A group is formal if it is planned to attain a directorial aim or mission. It is created for a clear reason through formal right. A formal group can be a dominion group or a comparatively enduring useful group made up of managers and their subordinates who meet frequently to talk about all-purpose and exact ideas for invention or service enhancement. While formal groups are set up by organizations to get positive exact goals, informal groups are created by the members of these groups. They appear in response to the frequent welfare of the members of the group. They are instinctively created without any formal meeting and with general interests such as self – defense, work and social communication. They are present outside the formal system of authority without any strict rule. Informal working groups are based on socio – psychological support and reasoning and depend on the interaction, communication, personal liking and dislike in and outside of the group.