Groups in Organization - Types and Formation

When two or more people get together for a specific purpose is considered a group. Organizations, families, societies and classes etc. are some of the examples of group. It can be permanent or temporary.

In this sections we are discussing the following.

1. Kinds of group.

2. Reasons for formation of group.

Kinds Of Group

1. Command Group:

Such a group is usually represents by a formal organizational chart and chain of command. In this group the management issues orders, assign tasks, delegates authority and supervise subordinates in order to achieve organizational objectives.

2. Task Group:

When employees get together to complete a task or project a task group is formed. For example there can be a task group to introduce a new product or service. This group is less formal, work oriented and more productive than traditional command group.

3. Interest Group:

Interest group is formed when people share a common interest. It may have a chain of command. This group is usually formed for a shorten period of time for an objective to accomplish. The goals of an interest group may not be related to organizational goals.

4. Friendship Group:

This is the group of like minded people. They usually have common taste, school of thoughts, habits and hobbies. For instance, a group of employees may have a friendship group to attend sports events, play football, or go for a dinner once a month.

Reasons for Formation of Group

1. Geographic Proximity:

Generally group is formed due to the geographical nearness of individuals. People living and working together automatically formed a group. For instance, students living in the same hostel or employees working in same organization may form a group.

2. Economic Reasons:

Group is also formed due to economic reason. Individuals have limited ability to perform a task. They cannot do everything as an individual. An employer has limited ability as physical and mental. He has professional and time limits. Therefore, he hires employees to form a group that performs economic activity.

3. Sociopsychological reason:

It is also the reason of formation of a group. Workers in an organization are motivated to form a group to satisfy their various needs. Their needs are security, social, esteem and self-actualization that can be satisfy to some extent by workers if they join groups. 

4. Security needs:

A single person is less secured than a group. A person with loneliness leads to degree of insecurity. By joining a group he can enjoy social, economic and life security. He can get his strength and power from the group he belongs to. He feels stronger when he becomes a part of a group.

5. Social needs:

Humans are by nature social animals. They want to gather in order to satisfy their social needs. Social needs include love, acceptance, and belonging. They have love for their children and parents. They also have desire to make new friends and work with others.

6. Esteem needs:

People have desire for appreciation and respect. They want to accomplish social standing. They like to perceive theirselves as successful and prestigious. They have a desire for a high valued title, cubic, parking place and the like. By joining a successful group the need for esteem can be fulfilled.

7. Self-Actualization needs:

Self-actualization is the use of skills with maximum efficiency by individuals for personal growth and development. Self-actualized persons are able to take full advantage of their talents. Self-actualized persons can efficiently show up in a group. Their skills and genius are encouraged in a group.