Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 26

Many companies have been experimenting with organizing their manufacturing around teams of employees. The employees are given decision rights on such things as how to organize the work and employee schedules. Often the employees are paid based on team output. Sometimes, this organizational arrangement has worked well. In other cases, it has not. Discuss the conditions under which you think that this type of team organization is most likely to succeed.