EXAMINATION OF THE RELATIONSHIP BETWEEN EFFECTIVE TEAM-BONDING AND INFORMATION SHARING ON OVERALL ORGANIZATION PERFORMANCE
CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter review relevant literature on the Effect of team-bonding on organization performance. To this end, extract shall be made of opinions of authorities as well as concept, theories and factual statements on the subject matter in line with the objective of the study.
2.1 Conceptual Review
2.1.1Concept of Teamwork
Teamwork involves everyone working together to support the organization to achieve its set goals and objectives. Teamwork is usually an integral part of the workplace that facilitates synergy and joint effort (Paula, 2007), Similarly, Adoga (2009) Opined that teamwork is the action of individuals, brought together for a common purpose or goal, which subordinate the needs of the individual to the needs of the groups. In essence, each person on the team put aside his or her individual needs to work toward the larger group objective. The interactions among the members and the work they complete is called teamwork.
However, Oko, (2007) defines teamwork as cooperation between those who are working on a task. Commonly teamwork is understood as cooperation and willingness to work together. This implies that teamwork is the ability to work together toward a common vision, the ability to direct individual accomplishments towards organizational objectives. He further opined that teamwork represents a set of value that encourage behaviours such as listening and constructively responding to points of view expressed by others, giving others the benefit of the doubts, providing support to those who need it, and recognizing the interests and achievements of others. Teamwork is thus the ability to work together toward a common goal and the cooperative or coordinated effort of workers to achieve organizational goal.
Rasana (2010) opined that a team is a collection of individuals who get together or are assigned to achieve a common goal. In this case, teamwork simply means the process through which they could achieve the expressed common goal. Teamwork is the collective effort of employees to accomplish their work in order to attain organizational goal. It is indeed an integral part of an organization that facilitates collective action and synergy in goal attainment.
2.1.2 Concept of performance
On the other hand, performance has been presented in existing literature as a complex and multidimensional construct which can be defined and assessed in many ways. The concept “performance” is derived from the word perform which is an act. Al-Jammal, Al-Khasawneh and Hamadat (2015) defined employee performance as the level of efforts and achievements exerted by employees. To Okunribido (2015), employee performance can be defined in terms of quantifiable outcomes of work behaviour and in terms of behavioural dimensions (e.g., work related communication, decision-making, attention to detail) that are less quantifiable. Therefore, as a multi-dimensional construct, the measurement of performance varies depending on a variety of factors (Bate and Holton, 2010). They concluded that it can be simply defined to mean the record of outcomes achieved among staff.
2.2.3 Effect of Teamwork on Organizational Performance
Teamwork can increase performance because every team member brings their specific education and training to accomplishing the work task assign to them. This often maximizes the variety of work the team can accomplish as well as the number of tasks completed without additional research. it is true that more minds can sometimes work better than a single one for example, in a service and health industry, workers operate 24 hours a day, giving them to time to increase yield. But with teamwork, the result was higher productivity for the work team. This is so because the teams worked together brainstorming effective management plans. with a high performing team an organization can achieve something much bigger, more effectively and more enjoyable than a group of the same individuals working on their own. It like free extract project (Johanna, 2009).
However, Kerber (2008) opinion that effective teamwork is essential to the success of any business. As “no man is an island”, the positive effect of productive teamwork can energize an entire organization, just as the negative effects of a lack teamwork can cripple an organization. There are many benefits of using teams due to the increased number of options and resources they provide. The flexibility, responsiveness, lower costs, and improved resource utilization necessary to meet ever-changing task requirements in high turbulent and moreover, the use of team provides an opportunity to coordinate complex businesses tasks across a potentially far-flung confederation of organization. This allows companies to better communicate and coordinate even though sometime teams are constraint with their own problem that tend to bring conflict among them.
Similarly, Lider (200() observed that a teamwork facilitate the pooling of talents to provide focused attention to the attainment of organizational goal. In this regard teamwork allows organization to bring together critical contributors who might not otherwise be able to work together. This allows workers to in harmony which increases the pace of work and result in high yield in quality production and consequently increases the organizational productivity.
However, Hayworth (2010) opined that teamwork allow organizations to unite the varying perspectives of different cultures and business customs to avoid counter-productive ethno-centric.
It is true that more minds can sometimes work better than a single one for example, in a steel mill industry, workers operate 24 hours a day, giving them no time to increase yield. But with teamwork, the result was higher productivity for the work team. This is so because the teams worked together brainstorming effective management plans with a high performing team an organization can achieve something much bigger, more effectively and more enjoyable than a group of the same individuals working on their own. It like free extract profit (Johana, 2009)
Similarly, Lider (2009) observed that a teamwork facilitates the pooling of talent to provide focused attention to the attainment of organization goal. In this regard teamwork allows organization to bring together critical contributors who might not otherwise be able to work together. This allows workers to in harmony which increases the pace of work and result in high yield in quality production and consequently increases the organizational productivity.
However, Kayworth (2010) opined that teamwork allow organizations to unity the varying perspectives of different cultures and business customs to avoid counter-productive ethno-centric bias but rather encourage “groupthink” and to develop innovative solution to problems. In additions, the ability to respond to the specific and varied needs of an organization can be addressed quickly and effectively with teamwork. He further opined that teamwork improve resources utilization by leveraging time to the advantage of organization which effectively bridge individual differences so that teams can be more productive.
It has been proven through the studies of Usunier (2007) that teamwork facilitates diversity and “groupthink” and allows a team to make better and more creative decision. Team members from different background automatically bring diversity to the group. As such effective ideas from one can be adapted successfully for others. This enhances performances in no small ways.
According to Hawthorne (2008) teamwork enhance performance through the ability of a team to work together to increase the speed of work. Teamwork is usually an integral part of the workplace. Basic teamwork involves everyone working together to support the organization and complex forms of teamwork could involve “work-teams” chosen to complete a project by working closely. There are two side to the debate over teamwork’s effect on performance. Some theorize that it helps performance. Others think it hinder productivity. Both philosophies have backing evidence.
The “Hawthorne effect” describes the phenomenon in which people act differently when they know they are being observed. The “Hawthorne effect” is name for a set of studies conducted in 1989 at the western electric company’s Hawthorne works in Cicero Illinois. The Hawthorne studies were meant to observe worker behavior under various conditions. The results of the studies showed that workers performed better under all conditions. Simply because they are being observed and were expected to report. Teamwork leverages the Hawthorne effect because team members are observed by each other and are expected to report to the team these issues could negate the performance gain by the Hawthorne effect.
But however, teamwork increases performance by allowing every team members to bring their specific education and training to a project which often maximizes the variety of work the team can accomplish as well as the number of tasks completed without additional research. It is true that more minds can sometimes work better than a single one. Take the recent development in a steel mill industry as an example. Many mills operate 24 hours a day. Giving them no time to increase yield. Recently, steel mills have been increasing performance by creating teams who work together on both simple and complex task. The result is higher performance for both the work team and for other employees because the teams worked together brainstorming effective management plans.
Furthermore, Kayworth (2000) opined that the use of teams provides an opportunity to coordinate complex business task that will be difficult for individual worker. This allows the organization to better communicate and coordinate their operations. This makes organization to be more responsive to their customer through diversity, teams may allow organizations to unify the varying perspectives of different cultures and business customs to avoid counter productivity.
Teamwork also help organization to lower their labour and overhead cost. There are pools of inexpensive, highly skilled labour force who come together to form a team. This is an appealing option to many organizations looking to reduce overall project and maintenance costs.
Teamwork also helps in improving resources utilization by leveraging time to the advantage of the organization performing work asynchronously helps organizations to effectively bridge individual differences, so that team can be more productive during a work period.
2.2.4 Key Factors that Influences Team Effectiveness
Effective teamwork is essential to the success of any business. An essential ingredient to effective teamwork is attracting and keeping the right team members. No matter how hard a group of people try to work together and create effective team, without the right people for the job, the team will inevitably fail. There are four essential components to an effective team (Beck hard), 2009)
- Positive corporate culture: In order to recruit long-team effective team members, the member have the authority to make and carry out decisions that are required.
Furthermore, always support and back up the decision, the team leader helps them to understand themselves and bring peace in order to enhance harmonious co-existence among team members.
- Give Recognition: Recognition is the key to an employee’s success. Team members will search out recognitions from their organization. This enhances productivity and effective teamwork.
However, Richard (2009) opined that to improve a team’s effectiveness, it is first necessary to understand the impact of its performance. Once this is determined it is easy to know team effectiveness. In order for team to function effectively they must manage how they work together and how they interact with the rest of the organization. As a result of his studies, (optimizing team and building effort” journal of contemporary business, 2007) states that for teams to be effective they must manage four areas internal to the team goals roles, processes and relationships. Further research has identified a fifth factor impacting performance. How the team managers its interaction with the organizational environment within these factors become the focus of attention for the manager who wants to raise team performance, because trams that Effectively manage these areasfunction more effectively than teams that do not.
However, beck hard (2008) opinion that the impact of organization and the outside world on team performance are said to be the environmental influences on team. The policies, procedure and system within an organization can either support or hinder a team’s effectiveness. On excellent example is the impact an organization’s reward system has on teamwork. Organizations typically reward only individual contribution. Few organizations have found ways to reward teams.
Nevertheless, many books and much academic research has been devoted to understand the critical element of a successful and effective team building but in essence these boil dome to three key elements. For example, Paula (2006) opined that:
- A clear team goal is a must share and understood by all and supported by strong communication channels across then team and supportive members relationships.
- A broad range of skills and personalities exist enabling complementary strengths to compensate for weaknesses.
- Identifying factors that inhabit good teamwork, such as remote writing, personal clashes and like, and either removed or overcome or their negative effect on team mitigated.
Similarly, Kelly (2009) opined that people thrown together do not automatically make a great team. People need time to get to know each other, to learn to get along, to develop interpersonal trust and build team spirit. There are many tools and games to help build great teams.
2.2.4.1 Building an Effective Team
According to Agbo (2006) there are five factors or ideas needed to build an effective team, understanding personality profiling of feedback session to help team and its members discover strength and weaknesses and gaps.
Establishing team norms and behaviors e.g. how often it is going to meet formally and informally, protocols and rules for meetings and the like. It can be a good idea to establish a system of fun fires and forfeits for breach of team rules and norms.
Allowing team members to build trust and openness by encouraging them to spend time together in an atmosphere that encourages open communication, bonding and the creation of shared team experiences. For example, a weekly or monthly lunch where the whole team can come together.
Whenever possible team members should be included in decision making or problem-solving sessions
Finally, whenever there are, the opportunity team members should celebrate team progress.
However, Jarvempaa (2005) opined that because of the unique challenges confronting teams, it is especially important at their formation that they build a strong foundation. Among others, building blocks for successful teams including the following: creating a mission, goals and ground rules. Identifying stakeholders and their expectations, complimentary roles and responsibilities and building relationships and rewarding experiences.
2.2.3 Factors Militating Against Teamwork in Workplace
One of the challenges that team faces is dealing with various personalities of people in the team. Some may be introverts. Some may be more output driven while some may be people –driven. But this challenge is also one of the sources of strength of teams. But at the some bring conflict among team members (Rasing, 2009). Teamwork in organizations is always constraint with conflict arising from disagreement of team members. Unresolved issue and conflicts can slow or half an otherwise functional team. The same can be said for team camaraderie. Friendship and humor aren’t necessary bad for a team, but too many leads to inefficiency lost time and lost productivity. Team’s lack of good leadership who can make clear choices lead to confusion and consequently affect productivity negatively.
However Marchan (2009) opinion that team faces threat in their early stage this stem from omission an inactivity of some team member who are yet to adjust to the pace of work of other team members. This often leads to misdirected work and wasted time and resources. A related pratfall is misaligning the purpose of the team with the needs and expectation of the organization as a whole. These affect organizational goal attainment and also affect productivity adversely. Similarly, Okoh (2010) observed that team work in an organization is confronted with the issue of false perception of similarity by team members. This implies that some team players assume that they will have an easier time assimilating than others. This perception also plagues the teams. This can have a negative impact on business communication process and personal relationships.
2.2.4The Problem and Teamwork in an Organization
According to Pickkani (2001) teamwork in an organization is confronted with the problem of antitheses of the building blocks of a team. This is so because the pitfalls of team building are due to omissions and inactivity.
A common pitfall is setting out without a clear goal or purpose. If team members understand little more than the routine tasks, they are to perform day-to-day, a lack of common understanding will lead to misdirected work and wasted time and resources. A related pitfall is misaligning the purpose of the team with the needs and expectations of stakeholders and the organization as a whole. A teamwork is further damage when the team members neglect to take opportunities for building strong communication and trust in their relationships.
Another problem militating against effective teamwork is false perception of similarity. There is often a false assumption among team players that they will have an easier time assimilating role and task than their contemporaries. This perception plagues teamwork in no small ways. As such Usumier (1993) opined that because of perceived familiarity and similarity among teammates, individuals can be lured into a false sense of confidence and fail to perceive that they are not culturally close. This can have a negative impact on business communication processes and personal relationships (Henderson, 2005).
Furthermore, too much conflict and unresolved issues can slow or halt an otherwise functional team. The same can be said for team camaraderie. Too much friendship and humor lead to inefficiency, lost time and lost productivity. Teams also need a good leader who makes clear choices, otherwise the team members wills struggle with confusion. As team members work together, relationships often become strained members need ways to resolve problems and to assure that a good working relationship continues. Sometime relationship problems occur because of a difference in values or a personality or management style clash.
2.2.5 Effect of Team Members Abilities on Employee Performance
Part of a team‟s performance depends on the knowledge, skills and abilities for its members. A team‟s performance is not merely the summation of its individual members‟ abilities. However, these abilities set parameters for what members can do and how effectively they will perform on a team (Robbins and Judge, 2007). In their opinions, to perform effectively, a team requires three different types of skills. First, it needs people with technical expertise. Second, it need people with the problem-solving and decision-making skills to be able to identify problems, generate alternatives, evaluate those alternatives and make competent choices. Finally, the teams need people with good listening, feedback, conflict resolution and other interpersonal skills, they added. They remarked further that no team can achieve its performance potential without developing all three types of skills. The right mix is crucial as too much of one at the expense of the others result in lower team performance. They noted that research on the abilities of team members has revealed some interesting insights into team composition and performance and they include the need to distribute work load evenly, ability to adapt prior knowledge to suit a set of new problems and the need to match team ability to the task.
2.2.6 Team’s Esprit De Corps and Employee Performance
Esprit de corps is the feeling and viewpoint that employee holds about the group. It is also known as team spirit in which employees share their problems with each other within the organization (Jaworski and Kohli, 1993). They observed that team is composed of people who jointly depend on one another in order to achieve team objective, and that team spirit is composed of group members‟ feelings, beliefs and values. Additionally, team spirit in the organization is the key for success in achieving common goal of the team (Boyt, Busch and Mejza, 2005). In the opinions of William, Swee-Lim and Cesar (2005), esprit de corps is the key to success in an organization. To Homburg, Workman and Jensen (2002), esprit de corps
could be considered as a valuable asset for team members as well as the organization. However, in Pakistan, the concept of esprit de corps is not very much recognized as most managers and employees prefer to pursue their individual tasks rather than teamwork (Trimizi and Shahzad, 2009).
2.2.7 Team Trust and Employee Performance
Members of effective teams trust each other, and they also exhibit trust in their leaders. Interpersonal trust among team members facilitates cooperation (Robbins and Judge, 2007). Trust among the team members comes when members of the teams develop the confidence in each other competence. To Mickan and Rodger (2000), there is positive relationship between the team performance and trust. Trust generates the behavioural basis of teamwork, which results in organizational synergy and better performance of an employee. In their opinion, development of trust within the organization, is the responsibility of the individuals. Creation of conducive and the trustable environment for synergetic teamwork is the responsibility of organizations. They posited that organizations should transform the trustworthy behaviour for measurement into performance appraisal system to promote the organizational values. As Manz and Neck (2002) have remarked, high performance teams exist in the organization because there is cooperation and unity among members. Mistakes minimization, quality outputs, increase in productivity and ofcourse, customer satisfaction are the variety of criteria through which performance of the team is measured (Mickan and Rodger, 2000). They concluded that cooperation of the team members can only be created when the trust comes to the most important value of the team culture because it provides an atmosphere for team members to discuss mistakes, accept criticisms and freely express their feelings on any issue.
2.2.8 Effect of Recognition and Rewards on Employee Performance
Robbins and Judge (2007) stressed that reward system should encourage cooperative efforts rather than competitive ones. They opined that promotions, pay raises and other forms of recognition should be given to individuals for how effective they are as a collaborative team member. They pointed out that it does not imply that individual contributions are ignored, rather, they are balanced with selfless contributions to the team. They stated that examples of behaviours that should be rewarded include: training of new colleagues, sharing information with team mates, helping to resolve team conflicts and mastering new skills that the team needs but in which it is deficient.
In a related development, Rabey (2003) observes that recognition and rewards are the primary focus of the individuals who are working in teams. He reiterated that perceptive managers are quite aware of this and that they constantly capture the benefits of the team. As Herzberg (1987) have noted, reward and recognition can provide both intrinsic and extrinsic motivation. However he is of the opinion that extrinsic reward is the main factor that provides employee movement in positive manner. Managers must plan and design an appropriate reward system for the employee and encourage their participation in team arrangements for effective performance to be achieved.
2.3 Theoretical Framework
The theory upon which this study is anchored on is the HRM-performance linkage model of Becker and Huselid (1998) and Wright et al (2003) whose core philosophy suggests that teamwork has a direct impact on employee skills and motivation, which are subsequently translated into improved employee/organizational performance. The HRM-performance linkage model is based on the resource-based view (RBV) which states that increasing employees‟ abilities and motivation, through teamwork will ultimately improve employee/organizational performance (Lopez et al, 2005). The RBV perspective advocates that the potential for competitive advantage of an organization is based on its ability to exploit the inimitable characteristics of its pool of human resources and capabilities.
The basic causal pathway of the HRM-performance linkage model is as stated below:
Looking at the causal pathway illustrated above, the general framework of the model is indirect linkage or hierarchical linkage through the outcomes of skills, attitudes and behaviour between teamwork and employee performance (Black, 2001). Teamwork activities aimed at providing increased skills to employees has a direct impact on their attitudes: motivation, commitment and satisfaction (Barlett, 2001). that is to say that an improved teamwork will improve individual skills which will affect employees attitude and behaviour towards work, and this ultimately lead to higher employee performance
Relevance of the Theory
This theory/model was considered very relevant to the study because the issues involved in teamwork and employee performance could be explained within the framework of the theory. The central argument is that teamwork facilitates the acquisition of necessary skills which leads to enhanced performance of the team members in the organization. Every member of the team can never be equally endowed but through interaction and joint execution of task, the tendency is for the weak to learn from the strong members.
2.4 Empirical Review
In a study carried out by Boakye (2015) on the impact of teamwork on employee performance, using Komfo Anokye Teaching Hospital and Ejisu Government Hospital, several measures of team performance were analyzed including teamtrust, recognition and rewards. The study used correlational techniques in order to analyze the relationship between the two variables, that is teamwork and organizational performance. The study found that teamwork is positively and significantly related to organizational performance. In another study, Manzoor, Ullah, Hussain and Ahmad (2011) worked on the effect of teamwork on employee performance, using the staff of higher education department of Khyber Pakhtoon Khawa, Peshawar Province of Pakistan. The study which was designed as descriptive survey design found that positive and significant relationship exist between teamwork and employee performance.
In a study undertaken by Jones, Richard, Paul, Sloane and Peter (2007) on the effect of team building in the organization, it was found that employees working within the team can produce more output as compared to individual effort. Also, in another study carried out by Ingram (2000) on linking teamwork with performance. It was found that a good manager is the one who assigns responsibilities to his/her employees in a form of group or team in order to take maximum output from the employees. In another study carried out by Conti and Kleiner (2003) on how to increase teamwork in an organization, it was found that teams offer greater participation, challenges and feeling of accomplishment. It was concluded that organizations with team will attract and retain the best people as employees.
In a related development Walid and Zubair (2016) carried out a study on impact of effective teamwork on employee performance, using the entertainment company in Kuala Lumpur capital of Malaysia as the study area. The study adopted descriptive and exploratory research design. The result showed that efficient communication, level of trust, leadership and accountability, has positive and significant impact on employee performance while intrapersonal skills and cohesiveness has no influence on employee performance. Similarly, Agwu (2015) conducted a study to determine the effect of teamwork on employee performance in the Liquidified Natural Gas Plant, Bonny, Nigeria. The study adopted descriptive research design. Result from data analysis indicates that significant relationship exist between teamwork and employee performance. It was concluded that the current team building in the plant should be sustained.
Ooko (2013) did a study on impact of teamwork on the achievement of targets in organizations in Kenya, using SOS children‟s village, Eldoret was the study area. The study adopted descriptive research design. The study found that job satisfaction was to be achieved through recognition of achievement, promotions, good working environments and fair rewards and remunerations. This was to impact team performance if it was done correctly. It was concluded that there was no effective teamwork at SOS despite employees being aware of how much they can achieve by working together in teams. Also, Teseema and Soeters (2006) did a study on promotion practice of teams in an organization and found that there is positive relationship between promotion practice for teams and perceived performance of employees.
The impact of teams on organizational performance has been a topic of many researches done by academics and practitioners for the previous years (Jones et al, 2008). The main likely reason for this attentiveness is the belief that teams can affect the performance of organizations. The work of ateam is deliberatedby some researchersto be particularlyimportant in achieving organizational goals and in evoking performance among subordinates. Several reasons indicate that thereshould be a relationship betweenteamwork and performance.Scholars and practitioners suggest that effective team behaviors can facilitate the improvement of performance when organizations face new challenges. Understanding the impact of teamwork on performance is important because teamwork is viewed by some researchers as one of the key driving force for improving a firm’s performance (Jones et al, 2008). Teamwork is the concept of people working together cooperatively, as in sales team, sports team etc. It has also become so valued that many large corporations have developed specific tests to measure potential employee’s teamworkability. Hence, ithas become important goalin most work places, the belief is that teamwork gives employees a sense of ownership and encourages cooperation (Adeleke, 2008). Team has been around for as long as anyone can remember and there can be few organizations that have not used the team in one sense or another. It is common to hear of management teams, production teams, service team or even whole organizations being referred to as teams that is, many organization today are moving towards “team based” approach to work,this means that working in teams is the basic method used to get work done in these organizations. As a result, employers stress the importance of employees working as a team and advertise for staff with the ability to work in such a way (Richard, 1991). McShone(1998) said thatteams are replacingindividuals as thebasic building blocksof organization - French language television programs has shifted to team-based projects and giving more recognition to teamsthan to individuals. Companies are notjust looking fortechnical ability but looking for people who can work on teams and solve problems.According to Steiner(1972) teams andteamwork are notnovel concepts; teamsand team thinking have been around for years at companies such as Procter and Gamble; and Botany. In the 1980s the manufacturing and auto industries embraced a new team-oriented approach when United States firms retooled to combat Japanese competitor who were quickly gaining market share.Brown et al(1996) examined thatmanagers discovered thelarge body ofresearch indicating that teams canbe more than the tradition corporate structure for making decisions quickly and efficiently. He further said that teams needed for the restructuring and reengineering processesof the futuregiving instances thatsimple changes likeencouraging input and feedbacks from workers on the line make dramatic improvements.Even from time of creation, God applied the concept of teamwork when he said, ‘‘Let us make man in our own image’’ (Genesis1:26, KJV). This statement brings out the fact that God in the creation processwork with otherheavenly beings hencethe essence ofteam in bringing productivity, ‘Man’. This means that teamwork was present in the ancients’ days and was having a greater impact on the performance of on almost all the organizations at that time.
2.5 Conceptual Frame work
The conceptual framework will reveal the relationship the HRM-performance linkage model is based on the resource-based view (RBV) which states that increasing employees‟ abilities and motivation, through teamwork will ultimately improve employee/organizational performance (Lopez et al, 2005). The RBV perspective advocates that the potential for competitive advantage of an organization is based on its ability to exploit the inimitable characteristics of its pool of human resources and capabilities.
The basic causal pathway of the HRM-performance linkage model is as stated below:
Looking at the causal pathway illustrated above, the general framework of the model is indirect linkage or hierarchical linkage through the outcomes of skills, attitudes and behaviour between teamwork and employee performance (Black, 2001). Teamwork activities aimed at providing increased skills to employees has a direct impact on their attitudes: motivation, commitment and satisfaction (Barlett, 2001).