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Why should a company install team-based organization? By Ronald V. Armstrong Internet article review Team based organizations are one of the major trends in today’s business environment. This article reviews how the effective implementation of teams within an organization can provide a powerful competitive advantage. In this article, Ron Armstrong, points out that the most valuable resource of any organization is its people, because of their ability to think, communicate, and use judgment. Thus, a person’s creativity, decision-making and problem solving abilities can be used by an organization to carry out the management functions of planning, organizing, leading and controlling. The author, in this article, discusses the differences between the traditional organization and team-based organizations. Traditional organizations are characterized by letting only the people on top of the organization structure get involved in the management process. Because employees do not contribute to the decision-making process, managers are responsible for researching and evaluating information in order to make decisions that affect the organization’s future. Team-based organizations, on the other hand, delegate management activities to their employees and promote collective decision-making. This gives managers more time to spend on collecting and analyzing information before making key decisions. This article also indicates that team-based organizations divide responsibilities among the upper and lower level teams. Upper level teams are accountable for managing activities that have a “dramatic and long range effect on the company”, whereas lower level teams are responsible for managing activities related to day-to-day activities.
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