Some mangers in companies argue that teams can accomplish

Some mangers in companies argue that teams can accomplish goals that a collection of individual can not accomplish.  Further, managers argue that if a team is cohesive, synergistic, and highly effective, it will produce more than anyone thought possible.  If a company requires that employees work in teams, how should the members of teams be rewarded? For example, should there be a team raise, every member of the team gets a two percent raise? Or should each member of a team get an individual raise--person one gets a 1% raise, person two gets a 3% raise, person three gets a 7% raise, person four gets no raise?  Why do you suggest the answer you do?  Should a team be able to 'fire' a member who is not performing without the manager's approval?