What is the phenomenon called when individuals reduce their work output when in a group setting?

The phenomenon described is known as social loafing. This occurs when individuals exert less effort when working in a group compared to when they work alone. The underlying reason for social loafing often involves a diffusion of responsibility, where individuals feel less accountable for the group's output, leading them to contribute less.

In group situations, people may also assume that others will pick up the slack, resulting in decreased motivation to fully engage. This behavior is particularly pronounced in larger groups where individual contributions can become less visible or perceptible, encouraging even further reduction in effort. Understanding social loafing is crucial for fostering effective teamwork and collaboration, as it highlights the importance of clear roles and accountability within groups to ensure optimal performance.