Really good bosses make up for this. They push teamwork and collaboration, but at the same time they know the details of what every individual is doing and how they each contribute to the whole, and they can ~accurately compensate/promote/terminate. This prevents demoralization of team members. Team members psychologically need to be recognized for their individual contribution.

These bosses tend to be competent ICs who became team leads, they are best positioned to judge the ICs they manage because they themselves are masters at the craft.