Moodle's groups option allows instructors to place their class into smaller groups and assign them activities specific to that group. To begin, log into Moodle and enter the class's page. Then click on the Groups option within the Administration box on the left-hand side of the main class page.
In the next page you will see three columns, the first has a list of all members of the class. The second and third will be empty until you populate them with groups and group members. To begin, you must first Add new group by putting a name for the group in the empty box at the bottom of the screen and clicking the add new group button to the right.
After the group has been created you may ad people by selecting the group, then selecting a person from the list on the left and choosing add selected to group.
Once you have added somebody to a group their name will appear in the third column. You may remove them by clicking on remove selected members. It may also be worth noting that if a student is in a group, their name will no longer appear on the list on the far left, as people may only be a part of one group at a time.