How should teams be formed and managed? : how teams are chosen and how they are compensated can determine how successfully they solve problems and benefit the firm

Hideo Owan (University of Tokyo and Research Institute of Economy, Trade, and Industry, Japan)

The keys to effective teamwork in firms are (1) carefully designed team-formation policies that take into account what level of diversity of skills, knowledge, and demographics is desirable and (2) balanced team-based incentives. Employers need to choose policies that maximize the gains from teamwork through task coordination, problem solving, peer monitoring, and peer learning. Unions and labor market regulations may facilitate or hinder firms' attempts at introducing teams and team-based incentives.

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Year of publication:	August 2014
Authors:	Ōwan, Hideo
Publisher:	Bonn : Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA)
Subject:	job design \| team \| diversity \| team-based incentives \| task assignment \| peer effect \| Arbeitsgruppe \| Team \| Diversity Management \| Diversity management \| Prinzipal-Agent-Theorie \| Agency theory \| Leistungsanreiz \| Performance incentive \| Führungskräfte \| Managers

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