Meaning of Group A group is a collection of two or more people, those are working together, exchanging ideas. the group plays an important role in our day to day work. we create many formal and informal groups. Basically social groups (families, friends and etc.) comes under informal groups and groups which is made to achieve something or a particular goal are called informal group. Sherif and Sherif (1969) define a group as follows “A group is a social unit which consists of a number of individuals who stand in role and status relationship to one another stabilized in some degree at the time and who possess a set of value or norms of their own regulating their behavior atleast in matter of consequence to the group.” Characteristics of Group Collection of two or more people: groups are collections of two or more people who interact with each other and share their ideas. A single person is not called a group, it requires at least two people.The Goal of Group: In a group, everyone shares common ideas and knowledge. for example members of the sales team has a common interest and goals to discuss. So, every group has its own topic to discuss.Structure: Every Group has a structure which is based on their roles, responsibility and positions held by the members.Role: Every group members have roles and responsibility which is allocated by the group leader or manager.Interaction: Group includes interaction between the group members. it can occur in several ways, i.e. face to face, telephonic, and etc. Importance of Group Improve Mutual understanding: group improve mutual understanding of the employees. because when they work together it helps them to understand the process and goal of the organisation. Improve performance: it improves the performance of the group member. When all group member works together they learn from each other.Brings new ideas: Creating new groups bring new ideas and innovation in the organisation.Developing Future Executives: Informal groups recognise talented workers. which helps the company to identify the future leader.