Chapter 9, Problem 1LO

Summary Introduction

To differentiate: The different types of groups.

Explanation of Solution

Group:

It is a situation where two or more individuals come together and operate together to achieve a common goal and objectives. There are two types of groups; formal and informal.

Formal groups:

A formal group is a designated structure directed by the organization established to achieve particular goals and objectives as a group. In formal groups, the behavior of the individuals must be directed towards the organization's goals and under the regulations of the organization. An example of a formal group is the crew of an airline flight.

Informal groups:

It is the group formed by the employees of an organization outside the boundary of an organization. These are done by employees to have social contact. An example of an informal group is three members of the HR, Finance, and Operations department meeting outside for lunch or dinner regularly.