Organizational Team | Meaning and Definition

What is an Organizational Team?

Let’s start by defining the term “team” before understanding “organizational team”. A team refers to an organized assembly of people working together with a sense of mutual commitment, synergy, and their respective skills to accomplish a common goal. A team involves at least two or more people.

Organizational teams have no different definition. It is a means utilized by organizations to organize the employees. Teams are an effective alternative to a hierarchical chain of command as it enables a more inclusive approach. Effective teams in an organization facilitate a boost in business productivity and employee motivation and retention.

Different types of teams in organizations

Organizational teams are mainly categorized into four types, namely, functional teams, self-managed teams, cross-functional teams, and virtual teams. Let’s see what each of them entails.

  •   Functional teams: These teams are permanent in nature and involve members from the same department, however, with distinct responsibilities. Here, most of the responsibilities are upon the manager and everyone needs to report to him/ her. In the majority of organizations, this typical top-down approach is seen in the application.


  •   Self-managed teams: Self-managed teams include employees who work in the same organization together. Although they might have several objectives, their goal is to accomplish a common target. Such dynamic teams function without managers, share responsibilities, and leadership, and are relatively autonomous. Often self-employed teams are seen in small businesses and startups.


  •   Cross-functional teams: Employees from various departments constitute cross-functional teams. Such teams are formed to tackle certain tasks that demand different expertise and inputs and to bring about the best outcome. In order to boost the functionality of cross-functional teams, the members must embrace different perspectives and personalities who are striving to their strengths.


  •   Virtual teams: Virtual teams include employees who work from different locations and employ collaboration tools and technology to accomplish a shared goal. Virtual teams are becoming more and more common as employees these days are scrounging for work-from-home opportunities.
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