File permissioning

Hello, I am aware of the old Microsoft rule:

Add users to Global Groups and then put global groups into local groups and assign permissions to the local groups.

I am a bit confused as how to create these local groups for my folders on a file server. Should I create local groups that have write permission only, a local group that has read permission only, etc etc. If I have all sorts of people needing different levels of access to files for example, how should I go about setting these groups and permissions up? Is there a standard common way?