This study reports the results of research on the effectiveness of senior management teams, their functioning as teams and how they affect organizational performance.
This study reports the results of research on the effectiveness of senior management teams, their functioning as teams and how they affect organizational performance. The research evaluates interdependence levels among members of teams.
We distinguish between “true teams,” with mutual accountable goals and high interdependence versus “working groups,” in which accountability for goals rests with individual members of the group. To measure four variables of team functioning – communications, task conflict, personal conflict, and cohesion – and an evaluation of team performance we used survey data from 517 executive members of 94 credit union executive teams.
To measure organizational performance we used return on assets as the most common goal specified by CEOs in participating credit unions. We find that the level of interdependence plays a key role in how group dynamics affect performance; and a key role in how group dynamics and team performance affect organizational outcomes.
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