Under team production, those who observe individual productivity are the only ones remunerated with a residual that diversifies with the performance of the team. This model effective, as is determined by the prevalence of conventional firms, except for small teams and when specialized monitoring is inefficient. Profit sharing in reformed team production induces all team members to take disciplinary action upon underperformers through switching and division resolutions. However, such action presents effective self-enforcement when the demands for team members are competitive, even for large teams using functional monitoring. To maximize productivity and benefit the managers, they should conceptualize the resulting combination of employees as a single functional unit, like co-expressed genes working as a single operative unit or like a team consisting of highly collaborative members. These teams put their team's effort for their company's interests over their own by first worrying maximizing their company's productivity and profit before thinking about raising their paycheck. Ideally, the employees' behavior and preferences follow the rationale that if every employee dedicates everything he/she can towards maximizing his or her company's profit first, then there is a higher opportunity for everyone to get a higher raise by his or her employer than when requesting that the pay-raises reflect the difference in job production between each worker (Depken, 2000).
What conditions need to be in place for teams to excel and why?
First and foremost was the establishment, communication, and perception of the team’s mission as a shared team agenda.
Equal significance to the creation of an operational team structure that would enable easy cross-functional inter-relationships, cooperation, and commitment as well as the open and flexible assistance of the highly diverse team.
To recognize the team as essential to achieving similar technological development and component integration across specialist team sub-groups.
To the development of the generative mechanisms of the team’s primary goal.
To create and qualify a viable interconnect “process of record for community and commitment that characterizes the team and its technical success (Daniel & Davis, 2009).
Ways to design teamwork to minimize the threats to performance
Empowered team designs with their importance upon the development of work roles and the role adjustment of employees describe the development of a new paradigm of teamwork design, one that is qualitatively distinct to that associated with independent team designs. The task setting of teams’ changes, the management rationale for the use of teams’ changes, and the teamwork design criteria also changes. Empowered self-management as a team design construct is usually presented as a natural extension of the independent team working. Structural assistance and involvement in decision making, indeed, are often seen to be elevated within empowered teams, when correlated to that available to independent teams. This outward connection between the two design concepts, however, masks the fact that cooperation in the empowered team is increasingly on management's terms. Empowered teams are selected managerial responsibilities and are encouraged to recognize management's goals and objectives. Empowered teams are thoroughly combined within managerial systems of control rather than remaining autonomous from such methods of control. When we view at empowerment as a team design construct, we must assume that team empowerment comes at the cost of team autonomy, rather than being built upon the end of it (Cooney, 2004).
Rewarding Teamwork
Employee teams that are efficient and well-managed can be a potent force in helping an organization succeed. The rewards of good teamwork in improving company performance are well known. However, it can take years to build top-performing teams. The key to rewarding team performance is an emphasis on mutual expectations for continuous improvement and teamwork. Employees and customers should be treated with equal respect. Weekly meetings, which review necessary measures and operational goals, will be open to all employees. Employees will be given details of what is required of them in a team-oriented production environment and ways to gauge their performance against the goals set. Successfully balancing the needs of individual employees with those of the company will be evaluated. Improvements in team training and team rewards will be implemented to ensure that everyone cares about the quality of work he or she provides. Empowerment will be an incentive for employees to work efficiently in teams.
