Advantages & Disadvantages of Team-Based Organizations
Team-based organizations emphasize the value and importance of all employees regardless of their specific roles or the simplicity and complexity of the tasks that they perform. In a team-based business, work processes are handled by groups of employees that are assigned specific projects with timelines established to achieve goals. In this organizational structure, employees have more autonomy and more authority to make decisions, without needing managerial approval.
Team-Based Organization Elements
In a team-based organization, employees work in specific groups that are tasked with a project. With a few exceptions, these teams don’t have supervisors, which means that employees must establish trust with each other to achieve project goals. This also means that employees share responsibility for managing every task, and are given the authority to make decisions that are typically made by managers and supervisors in more traditionally structured businesses.
In most team-based organizations, managers establish goals, milestones, and performance standards, but allow team members to determine how to meet these requirements.
Advantage: Better Communication
The primary advantage of a team-based organization is that because there are usually no managers or only one manager supervising multiple teams, communication between employees is much more free-flowing and effective. Team-based organizations lack the multiple layers that employees would otherwise have to go through before making a suggestion or receiving the go-ahead to implement a new idea.
Advantage: Teams Resolve Problems Quicker
This improved communication also means that companies can resolve work issues quicker because employees can share information at a faster rate, which speeds up responsiveness.
Advantage: Flexible and Empowered Workforce
Another advantage is that team-based organizations are more flexible than organizations that are traditionally structured. As a business owner, you can shift employees from one team to another to maximize their skills and talent and to also keep them motivated with new challenges. Employees that work in teams are also more likely to understand their specific roles in the organization and are also more likely to feel validated and empowered.
Disadvantage: Potential for Conflict
A major disadvantage of a team-based organization is that personality conflicts within the team can negatively impact efficiency and group harmony. Although managers have the option of moving one employee out of the team to preserve unity, the disruptive employee would have to fit well with another team, which can be a challenge.
Disadvantage: Some People are not Team Players
Another disadvantage is that not all employees are suited to teamwork. Some employees work more efficiently on their own, and being part of a group may not maximize their skill set.
Disadvantage: Under-performing Employees Hide Behind the Team
Another drawback is that some employees in a team setting may rely on other employees to make up for their own lack of effort. In other words, some employees may coast on the efforts of other employees, which may require managers to implement individual performance milestones to ensure that each member of the team is putting forth the same effort.
References
Resources
Writer Bio
Sampson Quain is an experienced content writer with a wide range of expertise in small business, digital marketing, SEO marketing, SEM marketing, and social media outreach. He has written primarily for the EHow brand of Demand Studios as well as business strategy sites such as Digital Authority.