what is an ingroup and why should I care?

what is an ingroup & outgroup?

The social dynamics within a business can have a profound impact on its performance and success. One key aspect of this is the division between ingroups and outgroups within the organization. Ingroups, which are groups that individuals strongly identify with, can provide a sense of belonging and social support. Outgroups refer to groups that individuals do not identify with or feel a strong connection to. This often manifests in our common language as the well known ‘us‘ and ‘them’.

why does it matter to my business?

The presence of distinct ingroups and outgroups can lead to conflicts, biases, and a lack of cohesion that can hinder business outcomes. Businesses that are able to foster a unified culture and minimize the division between ingroups and outgroups often demonstrate stronger performance and more favorable objective business measures compared to those with a more fragmented workforce.

Existing research suggests that businesses with a more united, integrated culture tend to outperform those that are divided by ingroup and outgroup thinking. When employees feel a strong sense of belonging to the organization as a whole, they are more likely to collaborate, communicate effectively, and work towards common goals.

In contrast, companies with a fragmented culture where there are distinct ingroups and outgroups often struggle with issues such as competition for resources, lack of trust, and a lack of psychological safety. This can lead to lower productivity, poorer decision-making, and a less innovative work environment. [1] On the other hand, a sense of the ingroup can contribute to personal integrity and well-being. [2]

references

[1] R. L. Greenbaum, J. Bonner, M. B. Mawritz, M. M. Butts and M. B. Smith, "It is all about the bottom line: Group bottom‐line mentality, psychological safety, and group creativity".

[2] J. Correll and B. Park, "A Model of the Ingroup as a Social Resource".