What Are the Group Types in Social Categorization?

Social categorization is a fundamental cognitive process where the human mind classifies people, including oneself, into distinct social groups. This automatic grouping functions as a mental shortcut to simplify the complex social landscape we navigate daily. By sorting individuals into categories based on shared attributes like nationality, occupation, or gender, the mind can quickly make sense of new interactions. This process is largely non-conscious and conserves the mental effort needed to process every person as a unique individual. The resulting framework provides a structure for interpreting social behavior and helps individuals define their place within society.

In-Groups and Out-Groups

The immediate result of social categorization is the creation of two fundamental types of groups: the in-group and the out-group. The in-group is the social group one belongs to and identifies with, such as a local university or a professional association. Membership in this group contributes to an individual’s sense of self-concept and social identity.

Conversely, the out-group consists of any social group to which an individual does not belong. The designation of a group as “in” or “out” is fluid and depends entirely on the context. For example, colleagues form an in-group at a professional conference, but they become an out-group when interacting with family members at a holiday gathering.

The distinction between the two types is psychologically powerful because people tend to derive pride and self-esteem from their group affiliations. This motivation to maintain a positive social identity sets the stage for the cognitive biases that follow categorization.

The Cognitive Basis of Social Grouping

The formation of social groups is driven by the brain’s need for cognitive efficiency, relying on mental shortcuts known as heuristics. By assigning a person to a category, the mind applies broad generalizations instead of conducting a detailed assessment of individual traits. This reliance on categories, however, introduces a distortion in perception known as the accentuation principle.

The accentuation principle causes people to exaggerate the differences between groups while minimizing the differences among members within the same group. For example, members of a rival out-group are perceived as being more similar to one another—a concept called out-group homogeneity—than they are in reality. This cognitive effect amplifies the perceived distinctiveness between “us” and “them.”

Research pioneered by social psychologist Henri Tajfel demonstrated that categorization can occur even based on arbitrary distinctions through the minimal group paradigm. Participants were divided into groups using trivial criteria, such as a preference for one abstract painting over another. The findings showed that the mere act of being categorized is sufficient to trigger in-group favoring behavior, illustrating the automatic nature of the cognitive process.

Outcomes of Categorization

The psychological division into in-groups and out-groups leads to several predictable behavioral and emotional outcomes. One consistent finding is in-group favoritism, the tendency to allocate resources, positive evaluations, or preferential treatment to members of one’s own group over members of an out-group. This preference is strong enough that individuals often choose to maximize the relative advantage of their in-group, even if it means receiving fewer absolute rewards for themselves.

Categorization also directly contributes to stereotyping, which involves generalizing a set of traits or characteristics to all members of a social group. Because the mind emphasizes similarities within a group, it becomes easier to overlook individual personality and instead assign traits based on the group label. This cognitive simplification is often applied more broadly to out-groups.

When in-group favoritism and negative stereotyping are combined, they result in various forms of bias and discrimination. Bias refers to prejudiced attitudes stemming from comparing a favorably viewed in-group against a less-favored out-group. Discrimination is the action taken based on those attitudes, where people treat out-group members unfairly simply because they belong to a different social category.