ABSTRACT
Groups, group dynamics, and intergroup processes are inevitable and critical aspects of organizations and their management. This chapter builds upon premises that emphasize the inevitability of groups in organizations. Those premises view groups as having both good and bad effects for organizations and their members. The chapter also examines the growing use of virtual groups and self-managing teams. Formal groups are either functional groups within an organization or task groups. Functional groups are clusters of people formed by the organization’s design, such as divisions, departments, sections, and work units. Interaction patterns within organizations can affect the formation of informal groups within and across formal groups. Informal groups can form along interest lines, such as the task specialization of individuals, hobbies, or other concerns. Groups have several functional effects on organizations. Groups can be an important source of socialization of organization members.
