Question: When and How to Use Groups After reading the following scenario, break up into groups of three or four people and discuss the issues involved. Be prepared to share your thinking with the rest of the class. You are the managers who are in charge of the operations of a large building-products supply company. In the past, you each were responsible for a different department and each of you were responsible for managing ten employees who worked separately to stock the shelves, answer customer questions, and check out customers. You have decided that you can operate more effi- ciently if you organize these employees into work teams. You believe the old system did not encourage your employees to behave proactively. Indeed, you think the way the work situation was designed prevented them from finding ways to improve operating procedures, and this is why you have chosen to use work teams. Teams will change how employees perform their tasks in many ways. You are meeting to decide how to change the way you motivate employees to encourage other employees in the new work groups to perform at a higher level. Using the chapter material:

1. Identify the kinds of process gains and losses associated with this change to work groups and discuss ways to solve potential motivation and coordination problems.

2. Discuss how to change the incentive system to encourage employees to cooperate and work together in their new teams to improve performance.

3. Discuss some steps you can take to smooth the transition to teams and help employees become used to working in their new teams.