Many organizations are now benefiting from harnessing virtual work to increase productivity, efficiency, quality, and reduction in reliance on “labor force” skills, to give more strength to “service” strategies and approaches in contemporary industrial workforce. Obviously, the application of modern technology has made it possible to redefine where work is done. The purpose of this paper is to examine the emerging construct virtual work teams and organizational productivity. It will examine how virtual work teams impact on communication, collaboration, interpersonal relationship, trust and improved teamwork performance. Findings from the review of extant literature reveal that Today, however, many workforces operate in a virtual environment. The proliferation of the virtual team has had a significant impact on managers, who must reconsider traditional management strategies on how to communicate and collaborate effectively