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Examines a team system using a case study approach in a sewn products plant that transitioned to the team system almost ten years ago. The theoretical framework utilized in the analysis of data was participative management, wherein it has been found that there is a relationship between employee knowledge and performance. Specific themes that arose were successes in the transition to the new team system, including benefits to the plant, and ongoing challenges of the new team system. Data were based on 16 in‐depth personal interviews, observations, written documents, and informal conversations with plant employees. The key elements of success in the transition were commitment by upper level managers, education for all employees, and the establishment of open communication among employees and with management. The team system resulted in a number of benefits and challenges to the plant as a whole.

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