Several authors agree on a team is being a group of people that havecomplementary skills and who share responsibilities for the outcomes ( Mouraand et al 2014). In line with this, Jones and et al ( 2007). Team’s enables people tocooperate, enhances individual skill and provide constructive feedback withoutany conflict between individuals. In similar way, organizations which emphasizemore on teams have results in increased employees, greater productivity andbetter problem solving at work. Research study concluded that team work isnecessary for all types of organizations including non- profit organizations (Pfaffand Huddleston,2003).Team work is defined as collection of small numberof individuals with complementary skillswho are committed to a common purpose, performance goals and approach for whichthey hold themselves mutually accountable( Greenberg and Barron, 2003). Threeaspects of this definition are important: interaction among individuals, group efforts and interdependence.
Teamwork results in individuals working jointly in a supportive environment toachieve common team goals through thesharing of knowledge and skills. Successful team relies on the synergy between team members in relating anenvironment, where all members contribute and participate in order to promoteand develop a positive effective outcome. In line with this, study concludedthat it is possible to design a system of building within every organization for employees so aspromote and distribute best practices and maximum outputs.
A number of theoretical arguments have been developed to explain why team workingmight lead to improved organizational performance. Some theories focus on theeffort and motivation of individual workers and claim that they work harder.Strategic human resources management theory suggests that an appropriatelydesigned human resources system, which typically includes team work will havepositive effect on an employee’s job satisfaction, commitment and motivation leadingto behavioral changes that result in improved organizational performance ( Becker and et al, 1997). Similarly,self leadership theory focuses on participatory decision making, individualsdistribution and team work as important motivating factors and suggests thesewill lead to more committed employees who strives for greater efficiency andeffectiveness ( Sims and Mans,1996).
Work design theory, however tends toemphasizes intra group process such as job design, task variety andinterdependence ( Wall and Marten,1997), While socio technical theory high lights changes in the structureof an organization and its process as the main mechanism by which performanceis enhanced ( Van Hootegem,2000). According to Ingram (2000) team work is a strategythat has potential to improve the performance of individuals and organizations, but it needsto be nurtured overtime. organizations need to look at strategies for improvingperformance in the light of increasing competitive environment. Top managers needto have the vision to introduce teamworkactivities within the organizations, the sensitivity to nourish it and the courage to permit teamsto play an important part in decision making. Conti and Kleiner,2000) reportedthat teams offer greater participation, challenges and feelings ofaccomplishment. Organizations with teams will attract and retain the bestpeople. This in turn will create a high performance organization that isflexible efficient and most importantly, profitable.
Profitability is the keyfactor that will allow organizations to continue to compete in a toughcompetitive and global business arena. 3.2Team Effectiveness Teams in organization vary widely in theireffectiveness in carrying out team missions and meeting objectives defined bythe team itself and by the organizations( Sikora and et al, 2008). As toMeglino and et al (2002) found that team member beliefs in team effectivenesswere related to higher level of motivation and satisfaction. Nzewi and etal,2015 quoting Belbin supports strongly the view that team roles are verycrucial to the success of any team and Batemen and Snell (2007) state on thecontrary that team performance doesn’t so much depend on role but on threecritical criteria.· The productive output of the teamexceeding or meeting the standard quantity and quality as well as theacceptability of team outputs by customer who uses the team products or service· The realization and satisfaction ofpersonal needs by team member · The retention of the willingness andcommitment to working again without the team burning out after a gruelingprojects Hackmanquoted in Judeh(2011) observes that the effectiveness of the team depends onthe degree to which a team outputs meet organizational requirements in terms ofquality, quantity and timeliness ( performance) ; the extent to which the team experiences contributes to individual satisfaction(attitude).
Delarue and et al (2008) suggests that a team could be consideredeffective, if it satisfies divers aspects of working condition such as jobautonomy, job satisfaction, work intensity, team members commitment andlearning environment. In general then, research support the ideal that employees who believes they are members ofteams that perform at high levels of effectiveness are more positive aboutorganizations that provide opportunities to feel a sense of accomplishments andto be a part of group that is respected by other employees, supervisors and topmanagement. Onthe other hand, Tarricone (2002) successful teamwork relies up on synergyexisting between all team members creating an environment where they are allwilling to contribute and participate in order to promote and nurture a positive, effective teamenvironment. Team members must flexible enough to adopt to cooperative workingenvironments where goals are achieved through collaboration and social interdependence rather thanindividualized competitive goals( Luca and Tarricone, 2001). Research hasprovided a number of attributes have been consistently identified inliterature. Summary of literature on the successful attributes needed foreffective team work as follows Interdependence- team members need to createenvironment where together they can contribute for more than as individuals. Apositive interdependent team environmentbrings out the best in each person enabling the team to achieve their goals ata far superior level.
Interpersonal skills- included theability to discuss issues openly with team members, be honest trustworthy,supportive and show respects and commitment to the team and to its individuals.Fostering a carrying work environment as important including the ability towork effectively with other team members. Open Communication and positive feedback- actively listening to the concerns and needs of team members and valuingtheir contribution and expressing this helps to create an effective workenvironment. Appropriate team composition- isessential in the creation of successful team. Team members need to be fullyaware of their specific team role and understand what is expected of them interms of their contribution to the teamand the project. Commitment to team process, leadershipand accountability- team members need to be accounted for their contribution tothe team and the project. They need to be aware of team process, best practiceand new ideas. Effective leadership is essential for team success includingshared decision making and problem solving.
Accordingto Agwu ( 2015) there must be implicit agreement on the degree of closenesswithin teams concerning the personal feelings of the members of the group. Itwas, therefore, deemed important to match personality types and balanced levelof skill, knowledge and expertise so that conflict can be minimized.3.3. Team Members’ Commitment Teamcommitment describes a psychological state which binds an individual to theparty of interest (Van Vuuren et al., 2007). Akintayo (2010) defines employeecommitment as the degree to which an employee feels to his or her organization.
In this sense, employee commitment reflects the attitude of an employee towardsan organization (Zhen, 2010). Team members commitment generally described as aworking condition that if achieved can sustained team effectiveness andcontribute to high organizational performance. Team commitment consists out ofthree basic dimensions; normative, continuance and affective commitment (Allen& Meyer, 1990), which makes team commitment a multidimensional construct.Team commitment is associated with beneficial outcomes like extra role behaviorand team performance (Becker & Billings, 1993). Besides this, researchproved that commitment within teams influences organizational behavior and jobperformance (Bishop et al., 2000). Anumber of variables associated with commitment are: attachment to team,eagerness to make positive changes, reluctance to quit team, likeness for theteam, willingness to remain with team, team pride, positive perception of teamand keeping to time.
3.4 Team Structure Organizations can be structured invarious ways, and the structure of an organization can determine the modes inwhich it operates and performs. The team structure is a newer type oforganizational structure, often seen as less hierarchical, in which individualsare grouped into teams (Williams, 2000). According to Takuya (2009), there isnothing like one size fits all type of concept at play when handling differenttypes of team structures for specific goals in mind. Deep thought andconsideration is required to identify, assemble and also convince the teammembers to work together on a variety of assignments (Boakye, 2015).Team structures organize eachfunction into an objective-based group. Members from each of the departmentswork together to solve problems and find opportunities.
Employees might beinvolved with product development teams or a diversity task force. The teamstructure can help remove barriers between departments and foster effectiveproblem-solving relationships. It can also motivate employees and increasedecision-making times. Accordingto Tara Duggan (2013) usinga team-based approach to solving business problems enables to capitalizeemployees’ strengths and minimize their weaknesses. A team-based organizationalstructure groups employees who perform specific duties into project teams thatperform specific functions.
This type of organizational structure allowsorganizations to ensure the best coverage for activities such as productdevelopment, customer support and process-improvement initiatives. Withlow-overhead and minimal management, this allows to maximize successful opportunities andavoid threats. Furthermore, team structure reduce management by eliminatinglayers of management, employees get to make decisions without getting multipleapprovals. This streamlines processes and lowers administrative costs.Additionally, employees feel empowered and morale increases. It also improvesthe relationships when people work on teams, they share the responsibility forcompleting work on schedule. If one employee can’t complete the task, anotherteam member can fulfill the obligation; increases productivity when people workin teams, creativity and innovation increase through brainstorming and processimprovement discussions.
Further, by adopting a team-based structure enablesorganizations to staff projects withresources that complement each other. According Meredith Belbin, successfulteams require action-oriented members, people-oriented members andthought-oriented members. Action-oriented team members challenge the team toimprove processes, encourage other team members to get things done and ensure workget done on time. People-oriented roles guide the team, provide support and getresources for the project. Thought-oriented team members come up with ideas,evaluation options and provide specialized knowledge.
This balance ensures thatthe team considers all angles to complex problems and solves them efficiently.3.5 Organization PerformanceThere is a general consensus that the concept oforganizational performance is frequent in the empirical literature. There is nouniversally accepted explanation of the concept as it is not easy to stipulatewhat exactly is meant by organizational performance.
Daft (2000) definesorganizational performance as the organizations ability to accomplish its aimsthrough the use of resources in a properly structured manner. Rechardo (2001)also sees organizational performance is the ability to achieve organizationalgoals and objectives. Hafferman and Flood (2000) asserted that organizationalperformance has suffered from not only definition problem but also fromconceptual problem.
The term performance was occasionally confused withproductivity. Rechardo ( 2000) confirmed that there was a difference betweenperformance and productivity. He said that productivity is the ratio indicatingthe volume of tasks’ performed in a given amount of time. While performance isa broader indicator that could include productivity as well as quality,consistency and other factors. However, productivity measures were oftenconsidered in a result oriented evaluation performance as the ability toachieve organizational goals and objectives.
As to Robertson & Bartram (2002) state a performance organization isgenerally understood to be one with higher operational and financialeffectiveness, as well as higher level of satisfaction among employees. It isan organization that can respond rapidly to its customers’ demands, offer goodquality services and products, and continue to improve its competitive ability.Moreover, Denison and Fey (2003), organizationalperformance can be measured by such subjective criteria as overall performance,market share, sales growth, profitability, and employee satisfaction, qualityof products and services, and new product development.
The claims ofcompanies that have reorganized their workforce into teams is that teamworkpromotes competitiveness by improving productivity, improving quality andencouraging innovation, taking advantage of the opportunities provided bytechnological advances and improving employee motivation and commitment.A sum-up of these is that teamwork is capable of bringing about a substantialimprovement in employees morale, job satisfaction and productivity. It isbelieve that teamwork can make effective and efficient use of labor therebyimproving productivity and consequently increment in revenue, the quality of the product orservice, innovation and customer satisfaction; the latter, value-added peremployee and return on capital employed. To complicate matters, many of theseindicators can be recorded at different levels within an organization. Inaddition, when one begins to consider the team-based literature, another set of’performance’ outcomes come to the fore (Cohen and Bailey 1997). A number ofthese studies are designed to show the outcomes for individual team members orthe team itself.3.6 The Effect of team work on organization performance