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In today’s world where competition is on a constant raise and globalization is an emerging phenomenon with organizations having competitors through out the world, companies are finding it more and more strategic to cope up with the expanding markets. Managers in large companies such as Microsoft and Ford motor company as well small companies are all relying on teams to help them gain a competitive advantage.

This paper will focus on how teams and groups can contribute to organizational success against the notion of employees working and acting individually. Discussion A team may be defined as a group of two or more people who work closely with each other to achieve a given objective or goal. Teams and groups can help an organization gain a competitive advantage because they can enhance its performance, increase its responsiveness to customers, increase innovation and increase the employees’ motivation and satisfaction towards their work.


One of the main advantages of using teams is the opportunity to obtain synergy as people working in groups are able to produce more or higher quality outputs than would have been produced if each person had worker separately and all their individual efforts were combined. For example, At Hallmark, the skills and expertise of the artists complement the contributions of the writers and vice versa. (Jones & George, 2007) Innovation is the development of new products and services, technologies, and even new organizational structures done in a creative manner.

Often an individual working alone does not possess the skills, expertise and knowledge required for successful innovation. Managers can better encourage innovation by creating teams of diverse individuals who together have the knowledge relevant to a particular type of innovation rather than relying on individuals working alone. Members of teams are noted to be more highly motivated and satisfied than they would be if they were working on their own. The experience of working alongside other highly charged and motivated people can be very stimulating.

The increased motivation and satisfaction can alos lead to other outcomes such as lower turnover. This has been Frank B Day’s experience as founder and CEO of Rock Bottom Restaurants Inc. To provide high quality customer services Day has organized the restaurants employees into wait staff teams, whose members work together to refill beers, take orders or clear off tables. Team members share the burden of undesirable activities and unpopular shift times; and customers no longer have to wiat until a particular waiter or waitress is available.

Motivation and satisfaction levels in the Rock Bottom Restaurants seem to be higher than other restaurants and turn over is about one half of that experienced on other restaurants chains of the country. (Jones ; George, 2007) Team based structures in organizations include self-managed teams and quality circles. A Self managed work team is a group of employees that supervise their own activities and monitor the quality of the goods and services that they provide. Quality circles, on the other hand are voluntary group of workers who meet regularly to discuss work-related problems and issues.

(Stimpson, 2002) Conclusion In the end it is important to understand that team based organizational structures are now an important element to gaining success through a competitive advantage over the rivals. Employees working in teams are more productive than individuals and the advantages of team based working out number those of working as individuals. References Drucker, P. F (1995). The practice of management. Harper Jones, G. R, ; George, J. M (2007). Contemporary management. McGraw-Hill Companies. Stimpson, P (2002). Business studies. Cambridge University Press

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