(a). Formal vs. informal workgroups
An informal workgroup is a group of employees that does not have a formal or an official identity. It is a group of individuals who get on well with each other and interact socially. They might have lunch together regularly, or might talk about personal interests and family matters over a cup of tea or coffee. Some informal groups might meet together outside work, on a social basis.
Formal workgroups are created in order to organise work. The employer establishes workgroups to perform specific roles or functions. Each workgroup has a number of jobs to be performed, and employees are appointed to fill the job vacancies. When one employee leaves his job, another person is appointed in his place, and the formal workgroup continues unchanged.
Employees work together in their workgroups, each performing their own job within the group. The workgroup has a formal leader (a manager or supervisor), and will develop its own characteristics and ‘culture’.
Characteristics of formal workgroups

• Members of the formal work team are appointed by management.
• Membership of a formal workgroup is ‘permanent’. Employees continue to work in the group until they leave their job or until they moved to other work by the employer.
• A formal workgroup has a clear set of work tasks, with specific objectives. These are set by management.
• The workgroup has a formal existence.
• Workgroup members have formal roles and job titles.
• A formal workgroup has a formal decision-making structure. Decisions are commonly taken by the group leader.
• Management assesses the performance of a formal workgroup by performance (efficiency and effectiveness in carrying out its tasks).
• Formal workgroups work together through established procedures and systems.
  Characteristics of informal workgroups
• An informal workgroup comes together through the social interaction of its members.
• Membership of an informal work team depends on the social interactions between members. New members may join the group at any time, and existing members may leave.
• An informal workgroup is not organised by management and does not have a specific objective or tasks.
• The informal group does not exist in a formal or clearly-defined sense.
• Informal workgroup members do not have set roles or titles.
• Informal workgroups might not make any decisions that affect their work. However, if they do, the group members will reach a collective agreement.
• An informal workgroup is not assessed. However, its collective attitude to management can range from supportive at one extreme to hostile at the other. Employee attitudes to management can be determined by the shared attitudes of informal groups.
• Informal workgroups can be much more efficient (than formal methods) in communicating information.

(b). A role of management is to provide leadership to teams and workgroups, so that the team is successful. More specifically, in addition to the more general tasks of a manager, team management involves:

• Bringing together a suitable group of individuals to form the team
• Allowing and encouraging the team to develop
• Assessing the performance of the team and, where appropriate, rewarding the team as a group for the performance it has achieved

(c). Characteristics of a successful work team

• The team should have a clear purpose.
• Its area of authority should be clearly defined. The team members should know what they can do, and what they do not have the authority to do.
• The team should have effective leadership. One of the tasks of the team leader is to create an effective team: team leadership skills are therefore essential.
• If the team is a project team that is required to complete a specific task, there should be a clear timescale for completion of the task.
• The team should be given the resources that it needs (equipment, materials, money) to complete its tasks successfully.
• The team members should have the necessary skills or experience to complete their task successfully. Every individual does not need all the necessary skills; however, collectively, the team members should have all the skills, expertise and experience required.
• The team members should have the motivation and commitment to achieving the objectives of the team.
• There should be good communications between the team members. There should be an effective and rapid exchange of all relevant information.
• Each member of the team should perform a role that adds to the effectiveness of the team. The role of team members is partly to carry out technical or operational tasks. Team roles are also concerned with adding to the effectiveness of the way in which the team functions as a unit.
• There should be strong team loyalty and good teamwork. Morale or team spirit should be high, and there should be respect for the team manager.
• The work of the team should produce benefits for the business. Providing benefits to the business is essential, because this defines ‘success’.