Teams are more permanent than work groups since the latter is formed only when there are certain tasks in a firm that need completion (Clark, 2003). It should be noted that teams are more effective than work groups because they have been working together for quite sometime and understands each other.

This implies that they do not waste time trying to cope as it witnessed in work groups. Some of the situations in which teams are more effective include a circumstance in which decisions or solutions have to be sought immediately or when the resources are limited. For instance, the organization might be faced with a situation in which it has to install a new machine, which should start working within a week. The team will be useful in this situation since with the time limitation, it ill be able to complete the task within the time duration.

Understanding the functioning of a group is very essential to a firm since it is able to use it to benefit the firm. A team is able to help in completing projects without delay. Working with a positive relationship is valuable to both the team and the firm.

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