What makes a group an out group or an in group?

This is because the leader-member exchange theory “conceptualizes leadership as a process that is centered on the interactions between leaders and followers.” (Northouse, 2013, p. 8) These interactions between the leaders and followers lead to relationships within the group that can be defined as either a part of an in-group or out-group.
In respect to this, what do you mean by in Group and out group?
What are In-Groups and Out-Groups? The terms “in-group” and “out-group” are social science terms. In this context: An “in-group” is a group you are part of (genetically, culturally, or ideologically), while an “out-group” is a group you aren’t part of. More specifically, our in-group is a group we are a part of or identify with (genetically, ...
Next, why are outgroup members more similar than ingroup members? So not only does this initial encoding process dehumanize outgroup members, it also contributes to a homogeneity effect, whereby outgroup members are perceived as more similar to each other than ingroup members. Categorization of people into social groups increases the perception that group members are similar to one another.
Just so, what makes a group different from other groups?
A group is a collective of mutually independent individuals with separate goals who are brought together by common interests and experience. Even though everyone shares information and resources with other group members, each member is responsible for their own work. There are two types of groups:
One may also ask, how does the out group effect affect the in group?
An outcome of this is the out-group homogeneity effect. This refers to the perception of members of an out-group as being homogenous, while members of one's in-group are perceived as being diverse, e.g. "they are alike; we are diverse”.

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