SHRM: Development and Maintenance of High-performance Work Teams

SHRM: Development and Maintenance of High-performance Work Teams

High-performance work teams play a crucial role in the organizational structure and productivity of most companies. These teams are key drivers of superior performance, leading to a significant competitive advantage.

What sets high-performance teams apart from others is their essence beyond being mere groups of individuals following instructions. For a team to function effectively, it requires the following elements:

● A deep sense of purpose and commitment to other team members and the mission.

● Relatively more ambitious performance goals than average teams.

● Mutual accountability and clear understanding of members' responsibilities to the team, as well as individual obligations.

● A diverse range of expertise that complements the abilities of other team members.

● Interdependence and trust among the members.

Work teams are widely prevalent in all types of organizations worldwide. High-performance work teams have an advantage over individual work because each member can contribute new ideas, talents, and perspectives. Additionally, high-performance work teams execute strategy predictably, achieve goals, and require minimal supervision from management because they are authorized and responsible for their operational activities and accountable for their performance. Rewards and incentives are usually linked to both collective and individual goals, with greater emphasis on the collective performance of the team. Due to the high value placed on superior team performance, these teams do not tolerate marginal and low-performing individual contributors.

Business Case

The use of teams has witnessed substantial growth in response to competitive challenges and technological advancements. Team structures enable the utilization of diverse skills, perspectives, and experiences, rendering them well-suited for projects demanding varied knowledge and problem-solving capabilities. Teams exhibit swifter task execution, improved decision-making, adeptness in tackling complex problems, and a greater contribution to fostering creativity and skill development compared to individual efforts. Moreover, their deployment enhances productivity and boosts morale, as proficient teams can surpass the abilities of individuals and other forms of work groups.

There are four key reasons why teams work effectively:

  1. A team brings complementary skills and experiences that exceed the capabilities of an individual.
  2. Teams support real-time problem solving and are more flexible and responsive to changing demands.
  3. Teams provide a unique social dimension that enhances the economic and administrative aspects of work.
  4. High-performance teams generally enjoy their work more than low-performing teams or individuals.
Characteristics of High-Performance Work Teams

While there is no straightforward measure of team performance effectiveness, and no two teams are exactly alike, there is a shared perception of what contributes to the effective functioning of a team. High-performance work teams typically encompass a blend of purpose, goals, talent, skills, performance ethics, motivation and encouragement, effectiveness, leadership, conflicts, communication, power and empowerment, as well as rules and norms.

Purpose, Goals, and Roles of the Team

High-performance teams are collaborative social entities dedicated to achieving a common goal or set of goals, both in the short-term and the long-term. They often embody unwavering commitment to their work and to one another. Team members perform at their best when their roles are clearly defined: they possess a clear understanding of how to fulfill their responsibilities and the underlying rationale. Each member must grasp and endorse the significance and value of the team's mission and vision. Clarifying the purpose and establishing a connection between it and individual roles and responsibilities strengthens the team's potential. Including "stretch" goals that raise the level of challenge -necessary to motivate team members- also enhances performance.

Talent, Skills, and Work Ethics

High-performance teams commence with the identification and retention of their top talents, while swiftly assisting underperforming members in finding alternative job placements. Generally, morale increases as performance improves. Following talent selection, it is crucial to ensure that team members possess complementary skills (e.g., technical skills, problem-solving skills, decision-making skills, and interpersonal skills). Team members should consistently demonstrate unwavering commitment to delivering exceptional performance. They should exhibit honesty, mutual respect, and consider themselves and their organizations accountable at both individual and team levels.

Motivation, Incentives, and Effectiveness

Both monetary and non-monetary systems that promote high performance have a positive impact on achieving team goals. In the long term, internal motivators, such as personal satisfaction and engaging in interesting projects, exert the greatest influence on performance. Moreover, self-confidence and belief in one's abilities encourage individuals to take strategic risks in pursuit of team objectives.

Effective leaders typically guide high-performing work teams. Essential leadership qualities include the ability to:

  1. Maintain a clear sense of purpose, goals, and relevant approaches
  2. Cultivate commitment and trust
  3. Ensure continuous skill enhancement among team members
  4. Manage external relationships by overcoming obstacles that impede team performance
  5. Provide opportunities to others without seeking personal recognition
  6. Lead by example and fulfill the necessary responsibilities. Consensus prevails that proficient team leaders prioritize purpose, goals, relationships, and unwavering dedication to achieving results that benefit both the organization and individuals
Conflict and Communication

Skillfully managing conflicts is integral to becoming a high-performance team. Open communication within such teams entails focusing on guidance rather than control and addressing issues transparently and honestly. The key to team performance lies in maintaining open lines of communication at all times, fostering motivation, sustaining interest, and promoting collaboration.

Power and Empowerment

Empowered work teams foster a sense of ownership, provide opportunities for skill development, increase interest in the work, and facilitate decision-making. Researchers describe the ideal state as being "loosely tight," establishing specific decision-making boundaries while allowing individuals room to make empowered choices.

Rules and Standards

Just as rules govern team behavior, norms contribute to improved team development and performance. Norms for high-performance teams include open communication, timely conflict resolution, regular evaluation of individual and collective performance, high levels of mutual respect, a cohesive and supportive team environment, strong work ethics focused on achieving results, and shared recognition of team accomplishments. The key factor is that high-performance teams engage in genuine discussions and mutually agree upon their operational rules and standards, which all team members commit to upholding and holding each other accountable for.

Common Challenges Faced by High-Performance Work Teams

Given the importance of teamwork in today's economy, experts have focused on using documented organizational research to identify the key characteristics of high-performance teams. Despite different approaches to describing high-performance teams, certain common characteristics appear to be strong indicators of a team that is not functioning at its peak or in need of intervention:

● Lack of participatory leadership: Team members do not employ a democratic leadership style that actively involves and engages all team members.

● Inadequate decision-making: Team members tend to make hasty decisions without considering a balance of rational and intuitive approaches. 

● Limited communication: Communication channels are infrequent and closed off.

● Failure to appreciate diversity: Team members fail to value the diverse experiences and backgrounds of their colleagues, resulting in a lack of varied perspectives and decreased effectiveness in decision-making and problem-solving. 

● Absence of mutual trust: Team members lack complete trust in each other and in the team as a whole. 

● Ineffective conflict management: Conflicts are not openly addressed and transparently resolved, leading to the accumulation of resentment and a detrimental impact on team morale. 

● Unclear goals: Team members are uncertain about their roles and the overall objectives of the team, resulting in a lack of commitment and engagement. 

● Ambiguous roles and responsibilities: Team members are unsure about their specific obligations and what actions demonstrate their dedication to the team and its success. 

● Relationship challenges: The bonds among team members are weak, negatively affecting their efficiency and effectiveness. 

● Negative team culture: The overall team environment lacks openness, transparency, positivity, and a forward-looking approach, leading to underperformance at higher levels.

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