Valid for Moodle 2.8. Updated on 5/26/2015.
Moodle allows you to divide your students into groups. You can then use the groups to divide activities. For example, if you use groups with a forum each group would get a different copy of the same forum. You can set the forum to prevent or allow students in one group to see postings done by members of another group. There is no simple way to divide resources by groups.
The first step is to turn on groups for your course. Go to the Administration block, then Course administration → Editing Settings. In the settings interface, go down to the Groups section and select the default type of group.
See the group documentation at Moodle.org for a discussion of the types of groups. In simplest terms, visible groups can see what each other is doiing while separate groups are hidden from each other.
The nexy step is to create the group. Start by going to the Administration block, then Course administration → Users→ Groups
This brings up the Groups interface. In this example one group (with a single member) already exists. If we were to click on the group name we would see who that person is.
To create a new group, click on the Create group button to bring up the new group interface.
Give the group a name and an optional description.
The Enrollment key has no meaning at Amherst since we don't support self-enrollment.
You can optionally attach a picture to the group. This will show up in some of the places where groups are listed.
When done click Save changes. This will take you back to the original group page. The new group will now be listed and selected. To add students to the group click on the Add/remove users button.
Select a person in the list of potential members and then click the Add button. Repeat until you've added everybody you want to to the group. You can not add someone to a group if they aren't in the course.
If you accidentally add someone you shouldn't, select them in the left column and use the Remove button. When done, click on Back to groups