Formal groups A formal group is set by an official authority or leader designed to complete a specific task or purpose and is strictly regulated by the organisations rules and practices. In a formal group responsibility of an outcome of a task is set usually to the leader, discipline and reward is mainly handed down to the leader via the organisation. A formal group is coordinated by activities shared between a number of people, towards the achievement of a specific purpose or goal. It is divided through labour and function and adhered to through a hierarchy of authority.
The formal organisation concentrates on production efficiency, policies and procedures, job definitions and descriptions and organisational charts. A formal group is deliberately created with a specific purpose or fulfilment in mind. The hierarchy of these groups are concerned with the coordination of activities and fulfilling the stated objectives.
However, within it can be seen that the staff turnover is 20% higher than the other 3 branches, the poor performance in the produce of jewellery, high number of customer complaints and the reduction in sales figure means that performance targets are not being met.
Informal groups are not so influenced by formal rules but more so by the relationships formed inside the group. Group pressures can have a huge influence over the behaviour of individual members and their work performance. The activities of the group are associated with the process of leadership. The style of leadership adopted by the manager has an important influence on the behaviour of members of the group.
In Smart according to Philippa Muress, one of the directors, “There is a difference between managing a team in a traditional office environment, and managing a team of workers which requires new skills and new management techniques. Some of these skills can be adapted from