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Summary of Fundamentals of Business Management unit 6 (OBS 114)

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A comprehensive summary of OBS 114 Unit 6 - Chapter 9. It includes all useful information from the unit while leaving out all repetition and unimportant extras. it includes all diagrams, lists, concepts and business models in a clear and concise manner.

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Unit 6 chapter 9
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March 14, 2021
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Unit 6 – Chapter 9
Groups and Teams


Groups, Teams and Organisational Effectiveness
A Group is two or more people who interact with each other to accomplish certain goals or
meet certain needs.
A team is a group whose member work intensely with one another to achieve a specific
common goal or objective.
All teams are groups but not all groups are teams. The differences between groups and teams
are the intensity with which teams work together and the presence of a specific, overriding
team goal or objective.
Teams help organisations:
1. Enhance performance
2. Increase its responsiveness to customers
3. Increase innovation
4. Increase employee’s motivation and satisfaction




Groups and Teams as Performance Enhancers
Synergy is performance gains that result when individuals and departments coordinate their
actions
To maximise synergy, managers need to make sure that group members have complementary
skills and knowledge. They also need to give groups enough autonomy.

, Groups, Teams and Responsiveness to Customers
Cross-functional teams are teams made up of people from different departments. This is
useful when e.g., we want to know what the customer desires of a new product but we do not
work with the customers directly, so we bring a sales person into the team.


Teams and Innovation
Managers can better advocate for innovation when teams are made up of diverse individuals
with unique ideas.


Groups and Teams as Motivators
Team members can see how their efforts and expertise directly contribute to the
achievements of team and organisational goals, and they feel personally responsible for the
outcomes or results of their work.


Types of groups and Teams
Formal groups are groups that managers establish to achieve organisational goals.
Cross-cultural teams are composed of members from different cultures or countries.
Cross-functional teams are teams made up of people from different departments.
Informal groups are groups that managers or nonmanagerial employees form to help them
achieve their own goals or meet their own needs.




• Top management team – a group composed of the CEO and directors and managers
most responsible for achieving organisational goals. They are responsible for
achieving a competitive advantage. Most are also cross- functional.
• Research and development teams – a team whose members have the expertise and
experience needed to develop new products. Sometimes cross-functional.
• Command groups – a group composed of subordinates who report to the same
supervisor; also called department or unit (e.g., finance department).
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