MBA 540 Discussion 16 Essay

675 Words Jun 22nd, 2014 3 Pages
Running head: ANALYZING MANAGERIAL DECISIONS

Analyzing Managerial Decisions: Why Teams Fail
MBA 540
June 29, 2014
Dr. Patrick Murphy

Analyzing Managerial Decisions: Why Teams Fail
In some way or another, all firms use teams in order to complete tasks that need collaboration between individuals. Brickley, Smith & Zimmerman (2009), note that “teams are formed because they are more successful at assembling specialized knowledge for decision making than are alternative methods that might be used to pass the knowledge through the traditional hierarchy” (p.504). While working in teams can be a great way to get tasks and goals completed more efficiently, if not managed correctly, teams can become
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Brick, notes one issue that firms have when they base their performance goals on historical data, the ratchet effect. According to Brickley, Smith & Zimmerman (2009), this effect “discourages employees from exceeding the quota substantially to avoid raising the standard for future periods to much” (p.490).

Finally, the third reason (among others), that teams fail is when firms have poor performance evaluation systems. Firms may use a variety of techniques and tools to measure team and individual performance, such as within-firm performance assessments, across-firm performance assessments and subjective and objective performance evaluations. In the technique, firms can assess individual performance by forming reference groups. One drawback of this technique is that “only in rare cases are employees’ jobs identical” (Brickley, Smith & Zimmerman, 2009). In some instances, firms fail to properly set up the reference group and can cause great problems in the performance evaluation systems.

In contrast, firms use across-firm performance evaluations. Brickley, Smith & Zimmerman (2009), note that “firms employ external benchmarking to overcome the lack of an internal reference group or to avoid the pernicious actions of sabotage and collusion” (p.496). The other problem that arises from this type of performance evaluation system is that firms can be very different in

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