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Go to the second Workspace and if you are a coordinator you can add participants - the available participants will be the group you have created - add the users as normal to the Workspace and you will be all set.
But the problem I am facing is this.
When I add a user to the group, they are automatically added to Workspace 1. The goal was to add user to Workspace 2 without adding them to Workspace 1.
What you are trying to do is have 2 Workspaces drawing members from one group and that is OK if and only if the master workspace - matching the group name is going to hold all the users and only a subset of them will be in Workspace 2. If you wnat workspace 2 to have users that are not in workspace 1 then you will have to create another group and use that to populate the Workspace 2.