A group is defined as two or more individuals who interact with one another and work together regularly to achieve common goals. Groups have various types of resources like staff, funds, facilities, equipment, supplies, and time. Groups can be formal, arising from an organizational structure and purpose, or informal, emerging without official designation. Examples of formal groups are operations, finance, human resources, and marketing teams. Informal groups include command groups composed of those reporting to a manager, task groups working on jobs, interest groups pursuing objectives, and friendship groups with common characteristics. Both formal and informal groups impact employee performance and satisfaction in an organization.

2. WHAT IS A GROUP?
a collection of two or more people who work
with one another regularly to achieve common
goals.
is defined as two or more individuals,
interacting and interdependent, who have come
together to achieve particular objectives.
a collection of individuals who interact with
each other such that one person’s actions have
an impact on the others.

3. ELEMENTS OF A GROUP

4. VARIOUS TYPES OF RESOURCES
Staff
Funds
Facilities
Equipment
Supplies
Time
Information

5. INDIVIDUAL VS. GROUP VS.
ORGANIZATION

6. TYPES OF GROUPS
Formal groups
– Officially designated to serve a specific
organizational purpose
– Arise from assigned tasks and responsibilities
derived from position in organizational structure.

7. EXAMPLE OF FORMAL GROUPS
Operations
Finance
Human Resources
Marketing
Research and Development

8. Informal groups
– Emerge without being officially designated by the
organization.
– alliances that are neither formally structured nor
organizationally determined
– Arise from formal groups

9. TYPES OF INFORMAL GROUPS
1. Command group – a group composed of the individuals
who report directly to a given manager.
2. Task groups -- also organizationally determined,
representing those working together to complete a job
task.
3. Interest group -- people not necessarily aligned into
common command or task groups who affiliate to attain a
specific objective.
4. Friendship group – those brought together because they
share one or more common characteristics

10. BENEFITS OF INFORMAL
GROUPS
– Can speed up work flow by supplementing
formal lines of authority.
– Can satisfy needs that are thwarted or unmet by
the formal group.
– Can provide members with social satisfaction,
security, and a sense of belonging.

11. Formal Group vis-a-vis
Informal Group
Basis of Comparison Informal Organization Formal Organization
General Nature Unofficial Official
Major Concepts Power and Politics Authority and
Responsibility
Primary Focus Person Position
Source of Leader Power Given by Group Delegated by
Management
Guidelines for Behavior Norms Rules and Policies
Sources of Control Sanctions Rewards and Penalties

12. Formal (required)
- Activities
- Interactions
- Sentiments
Informal (emergent)
- Activities
- Interactions
- Sentiments
Employee
Performance
Employee
Satisfaction

13. IMPORTANCE OF GROUPS IN
A WORK ORGANIZATION