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ACCA Applied Knowledge · Business and Technology · Team formation, development and management

Which of the following is an example of a formal group rather than an informal group in an organisation?

A committee established by the board to review audit findings is a formal group because the organisation created it deliberately, with a defined purpose and authority. Lunch companions, car-poolers and football friends form informal groups through social relationships rather than through organisational design.

  1. AColleagues who regularly lunch together and share news
  2. BA committee established by the board to review audit findingsCorrect
  3. CStaff who share a car pool and discuss office gossip
  4. DA group of friends from different departments who play football on Fridays

Explanation

Formal groups are created by the organisation to achieve specific objectives, with defined roles and authority, as with a board-appointed audit committee. The other options arise from social relationships and are not set up by management, so they are informal groups.

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