Types of Groups Found in an Organisation

This article throws light on the two important groups found in an organization, i.e, (1) Formal Groups, and (2) Informal Groups.

Types of Groups in an Organisation:

Type of Groups

1. Formal Groups:

By formal groups, we mean those groups defined by the organization’s structure, with designated work assignments and establishing tasks. In formal groups, the behaviours that one should engage in are stipulated by and directed towards organisational goals.

The features of formal groups are as follows:


(i) Formal groups are part of the organisational structure.

(ii) These are created deliberately and consciously by the management to perform the assigned duties.

(iii) The pattern of communication is also defined and the rules are laid down to regulate the behaviour of group members.

(iv) These groups may be either permanent in the form of top management team such as Board of Directors or staff groups providing specialized services to the organisation and so on; or these formal groups may be constituted on temporary basis for fulfilling certain specified objectives. When such objectives are fulfilled, these disappear. These may be in the form of temporary committees, task force etc.


The Formal Groups may further be sub classified into the following groups:

(i) Command Groups:

The command group is the most frequent type of formal group. It is relatively permanent and is specified by the organisation chart. It comprises of managers or supervisors and subordinates, who meet regularly to discuss general and specific ideas to improve product or service. In business organisations, most employees work in such command groups.

A typical command group in an organisational chart may be illustrated as follows:


Command Group in an Organisational Chart

Thus, a manager and his supervisors reporting to him form one command group. The supervisor and the subordinates reporting to him from other command groups.

(ii) Task Forces:

Task groups are also organisationally determined. But it is a temporary group representing the employees who are working together to complete a job task or particular project. However, a task group’s boundaries are not limited to its immediate hierarchical superior. For example, if a problem involving many departments arises, a task force made up of representatives from each of the affected departments, might be formed to examine the problem and suggest solutions.


(iii) Committees:

The committees are also set up for some special projects. These can be permanent such as planning committee or a budget committee and may become an integral part of the organisational structure. A committee can also be temporary such as a special task force which is set up for a particular purpose and is disbanded when the purpose is achieved. For example, the committee constituted to elect the president of the company is temporary and is disbanded after the election.

2. Informal Groups:

Informal groups are alliances that are neither formally structured nor organisationally determined. These groups are natural formations in the work response to the common interests of the organisation members such as self defense, work assistance and social interaction.

The features of these groups are as follows:

(i) The informal groups are formed by the members of such groups by themselves rather than by the management.

(ii) These groups arise spontaneously in the organisation because of social interaction between the people.

(iii) These are based on common interests, language, taste, caste, religion, background etc.

(iv) These groups exist outside the formal authorities system and without any set rigid rules.

(v) Though officially unrecognized, these groups exist in the shadow of the formal structure as a network of personal and social relations which must be understood and respected by the management.

(vi) These groups have their own structure, with their own leaders, and followers, group goals, social roles and working patterns. They have their own unwritten rules and a code of conduct which every member accepts implicitly. Members trust and respect each other.

(vii) The informal groups are more flexible than the formal groups. Rules and procedures being unwritten, they can change from situation to situation.

(viii) Since these groups concentrate on the personal contact between the members, they represent the human side of enterprise as compared to technical side represented by the formal groups.

Since informal interaction is spontaneous it can take place in any way.

Consequently, informal organisations may be of different types as explained below:

(i) Interest and Friendship Groups:

People who may or may not be aligned into common command or task groups may affiliate to attain a specific objective with which each is concerned. This is called an interest group. For instance, the employees who group together to pressurize the management for subsidized transport constitute an interest group.

A friendship group includes close friends or relations. These groups arise because members know each other very well before joining the organisation and in the initial stages, they recognize each other only. These social alliances, which frequently extend outside the work situation, can be based on similar age or ethnic heritage or for holding similar political views or for having the same hobbies etc.

(ii) Cliques:

Another type of informal groups is called cliques. These groups consist of colleagues or those who commonly associate with each other and observe certain social norms and standards, but the number of members tends to be smaller, and only rarely exceeds five or six. The objective is to provide recognition to each other and exchange information of mutual interest.

M. Dalton has identified three types of cliques:

(a) Vertical Clique:

This group consists of people working in the same department drawing membership regardless of ranks. In this case, the superior may be a member in the group consisting mainly of subordinates. Such groups which cut across hierarchical lines develop because of the earlier acquaintance of people or because the superior is dependent upon the subordinates for some formal purposes like filling gaps in his abilities.

(b) Horizontal Clique:

This group consists of people of more or less the same rank and working more or less in the same area. Members are able to find some points of commonness and keeping the objectives in mind, come together. This is the commonest type of informal group.

(c) Random or Mixed Clique:

This group draws members from different ranks, departments and physical locations. Again, people having some similarities come together for a common purpose. The members may be residing in the same locality, travelling by the same bus or may be members of the same club.

(iii) Sub-Cliques:

This group consists of some members of a clique inside the organisation forming a group along with persons outside the organisation. The members of the cliques give these outsiders due recognition because of some members of their group being associated with them. Such groups are regarded as partially external to the organisation.

(iv) Sayles’ Classification of Group:

On the basis of the pressure tactics adopted by the groups L.R. Sayles identified four kinds of groups in the organisations which are discussed below:

(a) Apathetic Groups:

This group is characterised by relatively few grievances and it hardly ever uses pressure tactics. In the group, no one ever emerged as an acceptable leader and therefore, there is lack of clearly defined leadership. These groups are composed of relatively low paid and low skilled assembly line workers who lack unity and power and hardly ever use pressure tactics. Such groups are generally indifferent to formal organisations.

(b) Erratic Groups:

Members in the erratic groups are easily inflamed and easily pacified. There is lack of consistency in their behaviour. Sometimes they show antagonism towards the management while on other occasions, they may be cooperative. In such a group, any active member could assume the reins of the group and become the leader. These groups are composed of semi­skilled workers who work together in performing jobs that require some interaction. They display considerable unity, but it is very difficult to predict their behaviour.

(c) Strategic Groups:

The members of such group are able to prepare a strategy for putting pressure on other groups and the management. Members of such groups are generally performing technologically independent jobs and are comparatively better placed than members of earlier categories. It is difficult to apply exact time standards for judging their performance as their jobs are of such a nature that personal judgment matters. These people are highly united and actively participate in union activity. These people maintain a relatively consistent antagonism.

(d) Conservative Groups:

These groups are composed of professionals and highly skilled employees in the plant. They are found at higher levels of the organisation and display considerable self confidence. They work on their own and the nature of their jobs is such that they can shut down the plant if they so desire. These people are found to be very strong and very stable among informal groups.

Such groups exercise restrained pressure for highly specified objectives and display moderate internal unity and self assurance. In terms of union activities there are Activity-Inactivity Cycles. They are cooperatively oriented most of the times. They adopt antagonistic attitude towards management only when highly specific goals are sought by group members acting together.

The relationship between formal and informal groups is mutually reinforcing and competing. Informal groups can assist formal groups in solving a complex problem. But what concerns an individual who is interested in the study of organisational behaviour is the negative role played by informal groups. Some informal groups are deliberately formed to work against management.

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