Factors of Group Formation:

Group refers to the relationship of two or more persons working together for the achievement of common goal.
Jennifer and Gareth have defined a group as set of two or more people who interact with each other to achieve
certain goals or to meet certain needs.
Group communication and their initiation towards common goal are very important fundamentals of group. The
interaction proves that regular negotiations and communication may influence the behaviour of the group members.
In addition to this, the group members may be of the same opinion to achieve some common goals which is termed
as group goal. The group goal connects the members together for making effort in the direction of realisation of the
goals effectively and efficiently.
1. Psychological Factors : After associating in a particular organisation, a person joins a particular group in which
he/she finds him/her interest, attitude, personality, perception etc. corresponding with other individuals within the
department or the organisation. Thus a group is formed.

2. Social Factors : Persons also form or join the group depending upon their social class, caste, and religion to
satisfy their social needs. They do it mainly to satisfy their love, affection and care needs, which at first they think
that they are deprived of after leaving their families.

3. Security Factors : When a person feels insecure over astonishing developments such as sudden health problem,
termination, suspension, local problems etc., consequently, everyone likes to be in a group to feel secured to work.
Particularly in a new place of work, a new employee needs more security cover than the existing ones and thus it
also becomes one of the reason to join the existing group for security.

4. Economic Factors: When persons work in an organisation, they get every type of economic incentives and
benefits available within the rules and regulations. At times organisations cannot meet up an individual’s unintended
or obligatory needs like money for marriage, house construction, medical care and other proposes. Therefore they
try to be associated with those people who will help them at the time of need.

5. Cultural Factors : Persons who are coming to work from various societies and culture. It so happens when their
place of work is far from their place of origin, region and culture; they do not feel comfortable at work. The reason
could be the absence of cultural celebrations. This is also one of the reasons for which individuals coming from same
culture, tradition and speaking similar language usually form the group.