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I believe that a company that forms teams simply because it is trendy will end up wasting its resources and lowering its productivity. To prevent this, the firm needs to think carefully about why it is setting up teams and how they will function.
Building teams takes time and worker hours. Management has to think about who is going to go in each team. The teams have to meet and set up the procedures they will be using. All of this takes time and resources (at the very least, it uses the time that the employees spend in setting it up). When the team starts working, there are opportunity costs. All of the time spent working as a team cannot be spent in any other way. The firm therefore gives up all of the production that the individual members of the team could have been performing individually. If the team is put together simply because the firm goes along with a fad, it will not operate efficiently. It will not get as much done as a team as the individuals would have accomplished alone. Therefore, it will lower productivity in addition to wasting all of the time that was spent putting the team together. This will hurt the firm.
To avoid this, the firm needs to think carefully before building teams. It needs to clearly define what the teams are for and how they will work better than their members would work alone. There has to be a clear purpose and plan so that the teams will not end up being a waste of resources and a drag on the firm’s profitability.
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