Group dynamics is a term used to describe the behaviors and psychological processes that occur within a social group or between social groups. It is the study of how people interact with each other in small groups, and how different factors can facilitate cohesion and cooperation, leadership efficacy, and how groups interact with outside groups. Group dynamics can be divided into two categories: intragroup dynamics and intergroup dynamics. Intragroup dynamics refers to the underlying processes that give rise to a set of norms, roles, relations, and common goals that characterize a particular social group. Examples of groups include religious, political, military, and environmental groups, sports teams, work groups, and therapy groups. On the other hand, intergroup dynamics refers to the behavioral and psychological relationship between two or more groups, including perceptions, attitudes, opinions, and behaviors towards ones own group, as well as those towards another group.

The dynamics of a particular group depend on how one defines the boundaries of the group. Often, there are distinct subgroups within a more broadly defined group. For example, one could define U.S. residents (Americans) as a group, but could also define a more specific set of U.S. residents (for example, Americans in the South). For each of these groups, there are distinct dynamics that can be discussed.

Group dynamics studies the nature, formation, and reasons for forming the groups. It studies how groups affect the behavior and attitude of members and the organization. If groups are effectively managed, they contribute a lot to organizational goals. Group dynamics can play a significant role in how individuals perform their jobs or meet goals. It is an important aspect of organizing and can be used as a means for solving any sort of problem, influencing teamwork, and becoming more innovative and productive as an organization.