Advantages & Disadvantages of Teams in Organizations

by Rose Johnson ; Updated September 26, 2017
Some companies use team building exercises to develop the cohesiveness of the teams.

Many organizations spend valuable resources developing and managing teams in the workplace. The purpose of teams within an organization is to bring together a group of qualified people to work together as a unit and accomplish common goals. Although teams within organizations offer many benefits to a company, they also present several challenges. Employers who understand the advantages and disadvantages of teams can effectively manage them to achieve the best results.

Promotes Creativity

When employees work together in a group, they are often times able to collaborate together to brainstorm innovative and creative ideas to benefit the organization. Many organizations form diverse teams, which allow team members to draw from the experiences and abilities of one another. Diversity within teams is beneficial because different cultures approach problems and topics differently.

Provides Motivation

Team members working together in harmony are able to motivate one another. The sense of accomplishment received from working with a productive team increases employee morale and causes employees to desire to achieve greater success. Motivated employees benefit the company by providing excellent customer service and an increase in efficiency and productivity.

Builds Trust

Another advantage of teams within organizations is that working as a team can build trust among employees. Employees who trust each other do not compete with one another unnecessarily. They understand that working together is for the benefit of the organization. Employees who trust one another are more willing to work together in the future and ask for help from each other when needed.


One disadvantage of teams within an organization is the possibility of conflicts arising between team members. One team member may disagree with the ideas of another team member, which may lead to an argument. Hostility within teams limits productivity, creativity and the decision-making process. Managers must effectively manage teams to keep conflict at a minimum.

Compatibility Issues

Some employees work better by themselves than in a group. An employee who does not work well within a group can hinder the progress of the entire group. The incompatible employee may detach himself from the rest of the team and refuse to participate. If negative feelings arise from the rest of the team members toward the incompatible employee, communication may suffer within the group. Managers must effectively handle incompatible employees by providing training or removing them from the group.

Free-Riding Issues

Some team members may take advantage of the efforts other team members make within the group. This can cause issues within the group because the team members making the effort may feel like other team members are coasting along, not pulling their weight. If this issue is not handled immediately, unmotivated team members may feel as if they do not need to put forth the same effort as others. Employees who just want to accomplish the task assigned to the group may willingly do the work of unproductive employees to avoid any problems, but resentment will build.

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