Organizations in today's society are adopting a team-based structure in their approach to addressing business challenges, problems and issues. Team-based success stories include Hallmark reducing design time by 200%, enabling the introduction of 23,000 new card lines in just one year (Janasz, Dowd, Schneider, 2006). But in all this there is a factor that causes the positive effect of teamwork and team cohesion to be undermined and that is social idleness. Social loafing is more likely to occur in large teams of 3 members and up, and is where team members apply less effort than when working as individuals. Social loafing appears in every team in one way or another, even if it is in a high-functioning or dysfunctional environment (Murphy, Wayne Linden, Erdogan, 1992). Research has shown that combined team performance requires less effort from individuals than if they worked alone, and thus the social slacker in the team is able to profit from the work of others without exercising their own potential. “Slackers and free riders can benefit because, in any case, the result of the group's performance… is shared equally by all members of the group, regardless of their contribution.” (Weldon and Mustari 1988, p.33) The reason why social loafing is a problem in organizations is because individuals downplay their contributions because they feel that the efforts are not noticed by others in the group (Kerr, 1983). Members may feel able to “hang back” or, in turn, take a free ride and avoid all the consequences of not contributing any work. Saying that a team member may feel left out and feel that they are unable to gain recognition for contributing, therefore feeling that their efforts are unnecessary or will not be recognized (Brooks, Ammons, 2003). In a team environment individuals lack the motivation to realize their full potential because there is no internal or external evaluation for their contributions, so they rely on others. Social slackers will tend to exert less work towards a task because the final evaluation is not only based on the individual but on the team itself, which leads to less self-awareness (Curt, 2007). An example of this is a Foxtel sales team, who have to exceed a certain expectation in monthly sales, but they are not assessed or evaluated on an individual basis but as a team.
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