The Organizational Benefits Of Team

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Human Relations
[0018-7267(200202)55:2]
Volume 55(2): 225–249: 021184
Copyright © 2002
The Tavistock Institute ®
SAGE Publications
London, Thousand Oaks CA,
New Delhi

The organizational benefits of teams
Linda I. Glassop

A B S T R AC T

This study presents an analysis of the benefits of two team structures
– quality circles and self-managing work groups – for Australian work organizations utilizing the Australian Workplace Industrial Relations
Survey for 1995. The analysis indicates that firms with team structures have higher labor productivity, a flatter management structure and reduced employee turnover. The presence of team structures in
Australian firms indicates a decrease in industrial harmony. The findings were inconclusive regarding absenteeism and profitability.

KEYWORDS

industrial harmony ᭿ productivity ᭿ quality circles ᭿ self-managing work groups ᭿ teams

Introduction
The use of formal work teams, team-building activities and the rhetoric of
‘the team’ are, today, commonplace in the theoretical and popular business literature (Cordery, 1995; Hillkirk, 1993). Research extends to such topics as team leadership (Manz & Sims, 1987), group structures (Cohen
& Ledford, 1994), group-think (Manz & Sims, 1982), team leader selection (Armstrong, 1998), and group dysfunction (Diamond, 1991).
Research also suggests that teams can provide many benefits for organizations and employees alike (Cordery, 1995; Morehead et al., 1997; Osterman, 1994).
Callus et al. (1991) and Morehead et al. (1997) suggest that the adoption of formal team structures and the use of team-building approaches in
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Australian organizations are widespread. However, an empirical analysis of their benefits is lacking. Cordery (1995) confirms that such survey data are not available in Australia. American researchers also note, ‘. . . empirical evidence regarding [team]

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