Teams and groups can enhance performance, increase responsiveness, and foster innovation when members interact closely to accomplish shared objectives. There are formal groups created by managers and informal groups formed by workers. Teams go through stages of forming, storming, norming, performing, and adjourning. Teams are most effective when their performance meets expectations and members are satisfied and willing to continue contributing. Teams can fail due to management mistakes like vague assignments, lack of skills training, or not applying lessons across teams.