Formal groups are best defined as groups that are

Formal groups are best defined as groups that are

Multiple Choice

bound together by common interests such as political beliefs and social activities.

created by members who are prone to social loafing and groupthink.

formed when individuals in an organization develop relationships to meet personal needs.

set up by management to meet organizational objectives.

The correct answer and explanation is :

The correct answer is:

“set up by management to meet organizational objectives.”

Explanation:

Formal groups are structured, organized groups created by an organization to achieve specific goals and objectives. These groups are intentionally formed by management and operate within a defined framework of rules, responsibilities, and authority. Examples of formal groups include departments, project teams, committees, and task forces within an organization.

Characteristics of Formal Groups:

  1. Defined Structure – Formal groups have a hierarchical structure, with assigned roles and responsibilities for each member.
  2. Objective-Oriented – These groups are created to fulfill specific organizational goals such as increasing productivity, improving customer service, or launching a new product.
  3. Rules and Procedures – Formal groups operate based on policies, procedures, and guidelines established by the organization.
  4. Leadership and Authority – A formal group usually has an appointed leader or manager who oversees tasks and ensures compliance with organizational standards.
  5. Accountability – Members of a formal group are held accountable for their performance and contributions toward the group’s objectives.

Examples of Formal Groups in Organizations:

  • Departments – Such as the marketing, finance, or human resources department, where employees work together to achieve departmental objectives.
  • Project Teams – Temporary teams assembled to complete specific tasks like product development or launching a marketing campaign.
  • Committees – Groups assigned to oversee policies, compliance, or strategic planning.

Unlike informal groups, which form naturally based on personal relationships and social interactions, formal groups are purposefully established by management to align with the company’s mission and vision. By structuring work and communication, formal groups enhance efficiency, decision-making, and coordination within an organization.

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