Lecture Personnel economics in practice - Chapter 8: Advanced job design

On completing this chapter, you will be able to address the following questions: What are characteristics of teams? What is the cost-benefit tradeoff of using teams? What sort of organization should use teams? What is the optimal team size and composition? How does the presence of IT affect teams? How does teaming affect job design? | Chapter 8: Advanced Job Design 11/13/2014 1 Chapter 8: Advanced Job Design Teams Group Decision Making Free Rider Effects When to Use Teams Other Benefits of Team Production Specialization Knowledge Transfer Implementation of Teams Optimal Team Size Peer Monitoring and Norms to Reduce Free Riding Team Composition Alternating Draws Bidding for Members Effects on Information Technology Effects on Organizational Structure Centralizing or Decentralizing? Centralizing Tendencies. Decentralizing Tendencies. Other Effects on Structure Effects on Job Design High-Reliability Organizations Summary 11/13/2014 2 Chapter 8 – Advanced Job Design On completing this chapter, you will be able to address the following questions: What are characteristics of teams? What is the cost-benefit tradeoff of using teams? What sort of organization should use teams? What is the optimal team size and composition? How does the presence of IT affect teams? How does teaming affect job design? 11/13/2014 3 3 Teams . | Chapter 8: Advanced Job Design 11/13/2014 1 Chapter 8: Advanced Job Design Teams Group Decision Making Free Rider Effects When to Use Teams Other Benefits of Team Production Specialization Knowledge Transfer Implementation of Teams Optimal Team Size Peer Monitoring and Norms to Reduce Free Riding Team Composition Alternating Draws Bidding for Members Effects on Information Technology Effects on Organizational Structure Centralizing or Decentralizing? Centralizing Tendencies. Decentralizing Tendencies. Other Effects on Structure Effects on Job Design High-Reliability Organizations Summary 11/13/2014 2 Chapter 8 – Advanced Job Design On completing this chapter, you will be able to address the following questions: What are characteristics of teams? What is the cost-benefit tradeoff of using teams? What sort of organization should use teams? What is the optimal team size and composition? How does the presence of IT affect teams? How does teaming affect job design? 11/13/2014 3 3 Teams 11/13/2014 4 Definition: Team An aggregation of workers performing a collective task Team members may be led by an individual or joint decision-making body Outputs may or may not be measureable Compensation usually includes a common component 11/13/2014 5 5 Cost-Benefit Tradeoff Primary Benefit Complementarities between the contributions of individual workers Could be because their skills are different OR Because the task is too large to handle individually Costs to weigh Coordination/Communication Free Rider effects 11/13/2014 6 6 Example: Costs and Benefits of Teamwork ACTIVITY BENEFIT RANK COST RANK COMMENT Fishing on a small boat 2 5 Tasks too many for one person; Monitoring easier with small group; Remove unproductive TM Fishing on a large boat 1 4 More teamwork needed; More difficult to monitor efforts; Free Rider more prominent Selling fish wholesale 5 1 Sales people can work alone; Monitoring as a group difficult Accounting for sales 4 2 Not much benefit from teaming; Individual

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