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Introduction to Business class is to observe the use of groups in a large manufacturing business. The students notice that most groups are arranged by reporting relationships. Bill discovers a group of managers who have been placed together to study and recommend a course of action on a flextime schedule for employees. Jane finds that the executives of the company have formed a team consisting of themselves, some middle managers, and a few hourly employees to work on improving work processes and efficiency within the company. This group has been in existence for 5 years and is going strong. The group of managers that Bill discovers is an example of:

A) an informal interest group

B) a formal group

C) A fun group

D) a quality group.

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The correct answer is B) a formal group.

The group of managers that Bill discovers is an example of a formal group.

During their visit to a large manufacturing business, Bill discovers a formal group. It is a group of managers who have been placed together to study and recommend a course of action on a flextime schedule for employees.

When we are referring to an organization, a formal group can be understood as a workgroup that is formed by design, depending on a hierarchical composition. The members of this group have specific tasks according to the work they perform in the company.

Usually, these groups are formed based on the experience of their members because they want to accomplish goals in a more effective way and to improve the decision-making process of difficult issues.

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