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Group-Level Performance
A group is a collection of individuals. Group-level performance focuses on
both the outcomes and process of collections of individuals, or groups. Individuals
can work on their own agendas in the context of a group. Groups might consist of

project-related groups, such as a product group or an entire store or branch of a
company. The performance of a group consists of the inputs of the group minus any
process loss that result in the final output, such as the quality of a product and the
ramp-up time to production or the sales for a given month. Process loss is any aspect
of group interaction that inhibits good problem solving.
Why do we say group instead of team? A collection of people is not a team,
though they may learn to function in that way. A team is a cohesive coalition of
people working together to achieve the team agenda (i.e., teamwork). Being on a
team is not equal to total subordination of personal agendas, but it does require a
commitment to the vision and involves each individual directly in accomplishing the
team’s objective. Teams differ from other types of groups in that members are
focused on a joint goal or product, such as a presentation, completing in-class
exercises, discussing a topic, writing a report, or creating a new design or prototype.
Moreover, teams also tend to be defined by their relatively smaller size. For example,
according to one definition, “A team is a small number of people with
complementary skills who are committed to a common purpose, performance goals,
[4]
and approach for which they are mutually accountable.”
The purpose of assembling a team is to accomplish bigger goals that would not
be possible for the individual working alone or the simple sum of many individuals’
independent work. Teamwork is also needed in cases where multiple skills are
needed or where buy-in is required from certain key stakeholders. Teams can, but do
not always, provide improved performance. Working together to further the team
agenda seems to increase mutual cooperation between what are often competing
factions. The aim and purpose of a team is to perform, to get results, and to achieve
victory in the workplace and marketplace. The very best managers are those who can
gather together a group of individuals and mold them into an effective team.
Compatibility of Individual and Group Performance
As a manager, you will need to understand the compatibility of individual and
group performance, typically with respect to goals and incentives. What does this
mean? Looking at goals first, there should be compatibility between individual and
group goals. For example, do the individuals’ goals contribute to the achievement of
the group goal or are they contradictory? Incentives also need to be aligned between
individuals and groups. A disconnect between these is most likely when individuals
are too far insulated from the external environment or rewarded for action that is not
consistent with the goal. For example, individuals may be seeking to perfect a certain
technology and, in doing so, delay its release to customers, when customers would
have been satisfied with the current solution and put a great priority on its timely
delivery. Finally, firms need to be careful to match their goals with their reward
structures. For example, if the organization’s goal is to increase group performance
but the firm’s performance appraisal process rewards individual employee
productivity, then the firm is unlikely to create a strong team culture.

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