A Business Encyclopedia

Formal Groups

Definition: The Formal Groups are formed deliberately and consciously collectively to direct the efforts of group members, especially the employees towards the accomplishment of organizational objectives.

The formal groups are formed to fulfill any of the following purposes:

  • To capitalize the expertise of each individual towards the accomplishment of complex tasks.
  • To make use of synergy, i.e. collective efforts of group members yields better results than an individual working separately.
  • To facilitate a proper decision-making, as with many people in a group the conflicting ideas and thoughts arise that could be considered to formulate a better decision.
  • To help others in the group to learn new skills and to know about the details of the organizational environment.
  • To satisfy the personal needs of social affiliations, i.e. need to get accepted by others.

The several groups are formed to serve the specific needs of the organization and can be in any of the following forms:

Formal Groups

  1. Committees
  2. Task Force
  3. Quality Circle

The formal groups, mostly relate to the organizational missions and can either be permanent or temporary. The permanent formal groups are in the form of top management team such as the board of directors, management committees, several departments within the organization etc. The temporary formal groups are created to fulfill the specified set of objectives.

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