1. Groups and Teams in Organizations Groups and Teams in Organizations In organizations, people often work in groups, a group being two or more individuals who interact regularly to accomplish a common purpose. Groups are sometimes (but not always) defined by the formal organizational structure. There are different types of groups, created for different reasons, and when a group starts, it goes through recognizable stages of development. Types of GroupsWhy People Form GroupsStages of Group Development There are three kinds of groups in organizations: Functional groups are groups formalized in the organization's structure to accomplish a number of purposes for an indefinite time. In everyday use, these are often referred to as departments. In contrast, task groups are created by the organization to execute a relatively small set of objectives within a certain time before disbanding. One type of task group is the team, which often carries out tasks and functions with little supervision; supervisors move into the role of coach or facilitator. The team might be formed to solve a problem (problem-solving team), coordinate work across teams (management team), or simply do the work of the organization (often called a self-managed team when empowered to make decisions)