(a). A formal organisation is any organisation that has rules and procedures governing the way work is divided and carried out and how tasks are grouped into departments.

An informal organisation on the other hand refers to the social structure that governs how employees work together in an organisation.

Difference: Whilst formal organisations emphasize on clear definition of authority and job responsibility, informal organisations emphasize on social relationships like friendships and alliances.

(b). Benefits of groups

(i) Security: When he/she joins the group the level of insecurity that is associated with being alone will be reduced because of the support from group members.

(ii) Enhanced Status: If he/she becomes a member, the recognition and respect given to the group members will also be extended to him/her.

(iii) Self Esteem: As a member of a group he/she will enjoy some sense of feelings or self-worth from the group.

(iv) Power: There is power in numbers, and what cannot be achieved individually can be achieved by the group.

(v) Knowledge acquisition: When an individual joins a group he/she have the benefit of gaining knowledge from the more experienced members of the group.