Formal groups are commonly divided into command groups and task groups. A command group is a formal group that is outlined in the chain of command on an organization chart. Command groups typically handle routine organizational activities.

A task group is a formal group of organization members who interact with one another to accomplish most of the organization’s nonroutine tasks. Although task groups are usually made up of members of the same organizational level, they can consist of people from different levels in the organizational hierarchy.7 For example, a manager might establish a task group to consider the feasibility of manufacturing a new product and include representatives from various levels of such organizational areas as production, market research, and sales.8

Two formal groups that are often established in organizations are committees and work teams. Committees are the more traditional formal group; work teams have only recently gained acceptance and support in U.S. organizations. The part of this text dealing with the managerial function of organizing emphasized command groups; however, the examples here emphasize task groups.

A committee is a group of individuals charged with performing a type of specific activity and is usually classified as a task group. From a managerial viewpoint, committees are established for four major reasons:9

1. To allow organization members to exchange ideas

2. To generate suggestions and recommendations that can be offered to other organizational units

3. To develop new ideas for solving existing organizational problems

4. To assist in the development of organizational policies.

Committees exist in virtually all organizations and at all organizational levels. As Figure  15.2 suggests, however, the larger the organization, the greater the probability that it will use committees on a regular basis. The following two sections discuss why managers should use committees and what makes a committee successful.

Why Managers Should Use Committees

Managers generally agree that committees have several uses in organizations:

• Committees can improve the quality of decision making. As more people become involved in making a decision, the strengths and weaknesses of various alternatives tend to be discussed in greater detail, and the chances of reaching a higher-quality decision increase.

• Committees encourage the expression of honest opinions. Committee members feel protected enough to say what they really think because the group output of a committee cannot be associated with any one member of that group.

• Committees also tend to increase organization members’ participation in decision making and thereby enhance the chances of widespread support of decisions. Another result of this increased participation is that committee members satisfy their social or self-esteem needs through committee work.

• Finally, committees ensure the representation of important groups in the decision-making process. Managers must choose committee members wisely, however, in order to achieve appropriate representation, for if a committee does not adequately represent various interest groups, any decision it comes to may well be counter to the interests of an important organizational group.

Committees are often used to recruit new organization members. Consider, for example, the case of Red Robin Gourmet Burgers, a national chain of casual dining restaurants. Two activist investor groups that own nearly 8 percent of Red Robin stock filed a complaint with the Securities and Exchange Commission over the performances of the board and the company’s chief executive. The company later announced several changes to its board structure. In addition, the board of directors agreed to form a search committee to identify a new chief executive. The search committee consisted of the board chair and three new directors approved by the investor groups.10

Although executives vary somewhat in their enthusiasm about using committees in organizations, a study reported by McLeod and Jones concludes that most executives favor using committees. The executives who took part in this study said they got significantly more information from organizational sources other than committees but found the information from committees to be more valuable than the information from any other source. Nevertheless, some top executives express only qualified support for using committees as work groups, and others have negative feelings toward committees. Still, the executives who feel positively about committees or who display qualified acceptance of them in general outnumber those who look upon committees negatively.

A work team is another example of a task group used in organizations. Contemporary work teams in the United States evolved from the problem-solving teams—based on Japanese-style quality circles—that were widely adopted in the 1970s.17 Problem-solving teams consist of 5 to 12 volunteer members from different areas of the department who meet weekly to discuss ways to improve quality and efficiency.

Another requirement for successfully managing formal groups is understanding the stages of formal group development. In a classic book, Bernard Bass suggested that group development is a four-stage process that unfolds as the group learns how to use its resources.19 Although these stages may not occur sequentially, for the purpose of clarity, the discussion that follows will assume that they do.

It is common for members of a new group to mistrust one another somewhat initially. The acceptance stage is reached only after this initial mistrust dwindles and the group has been transformed into one characterized by mutual trust and acceptance.

Once they have passed through the acceptance stage, group members are better able to communicate frankly with one another. This frank communication provides the basis for establishing and using an effective group decision-making mechanism.

Group solidarity comes naturally as the mutual acceptance of group members increases and communication and decision making continue within the group. At this stage, members become more involved in group activities and cooperate, rather than compete, with one another. In addition, members find belonging to the group extremely satisfying and are committed to enhancing the group’s overall success.

A natural result of group solidarity is group control. In this stage, group members attempt to maximize the group’s success by matching individual abilities with group activities and by assisting one another. Flexibility and informality usually characterize this stage.

As a group passes through each of these four stages, it generally becomes more mature and effective—and therefore more productive. The group that reaches maximum maturity and effectiveness is characterized by the following traits in its members:

• Members function as a unit —The group works as a team. Members do not disturb one another to the point of interfering with their collaboration.

• Members participate effectively in group effort —Members work hard when there is something to do. They seldom loaf, even when they have the opportunity to do so.

• Members are oriented toward a single goal —Group members work for the common purpose; they do not waste group resources by moving in different directions.

• Members have the equipment, tools, and skills necessary to attain the group’s goals —Members are taught the various parts of their jobs by experts and strive to acquire whatever resources they need to attain group objectives.

• Members ask and receive suggestions, opinions, and information from one another —A member who is uncertain about something stops working and asks another member for information. Group members generally talk to one another openly and frequently.

Informal groups are divided into two general types: interest groups and friendship groups. An interest group is an informal group that gains and maintains membership primarily because of a common concern members have about a specific issue. An example is a group of workers pressing management for better pay or working conditions. Once the interest or concern that instigated the formation of the informal group has been eliminated, the group will probably disband.

As its name implies, a friendship group is an informal group that forms in organizations because of the personal affiliation members have with one another. Such personal factors as recreational interests, race, gender, and religion serve as foundations for friendship groups. As with interest groups, the membership of friendship groups tends to change over time. In this case, however, membership changes as friendships dissolve or new friendships are made.

Informal groups tend to develop in organizations because of various benefits the group members obtain from belonging to the group:23

1. Perpetuation of social and cultural values that group members consider important

2. Status and social satisfaction that people might not enjoy without group membership

3. Increased ease of communication among group members

4. Increased desirability of the overall work environment

These benefits may be one reason that employees who are on fixed shifts or who continually work with the same groups tend to be more satisfied with their work than are employees whose shifts are continually changing.