Yes, you can create contact groups by accessing your Google Apps contacts picker, and then creating a New Group. Your contact group then appears in your personal contacts manager under Contacts in Google Apps.
1. Click Gmail at the top-left corner of your Gmail page, then choose Contacts.
2. Select New group. (You may need to click on Groups to see this option.)
3. Enter a new group name in the text box, and then click Create group.
4. Then click on the Add person icon to add a contact to the group.
5. You may add a person to the group at any time when you are viewing the group.
Learn More at Google Help Center
Creating Contact Groups