The key components making up effective teams can be subsumed into four general categories:-

1. Work design:- Effective teams need to work together and take collective responsibility to complete significant tasks. The work design category includes variables lake freedom and autonomy, the opportunity to use different skills and talents, the ability to complete a whole and identifiable task or product and working on a task or project that has a substantial impact on others.
2. Composition:- This category includes variables that related to how teams should be staffed. It includes the ability and personality of team members, allocating roles and diversity, size of the team, member’s flexibility and member’s preference for team work.
3. Ability of members:- To perform effectively, a team requires three different types of skills. First it need people with technical skills, second, people with problem solving and decision making skills and finally people with good listening, feedback conflict resolution and other interpersonal skills.
4. Personality:- Personality of members has a significant influence on the individual employee behavior. This can also be extended to team behavior. Hence, five basic dimensions i.e. extroversion, agreeableness, conscientiousness; emotional stability and openness to experience are relevant for the success of a work team.