June 19, 2025

The Psychology of Groups and What it Means in the Workplace

by Our content team
Kuba Bożanowski / Flickr
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The desire to form groups is a powerful natural emotion. Be it in our work or social lives, people gather due to shared values or purpose. Any group will have its own individual dynamic, but whether or not we come together to earn, create or play, all groups will share some similar psychology. Here we take a look at the key characteristics of group behavior and the effect they can have in the workplace.

Groups Are Natural

Joining a group can help define our social identity and who we sense ourselves to be. This is important in helping us define our sense of who we are. 

In the workplace groups form all the time, even informally. For example, people who lunch at the same time or those who smoke will discuss and form opinions at these times. It is important to recognize these informal groups, as they can influence the work environment. As a manager, it is beneficial to understand the make-up of these groups and what effect they are having on your team or organization.

A manager can increase their ability to communicate with employees by recognizing the importance of both formal and informal channels. Engaging with your team in informal settings, for instance at a team lunch, allows you to see different sides of work colleagues. This can also lead to them opening up to you in ways they may not in a formal environment.

Groups Can Encourage Conformity 

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