The importance of teams for organizational success cannot be denied. Its importance and need has in fact increased manifold in this highly competitive globalised world. Making effective teams to gain synergies of work is no mean task. There are many different types of team namely learning teams, work teams, cross functional teams, executive teams etc. This paper aims at exploring various dimensions of team effectiveness and strategies. An example of a cross functional team will also be discussed to build a clear understanding of issues and problems in building effective teams from a practical approach.