ndividuals form groups. They live in groups. They move in groups. They work in groups. Groups are important. They influence work and work behavior. They cannot be ignored. They exert significant influence on the organization. They are inseparable from organization. They are useful for the organization. They form foundation of human resources. The study of group behavior is important. Individual and group behavior differs from each other. Group behavior affects productivity. The importance of group behaviour has been realized from time to time. Elton Mayo and his associates way back in 1920 conducted the famous Hawthorne experiments and came to know that the group behaviour have major impact on productivity.An individual’s work, job satisfaction and effective performance is influenced by the group in which he moves. At lower level of the organisation it is the small groups of employees work as a team. They have the responsibility to finish a task assigned to them within a stipulated period of time. If they come across a problem they tackle it by themselves. They get guidance from senior fellow workers in solving the problem and accomplishing it. It is needless to say that groups are important in employee’s life. They spend increasing proportion of time with the group at workplace.