Definition of Self-Managed/ Directed Team

Self-directed work teams, also known as self-managing teams, represent a revolutionary

approach to the way work is organized and performed. It is a group of people working together

in their own ways toward a common goal which is defined outside the team for example - James

River Corporation’s Kendallville Plant ALPHA team. They manufacture cardboard boxes as

defined by executive leadership. Team does their own work scheduling, training, rewards and

recognition, etc.

Minnesota-based 3M is among an increasing number of companies

that involve employees in the daily management of their business

through work teams. These teams are empowered to take

corrective actions to resolve day-to-day problems. They also have

direct access to information that allows them to plan, control and

improve their operations. In short, employees that comprise work

teams manage themselves.

At 3M, the movement toward self-managed or directed work teams has been driven more by

initiative and need than by corporate directive. Now most of 3M's manufacturing facilities, while

at different levels of empowerment and different degrees of involvement, employ a team-based

approach. In 1994, 3M's new Brockville, Ontario, facility came on-line as the organization's first

"greenfield" site. It was designed and built to operate with self-directed work teams. Many work

groups in line divisions and staff groups are moving more and more into self-direction. 3M's

commercial office supply division, dental products division, finance, logistics and quality

management services are becoming increasingly team-based and self-directed.

Business Week recently reported that self-managed/directed work teams are, on average, 30 to 50 percent more productive than their conventional counterparts. The following are some examples of organizations that attribute major productivity results to the advantages of self-directed work teams:

* AT&T -- Increased the quality of its operator service by 12 percent.* Federal Express -- Cut service errors by 13 percent.* Johnson & Johnson -- Achieved inventory reductions of $6 million.

* 3M's Hutchinson facility -- Increased production gains by 300 percent.

Literature Review:

Increasing competition, globalization and demands to raise customer satisfaction, have made it

necessary for businesses to create innovative strategies to maximize efficiency and productivity

within their organizations. As a result, more corporations are beginning to recognize the value of

developing a team-based organizational structure. At the foundation of this structure are self-

managed work teams, which are groups of individuals working toward a common goal. These

empowered teams share equality through managing the risks and benefits of decision-making

from training, mutual commitment, and trust (Gandz, 1990). This shared responsibility is

expected to lead to an increase in efficiency, quality control, and overall effectiveness

The self-managed work team is not a new revelation; rather, it derived from the autonomous

work group, a prominent form of worker organization developed as an outcome of socio-

technical system theory in the 1960sand 1970s (Herbst, 1962). This theory combined both the

technical and social systems of the organization. It is the only framework that specifically deals

with the group rather than the individual. (Pasmore, et al., 1982).Meaningful work and direct

responsibility for its outcome has been found to satisfy individuals much more than what is

accomplished on an individual basis (Buchanan, 1979).

The self-managed work team has been heralded as the productivity breakthrough of the 1990s.

Project managers turned to self-managed work teams because of the high-quality work these

teams produce (Hoerr, 1989;Wellins, Byham, & Wilson, 1991). Popular literature is full of

examples of successful quality-enhancing results from self-managed work teams. The Volvo

Kalmar facility reduced defects by 90 percent in 1987, Federal Express cut service errors by 13

percent, and Corning’s specialty cellular ceramics plant decreased defect rates from 1,800 parts

per million to nine parts per million by using self-managed work teams (Sexton, 1994).

The purpose of the self-managed work team or self-directed work team is threefold. It is to: (1)

improve quality of the work environment; (2) increase the overall performance of the

organization; and (3) provide an environment that focuses on the well being of its employees, as

well as the organization’s performance. Consequently, conflicts often arise in these situations

since managers may be faced with the daunting task of striking a balance between creating

positive employee morale and getting the job done on time and within budget (Sexton, 1994).

Although self-managed work teams may vary depending on the culture of the company, there are

common characteristics, including: group task design; group composition; and the development

of group norms (Hackman and Oldham, 1980). Group task design is largely determined by the

motivation of the team members and focuses on the variety of skills essential to the successful

completion of the task. Group composition includes not only the specifically skilled, but also a

diverse, multi-talented cross section of the organization, including all levels of management

(Corderey, Mueller, and Smith, 1991).

Characteristics of Self-Managed Work Teams

Virtually every effective self-managed team ranges in size between two and 25 members, with

the majority averaging 10 members. Small size is more of a realistic guide than an absolute

necessity for success. For example, it is far easier for 10 people than 50 to work through their

individual, functional, and hierarchical differences toward a common plan and to hold

themselves jointly accountable for the results they create, not to mention logistics for meeting

time, location or other factors (Hirschorn,1991).

In addition to finding the right size, teams must develop the right mix of skills. In order to do its

job effectively, a team must possess complementary skills. Proper skill sets are common

denominator in potential self-managed teams. Skill requirements fall into three fairly self evident

categories: (1) technical or functional expertise; (2) problem-solving and decision-making skills;

and (3) interpersonal skills.

Technical or Functional Expertise

Product development groups that include only marketers or engineers are less likely to succeed

than those with the complementary skills of both. As a result of the integration of viewpoints,

self-managed teams offer multifunctional definitions and solutions to problems that generate

innovative products or services. However, self-managed work teams also offer unique

challenges. Traditional management models often will not work in these teams because of the

varying functional backgrounds of the members. Leaders may not have sufficient expertise to

provide appropriate technical guidance or evaluation to each team member. Instead, members

have to look for technical support in their functional areas. The lack of common backgrounds

means teams members cannot likely cover for one another. Thus, members must become

personally responsible for adequately representing and integrating their technical contributions

into the final product. Moreover, there is greater potential for conflict resulting from diverse

viewpoints and varying perspectives (Heaney, 1989; Parker, 1994).Project leaders act more as

coaches, facilitators, and coordinators than as supervisors because they cannot enforce technical standards for

work. Team members must take greater responsibility for monitoring and managing their own technical

contributions (Uhl-Bien and Graen, 1998).

Problem-Solving and Decision-Making Skills

The ways in which teams manage themselves differs greatly from the way individuals manage

themselves. In a team environment, members focus on problem-solving and work collaboratively

rather than independently. They generally focus on policies and procedures, human resources,

performance guidelines, and overall expectations. In fact, studies have shown that when team

members focus only on individual unit performance, the overall team performance can suffer

(Liden, Wayne, Bradway and Murphy, 1994). Individual contributions and buy-in to the group

decisions are essential.

Interpersonal Skills

Mutual understanding and purpose require effective communication, as well as occasional

constructive conflict, which call on the unique interpersonal skills of each team member. These

interpersonal skills include objectivity, active listening, supporting opposing viewpoints, and

valuing the successes of individual team members. For successful management and motivation,

two-way communication is needed among all members of an organization. Effective work teams

perform at a higher-level of effectiveness when the team members are able to communicate up

and down the organizational chart, as well as within their own departments. Internal

communication among project members is important for the performances of technical service

teams, particularly interaction between project members and their project managers (Allen, Lee,

and Tushman, 1979). The value of oral communication cannot be overstated and must be taken

into consideration as it affects the interaction patterns among project members. In an age of the

Internet, e-mail and instant messaging, the quality of the actual communication can determine

the longevity of the group and help predict the likelihood of the group’s survival. Face-to-face

communication is needed, especially in the early stages, to establish understanding and trust

among members.

BARRIERS TO SUCCESSFUL SELF-MANAGED WORK TEAMS

According to Appelbaum and Batt (1994), authors of The New American Workplace, when it

comes to team work, there are many obstacles that affect overall performance. The major

challenges organizations face in changing from a traditional environment to a high-involvement

environment fostering a culture of management support. Teams go through several stages of

increasing involvement on their way to self-management. This journey can take between two and

five years and is never-ending from at here are major differences between functional teams and

self-managed teams, stating that, while self-managed teams can serve as valuable tools for

addressing organizational problems, they are the most difficult type of team to lead (Parker,

1994). The following obstacles have been identified for self-managed work teams:

1. Confusion about the team’s authority.

2. Complexity of the team leader’s role.

3. Ambiguity about the team’s goals.

4. Difficulty communicating with key stakeholders.

5. Lack of rewards and recognition.

6. Troublesome interpersonal dynamics among members.

7. Lack of credit for team participation on performance appraisal.

8. Unwieldy size of team.

9. Lack of management support.

Most successful teams form out of a response to a demand or an opportunity put in front of them

by a member of management. However, it is recommended that management leave enough

flexibility for the team to develop its own commitment to a purpose, set of specific goals, timing,

and approach. The best teams invest a tremendous amount of time and effort exploring, shaping,

and agreeing to a purpose that belongs to them both collectively and individually. There is

always the act of re-tooling and redefining their purpose that continues throughout the life-cycle

of the team. In contrast, failed teams rarely develop a common purpose. For whatever reason –

an insufficient focus on performance, lack of effort, or poor leadership – they do not unite around

a challenging aspiration (Hoerr, 1989).The most-effective teams crystallize their performance

objectives by clearly and specifically articulating their goals. These could be goals such as

reducing operating costs by 10 percent or improving customer retention from 30 to 50 percent.

Without these specific goals or the use of predestinated goals that do not relate directly to the

team’s overall purpose, team members could become disjointed, disillusioned, and regress to

mediocre performance. Conversely, when purposes and goals build upon one another and are

integrated with commitment from the entire team, they become a powerful catalyst for

performance (Manz and Sims, 1987).Taking broad objectives and turning them into specific and

measurable goals is the initial process that a team needs to reach in trying to shape a purpose that

is meaningful to its members. Specific goals, such as launching a new product line in record

time, responding to all customers within 24 hours, or achieving zero delinquency by the fifth of

the month, all provide affirmations to the true meaning of self-managed work teams. The

combination of purpose and specific goals is essential to performance. Each depends on the other

to remain relevant and vital. Clear performance goals help a team keep track of progress and

hold itself accountable. Broad aspirations in a team’s purpose supply both meaning and

emotional energy.

HERE U PROVIDE YOUR EXAMPLE

EXAMPLE-1….. SOHAG

EXAMPLE-2……RAJIB

EXAMPLE-3….. PULAK Name: S. M. Mehedi Hassan, ID -3-11-20-060

Participatory Management of The City Bank Limited

Nature of Business:

The City Bank is one of the leading private commercial banks in Bangladesh. The bank was incorporated on 27th March 1983 through opening its first branch at B. B. Avenue in Dhaka.

Thirteen entrepreneurs started their journey with a strong vision to establish a healthy banking culture in the financial industry.

City Bank is the first bank in Bangladesh to have issued Dual Currency Credit Card. The bank is a principal member of VISA international and it issues both Local Currency (Taka) & Foreign Currency (US Dollar) card limits in a single plastic. The bank conducts operations from its central office through four business divisions. These divisions are mentioned in the following:

1. Corporate & Investment Banking

2. Retail Banking (including Cards)

3. SME Banking &

4. Treasury & Market Risks

Company Vision, Mission and Values:

Vision:

The Financial Supermarket with a Winning Culture Offering Enjoyable Experiences

Mission:

Offer wide array of products and services that differentiate and excite all customer segments

Be the “Employer of choice” by offering an environment where people excel and leaders are created

Continuously challenge processes and platforms to enhance effectiveness and efficiency

Promote innovation and automation with a view to guaranteeing and enhancing excellence in service

Ensure respect for community, good governance and compliance in everything we do

Values:

Result Driven Accountable & Transparent Courageous & Respectful Engaged & Inspired Focused on Customer Delight

Performance Appraisal of The City Bank Limited:

Purposes of Performance management:

The purpose of performance management of The City Bank Limited is to increase the overall organizational efficiency to reach to the expected level of company performance considering the following issues:

Influencing employee Development Ensuring Organizational Alignment Fostering Individual & Business Productivity Managing Talent Pipeline Offering differentiated reward

Performance Rating Methodology The City Bank uses:

Step 1: Scoring the Achievements of Company Planned Targets

a. Assign score for each Business Objective b. Sum up the scores for all Business Objectives c. Average the scores for all Business Objectivesd. Calculate the Total Score for all Business Objectives

Step 2: Scoring the Achievements of Behavioural Competencies

a. Assign score for each Behavioural Competency b. Sum up the scores for all Behavioural Competencies c. Average the scores for all Behavioural Competenciesd. Calculate the Total Score for all Behavioural Competencies

Step 3: Overall Ratinga. Sum up the total score of Business Objectives & Behavioural Competenciesb. Find out the “Rating Scale” of the Total Score

Performance Management and Appraisal Process of The City Bank Limited:

The following are some step by step guidelines for the appraisal process of employees:

a) Organization’s HR Division send out a Memorandum informing all departments to start the appraisal process, send out the form, Annual Performance Report (APR), and provides a deadline for submitting the appraisals of their employees upon completion.

b) All branch or division or departments complete their appraisals, and forward to the concerned GROUP EXECUTIVE MANAGER (GEM) or Division Head for specific recommendation or comments.

c) HR Division prepares an Annual Increment Plan for employees as per Management guideline for increments for each branch or division and gets final approval upon review with the GROUP EXECUTIVE MANAGER (GEM) or Division Head.

d) A letter of Increment for each employee is prepared by the HR Division and distributed to each branch or division for disbursement.

e) Increment is effective for all deserving employees, irrespective of employment or special increment or promotion given during any time of the year.

Eligibility:

Appraisal is done for all the employees who have passed the probationary review and who have been in the organization for at least 3 months in the appraisal year. In other words, appraisal is done for all regular employees of the bank, serving for 3 months or more as a confirmed employee.

Annual Performance Evaluation:

For the employee, performance is appraised annually at the end of the review period. This process is initiated and facilitated by HR Division.

Evaluation Boundary Conditions:

In any organization, employee performance follows a 'Normal Distribution'. In order to promote a competitive environment and nurturing for an atmosphere where continuous improvement happens, the organization’s performance rating must reflect a Normal Distribution. However, it should be stressed that at present they are only considering such distribution for the Executives and Officers of the Bank, other than Branch Manager, Regional Manager and Division Head. Staff and sub-staff serving in the Bank will be apprised as per their own performance by concerned Branch Manager or Department Head. As for the Branch Managers, Regional Managers and Division Heads, their performance is related to the performance of the respective Branch or Office or Division. For Branch Managers, their APR will be drawn by respective Group of Executive Manager (GEM) and for Regional Managers and Division Heads, their APRs are to be drawn by Deputy Managing Director (Administration) and all are finally counter signed by the Managing Director.

To match with the above philosophy closely and based on the evaluation of the organization’s performance maturity, while completing the performance appraisal, each evaluator must observe the following distribution for the Executives and Officers of the Bank (other than Branch Manager, Regional Manager and Division Head):

Performance Rating Population (%):

Outstanding Maximum 10% to 15% of the population

Satisfactory or Successful Maximum 35% of the population

Average balance percentage of the population.

Below Average with potential for Improvement Minimum 5% to 10% of the population

Below Average without potential for improvement Minimum 5% to 10% of the population

For employees who are in the category of "Below Average” both with & without potential for improvement, their Branch Manager or Department Heads must have a realistic action plan to improve their performance in their low scoring areas, so the individual can become a successful performer within a short time.

Evaluating Guidelines:

The evaluating Branch Manager or Regional Manager or Division Head or Department Head simply draw the "Annul Performance Report (APR)" of the employees serving under his jurisdiction, and submit it to their respective GROUP EXECUTIVE MANAGER (GEM) or Division Head. The Division Head or GROUP EXECUTIVE MANAGER (GEM) then would forward all the assessment forms of the HR Division, keeping the documents for their own records. The HR Division then gets the APRs countersigned by appropriate authority.

Performance Appraisal Criteria of The City Bank Limited:

1. Personality, Behavior, Physical Fitness & Appearance:It measures to what extent is the Officer able to get along with his customers, superiors, peers and subordinates, including working ability to discharge his duties & responsibilities.

2. Ethics and Morality:It identifies does the Officer enjoy a reputation of honesty and prudence in dealing with financial, administrative and business matters of the Bank.

3. Punctuality & Time Management:It observes the officer’s reporting time on duty, punctuality in other job areas and how his time management ability.

4. Professional Knowledge:It examines what is the level of his knowledge about the systems and procedures of banking and his applicability.

5. Planning & Analytical Ability:It examines to what extent is the Officer able to plan activities and to accomplish by setting priorities, analyze, assimilate and present facts clearly correctly and concisely.

6. Communication Skills:It examines to what extent does the Officer posses the ability to express and convey his thoughts clearly both verbally and in writing.

7. Innovation:It observes how much drive does the Officer has in devising methods, procedures and products to bring about economy and efficiency in the operations of the Bank and enhance the scope of its profitability.

8. Achievement of Target:It observes to what extent the Official is able to achieve his target set for him.

9. Drive & Initiative:It observes does the Officer takes his job casually or accept it as a challenge and tries to meet any crises or obstacle by self-propelled drive and initiative or always depends on his juniors.

10. Leadership & Decision making:It assesses to what extent is the Officer able to guide, motivate, inspire and/or influence his subordinates in accomplishing tasks and to what extent the officer is capable of making decisions & what is the quality of such decisions.

Evaluating Success Criteria of employees:

The criteria which are evaluated in The City Bank Limited to measure the individual success are mentioned below:

Business Objective:The bank evaluates how well he or she was able to fulfill the business objective.

Delivering Results:The bank evaluates the utilization of resources and optimization or improvement systems and work processes to achieve business objectives.

Leadership:The bank assesses the leadership ability to identify the persons who are initiative taker.

Customer focus:The bank evaluates the extent to which the employees are customer focus during the work.

Communication and Influencing Power:The bank evaluates the employee’s Communication and Influencing Power.

Integrity and Confidentiality:

The bank assesses the integrity and confidentiality required for the organization among the employees.

Overall Performance Rating Guide of The City Bank Limited:1 1.1 - 2 2.1 - 3 3.1 - 4 4.1 - 5 5.1 - 6

Outstanding Very Good Good Acceptable Improvement Needed Unacceptable

Consistently exceeds expected results and stands out very well in all success criteria.

Often exceeds expected results and stands out well in most success criteria.

Meets expected results and stands out well in many success criteria.

Meets expected results to a minimum level and average in most success criteria.

Falls below minimum levels in some expected results and deficient in many success criteria.

Falls below minimum levels in all expected results and deficient in all success criteria.

Increment process in The City Bank Limited based on Performance:

All the information based on criteria is collected by the performance appraisal form. Completed Performance Evaluation forms are summarized by the HR Division on an Appraisal Increment Schedule. Working within the guidelines laid down by management, the HR Division enters the proposed increment for each employee on the increment schedule. Proposed increments for individual employees are processed if there is nothing adverse found in his Annual Performance Report (APR), personal file and no administrative action is pending against him. Annual Performance Reports are reviewed by an HR Division’s evaluation committee, which is specially constituted for this purpose every year. This committee adjusts individual salary increments in accordance with special recommendations made by Branch Manager or Departmental Heads for motivating employees whose performance has been such as to merit exceptionally high increments or out of turn promotions. As a general guidance, increments more than usual yearly increment and promotions of employees who have not been in their present grade for at least two years are considered special cases and therefore require a mandatory review and approval by the Evaluation Committee. While considering cases of accelerated promotions and/or exceptionally high increments, the Committee keeps in mind the effect of such promotions or increments are likely to have on employee morale in general and ensure that anomalies are not inadvertently created.

Promotion and lateral growth in The City Bank Limited based on Performance:

Annual Performance Appraisal process is also used for career growth of employees which involves promotion to higher grades with increased responsibilities or involves lateral change in responsibilities with prospect of broadening the employee's career and promotion in future.

Promotion Basis, Criteria and Eligibility:

Annually, HR Division prepares list of employees ready for career progress, potential opportunities and necessary investment for their development. Such growth is considered recognizing staff’s service length at a particular position for a minimum of 2 (two) years and that the staff is consistently demonstrating very high performance with potential for further growth. But management may relax the service length up to 1 or 1/2 years in a grade for exceptionally high performing Officials. Promotions don not normally exceed one grade at a time.

Basis of promotion of Executive or Officers: In the Bank, promotion of executives or officers is given on the basis of points gained from the following matters:

Annual Performance Report Length of Service Academic qualification Desk work and/or mobilization of deposits or profitable business or achievement of

targets Diploma or advanced training in Banking or Technical field Promotion Interview Performance

Contesting an Appraisal:

The Appraisal system is designed such that it provides a clear view of an individual's contribution to the organization, eliminating any biased treatment. Yet it is possible to have a situation where an appraisal was not accurate due to various reasons, such as employee did not provide required information, highlight his or her performance, the Branch Manager or Regional Manager or Division Head did not make clear notes of the employee's accomplishments, etc. The Bank encourages an environment where people can express their opinion if they feel that they are being unfairly treated. Upon receiving the result of the annual appraisal, if a employee feels that he or she has been unfairly treated, for example the rating is incorrect, the salary increase is not justified, did not receive the promotion that he or she deserved, etc. then the employee may contest the appraisal.

A contest against an appraisal does not mean that the appraisal done on the employee is incorrect; it only means that the employee's view of his or her performance is different. It is possible that the Branch Manager or Regional Manager or Division Head was unable to communicate the appraisal information to the employee, or perhaps that the Branch Manager or Regional Manager or Division Head did not have accurate information about the employee.

CONCLUSIONSelf-management of teams involves the need to assume a set of new roles and responsibilities that have traditionally been exclusive to managers and supervisors. As a result, when a conventional work group or team moves to become a self-managed work team, exciting opportunities emerge, but these opportunities are accompanied by new challenges. External demands, such as competitiveness, globalization, and customer satisfaction, have made it necessary to operate businesses in a team-based organizational structure to gain maximum efficiency. At the same time, as new teams enter the workplace, the opportunity for conflict based on class, gender, race, and ethnicity is increasing. Conflict is inevitable; thus, in this continually changing environment, ongoing training in these areas will play a significant role in the future of companies. Companies are moving towards a more knowledge-based organization where employees will become more specialized. These expert employees will be forced to openly share their knowledge, collaborate with other