Absolutely true, sharing credentials (even with a password manager) is a last resort, with individual accounts the preferred means of dealing with access for all the reasons you list. Unfortunately, far too many services and systems don’t bother to provide that ability.
Another solution would be an authentication proxy/broker type of system, where users individually authenticate with an intermediary which itself retains credentials and session cookies. These almost eliminate the need for user-sychronized org password management altogether. They’re rarely aimed at small-mid organizations, or open source for that matter.