Self-Categorization Theory is a psychological framework that explains how individuals classify themselves and others into social groups. This process helps people understand their social identity and influences their behavior, attitudes, and perceptions. By categorizing themselves, individuals can identify with specific groups, such as gender, ethnicity, or profession, which shapes their sense of belonging and self-esteem. The theory suggests that self-categorization occurs in different contexts, leading to varying group memberships. For example, a person may identify as a member of a sports team during a game but see themselves as part of a community organization in a volunteer setting. This flexibility allows individuals to navigate complex social environments.