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Team organizational structure increases productivity by eliminating the challenge of decision-making and communication due to its effective lateral relations. It encourages collaboration by creating an environment where team members can communicate effectively, share ideas and knowledge, and work together to achieve common goals. In addition, it also boosts the member’s morale as they feel more involved and have a greater sense of identification. Since they share knowledge and expertise on specific problems, quality decisions can be made fast. An effective team organizational structure is essential to a company's ability to remain competitive in a changing economy. By creating specialized teams with clear goals, companies are able to capitalize on the strengths of each team member and quickly respond to business opportunities.

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