Self-categorization theory is a social psychological theory that describes the circumstances under which a person will perceive collections of people (including themselves) as a group, as well as the consequences of perceiving people in group terms. Although the theory is often introduced as an explanation of psychological group formation (which was one of its early goals), it is more accurately thought of as general analysis of the functioning of categorization processes in social perception and interaction that speaks to issues of individual identity as much as group phenomena.