Disadvantages of Team-Based Organizations
Recognition for individual achievement within a hierarchical organization is a motivator and a factor in determining compensation. However, team-based organizations value team performance over individual performance. This lack of focus on the individual can be a disadvantage of team-based organizations, since participants seek recognition for their individual contributions; thus, motivating individuals in a team-based organization can be more challenging. In addition, team-based organizations are decentralized rather than hierarchical. This lack of centralization is another disadvantage of team-based organizations, because decentralization can lead to coordination and control problems for management.
Advantages of Team-Based Organizations
Team-based organizations filter decision making down to all levels of management, while traditionally structured organizations rely on top management to make decisions. Team-based organizations require that all employees participate in the decision-making process. Employees feel they are part of the total organization, rather than members of an individual department. Consequently, team-based organizations run more efficiently and effectively, giving them a competitive edge in today's global market.
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