
MatthewH.10249 (State of Iowa) asked a question.
We have an Okta group that is intended to be used by one specific application and we would like the users assigned to this group to have the ability to manage user assignments for this same group. It looked to be possible at first as we were able to make the group a "group membership administrator" of itself. Doing this did indeed make the assigned users admins in Okta and they could see the specific group but the "Assign People" button was grayed out on the "People" tab of the group. Any suggestions on how to make something like this work?
NOTE: If we remove a user from the group and directly make the user a "group membership administrator" the "Assign People" button is still grayed out. The only way to get the button to work is by removing the group from being a "group membership administrator" which seems like a bug to me since the user was no longer in the group yet still could not manage the

To address the first part of your post: Group Membership Administrator is an administrative role and only super admins can manage groups with administrative roles (https://help.okta.com/en/prod/Content/Topics/Security/administrators-group-membership-admin.htm). Therefore, even though you can assign your group to the role, the group members won't be able to manage the group. I ran into this same limitation myself a few months ago.
As for your note, that may be a bug but since the group assignment doesn't work as expected and you had to remove the group anyway, is it worth pursuing? If you believe it is, open a ticket with support. Best regards!