By operating in smaller workgroups, GlaxoSmithKline was able to greatly improve their approach for developing new prescription drugs because the smaller groups proved to be more efficient. Smaller work groups have a distinct advantage in that it makes the communications process more efficient. People working in a smaller work group are able to quickly interact with other members on the team thus improving productivity.
The problems that arise in larger groups such as hierarchy or chain of command and information dissemination are reduced in smaller groups. The use of smaller work groups also created a certain unity.In organizational behavior, it is established that larger teams have problems because they are not as flexible and the organizational structure is more complex. By using smaller groups, the teams develop a better working environment and confusions as to what tasks are to be performed are effectively reduced if not eliminated completely. The impact of allowing teams to be autonomous to a certain degree by instructing them to act as companies in their own right also allowed the smaller groups to be more productive because it gave the teams more flexibility to act on their own without having to consider the impact or effect on other groups.
This also helps to address the issue of accountability. The incentive method implemented by GlaxoSmithKline also motivated these teams to be more productive in the development and creation of new prescription drugs. The smaller teams were in essence pit against each other and motivated to compete to gain rewards. The keys to these teams therefore are that they allow for better communication, better flexibility with regard to policies and intra company competition among teams was encouraged which allowed for higher productivity.
