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You're on the right lines: 1 hero and up to 12 Warriors make up a Warband. You can have as many warband as you like your army.
The only thing Warbands do together is deploy within a set area at the start of the game, or come in from reserves if your mission uses that. Say, for example, I have a Warband of Faramir and 10 Rangers, and choose to deploy them at the start of the game. They must all be within 6" of the Warband leader, but after that can go anywhere. If the Warband was in Reserve, then I would roll on the relevant table and if they arrive, all models in the Warband move on together from the same area.
As to matching Warbandsand leaders, it can be of some benefit to include a Hero that compliments the Warband just so you can concentrate them on their roll from the start. For example, if I were using Boromir, I'd put him with a Warband of Warriors rather than Rangers, as he doesn't really offer anything to the latter, whereas he is a solid core of a battle line of the former.
That said, the exception to this is if the Warband or leader effectively function in their own. For example, if I have the Witch King on Fell Beast, who will be flying off to crack skulls on his own, there is little point in tailoring his Warband to help out, so the best course of action is to take something that doesn't need 'babysitting' by a Hero, like some Archers, War Machines or even Trolls. Similarly, if you've got 'spare' spaces in a Warband that's a good place to put some fairly autonomous units like trolls or cavalry outriders, that can support the Warband but can also function independently.
Hope that helps!
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