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Team sponsors choosing team members for team leaders

I would like to know what is the best way a team leader could address the situation outlined in the material with regard to negative team selection methodology:

You'll be leading a new Web site design team, and the team's sponsor has assigned most of the members. Among them is Hugh, the sponsor's right-hand man. Hugh has little knowledge of Web site design, but the sponsor has asked him to report back on two other members whom the sponsor mistrusts. Once the other team members discover Hugh's role as informant, team morale suffers.

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