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Team Leadership and Performance

 

 

Abstract
Amassing confirmation proposes that the founding/management team can build rather an optimistic part to the achievement of firm. On the other hand little is recognized regarding the build up fundamentals to the connection amid team and performance? Sketching on the diversity of texts, five different examples are projected to clarify the connection between the two and furthermore, this report also draws the complications confronted in team performance and team leadership, and also shall confront the theory put forward "the leader can turn a group into the team so often idealized by theorists and executives alike," by Hambrick.

 

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Introduction
Figures of studies have established that flourishing schemes are over and over again recognized by groupings of persons to a certain extent than by a lone individual (Kamm et al., 1990,7-117). In the meantime, more than a few studies on pinnacle management teams have established the connection stuck between administration team and organizational show particularly in high-velocity conditions (Murray, 1989; Eisenhardt and Schoonhoven, 1990; Finkelstein and Hambrick, 1990; Michel and Hambrick, 1992; Hambrick and D’Aveni, 1992). Above and beyond the show, the top administration teams are associated to managerial modernism (Bantel and Jackson, 1989), approach (Finkelstein and Hambrick, 1990; Michel and Hambrick, 1992) and planned alteration (Grimm and Smith, 1991; Wiersema and Bantel, 1992). In spite of the build up confirmation concerning the relation amid organization team and show, comparatively a small number of pains have been completed to examine the build up which is principal to the connection (Smith et al., 1994, 412-438).


Resource effect example
The first example suggests that there is a straight consequence of the resources, information and ability of the team on managerial show. This example is footed on the quarrel that essential resources, information and ability are desirable in order to be capable to function productively and as a team in the market. The purpose of the grouping is observed as the single of imprison jointly the essential resources wanted for achievement.


The team’s previous industry knowledge
Knowledge on industry is necessary for the achievement of venture. People with knowledge in the industry fetch the information of how the industry functions. In a lot of cases knowledge in the meticulous industry has been the essential situation for the commencement of novel project. However, the industry knowledge turns out to be excessively imperative, when the company arrives at the dimension the industry broad rivalry cannot be prevented. We foresee an optimistic straight association amid team’s previous industry knowledge and show.


The team’s previous vocation knowledge and complementarily of ability
Timmons (1994, 43-52) states, “entrepreneurs have typically developed a solid base and a wide breadth of management skills and know-how over a number of years of working in different areas (e.g., sales, marketing, manufacturing, and finance). What is important is having a management team whose skills are complementary, not the possession by an individual of a single, absolute set of skills or a profile.” However, Stuart and Abetti (1986) considered, “the experience level high if the founders were familiar with technology and markets, if they have previously run their own companies, or if they had earlier general management experience.” Furthermore, “Cooper and Bruno (1977) found that team members’ prior experience in marketing and technology is particularly important.” Moreover, Roure and Keeley (1989) found that “team completeness was a major predictor of the internal rate of return among new ventures.” Vesper (1980) stated “not only experience, but also a variety of experience in different functional areas was an indicator of better performance on new ventures. Deriving from above we predict a positive relationship between team’s work tenure and performance. In addition we suggest team with both technology and marketing experience are positively related to performance.”

 

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Team size
“The number of members in the team is associated with the growth of start-ups”. (Cooper and Bruno, 1977; Eisenhardt and Schoonhoven, 1990; Doutriaux 1992).

“More team members mean that there are more people available to do the enormous job of starting a new firm and that there is more opportunity for specialization in decision-making.”

Kazanjian (1988, 257-279) has sketched the great figure of evils that young firms face.
“If the team is large, one executive can handle manufacturing issues while another grapples with marketing, a third raises funds, and so forth.”

In dissimilarity, small teams might stagger over some or all of these troubles. In more structural provisions, team size is probable to have an effect on the level of disagreement (Bales and Borgatta, 1966) and heterogeneity (Bantel and Jackson, 1989) inside the team. On equilibrium, on the other hand, one envisages an encouraging straight association amid team mass and show. Preceding joint work experience. Preceding joint work experience is moreover connected to booming venture formation (Roure and Keeley, 1990; Eisenhardt and Schoonhoven, 1990). Past joint working experience amid members of a beginning team guides to further fast pace in conclusion building (Eisenhardt and Schoohonven, 1990 504-529), with superior faith, skill (Stinchcombe, 1965, 142-193), cohesiveness (Goodstein and O’Reilly, 1988) and communication (Zenger and Lawrence, 1989). The team’s speed in decision-making is chiefly significant in quickly altering, unbalanced environments (Eisenhardt and Schoonhoven, 1990), usually individuality of elevated technology industries. Consequently we anticipate a constructive association amid team’s previous joint work experience and performance.
 

Team tenure
Katz (1982, 80-104) found a nonlinear association amid group tenure and show in the study and expansion teams he studied. He clarified that groups go all the way through dissimilar phases: socialization, innovation, and stability. He anticipated young teams to execute inadequately for the reason that of meager socialization, but he furthermore quarreled that teams that have used up a long time mutually turn out to be dedicated to the status quo, knowledge discriminating awareness, and more and more dependence on the group’s individual knowledge. He completed that long-tenured groups would ultimately turn out to be less adaptive and pioneering. On equilibrium, nevertheless, we anticipate an optimistic unswerving association amid team tenure and show.


Structural effect example
The second example is footed on the supposition that there are compositional or demographic effects resulted from the precise demographic allocation, which are more than the amount of the effects of the individual-level variants. This means, that not resources themselves, but their arrangements clarify the connection amid the team and organizational show.


Dissimilarity in practical settings and dissimilarity in practical knowledge
Heterogeneity in pinnacle sides stands for a differentiation in belief structures, leading to a superior hunt for information (Dutton and Duncan, 1987), and a superior diversity of tactical subjects concentrated to. Higher novelty and originality is connected with heterogeneity (Katz, 1982; Wanous and Youtz, 1986), at the same time as team homogeneity will guide to status quo, satisfaction, and high commitment to previous events (Janis, 1972). Prearranged the extremely altering environment of elevated technology industries, the paybacks of heterogeneity are mainly significant. It lets a more complete aim of a wide section of the market, and gives an incentive for novelty as ideas come from a better assortment of experience. Heterogeneity in useful settings is moreover chiefly significant in multifaceted surroundings, where the firm is tackled with contradictory stresses from manifold constituencies (Lawrence and Lorsch, 1967; Pfeffer and Salancik, 1978). The difficulty of high technology industries leans to be superior as the positions, states, and ranks of an extensive diversity of possible stakeholders turn out to be healthier resulted. For instance, discussing such subjects, as patents, licensing, and spirited sections, serious in the earlier stages of high technology industries, will be very much assisted by variety in pinnacle team backgrounds. By difference, team homogeneity will help firm performance in simpler surroundings as the team communicates more effortlessly and rapidly (Zenger and Lawrence, 1989; Keck, 1997). Subsequent to the above sense, we forecast an optimistic straight association amid difference of practical backgrounds/variation in practical knowledge and presentation.

 

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Variation in team tenure
Higher levels of distinction in tenure are associated with lower levels of 1) communication with the external and information distribution (Zenger and Lawrence, 1989), 2) obligation to grouping goals and norms (Homans, 1950; Murray, 1989), 3) socialization (Katz, 1980, 1982), 4) explanation of precedent proceedings (Zenger and Lawrence, 1989) and 5) team presentation (Zenger and Lawrence, 1989). Zenger and Lawrence (1989) established, on the other hand, that as R & D teams matured, they abridged communication with external groups and filtered compulsory information that would have led to more victorious team show. Keck (1997, 143-156) established support for her theory that team with more difference in team tenure and shorter team tenure lead to improved monetary show in confused industrial circumstances and incomplete sustainability for opposite consequences in steady industrial circumstances. Confident by the Keck’s answer we forecast an optimistic straight association amid disparity in team tenure and show and unenthusiastic straight association amid signify team tenure and show in the firm operating elevated speed industries.


Group process example
The third example proposes that the top management team’s procedure will straightforwardly have an effect on show. This procedure example forecasts that both demography (group resource and structural examples) and procedure will be straightforwardly and separately connected to managerial presentation, with procedure accounting for difference in presentation that demography leaves unexplained. The rationale for the process example is derived from social psychology research. This literature has identified social integration and communication as two key predictors of group performance (Cartwright and Zander, 1968; Shaw, 1981; McGrath, 1984). They have been included in the underlying theory in previous studies of top management teams to explain relationships between specific measures of team demography and organizational performance, though they were not measured (e.g., Murray, 1989; Eisenhardt and Schoonhoven, 1990; Keck, 1991; Michel and Hambrick, 1992).


Three aspects of management team’s process will be included to the example: social integration within the team, communication frequency and communication informality.
Social integration. Social integration is a multifaceted phenomenon that reflects “the attraction to the group, satisfaction with other members of the group, and social integration among the group members” (O’Reilly, Caldwell, and Barnett, 1989: 22). Katz and Kahn (1978: 423) noted “The great advantage of the cohesive group is that its members can find in group responsibility and group achievement satisfaction for their individual needs for self-expression and self-determination, as well as affiliation.” Seashore (1977: 10) has linked social integration and cohesion to such ideas as “group pride,” “team sprit,” and “team work,” Members of socially integrated groups experience higher morale and satisfaction and, most importantly, exhibit greater efficiency in the coordination of tasks (Shaw, 1981; McGrath, 1984; O’Reilly et al., 1989). The principal argument is that the constant change and flux in the high-paced environment confronting the firms in this sample require flexibility and rapid response by the top management teams. Furthermore, this kind of high-speed decision-making is fostered through high levels of social integration and communication. In this high-velocity environment, we expect positive direct relationship between team social integration and performance.


Communication has been described as the heart of group behavior (Shaw, 1981) and the essence of social systems (Katz and Kahn, 1978). Group communication is multidimensional, and it can vary in frequency (Daft and Lengel, 1984; Ancona and Caldwell, 1992) and informality (Katz and Kahn, 1978). Communication frequency concerns the amount of interaction among team members, whether communication occurs in face-to-face meetings, by telephone, by written notes, or via electronic mail (Katz and Kahn, 1978; Shaw, 1981; Daft and Lengel, 1984. Unexpectedly, however, Smith et al., (1994, 412-438) and Ancona and Caldwell (1992, 99-128) found a negative relationship between communication frequency and performance. Their explanation was that communication frequency indicates conflict and disagreement in the group, resulting in a flurry of meetings and written memos that detract from task-oriented activities. Thus top management teams may be communicating frequently to reduce conflict. Conversely, infrequent communication may indicate that the team functions well, with little need for information exchange and clarification. Drawing from the findings of Smith et al. (1994, 412-438) and Ancona and Caldwell (1992,99-128) we predict that communication frequency will be negatively related to organizational performance.
Group task leadership example

 

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The fourth example proposes that no either resource themselves, their structure (heterogeneity or variation) or their processes are important, but how effectively those resources are organized toward the achievement of the particular task. This example concerns the leadership function of the group. Two aspects of management team’s task leadership will be analyzed as they relate to the firm performance and growth: the team members’ perceptions about the clarity of various issues concerning task behavior and team members’ perceptions about the degree of shared understanding within the management team.


Perceived clarity of task issues. In order the team members to be effective; there should be clarity on goals, values and norms about how to go about doing the work within the team (Gladstein, 1984, 499-517). Goal and role clarity and specific norms about work are similar to the organization-structure-variable structuring the activities. The degree of structuring of activities influences both intragroup processes and boundary behaviors (Gladstein, 1984, 499-517). Deriving from this we predict a positive direct relationship between perceived clarity of goals, tasks, values and norms, and performance.
 

Shared understanding on team’s goals
The key issues of team processes are common understanding about mission, goals and the structure of the team. The failure to clearly communicate goals and aspirations between the founders of a firm can be a problem both during the start up and growth phases of the business (Timmons, 1984, 43-52). Conflicts may be avoided if team members understand each other’s views of the venture’s mission (Matthes, 1992; Mills, 1967; Pavia and Berry, 1991, 24-27). Morman and Cohen (1994) found that the members’ perceptions of each other’s contributions to the team and established shared understanding of what they are trying to accomplish affect team performance in product development teams. Hackman (1990, 1-35) asserts that team members’ understanding of the team’s business is critical to their success. Watson et al. (1995, 393-411) state that partners must keep on the same “wavelength” about business cycles and strategies to be successful. Besides of shared understanding on goals to increase team success, partners should share their assumptions about the venture team structure (Bird, 1989; Rooney, 1987; Shapero, 1975). Hitt (1994) asserts that shared values are important to venture projects. As a conclusion from above we predict a positive relationship between shared understanding on team’s goals, values and norms, and performance.
 

The example of personal integration into the task
The fifth example puts forward that in addition to the direct resource, structure, procedure and chore management effects, there is an extra direct result on performance caused by the team members’ individual integration into the job procedure. The eventual worth of high-quality results depends to a huge amount upon the readiness of managers to assist in putting into practice those choices (Guth and MacMillan, 1986, 313-327; Woolridge and Floyd, 1990, 231-241). But limited evidence that exists suggests that processes deemed to lead to the highest-quality decisions may adversely influence team members’ affective responses to the process (Amason, 1993). Strategic decision-making teams whose members have fully aired their views in reaching decisions are at times left uncommitted to the decisions and disinclined to work together in a cooperative manner in the future (Schweiger, Sandberg and Ragan, 1986, 51-71). A more complete view of effective decision processes should therefore consider not only the quality of decisions but also the impact of such processes on team members’ affective responses, such as commitment to the decision, attachment to a team, and trust in its leader (Korsgaard et al., 1995, 60-84).
Two features relating to the team members’ individual integration into the chore will be examined as they tell to presentation: the commitment to the chore and the amount of individual integration into the job.

 

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Commitment to the task
Obligation to carrying out a judgment is imperative for the reason that the members of a executive team know how to delay or damage the completion of plans (Guth and MacMillan, 1986, 313-327); yet small holdups can prove critical in extremely spirited and lively surroundings (Eisenhardt, 1989, 543-576). Korsgaard et al. (1995, 60-84) describe commitment as the amount to which team members recognize the planned choice attained and aimed to assist in carrying it out. Individuals’ pledge to a planned result makes sure that the joint and consonant choices essential for harmonized, supportive attempt will be made (Deutch, 1957, 19-231), while lack of commitment places a chief restraint on the variety of alternatives the team’s leader can reflect on (Guth and MacMillan, 1986, 313-327). The degree to which team members have the same opinion with and assist with a conclusion can very much influence the leader’s capability to put into practice it (Hitt and Tyler, 1991, 327-351). To conclude, for the reason that planned choices are often interwoven and incorporated with one another, lack of commitment to a conclusion in general has consequences far away from its impact on the achievement of that conclusion alone (Bourgeois, 1984,586-596; Eisenhardt, 1989,543-576). One can forecast an optimistic association amid pledge to the chore and show.
 

Conclusion
The effect of the performance of the team definitely depends on the top team leadership, but at the same time it is a very complicated process and requires a lot of priorities to be accomplished as mentioned above.

References

Amabile, T.M. (1983) The Social Psychology of Creativity. New York: Springer-Verlag.

Amason, A. C. (1993) Decision Quality, Consensus, and Conflict: Examining a Paradox in the Relationship of Top Management Teams and Organizational Performance. Unpublished doctoral dissertation, University of South Carolina, Columbia.

Ancona, D. (1989) “Top Management Teams: Preparing for the Revolution.” In Social Psychology in Business Organizations, ed. J. Carroll, 99-128, Hillsdale, NJ: Lawrence Eflbaum Associates.

Ancona, D. & David, F. Caldwell (1992) “Bridging the Boundary: External Process and Performance in Organizational Teams.” Administrative Science Quarterly, 37, pp. 527-548.

Bales, Robert. F., & Edgar, F. Borgatta (1966) “Size of Group as a Factor in the Interaction Profile.” In Studies in Social Interaction. A. Paul Hare, Edgar, F. Borgatta, & Robert F. Bales, 495-512, New York: Knopf.

Bantel, K. A., & S. E. Jackson (1989) “Top Management and Innovations in Banking: Does the Composition of the Top Team Make a Difference?” Strategic Management Journal, 10, pp. 107-124.

Bantel, K. A. (1993) “Top Team Environment, and Performance Effects on Strategic Planning Formality.” Group and Organization Studies, 18, 436-458.

Bird, B. J. (1989) Entrepreneurial Behavior. Glenview, IL: Scott Foresman and Co.

Bourgeois, L. J., III (1984) “Strategic Management and Determination.” Academy of Management Review, 9, pp. 586-596.
Cartwright, Dorwin, & Alvin, Zander (1968) Group Dynamics: Research and Theory. 3rd ed. New York: Harper and Row.

Cooper, A. C., & A. V. Bruno (1977) “Success Among High-technology Firms.” Business Horizons, April, pp. 16-20.

Daft, Richard, L., & Robert, H. Lengel (1984) “Information Richness: A New Approach to Managerial Behavior and Organization Design.” In Research in Organizational Behavior, ed. Barry M. Staw & L, L. Cummings, 6, 191-233, Greenwich, CT: JAI Press.

 

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