CHAPTER 13

Creating and Managing Teams

Groups are a common feature of organizations, and they can be either formal or
informal. Formal groups are established by the organization's structure and have
designated work assignments and specific tasks aimed at achieving organizational
goals. Informal groups, on the other hand, are social groups that form spontaneously
based on shared interests or social relationships of members.
Formal groups have clear objectives and are formed to achieve specific goals. They are
defined by the organization's structure and are usually led by a manager or supervisor.
Members of formal groups have designated roles and responsibilities and are expected
to work together to accomplish the group's objectives.
Informal groups, on the other hand, are not officially recognized by the organization's
structure. They are formed spontaneously based on shared interests, backgrounds, or
social relationships of members. Informal groups can provide emotional support,
increase morale, and help facilitate communication and cooperation among
employees. However, they can also create cliques, promote gossip, and interfere with
formal communication channels, which can ultimately hurt organizational
performance.
Both formal and informal groups play an important role in organizations. Formal
groups are necessary for achieving specific organizational goals and are essential for
the smooth functioning of the organization. Informal groups, on the other hand, help
create a sense of community and belonging among employees, which can have
positive effects on employee satisfaction and retention.
It is important for managers to recognize the existence and potential impact of
informal groups in the organization. They should strive to create a positive
organizational culture that encourages open communication and cooperation between
formal and informal groups. By doing so, managers can harness the positive aspects of
both formal and informal groups, resulting in improved organizational performance
and employee satisfaction.