Fireart, Inc.

Case Two: FireArt, Inc.

Diagnosis of team ineffectiveness and corrective action plans

FireArt, Inc. has encountered a dilemma where their competitors are now able to profitably make short runs in the production of glass. Because of this competition, Jack Derry, the CEO of FireArt, Inc. has asked Eric Holt to put "together a team...one person from each division, and have a comprehensive plan for the company's strategic realignment up, running, and winning within six months." Eric, being the newly appointed Director of Strategy, knew his overall goal and creates a formal group in order to fulfill the overall organizational mission of turning the company around. However even though a formal group is created, there is a lack of specific goals and tasks. Eric who only had experience managing working group with professional from similar backgrounds actually created a working group than a team. Moreover, the members did not interact with one another prior to coming together, and did not perceive themselves to be in a group. While the team consists of various division heads of the organization, Randy Louderback the director of sales and marketing does not believe that groups are worthwhile. Eric formed this temporary group, which would ceases to exist once the job is carried out. This group, although temporary, never really gets off the ground due to lack of leadership-management skills, lack of clear attainable goals, team structure and incompatibilities of the group members.

Team Dynamics and Structure:

One issue that is faced by the group is the lack of team dynamics as well as the pressure being felt to devise and implement a comprehensive plan in six months. Some managers create groups to aide in team dynamics as groups serve functions such as organizational, psychological, and personal. The group that Eric set up was created to generate ideas in order to beat the competition. However, due to the conflict from the team members, idea creation was never brought about. Additionally, the psychological functions that give an outlet for affiliation needs and the personal functions of increased self-esteem, increased security, and a sense of identity are never achieved. With the creation of his group, Eric was faced with a peer, in particular, that strongly believes "that groups are useless". There are variables that affect the integration in groups of organizational and personal needs. Randy was the type of employee that would protest having meetings, arrive late to meetings, and even rudely tap his pencil on the table during meetings. The degree to which logically designed groups come to serve psychological needs depend on environmental factors such as the managerial climate. This type of climate is primarily determined by the assumptions in the organization of man, such as the rational-economic man. When a group is set up with the rational-economic man, you develop a belief that groups are at most to be tolerated, or preferably destroyed in the interest of maximizing individual efficiency. Based on this, by having Randy involved in the group, he is introducing a rational-economic man climate. Randy voiced his opinion regarding his dislike of groups and the worthless ideas it produces. Randy's individual achievements and experiences lead him to believe that groups never can come with brilliant ideas and only produces mediocre solutions. To resolve this issue, Eric should work to develop a managerial climate of the social man. This would encourage and foster the growth of the group and would encourage Randy to view groups differently. Additionally, by setting up the group with a more social man inclination, this would aide the group in maintaining a philosophy of job design and job allocation, but would also meet the affiliation needs of the social man. Suggestions to change this to the social man would be to encourage out of the office, social activities. The group would be able to better get along and realize that everyone has something to contribute to the team.

Another issue Eric was faced with was that of membership factors. For any effective work to occur there must be a certain amount of consensus on basic values. Eric is faced with the problems of whether or not the group will work effectively on the task and if the group will be psychologically satisfying. As noted in the case study, Eric compiles a list of the senior managers and sets a date for the first meeting. After creating the team members list without input, he proceeds to independently create an agenda for his upcoming meeting. This leaves the team without any input or satisfaction in the creation or initiation of the group process. Eric also faces complex group needs as the group is composed of representatives of various departments. By creating this cross-functional group, Eric was faced with Maureen Turner who was known to complain that FireArt did not appreciate its six artists. Ray LaPierre, the Director of Manufacturing, feels insecure with himself, as he does not speak management due to his apparent lack of education. The only solution for these issues is to provide the group enough common experiences to permit a communication system and a climate of trust to emerge. This experience can be obtained by holding long meetings away from work, by encouraging members to get to know each other in more informal settings, or by sending them through some common training experiences. If Eric incorporated these ideas, he would encourage members to get to know each other in more informal settings thereby facilitating group camaraderie and cohesiveness.

In this case, there are many reasons that the team is not effective, most of which center around Randy and the way he interacts with the team. Eric felt frustrated since the first meeting, as Randy questioned his leadership jokingly in front of the group. Eric can be classified as being "Judicious-Competing", where he craves for respect, recognition and willingness to provide leadership. He believes strongly that Randy is trying to sabotage the team process and undermine his leadership. Under the Expectancy Theory, everyone in the team, excluding Randy, is motivated by the task at hand. They are operating the way Eric had hoped with regard to putting forth initial effort needed to improve performance, they believe that their performance will impact the results. This evidenced by Ray's comment "Maybe we can turn this old ship around," and they are motivated by the rewards being offered, such as personal satisfaction, survival and success of the company. Randy, on the other hand is not motivated at all, as his esteem needs are not fulfilled and he believes that team environment is not the best way to promote creative solutions.