Large monsters can fight as if they were a unit consisting of one model in the same way as heroes and wizards. Also like characters, they do not have to turn or wheel to change direction, but can pivot about on the spot without penalty. See the section on Heroes and Wizards for more details.
If you have several monsters of the same type then you can choose to form them into a single unit or 'monster pack' if you wish, but you do not have to do so. The advantage of lumping monsters together is that they will benefit from making all Leadership tests on the best Leadership value of the group in exactly the same way as a unit of troops led by a heroic character. For example, a Dragon rider could be accompanied by a pack including other Dragons, and the whole would benefit from his Leadership (Ld).
When fighting in a monster pack each model must be within 5" of another in the same group forming a rough line or clump. In the same way as squadrons of chariots, the monster pack does not have to adopt a formation as such and is therefore referred to as a 'loose' unit. The models are still moved individually but must remain within their monster pack for the duration of the game.