A group consists of a number of individuals working together for a common objective. Groups have significant influence on an organization and are inseparable from an organization. They are useful for the organization as they form foundation of human resources.


The study of group behavior is essential for an organization to achieve its goals. Individual and group behavior vary from each other. In 1920, Elton Mayo and his associates conducted the Hawthorne experiments and came to know that the group behavior has great impact on productivity. The importance of group behavior has been realized from time to time.

Human behavior consists of individuals, who move in groups. The knowledge of group behavior as well as individual behavior is necessary for a manager. He must understand group psychology and should also understand individual behavior in the context of group behavior. The group in which he moves influences individual work, job satisfaction and effective performance.



A group is a two or more individual who interact regularly with each other to accomplish a common purpose or goal.

According to Marvin Shaw, “a group comprises, of two or more persons who interact with one another in such a manner that each person influences and is influenced by each other person’.

The key parts of this definition are the concepts of interaction and influence, which also limit the size of the group. It is difficult for members to interact sufficiently in a large group.

Groups or work teams are the primary tools used by managers. Managers need groups to co-ordinate individual behavior in order to reach the organizational goals. Groups can make a manager’s job easier because by forming a group, he need not explain the task to each and every individual. A manager can easily co­ordinate with the work of an individual by giving the group a task and allow them to co-ordinate with each other. But for a group to work effectively, the interactions between its members should be productive. Therefore, managers must pay attention to the needs of individuals.

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