Team Effectiveness, Psychological Safety and Performance: Employees’ Perspective in the Banking Sector of Serbia

Abstract: The aim of this paper was to examine team functioning in the banking sector through the dimensions of clearly defined goals, effectiveness, psychological safety, and team performance. The research was conducted in May and June 2026 with a sample of 225 employees from banks in Serbia, all of whom were members of various teams. The findings indicate that goal clarity significantly contributes to team effectiveness, while psychological safety exerts a strong influence on performance. Moreover, effectiveness and performance are closely interrelated, suggesting that rational use of resources leads to higher work quality. Descriptive statistics further confirm that respondents largely evaluated all aspects of team functioning positively. Overall, the results highlight that successful team functioning in banks depends on a combination of clear structure, a safe and supportive environment, and the capacity to achieve goals effectively and with quality, underscoring the importance of team dynamics in achieving organizational objectives.