What are the stages of team development? Why is it important for a supervisor to understand these stages? Solution Team can be defined as group of people who work together with a high degree of interdependence in order to complete a task or project. The team will exhibit highest level of performance if they have the same purpose, there is an open communication within the team, members trust each other, create positive working environment, resolve conflict effectively, flexible and adaptable to change and focus on learning new things. The stages of team formation are as follows: - Forming – Storming – Norming – Performing – Adjourning – Effective team development is important for supervisor because: -.