The type of team, its structure, and its process and dynamics will affect organizational performance. There are formal groups, which are sanctioned by the organization (i.e., departments), and informal groups, which develop spontaneously when members get together voluntarily because of similar interests.

Two of the major types of formal groups are functional and task. Functional teams are formal, ongoing teams that consist of managers and their employees. Each work unit or department makes up a functional group. There are also cross-functional groups with members from different groups, which can be ongoing or temporary.

Some functional groups are called self-directed groups or self-managed teams because team leadership is shared. Organizations also develop a hybrid form of networks of teams called multi-team systems that have interdependencies in their pursuit of shared goals.

Task teams work together on a specific activity. Being a member of a task group is in addition to your job in a functional group, so you can have two bosses. Task groups are often called committees. There are two common types of task groups or committees.

The ad hoc committee, or task force, is a formal, temporary team that disbands when its purpose is accomplished. For example, a task force can be created to select a new computer. The standing committee is a formal, ongoing team that often has rotating members. For example, labor and management commonly have standing committees that work together to negotiate the ongoing collective bargaining agreements that result in a new contract.

In the global economy, people from around the world work in teams digitally.  Virtual teams conduct almost their entire group work by electronic digital communications, rather than face-to-face.