Final answer:
Social loafing is the phenomenon where individuals exert less effort in a group setting when their individual performance is not evaluated separately from the group.
Step-by-step explanation:
When people work in groups and their individual performance cannot be evaluated separately from the group, they may exert less effort, causing a decline in performance. This phenomenon is referred to as Social Loafing. It involves a reduction in individual output on tasks where contributions are pooled and individuals become less motivated to perform well because their efforts are not evaluated.