Small groups are composed of 2-6 people who interact and influence each other. Groups develop social norms, roles, and status hierarchies. Working in groups can both enhance and impair performance depending on whether the task is simple or complex. Social dilemmas arise when individual and group interests conflict, threatening cooperation. Groups may develop problems like groupthink, where maintaining cohesion takes priority over solutions, or deindividuation, where normal constraints are loosened. Groups tend towards polarization, making more extreme decisions than individuals.