This interview question seems forward (not to mention intimidating!), but if you're asked it, you're in luck: There's no better setup for you to sell yourself and your skills to the hiring manager. Your job here is to craft an answer that covers three things: that you can not only do the work, you can deliver great results; that you'll really fit in with the team and culture; and that you'd be a better hire than any of the other candidates.
When they ask “how did you hear about the position?”, the interviewer just wants to know if you’ve taken the time to research the company and if you have a genuine reason for wanting to talk with them. Mention a product, a mission statement on the website, a reputation for talented employees, or whatever else seems applicable to that specific company. Come up with a great reason. Don’t make it seem like they’re just one company among many. Or that you’re sending your resume out to them for no particular reason other than wanting a job.
Example: “Earlier in my career I noticed that because I was so enthusiastic about my work, I had a tendency to say ‘yes’ when I should have been saying ‘no.’ At one point I ended up so overwhelmed by my workload, taking on so many projects, that I was working evenings and weekends. It was stressful, and that stress affected my production quality. I realized this was counterproductive, so I started using workload management tools to set better expectations for myself and my teammates.”
Answers to this question go one of two basic ways. Candidates try to show their incredible ambition (because that's what they think you want) by providing an extremely optimistic answer: "I want your job!" Or they try to show their humility (because that's what they think you want) by providing a meek, self-deprecating answer: "There are so many talented people here. I just want to do a great job and see where my talents take me."
Being a good team player is expected, too. But what does this really mean? Getting along with everyone? That’s not hard to do if you’re a nice person. Pulling your weight in the office? Again, expected. What have you done, beyond your job description, that saved the team from a disaster or helped them make an impossible deadline? Have you won an award for this?