The relevance of teamwork is being confirmed as a vital factor in all modes of modern business scenarios. The objective of this essay is to analyze the organizational structure of Rainbow designs and staff performance as a cohesive team. The team pattern as observed in Rainbow designs is being compared with the theoretical knowledge on teamwork so as to evaluate the efficacy of Rainbow design’s workforce.The most promising factor in Rainbow Design’s organization is that each member of the working team holds cross-departmental skills, resultantly forming an ideal foundation for a good team. It is confirmed by the one simple example that though Teresa was an account manager she was an expert in content design as well. This understanding of cross-departmental matters is quite vital in forming a well-structured team. Wheelan (1999) has pointed out that the most important characteristic of a high-performance team is that all its members understand the team goals properly. Taking this theory into account, it can be confirmed that the work organization of Rainbow Design is ideal for team-based jobs. However more important is the utilization of this ideal background in formulating a good team. However, the interaction interactive structure of the organization is quite formal. Tambe (1997, 83-124) has stressed the need for a flexible work structure so as to build a complex, dynamic multi-functional team, with intended applications in differing arenas of the allied industry. In the context of the particular project dealt by, Rainbow Design it can be found that Laura, the content designer worked on the project by her own in the wrong direction without being corrected till the team meeting.A more flexible work structure would have negated this time and energy loss. The dynamics of the team and interpersonal relationship and mutual respect is another factor that requires amendment in the case of Rainbow Design. According to Wheelan (1999), team dynamics are the invisible forces that operate in a team between different people or groups and it can strongly influence how a team reacts, behaves, or performs, and the effects of team dynamics are often very complex. The behavioral approach of John in the initial meeting and even in the meetings which followed indicates the lack of team dynamics and demands better quality in the interpersonal relationship.