The Organizational Benefits Of Team
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Human Relations
[0018-7267(200202)55:2]
Volume 55(2): 225–249: 021184
Copyright © 2002
The Tavistock Institute ®
SAGE Publications
London, Thousand Oaks CA,
New Delhi
The organizational benefits of teams
Linda I. Glassop
A B S T R AC T
This study presents an analysis of the benefits of two team structures
– quality circles and self-managing work groups – for Australian work organizations utilizing the Australian Workplace Industrial Relations
Survey for 1995. The analysis indicates that firms with team structures have higher labor productivity, a flatter management structure and reduced employee turnover. The presence of team structures in
Australian firms indicates a decrease in industrial harmony. The findings were inconclusive regarding absenteeism and profitability.
KEYWORDS
industrial harmony productivity quality circles self-managing work groups teams
Introduction
The use of formal work teams, team-building activities and the rhetoric of
‘the team’ are, today, commonplace in the theoretical and popular business literature (Cordery, 1995; Hillkirk, 1993). Research extends to such topics as team leadership (Manz & Sims, 1987), group structures (Cohen
& Ledford, 1994), group-think (Manz & Sims, 1982), team leader selection (Armstrong, 1998), and group dysfunction (Diamond, 1991).
Research also suggests that teams can provide many benefits for organizations and employees alike (Cordery, 1995; Morehead et al., 1997; Osterman, 1994).
Callus et al. (1991) and Morehead et al. (1997) suggest that the adoption of formal team structures and the use of team-building approaches in
225
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Australian organizations are widespread. However, an empirical analysis of their benefits is lacking. Cordery (1995) confirms that such survey data are not available in Australia. American researchers also note, ‘. . . empirical evidence regarding [team]
18/12/01
3:23 pm
Page 225
Human Relations
[0018-7267(200202)55:2]
Volume 55(2): 225–249: 021184
Copyright © 2002
The Tavistock Institute ®
SAGE Publications
London, Thousand Oaks CA,
New Delhi
The organizational benefits of teams
Linda I. Glassop
A B S T R AC T
This study presents an analysis of the benefits of two team structures
– quality circles and self-managing work groups – for Australian work organizations utilizing the Australian Workplace Industrial Relations
Survey for 1995. The analysis indicates that firms with team structures have higher labor productivity, a flatter management structure and reduced employee turnover. The presence of team structures in
Australian firms indicates a decrease in industrial harmony. The findings were inconclusive regarding absenteeism and profitability.
KEYWORDS
industrial harmony productivity quality circles self-managing work groups teams
Introduction
The use of formal work teams, team-building activities and the rhetoric of
‘the team’ are, today, commonplace in the theoretical and popular business literature (Cordery, 1995; Hillkirk, 1993). Research extends to such topics as team leadership (Manz & Sims, 1987), group structures (Cohen
& Ledford, 1994), group-think (Manz & Sims, 1982), team leader selection (Armstrong, 1998), and group dysfunction (Diamond, 1991).
Research also suggests that teams can provide many benefits for organizations and employees alike (Cordery, 1995; Morehead et al., 1997; Osterman, 1994).
Callus et al. (1991) and Morehead et al. (1997) suggest that the adoption of formal team structures and the use of team-building approaches in
225
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226
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3:23 pm
Page 226
Human Relations 55(2)
Australian organizations are widespread. However, an empirical analysis of their benefits is lacking. Cordery (1995) confirms that such survey data are not available in Australia. American researchers also note, ‘. . . empirical evidence regarding [team]
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