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Learning Annex 1

Managerial Basics—Survival Skills

ix skills have been part of the traditional managerial skill set for years (table A1-1). The assumption has
S long been that these six skills offer managers everything they need to plan, organize, direct, control, and,
ultimately, deliver results profitably.
The traditional basic managerial skills list begins with conceptual skills. You need to be able to see the
larger idea, the bigger picture. As a manager, you must be able to explain the goals and how they support
the larger vision. You must provide information about why these goals are important to the company as a
whole and to each employee. In any moment, you need to be able to judge success or lack of success with
respect to the goals and to execute strategies that produce results.
Analytical skills and synthesis skills are interconnected. Analytical skills allow you to take the conceptual ideas
and break them into discrete elements that can be delegated as measurable, connected assignments. Your abil-
ity to analyze events, systems, and operations is critical to your ability to problem solve. Companies today

Table A1-1. Traditional Managerial Skills

Skill Conceptual Focus


Conceptual See the big picture
Analytical Seeing the parts of the whole

Synthesis Bringing elements together

Technical Specific skills and expertise in a technical area


Communication Coherent exchange of ideas and thoughts

People skills Ability to interact with others

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Learning Annex 1

want solutions! What you break apart you must also be able to put together, which is the essence of synthe-
sis skills: the ability to bring elements together to form a whole. Technical skills suggest that you have an area
of specific, advanced expertise that helps you in managing the operations of your team. You might have been
promoted into your current managerial role as a result of your technical competence.
Clearly, your communication skills are critically important to your success as a manager. You must be able to
convey and exchange ideas and thoughts in a coherent manner. You must be able to influence, persuade, and
engage employees with the work and secure commitment. You must be able to clearly articulate direction and
goals, deliver feedback, and share information about your needs and progress within the company. Last and
most important, are your people skills, your ability to interact effectively with a variety of other people. The
importance of fully developing your people skills as part of getting work accomplished gets to the heart of
our coaching for you.
As you review each of these skills, your thoughts must go to developing each one to a deeper level than you
might think. Are you applying each of these skills in the most effective manner? What pulls you off focus? Which
skills challenge you the most? These basic skills must be fully integrated at your core level; they must become
part of you, so you can advance to your next level of development—savvyness!

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Learning Annex 2

Organizational Structures

any companies have experienced restructuring. There is not one proven best way to organize or struc-
M ture a company. That said, each company must look at its operations, products or services, and
employees to determine which structure will produce results in its current business climate. Any company
must also be ready to restructure as changes in the marketplace force it to address new customers, new tech-
nologies, and new competitors. Table A2-1 gives an overview of the most common types of structures used
in organizations today.

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Learning Annex 2

Table A2-1. Common Types of Organizational Structures

Type Characteristics
Hierarchy This is the classic pyramid organizational structure. A CEO or owner sits at the top followed by a
stratified command structure down to the workers at the bottom. Authority and power flow from
the top and are the glue that hold the structure together. A hierarchy can be tall, with many levels of
management, or flat, with only a few layers to the structure. Today, as organizations push decision-
making responsibilities down to lower levels, organizations are flattening the pyramid structures.
Middle managers are most often affected by this flattening of the hierarchy. The hierarchy concept
still remains, just with fewer levels.

Inverted hierarchy Some organizations have inverted the traditional pyramid. The most famous of these is Nordstrom.
This structure places the customers at the top level of an inverted pyramid shape because the cus-
tomer is viewed as the most important part of the business. All subsequent levels are there to serve
the customer.

Matrix The matrix structure, popular in the 1970s, combines the hierarchy with a project team or group
component. Employees have a functional reporting relationship, as well as a project reporting rela-
tionship. In effect, employees working in a matrix structure have two bosses, and often two areas of
responsibility that bring challenges of prioritizing projects.

As organizations move to project teams, the matrix structure is reemerging as a functional model.
Today, the matrix structures are more about a “way to get things done” rather than formal reporting
relationships. With increased pressures to control costs, get new products to market faster, commu-
nicate in real time, and compete in a global setting, the matrix structure enables these requirements
to occur efficiently and effectively.

Network/ Network is a highly flexible structure where people are in constant contact with each other, where
project team information is openly shared and free flowing, and where the dynamic changes of the marketplace
are easily integrated into the working and reporting relationships. This type of structure provides
quick and effective response time and flexibility, allowing for people outside of the core be hired as
needed. As new projects are created, people with just the right mix of skills are brought together.
When the project is completed, the specialized group disbands.

Charles Handy coined the name “shamrock organization” to describe a structure that consists of
three components: a core group of key players who create the business and build it, a group of
technical specialists contracted for specific projects on an as-needed basis, and a clerical or adminis-
trative group to support the ongoing activities of the company. Rifkin (2000) labeled it the Hollywood
structure.

Today, many companies are opting to create network-style organizations. The new generations of
workers find this structure pleasing. As specialists (consultants), they focus their energies on specif-
ic technical problems, avoiding the ongoing operation of the entire enterprise. Whether it be soft-
ware development, electronics, or other high-technology specialties, this new breed of employee
seeks freedom from the nontraditional setting offered by this structure.

Creating project teams seems to produce results for many organizations. Specific groups of people,
each with a specialty needed on the project, are assigned. When the project is over, the team dis-
bands. For success, this structure requires members who understand group dynamics and the
processes of high-performance teams.

Source: J. Rifkin, The Age of Access: The New Culture of Hypercapitalism Where All of Life Is a Paid-For Experience (New York: Tarcher/Putman
Publishers, 2000).

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Learning Annex 3

Motivation Theory

otivation theories have been researched and developed in an attempt to explain human behavior. They
M can be classified as either content or process theories. A content theory describes what motivates a per-
son to act in a certain manner. The two best-known content theories are Maslow’s Hierarchy of Needs and
Herzberg’s Two-Factor Theory, also known as the Hygiene/Motivator Theory. Each supports the idea that
there are certain fundamental needs that propel people to perform. Understanding where employees are on
Maslow’s Hierarchy of Needs or within Herzberg’s Two-Factor Theory helps managers create the right per-
formance space.
Process theories attempt to show how to initiate motivating action, factors that sustain it, and what eventu-
ally causes motivation to be extinguished. Reinforcement Theory, a common process theory, suggests that you
reinforce desired actions with positive rewards and negatively address or punish those actions you want to
minimize or extinguish.
Traditional goal setting is another classic process theory. The SMART system of goal setting developed by
Doran (1981) applies here. The original mnemonic required that goals are specific, measurable, assignable,
realistic, and contain a time parameter. We have replaced “assignable” with “actionable,” meaning that you
can take action to achieve your goal. The process works best when you allow employees to choose their own
goals within the larger context of the company’s stated goals.
Table A3-1 highlights motivation theories perceived to be most relevant by management thinkers.

Emotional Intelligence and Motivation


Weisinger (1988) presented descriptions of four sources of motivation, which are shown in table A3-2.
Linked with studies on emotional intelligence, these descriptions give managers yet another way to both
understand motivation and establish the space where employees can flourish.

Sources: G. T. Doran, “There Is a Smart Way to Write Management Goals and Objectives,” Management Review (November),
1981, pp. 35-36. Also, H. Weisinger, Emotional Intelligence at Work (San Francisco: Jossey-Bass, 1998).
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Table A3-1. Motivation Theories

Content Theories—”What”
Theory Theorist Key Points Rationale Application
Learning Annex 3

Hierarchy of Abraham Five “need” levels: Assumption was made that lower level of need Awareness of where one is on Maslow’s
Needs Maslow Physiological had to be adequately satisfied before the next hierarchy can help focus motivation and target
Safety/security higher level became a motivating force. Lower actions to be successful.
Social levels were seen as extrinsic where factors
Esteem were initiated outside of the person; higher
Self-actualization levels were intrinsic—the individual initiated and
controlled these.

Factor Theory Frederick Hygiene factors: salary, Assumption that motivation is two separate First step is to eliminate factors that create job
Herzberg security, status, supervision, factors—satisfiers and real motivators. Today’s dissatisfaction. This creates satisfaction with
policies, working conditions, workers expect certain needs to be met, and the job and can generate loyalty and build
work relationships when they are, there is no subsequent positive attitudes and commitment.
Motivating factors: growth, motivation energy released—just a sense of Management must then create an environment
achievement, recognition, satisfaction as opposed to dissatisfaction. Real where employees’ natural internal motivators
responsibility, the work has motivators energize the person to perform at can operate. This is more than job satisfaction.
meaning higher levels.

Needs Theory David Achievement Three key motives within the work environ- By understanding which need is important to
McClelland Power ment. It is the relationships among these three each employee, management can create an
Affiliation factors that motivate work. environment to focus on that motive.

Existence, Clayton Alderfer Reconceptualized Maslow’s People can move between levels, and lower Similar to Maslow. Management can attempt to
growth, hierarchy with only three levels do not have to be satisfied before higher create an environment where employees can
relationships levels. levels are activated. satisfy needs.
Process Theories—”How”

Theory Theorist Key Points Rationale Application

Equity Theory J. Stacey Adams States of positive equity, equi- Individuals want their efforts and performance Management must work to ensure a perception
ty, and negative equity exist. to be judged fairly relative to others’. A person of “equity” throughout employee ranks. When
Comparison made against a is motivated by the perceived fairness of the an imbalance is perceived, employees will work
referent person or group as to rewards received for a certain amount of effort to correct it through whatever means are avail-
where one is in equity. as compared with relevant others. able to them.

Expectancy Victor Vroom E>P>O Individuals consider alternatives, weigh costs Outcomes or rewards must be valued by the
Theory effort > performance > and benefits, and choose course of action with individual person. This requires different
outcome maximum utility. The perceived value of rewards to be offered for similar performance.
outcomes (results) plays a strong role for each
person.

Reinforcement B. F. Skinner Rewarding behaviors produces Control theory more than motivation theory. Management can use reinforcement schedule
Theory repetition of the behaviors; Positive reinforcement and negative reinforce- to control performance, giving rewards for acts
environmentally based, not a ment exist and can be used to control perform- they desire and punishing employees for acts
source of internal motivation. ance. they do not want repeated.

Goal-setting Edwin Locke Personally set goals motivate Each person sets specific goals that have time If goals are accepted by the employee, they will
Theory people to perform. Goals parameters and are measurable, attainable, and motivate performance. Management must work
that others set are not as realistic to that person. Once achieved, new with employees to set mutually relevant goals
motivating. goals must be set that require higher levels of and celebrate achievement.
energy and skill to obtain.

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Motivation Theory
Learning Annex 3

Table A3-2. Sources of Motivation

Source Description

Yourself You are the most powerful and influential source of your own motivation. Think positively. Manage
your thoughts to control and guide your motivation.
Supportive persons Surround yourself with friends and colleagues who want your best. Harness their support to help
you keep your motivation going.

Emotional mentor An emotional mentor serves as an inspirational hero. Your mentor can be real or fictional; a person
on whom you would pattern your actions.

Environment Make your environment healthy: clean air, correct light, adequate space, and the correct ergonomic
tools. Keep inspirational and motivational objects displayed. Organize your space so that it works
for you.

Source: H. Weisinger, Emotional Intelligence at Work (San Francisco: Jossey-Bass, 1998).

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Learning Annex 4

Communication Basics

ommunication is a fluid exchange between active participants. The basic exchange, depicted in figure
C A4-1, happens so fast that it appears transparent:
■ The sender chooses symbols and signals to convey a message through a chosen medium to a
receiver.
■ The receiver interprets the message based on his or her perceptions, background, culture, and
experiences and then initiates action that shows that a message was received and understood at
some level.
■ The action taken represents feedback to the sender that signals how the communication was inter-
preted. Depending on the receiver’s actions, the sender will see whether the intended message was
received and successfully transmitted or if the message was miscommunicated.
■ At this point, the sender will resend a new version of the message and wait for feedback from the
receiver indicating efficient and effective communication.
In the best of circumstances, this cycle continues until both parties reach a level of satisfaction with the out-
come. The worst-case scenario has one party becoming frustrated with the other party, perhaps taking more
aggressive or defensive actions, or removing himself or herself from the exchange.
There are actually three messages at play in the exchange of information. The first message is the one that is
in the mind of the sender, the person speaking. That person, typically, has a clear thought or idea of what he
or she intends to express. This thought must find its way into a message that can be transmitted efficiently
and effectively. The second message is that which is articulated and actually communicated to a receiver.
Sometimes it is exactly as thought and planned; other times it is not. The third message is the one that is
received, decoded, internalized, and acted upon by the receiver. This manifests as feedback from words spo-
ken or actions taken by the receiver.

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Learning Annex 4

Figure A4-1. Communication Model

Culture
Experience
Culture
Emotions
Experience
Language
Emotions
Perceptions
Vocabulary
Knowledge

MESSAGE

ISE
NO

FEEDBACK RECEIVER
SENDER

Barriers are elements that make communication more difficult for the sender and receiver. This may include
such things as language or dialect differences, culture, personal bias, jargon or idioms, medium chosen, dis-
tances, hidden agendas, and internal and external distractions.
In addition, you must consider the consistency between what is being said and the verbal, vocal, and visual
signals you observe. What gets said is only a small part of any communication. Gestures and body language
play a huge role. The tone, pace, volume, and pitch, along with the body’s stance and positioning, convey
even greater impressions. A sigh or a tear can speak volumes, a touch on the hand suggests connection, and
you’ve all probably heard the phrase, “if looks could kill.” All these nonverbal elements require interpretation
because there is not one universal meaning for them. All these barriers have the potential to distort the mes-
sages being exchanged and interfere with understanding by both parties in the communication process.

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Learning Annex 5

Fundamentals of Listening

istening is a mental activity, whereas hearing is a physical process. It is likely that you spend over 45 per-
L cent of your day in some form of listening activity. Being able to really listen to what someone else is say-
ing, and then carrying it one step further, to really understanding the point, is an art unto itself. Listening is
one of the most transparent actions people take. As such, your work will be to make listening visible, to break
its transparency, so that you can build your listening competence. The ability to really listen is linked to suc-
cess and leadership at their highest levels.
Listening requires being physically present (hearing), as well as cognitively attending to the conversation
taking place. Your mood and emotions also show up when you are listening and play a role in framing your
reactions and responses. Too often, people are not listening but thinking of what they want to say. Their
attention is focused on finding an opening to speak, and they interrupt the speaker, counter with their own
experiences, and attack or defend their own point of view. “Waiting to talk” is not the same thing as listen-
ing. Listening validates the person speaking. Listening, in a way that connects the speaker and the listener,
is truly becoming a lost art!
Good listeners develop habits that help them stay focused and share meaningful dialogue. They listen for
more than just “facts” and appropriately address moods, language, and expressions. They recognize the
importance of both what is said and what may be absent in a conversation. Good listeners can focus their lis-
tening even when they don’t agree with the speaker. They practice good eye contact and use positive, relaxed
body language with appropriate cues and prompts. They never interrupt or finish someone’s sentence!

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Learning Annex 6

Leadership Theories

here are various prevailing theories of leadership, each offering key concepts and strategies aimed at
T defining or giving insight and wisdom about effective leadership. Table A6-1 gives a compact view of
the evolution of leadership thought and the key theories that have helped develop today’s understanding of
leadership. They are identified under each of the different schools of leadership thought—trait theory, behav-
ioral theory, contingency/situational theories, and contemporary theories. A description of the key compo-
nents of each theory is listed in the center column. The intended goal, purpose, or focus of the theory is
addressed in the right-hand column. With each theory, note that the realization of goal achievement is quite
subjective and is relinquished to the learner for assessment.
Fundamentally, most of these theories attempt to examine the relationship between the leader and his or her
followers within the dynamics of a situation. Trait theory is an exception to this pattern, because the traits of
followers are not addressed. As you consider the fundamental points of each theory, keep in mind that both
external and internal work environments, along with social, economic, and political factors, have had a pow-
erful role in their creation. It is helpful to consider goals and relationships, the nature of the leader, and the
events in play when attempting to get clear about what really constitutes artful, authentic leadership.
Taking leadership to its next level means that you do more than just memorize theories, because regardless of
how great a theory might be, theory alone never transforms itself into performance. Many a person has mem-
orized the key points of leadership theories and still had no clue how to truly lead. Hopefully, you haven’t
had to work for any of those leaders!

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Table A6-1. Leadership Theories

Trait Theory

It was believed that leaders were born and that leadership could not be learned. Specific traits were identified as those belonging to leaders—traits like honesty, integrity,
Learning Annex 6

drive, intelligence, and self-confidence.

Behavioral Theories

Ohio State University Researchers identified two dimensions of leader behavior. The terms Four quadrants were identified based on a low-to-high rating of the
used were “consideration,” which addresses the leader’s relationship leader’s abilities to achieve performance goals and maintain satisfy-
with subordinates, and “initiating structures,” which refers to the tasks ing relationships with employees.
themselves and goals to be achieved. These were plotted on an X/Y
axis grid.

Michigan State Two dimensions of leader behavior identified at Michigan were labeled A four-quadrant model similar to the one from the Ohio State studies
University “employee orientation” and “production orientation” and were plotted was created. Again, the focus was on how the leader behaved with
on an X/Y axis grid. respect to goal achievement and relationship development.

Management Grid A grid system was plotted comparing a leader’s concern for people with Low scoring in both categories was called Impoverished
(Blake and Mouton) his or her concern for the task. Five different labels were applied using a Management. A low concern for people/high production was called
Leadership Grid low-to-high continuum. Authority Management. Middle of the Road Management described
(Blake and McCanse) what the name implies. High people concern with low production
concern was labeled Country Club Management. The goal label,
Team Management, reflected high ratings in both areas.

Contingency/Situational Theories

Fiedler’s Contingency Fiedler’s Theory proposed matching the leader’s style to various The choices made by the leader determined whether he or she was
Theory situations. The leader’s style was delineated by his or her responses considered either relationship oriented or task oriented. Examining
to an 8-point Least-Preferred Coworker Scale containing 16 opposing the situation itself provided additional information to best determine
adjectives. The situations were also analyzed using three criteria: quality which type of leadership style fit the situation.
of relationship, task structure, and degree of position power over
subordinates.
Contingency/Situational Theories (continued)

Situational Leadership Called Situational Leadership Theory, Hersey and Blanchard supported Assessing the maturity and competence of employees or followers
(Hersey and the notion that leaders adjust their styles to fit their followers’ abilities was shown to be a solid indicator of a leader’s success. Matching
Blanchard) and the situation itself. Examining the readiness levels of the employees the leadership style utilized yielded good results.
was the key criterion when choosing a leadership style. The leadership
style applied needs to fit the needs of the employees doing the work.
Styles were called telling, selling, delegating, and participating.

Path-Goal Theory Increasing the employees’ motivation toward attaining the goal was As leaders clarified the path to achieving the goal, fit the environ-
the focus of Path-Goal Theory. Four leader behaviors were identified: ment to the situation, and offered rewards that the employees
supportive, directive, participatory, and achievement oriented; and these valued, the outcomes and performance were enhanced.
were applied based on the characteristics of the followers. Task
environment and the value of the rewards to the followers were other
considerations.

Contemporary Theories

Charismatic Theorists of the Charismatic School were R. House (1977) and J. The key distinction of charismatic leadership is the person’s ability
Conger and R. Kanungo (1987). House’s theory rested on identifying to influence followers because they perceive that person to be
traits of charismatic leaders, their behaviors, and the types of situations exceptionally gifted. The strength of the followers’ perceptions
within which this type of leader would emerge. Conger and Kanungo of the leader is important because it explains their willingness to
focused on charismatic leadership as an attribution given by the follow- be emotionally connected to leaders and follow them without
ers and affected by the followers’ perceptions of the leader’s influence, question regardless of whether that leader may or may not be
risks taken, self-sacrifices, confidence, and their own desire to identify serving them well.
with the leader and please him or her.

Servant R. Greenleaf (1977) proposed the theory that leaders were servants first Greenleaf (1997, 13–14) offered three questions to highlight servant
and that their power emerged from followers responding to the leader’s leadership: “Do those served grow as persons? Do they, while being
manifest concerns for their well-being. served, become healthier, wiser, freer, more autonomous, more likely
themselves to become servants? What is the effect on the least
privileged in society, will they benefit or at least not be further
deprived?”

Transformational/ B. Bass (1990) described Transformational Leadership as the stirring of a Leaders following Transformational Leadership theories attempt
Transactional strong emotional connection based on four behavioral components: to influence their followers to become better “selves” and thus
charisma, inspiration, intellectual stimulation, and individualized consider- enhance personal capabilities and performance through
ation. The transactional leader led by setting goals that resulted in transformation.
rewards when achieved.

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Leadership Theories

Sources: See B. Bass, Handbook of Leadership: A Survey of Theory and Research (New York, Free Press, 1990); J. A. Conger and R. N. Kanungo, Charismatic Leadership in Organizations (Thousand Oaks, CA:
Sage Publications, 1988); R. Greenleaf, Servant Leadership: A Journey into the Nature of Legitimate Power and Greatness (New York: Paulist Press, 1997); and R. J. House, "A 1976 Theory of Charismatic
Leadership," in Leadership: The Cutting Edge, ed. J. G. Hunt and L. L. Larson (Carbondale, IL: Southern Illinois University Press, 1977).
Learning Annex 7

Types of Power

s it is most often understood today, work is about making progress—positioning yourself on the cor-
A porate ladder and striving for success. One of the success variables that gets chased is positional power.
Positional power is power that comes from a designated position, station, or role that you hold within your
organization, a division of your company, or even your family or social group. It seeks to make things hap-
pen in a prescribed manner with desired results. From your managerial position, you legitimately set expec-
tations and assign tasks to produce those results. Your authority allows you to make binding decisions that
affect everyone.
With authority and position comes the power to reward and/or punish, to control, or to manipulate (coerce).
As a manager, you evaluate performances and make recommendations for promotions and raises. You may
personally hire and fire employees. From an executive position, you can exert control and enforce your desires
through rewards or threats. How you use your positional power links to your core values and leadership style.
It will ultimately determine the relationships you create between yourself and the people who work for you.
Another type of power is personal power. Personal power is power that transcends rank or authority and
emanates from several different sources. Referent power is derived when others admire or esteem you for who
you are or what you have accomplished. People with referent power want to be emulated and command
respect simply by their presence. From this esteemed position, a person can achieve great results. Expertise or
knowledge is another type of personal power. Your ability to perform certain skills or tasks at an exceptional
level gives you a certain amount of power and marketability greater than another. Expert power has no age
boundaries.
Communication ability also forms part of your personal power. The better you can effectively communicate,
share ideas, and persuade others, the more power you command to influence and gain agreement, aligning
groups or individuals with respect to a particular point or action. Charisma often wields a level of power that
transcends legitimate position or authority. You can exercise your communication power toward high
achievement or utilize it to mislead, manipulate, or misinform.
Table A7-1 summarizes the types of positional and personal power.
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Learning Annex 7

Table A7-1. Types of Positional and Personal Power

Positional Power Personal Power

Reward power Communication power

Coercive power Referent power

Communication power Expert power

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Learning Annex 8

Team Formation Stages

s groups develop and the members learn how to work together, the group moves through a series of
A stages. Tuckman (1965) offered rhyming names to describe the four different stages of group develop-
ment: forming, storming, norming, and performing. Some groups move through these stages quickly, but other
groups can get totally bogged down in the conflict-ridden storming stage. And when you are stuck in storm-
ing, it is all about egos—yours and theirs!
The four stages are easily discernable through observation of the actions and behaviors of group members.
It is always interesting to watch a group negotiate its way through each stage and successfully achieve the
high-performing level. It is like watching a precision piece of equipment at work. High-performance teams
skip much of the process described above because the members are already attuned to and conscious of their
own personal development. Once invited to join a team, high-performance players bring a higher level
of personal readiness to the process and can often move through the stages quickly, if not skip the process
entirely.
Even when group members are unable to resolve ego and conflict issues to move beyond the storming stage
emotionally, the project can still be completed. The tension, infighting, and frustration that exist during the
project’s execution leave scars that surface during each subsequent group interaction. As you read the descrip-
tions in table A8-1, think about the various groups that you are in and try to assess where each one is in the
team formation process.

Source: B. W. Tuckman, “Development Sequences in Small Groups,” Psychological Bulletin 63, no. 6 (1965): 384-399.

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Learning Annex 8

Table A8-1. Stages of Team Formation and Behaviors Displayed by Team Members

Stage Behaviors

Forming Members come together. Roles of leadership and task assignments are unclear at
this point in the process.

Storming Members interact and egos compete for control. Conflict and tension are often
high at the storming stage. Roles and relationships begin to take shape. Some
groups move directly to performing and never really deal with the issues
associated with this stage.

Norming Group cohesiveness develops and members’ expectations about behaviors are
established. People accept their roles and collaborative work really begins.

Performing Members are functioning well together and energy is focused on accomplishing
the task(s) of the group. When members skip the norming stage, the members get
the task done but there is a lot of intragroup conflict.

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