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However, not all groups are formally authorized by the management. Nevertheless, well-managed groups can mean the difference between successful and unsuccessful organizations. According to Robbins and Coulter (2002), most teams are either, temporary or permanent, functional or cross-functional, and self-managed or supervised. Primarily, groups are mainly classified into formal and informal groups. Formal groups and teams are those that are created by managers (Jones and George 2009, 599). These include top-management teams, cross-functional teams, self-managed work teams, command groups, cross-cultural teams, task forces, virtual teams, and project teams.
Informal groups are those that may be created organizational members. Informal groups like friendship groups and special interest groups, however, serve more of a social and recreational purpose (DuBrin 2012, 471). The top management team is a sort of cross-functional team that consists of members from each of the functional units or departments from across the organization, including finance, human resource, marketing, and so on. Cross-functional teams contain specialized members from each functional unit, who work together on a variety of tasks.
Cross-functional teams may be assigned for a particular process that requires members from different areas of expertise. Self-managed work teams are formally recognized and consist of team members, generally employees, who are responsible for an entire project such as product or service development. Self-managed work teams are based around the concept of job enrichment which is why self-managed work teams are characterized by greater control and autonomy over their tasks and duties. Self-managed work teams also include self-directed teams and work teams (DuBrin 2012, 471).
Members of a self-managed work team work together on an ongoing basis as opposed to members on a task force. Members are usually led by a team leader who is
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