Functional versus dysfunctional team change: Problem diagnosis and structural feedback for self-managed teams

• In this study we outline a decision bias in self-managed teams.
• We show that two feedback interventions help teams overcome this bias.
• Becoming structurally aligned helps teams improve both their performance and OCB.

We describe and examine three changes (personnel, process, and structure) that self-managed teams can make to remedy performance problems. We also discuss why self-managed teams may over-emphasize process and (to a lesser extent) personnel changes over structural changes. Furthermore, we describe and test two specific diagnostic feedback interventions aimed at helping teams make functional structural change. Seventy-eight 4-person teams of undergraduate students participated in two trials of a networked laboratory simulation task. All teams were initially structurally misaligned and subsequently received (a) no feedback, (b) one type of feedback only, or (c) both types of feedback. Results confirmed that structurally misaligned teams demonstrated dysfunctional change by changing process more frequently than structure, with detrimental effects for subsequent performance. When teams received the feedback interventions, however, they were more likely to change their structure and thereby improve their performance.