Business Leadership Tools to Improve Team Performance

Major department store retailers such as Walmart and Target have faced significant challenges in an increasingly competitive and globalized operating environment in recent years. At the same time, innovations in transportation and telecommunications have redefined the marketplace itself, and growing numbers of consumers are choosing to make most of their department store purchases online. These trends have been matched by a proliferation of social media networks such as MySpace and Facebook that are also redefining marketing best practices. In this environment, it is not surprising that some organizational leaders have failed to maintain pace with these changes, and this is certainly the case with Sapphire Department Store's two troubled team leaders.

Significance of the Project. With more than 200 business units and a workforce of 6,500 employees from 40 different countries, Sapphire is well positioned to model the way in developing approaches to improve employee relationships and managerial communications with a diverse workforce.

Nature of the Project. This study analyzes the relationship and communications problems Sapphire has been experiencing in one business unit with 30 full- and part-time employees. Following a review of the relevant peer-reviewed and scholarly literature concerning these issues, the study presents a summary of the research and important findings in the conclusion.

Importance of the Project. A growing body of evidence confirms that motivated workers are vitally important — and even critical — for companies to achieve and sustain a competitive advantage in an increasingly globalized marketplace. As workers become increasingly involved in complex knowledge-processing activities, they have developed new skill sets and management practices that defy traditional motivational approaches (Kumar 2011). In this regard, Jamrog (2006, p. 26) emphasizes that "the combination of job dissatisfaction and demographic trends that predict labor shortages, skill deficits, and fewer workers has all the elements for dramatic changes in the way work is performed, who performs it and where, and the skill sets needed."

Fishbone diagrams (so termed because they resemble the skeleton of a fish) have been used to good effect in situations where decision-makers must take into account a number of hypotheses and perform a number of tests in order to identify the root of a problem (McGraw & Harbison 1999). According to McGraw and Harbison (1999, p. 292), "When creating these diagrams, analysts should represent the more common hypotheses near the 'head' of the diagram, and uncommon or infrequently selected hypotheses near the 'tail.'" To date, fishbone analyses have been used for a wide range of applications, including the evaluation of healthcare services and human resources management (Parayitam & Desai 2009).

According to Middleton and Walker (2005, p. 37), a root cause analysis "is a systematic method of analysing a specific adverse event to determine what happened, why it happened and what can be done to prevent it from happening again." A root cause analysis is an essential tool for evaluating human resource issues and provides a measure of how well participants understand and comprehend their company's policies and procedures (Schafer 2012).

According to Todd and Morris (1999, p. 4), "Reinforcement theory is sometimes called 'behavior theory,' 'learning theory,' and 'operational behaviorism,' among other things. It has come to deal with a great deal more than a few experiments on dogs in a frame or rats in a box." During his experimentation, B.F. Skinner found that both positive and negative reinforcements can affect behavior, sometimes in truly powerful ways (Todd & Morris 1999). Reinforcement theory is especially salient with respect to employee motivation. In this regard, Luthans (2000) reports that "a primary activity of any type of leader involves motivating and reinforcing others to encourage superior performance. Put another way, theories of motivation encourage leaders to tie important outcomes to desired behaviors." Therefore, when team leaders apply reinforcement theory, it is with a singular goal in mind: "To sustain motivation, leaders must demonstrate to employees a close link between performance and rewards" (Luthans 2000, p. 31).

During a seven-year period, Belbin and his associates studied more than 120 management teams taking part in competitive business simulations (Biech 2001). An enormous amount of observational data was compiled during these simulations, including a wide range of recorded contributions from various team members (Biech 2001). Based on these observations, Belbin's researchers identified several team-role patterns. According to Biech (2001, p. 87), "It became obvious that each team member had a preferred or natural role, a secondary role (one that he or she was able to assume when necessary), and least-preferred/best-avoided roles." Belbin's original observational studies resulted in eight different team roles, and a ninth role was later identified as well (Biech 2001). All nine roles are regarded as important to team performance and are described below.

The nine Belbin team roles are: Plant (devises creative solutions to problems); Coordinator (interprets objectives, encourages decisions, facilitates appropriate resources); Resource Investigator (finds useful contacts and resources outside the team); Monitor Evaluator (discerns opinions, makes insightful judgments); Implementer (translates ideas into action and organizes the process); Team Worker (resolves disagreements; concentrates on diplomacy); Completer-Finisher (fixes errors; ensures work is complete; meets deadlines); Specialist (offers knowledge or skills that others may not have); and Shaper (challenges others to overcome difficulties).

These nine team roles are not necessarily static, and team members may perform different roles at different times. Developing balanced roles within a team serves three valuable purposes: (1) it increases the likelihood of positive contributions from individual members; (2) it decreases the likelihood of destructive conflict among members; and (3) it enhances the team's ability to adapt to changing and unpredictable circumstances (Biech 2001).

The talent management matrix developed by Cornell categorizes employees along dimensions of performance and potential, prescribing specific managerial actions for each profile. For example, employees who may be new to a job or who have lost pace with organizational changes are advised to receive continued orientation, time for development, and clear expectations. Steady and dependable performers who appear capable of more should be challenged and given opportunities for growth and new experiences. High performers with capacity for immediate advancement should be given top-level assignments, partnered with executives, and rewarded and recognized. Those who have reached job potential but are underperforming require a managed performance improvement plan or, in some cases, an exit from the organization (Cornell Talent Management Matrix 2013).

The Chartered Institute of Personnel and Development (CIPD) has more than 135,000 members and is the world's largest chartered human resource and development professional organization (CIPD 2013). The human resources qualifications offered by CIPD are provided in the United Kingdom, Ireland, and internationally by universities, colleges, and training providers (CIPD 2013). More than 12,000 professionals complete CIPD programs each year to develop their knowledge of human resources best practices (CIPD 2013). In addition, CIPD offers continuing education courses in Business, Leadership and Management Skills, as well as Personal Effectiveness and Behavioral Skills (CIPD 2013).

As the term implies, participative management provides employees with the opportunity to take part in the management process (Tsiganou 1999). Although participative management techniques have been used in the United States, Japan, Sweden, and Norway with positive results, Tsiganou (1999, p. 123) emphasizes that "participation schemes in the United States as elsewhere have been caught in the middle of a power struggle and have not taken place without conflict." Nevertheless, the research to date indicates that participative management techniques can provide a major return on investment. According to Angermeier, Dunford, and Boss (2009, p. 127), "Employee perceptions of the extent to which their work climate is participative rather than authoritarian have important implications for critical work attitudes and behavior."

The research has confirmed that employees in highly participative work environments outperformed their counterparts in non-participative management organizations (Angermeier et al. 2009). For example, a study by Angermeier and his associates found that employees working in participative management settings provided 14% better customer service, committed 26% fewer clinical errors, demonstrated 79% lower burnout, and were 61% less likely to leave the organization than employees in more authoritarian work environments. According to Angermeier et al. (2009, p. 128), "These findings suggest that participative management initiatives have a significant impact on the commitment and productivity of individual employees."

The "Hawthorne effect" is a principle of management holding that, over time, individuals tend to improve their performance when they are observed (Morgan 2009). Maccoby (1999, p. 49) advises that "managers are taught that this effect is caused by paying attention to workers and listening to their complaints. The theory is that when managers care about workers, attitudes improve and output increases." According to Morgan (2009, p. 162), "Some have questioned the 'Hawthorne effect'; [however], being under observation from colleagues could trigger reflection and lead to some benefits." These observations suggest that the Hawthorne effect could be used to best effect by employing it as an augment to feedback from first-line managers and continuing professional education and development opportunities (Morgan 2009). This assertion is congruent with Maccoby's (1999, p. 51) observation that "workers are motivated not only by money, but also by a supportive environment. First-line supervisors should be trained to be human relations experts."

Flexible time, or "flextime," is currently the most popular flexible work arrangement in the world (Avery & Zabel 2001). An advantage of providing flextime alternatives for employees is that it increases the amount of family and leisure time available to workers. According to Avery and Zabel (2001, p. 39), "It gives individuals the opportunity to take care of errands, appointments, and other personal tasks. Employees who are continuing their education through courses and other opportunities can find flextime helpful." In addition, flextime is especially valued by parents with school-age children (Avery & Zabel 2001). Interestingly, men appear to prefer flextime for a number of reasons, including gaining personal control over schedules and spending more time with family without a concomitant reduction in earnings (Avery & Zabel 2001). Moreover, Avery and Zabel (2001, p. 39) emphasize that "flextime can also be a morale booster to employees. It gives employees autonomy in selecting their own work schedules and makes employees responsible for getting work done within their own work schedules. Flextime emphasizes efficiency and the completion of projects."

Everyone wants to have their voice heard, and an employee suggestion system provides this opportunity. Nelson (2002, p. 12) points out that "employees need to know that their suggestions are taken seriously and that they can make a big difference. By carefully reviewing employee suggestions, and quickly implementing those that have merit, management sends a message that employees are valued." Despite the potential cost savings, innovation, and improved morale that an employee suggestion program can provide, some companies are reluctant to implement such programs due to concerns that the associated costs will outweigh the potential benefits (Nelson 2002). According to Mishra (1999, p. 587), however, "as concern about ways to increase employee participation has grown, many organizations, both service and manufacturing, have turned to an employee suggestion program (ESP) as a key part of their management approach."

Although policies and procedures vary, employee suggestion programs typically solicit ideas and innovations from individual workers or groups of employees (Mishra 1999). With respect to the goal of such programs, Mishra (1999, p. 588) advises that "it is hoped that employee suggestions will yield cost savings, productivity gains, and higher overall profits, while rewarding participants with monetary compensation, recognition, and the satisfaction of seeing their ideas adopted."

The foregoing descriptions of the various tools and techniques available to the two struggling team leaders at Sapphire make it clear that there are resources that can help these leaders, and some are more cost effective than others. For instance, the Hawthorne effect is essentially free, but the Skinner-based incentives that form part of an effective employee suggestion program are not, and can range into the millions of dollars for larger corporations or government organizations, including the military. Between these two extremes exists a continuum of motivational and management improvement approaches that can be used to help these two team leaders become more effective in their roles.

Indeed, it is entirely possible — and even likely — that many of the communication and leadership problems characterizing these two low-performing teams relate to inexperience, a lack of training, or both on the part of the two leaders. Perhaps they were thrust into their current leadership positions and have lingered there while their team members contemplate opportunities elsewhere. In these cases, Belbin would recommend an analysis of the preferred roles of team members to identify optimal organizational structures. A superior alternative might even be the reassignment of the current team leaders to alternative positions within their teams, with new leaders assigned to fill those roles.

Certainly, it is always possible to improve the two team leaders' performance by investing heavily and sending them to an unending series of motivational seminars, night classes in management theory, leadership workshops, or even the Chartered Institute of Personnel and Development. Over time, these steps will likely have a cumulative effect on improving performance. Many organizations, however, do not enjoy those levels of resources for addressing team leadership issues of this nature, and a more pragmatic approach may be required. In this regard, Skinner would recommend a form of negative reinforcement for both teams until they resolved their communication and performance issues.

Irrespective of the leadership style or motivational approach used to help improve performance, there are known factors that consistently influence team leadership effectiveness:

1. Work values shared between leaders and followers have been found to mediate between leadership style and leadership effectiveness.
2. There is evidence that high occupational self-efficacy on the followers' side positively influences the interrelation between leadership and leadership effectiveness.
3. Leadership positively affects followers' emotional state (Wolfram & Mohr 2009).

Taken together, the problems being experienced by the two struggling team leaders at Sapphire are not unique, but they are important, and they detract from the achievement of the company's organizational goals.