Influence of Team Dynamics on Employee Performance in Commercial Banks in Tanzania

Abstract

Team dynamics is considered as one of the most desired attributes that an employer wishes to have in modern-day organizations. Employees are perceived to attain their set performance goals through team dynamics. Team dynamics are hinged on diversity and collaboration prowess for effectiveness. Much research has been done on the impact of team dynamics in organizations generally. However, there is little research on team dynamics in relation to employee performance. This study sought to establish the influence of team dynamics on employee performance in commercial banks in Tanzania. The objectives of the study were to determine the influence of team communication, team leadership, team diversity, and team size on employee performance in commercial banks in Tanzania. The moderating variable was organizational culture. The study was anchored on the Katzenback and Smith model, Contingency theory, Resource Theory of Diversity Management, Ringelmann effect theory, and System theory. The study adopted a descriptive survey research design. The target population was all the 39 operational commercial bank headquarters. The unit of observation comprised senior managers, managers, supervisors, and lower-level employees in each of the commercial banks under review, hence a total of 1480 respondents. Simple random sampling technique was used to select the sample size of 445 respondents. Pilot testing was conducted before the actual data collection. The study collected both primary and secondary data. Both descriptive and inferential statistics were computed using SPSS version 26. The findings were presented using tables, figures and charts. The study found that team communication, team leadership, and team diversity had a significant influence on employee performance in commercial banks. Also, the study found that organizational culture positively moderates the relationship between team dynamics and employee performance. Generally, it is concluded that improvement in each- acting unilaterally, team communication, team leadership, and team diversity leads to improvement in employee performance. Applied together, only the joint team dynamics of team communication and team diversity lead to improvement in employee performance. To improve employee performance, bank managers should focus on fostering a culture of open communication. To leverage team diversity for improved employee performance, bank managers should implement inclusive hiring and promotion policies based on skills. In addition, it is proposed that in light of these findings, policymakers in organizations should evaluate their performance work system programs and activities by the degree to which they contribute directly to the accomplishment of the team’s strategic goals and objectives. This will then enhance employee performance.