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Abstract Cross-functional teams (CFTs) have increased in use within a variety of organizations. While these teams claim to enhance organizational effectiveness, research has seen mixed results. This paper examines the challenges faced by CFTs and why these challenges facOate the need for the development of a team climate for trust. Trust is discussed as a teamlevel construct, an aspect of the "micro-mate" that occurs within a team Leadership actions particularly important to cross-functional teams and the development of trust are offered as influential in creating a team climate for trust in cross-functional teams.
Keywords Teams, Leadership, Trust
Cross-functional teams (CFTs) are being hailed as the cure for companies, states Harvard Business Review (1994). Throughout many organizations, teams are becoming more prevalent and more diverse due to changing workforce demographics and the development of new organizational forms (ackson et al., 1995). Teams of employees from different functional areas (i.e. CFTs) are being formed with the expectation of producing more creative thinking and innovation Jackson et al., 1995). Using matrix structures, organizations are combining the benefits of project coordination and functional linkages (Ford and Randolph, 1992).
CFTs consist of a small collection of individuals from diverse functional specializations within the organization. These types of teams usually work together for a limited time and typically their members are also members of other teams. They commonly have reporting relationships to functional managers as well as multiple team or project leaders (Ford and Randolph, 1992).
The chief benefit of CFTs is that they provide a manageable way to bring together diverse resources for a specific project (Northcraft et al., 1995; Parker, 1994). However, the full performance potential of CFTs is not always realized. The paradox of CFTs is that their unique characteristics lead to increased success; yet, these same characteristics also lead to difficulty in realizing the efficiency and effectiveness gains over individuals (Northcraft et al., 1995). Cohen and Bailey (1997) summarize the conflicting evidence regarding the benefits of functional diversity by stating that there is mixed evidence regarding whether heterogeneity facilitates or hinders effective performance. However, there is reason to believe that cross-functional team structures could or should result in performance gains.
As organizations move into the twenty-first century, work challenges will continue to increase and the...