SECTION-IINTRODUCTIONIn this era of increased competition, leaders are recognizing the importance of teamwork more than ever. Teams can extend the results of individuals through collaboration. Employees who possess effective teamwork skills become the norm for the organization (Alie, Beam, & Carey, 1998). Teamwork is a way to improve labor utilization and potentially increase individual performance. Teamwork can have a favorable impact on organizational performance, job satisfaction, and increased employee engagement levels (Sparrow, 2003). With the support of top management, an employee works confidently as a team and increases the productivity of the organization. Nowadays, in the new business world, managers are assigning more team projects to employees with opportunities to strengthen their knowledge and develop their teamwork skills (Hartenian, 2003). The research study is basically based on quantitative research technique. This study focuses on the effect of teamwork on employee performance; teamwork is considered in this study as an independent variable (IV) while employee performance is considered as a dependent variable (DV). Various other measures of employee performance are also included in this research study, namely employee learning, goal achievement, and job satisfaction. BACKGROUND OF THE STUDY Organizational effectiveness, productivity and growth are totally dependent on employee performance and work behaviors. A recent study shows that employees working as part of a team can produce more results than individuals (Jones, Richard, Paul, Sloane, & Peter, 2008). This research study highlights the importance of employee teamwork and its effects on employee performance in Pakistani organization......middle of article......row , PR (2003). “Reevaluating the psychological contract.” Journal of International Management and Organization Studies, Vol. 13, no. 6, pp. 66-89. Staniforth, D. (2000). “Teamwork or individual teamwork. Journal of Team Performance Management, Vol. 2, no. 3, pp. 37-41. Tuckman, Bruce W. (1965). “Development sequence in small groups. » Psychological bulletin, no. 63, p. 384-399. Washer, P. (2006). “Designing a teaching observation system.” Journal of Quality Assurance in Education. flight. 14, no. 3, pp. 243-250. Wellins, R., Byham, C., & Wilson, J. (2004). “Empowered teams.” Journal of Human Resource Management, Vol. 10, no. 16, pp. 34-50. Werner, JM and Lester, SW (2001). “Applying a Team Effectiveness Framework to Student Case Team Performance,” Human Resource Development Quarterly, Vol. 12 no. 4, pp... 385-402.