Developing teams and the allocation of rewards within a team environment

Team development requires commitment and effort from senior managers who must be prepared to challenge the 'status quo' in order to provide an environment within which teams can flourish. Furthermore, team development is not a finite activity and requires sustained efforts to improve performance. Understanding the characteristics of effective teams and recognising the restraints within which the team operates can enhance the effectiveness of a team development programme. This paper explores whether effective teams exhibit particular characteristics and how these characteristics can be encouraged in establishing a new team. Rewards and recognition processes have been identified as key characteristics of effective teams and efforts should be made to develop [an] appropriate system. It can be argued that individual rewards are not appropriate within a team environment. However, there is little evidence that companies have developed processes for the allocation of financial rewards on a team basis. As a consequence, it is likely that any attempts to develop team rewards will need to start from first principles. The process outlined in this paper provides practical advice to those involved in the establishing [of] such a system.