Modern Management: concepts and skills, 14/e

Kinds of Groups in Organizations

Organizational groups are typically divided into two basic types: formal and informal.

Formal Groups

A formal group is a group that exists within an organization by virtue of management decree to perform tasks that enhance the attainment of organizational objectives.6 Figure 15.1 is an organization chart showing a formal group. Placing organization members in such areas as marketing departments, personnel departments, and production departments is an example of establishing formal groups.

Actually, organizations are made up of a number of formal groups that exist at various organizational levels. The coordination of and communication among these groups is the responsibility of managers, or supervisors, commonly ...