What is the difference between a work group and a work team?

In the business world, the words “group” and “team” seem interchangeable, but smart entrepreneurs realize there are subtle – and important – differences. Recognizing these differences early on will help business owners and managers to achieve their organizational goals with the staff on hand.

A group in the workplace is usually made up of three or more people who recognize themselves as a distinct unit or department, but who actually work independently of each other. For example, a small business may have a client services group, but one person may focus on local clients, one person may focus on regional clients and a third person may assist those individuals. Also, groups tend to be permanent fixtures with ongoing goals or responsibilities.

A team consists three or more people who may come from different departments within a business, but collaborate on the same purpose, goal or project. For instance, before your business creates a new product, you might organize a team composed of people from all departments – engineering, finance, legal, marketing, etc. – to think through your potential new product and avoid costly surprises down the road. With a team, individuals recognize the expertise and talents of others needed to achieve the team’s goal. Additionally, teams are often formed for temporary assignments with one specific goal, focus or outcome in mind.

Managers recognized many years ago that two heads are better than one, thus small businesses have turned to groups or departments for many reasons. With group work, members have a shared knowledge of the group’s objectives, but specific tasks or responsibilities are assigned to different individuals. By separating work into groups – such as one devoted to marketing, one devoted to accounting, etc. – individuals within those groups are able to maximize their expertise on a long-term basis.

Businesses form teams usually to tackle a specific – and usually temporary – goal or project with the intent of leveraging the collective expertise of a variety of people. Because experts from various departments are involved, teams can avoid potential problems early on in a project. For instance, a team of only engineers may create a new product but may not understand whether it’s affordable until someone with a finance background completes a “return on investment” or ROI analysis on its feasibility.

Having a finance member involved in the team from the beginning will help the engineers to create an affordable product in the first place, saving time and resources. Teams can be very productive because involving people with different talents provides teams with increased opportunities to work more efficiently.

  1. Career development
  2. Group vs. Team: What’s the Difference?

By Indeed Editorial Team

Updated November 17, 2021 | Published March 1, 2021

Updated November 17, 2021

Published March 1, 2021

Workplaces often see people working in groups and teams. While they may sound similar, there are some clear differences between these working arrangements. Understanding how these terms differ can help you make the most of your time working with others. It can also help you choose the right arrangements for your next projects. In this article, we define team and group, discuss their similarities and differences and identify the benefits of these two working arrangements.

Group vs. team: definitions

While they may initially seem similar, professionals define groups and teams in the workplace as follows:

  • Group: A group is a collection of individuals with separate priorities united by their shared interests or experiences. Members have individual goals and accountability for their own success or failure. While they work separately, group members have a related interest that brings them together. Groups can be formed informally by common interests or formally by company management.

  • Team: A team is a collection of interdependent people brought together by a shared goal. Members have individual as well as shared accountability for the team’s success or failure. They work together to solve problems, create new products or fulfill other assignments. There are several different types of teams such as cross-departmental, self-managed and process teams.

Related: 9 Models for Highly Effective Teams

Group vs. team: similarities and differences

Groups and teams share resources like information, space and equipment. In addition to differences regarding priorities and relationships, there are some other distinctions between these arrangements including:

  • Accountability: The members of groups are accountable to themselves and their superiors, while the members of teams are accountable to each other.

  • Connection: Their accountability to one another and shared goals connect the members of teams more closely than the members of groups.

  • Leadership: A single leader takes control of a group of people, assigns tasks and manages meetings. The leader of a team is a facilitator who helps the people achieve their shared goals through collaboration. A team may have a single leader or multiple leaders.

  • Output: Another difference between group and team arrangements is that the members of groups create separate work that managers judge separately. The members of teams create a single, collective work that is assessed as a whole.

Read more: How To Manage a Team

Example of team vs. group

A workplace assembles a group of employees from different departments to brainstorm ideas for a new product. They have the shared experience of working at the same company, however, they likely have different priorities. The finance representative wants to make money. The tech representative wants to create an innovative product incorporating modern technological advances. The representative from the company's foundation wants to create a product with a low carbon footprint. All these different perspectives can help inspire a product that does many different things for the company.

Once the company decides on its new product, it approaches the marketing team. This team focuses on promoting the product to the public. They work on many strategies, including a print campaign in leading magazines, a social media campaign and product placement in leading TV shows. While these strategies are different, they all work to achieve the team's shared goal of promoting the product.

Benefits of teams at work

Working in teams has several professional benefits for organizations including that it:

Improves communication

Since working in a team is a collaborative process, it encourages communication between its members. As a member of a team, you'll rely on communication skills to express yourself and learn other points of view.

Related: Q&A: Why Is Communication Important?

Increases interpersonal skills

Teamwork can also improve interpersonal skills as team members must cooperate, negotiate and maintain a positive outlook. If team members disagree, you can also practice conflict resolution strategies.

Boosts motivation

People working in teams often motivate one another as they work toward shared goals and priorities. Besides feeling motivated by others, team members may also be self-motivated by a desire to perform well for their supervisors or managers. A combination of personal and team motivation typically increases drive.

Read more: The Best Ways To Motivate Your Team

Provides support

As team members work together, they can rely on each other for support. This helps teammates meet challenges with less stress and pressure than they might feel working independently.

Leverages individual strengths

Teams are comprised of people with individual strengths. Successful teams assign tasks that allow members to use these natural skills and talents. On a team, you'll feel more confident knowing you're working on tasks you can easily perform and letting others complete tasks they're better suited for.

Focuses efforts

As everyone in a team shares priorities and works towards the same goal, their effort tends to be more consistently aligned. This dedicated focus often leads to efficient solutions. When projects are time-sensitive, entrusting an already established team is often the best approach.

Read more: Working Well on a Team: Types of Teams and Tips for Finding Team Success

Benefits of groups at work

There are also advantages to working in groups including that doing so:

Takes little time to establish

It may take time for new team members to learn how to work together but group members often have more clearly defined areas of specialty. This can make it easier for them to establish tasks and specific roles for their projects. This is a real advantage for projects with tight deadlines in businesses with temporary or casual employees. On the other hand, Group members may be long-term and established employees who represent different divisions.

Related: Guide To Group Problem Solving

Generates more diverse ideas

Since group members have different individual priorities, they often have different views compared to teams that often share a similar approach. The group’s different perspectives often inspire innovation and creativity. Diverse points of view are especially important when problem-solving and creating new products.

Improves communication

As with teams, group members also rely on their communication skills. Skills such as active listening and speaking using clear, accessible language are even more important when dealing with people from different backgrounds and with diverse points of view.

Related: 7 C’s of Effective Communication in the Workplace

Promotes deeper understanding

As group members have more diverse backgrounds and perspectives, they can work together to understand something in greater depth. Listening to various viewpoints can help you improve your understanding of concepts or issues. After working in a group, you may apply your new knowledge to other professional projects.

Encourages self-motivation

Self-motivation is an important quality which working in groups nurtures. When you work in a group, you are individually responsible for your projects. You have to draw on your self-motivation to complete your tasks.

Related: What are Tuckman’s 5 Stages of Group Development?