That definition is either wrong (as written) or rather misleading. Here is the usual definition:
A group is a set $G$ with a law of composition $\cdot: G^2 \to G$ such that
- Identity: there is an element $1\in G$ which satisfies $g\cdot 1 = 1\cdot g=g$ for all $g\in G$
- Inverse: for every $g\in G$ there is an element $h\in G$ such that $g\cdot h=h\cdot g = 1$ (this element is unique and is usually written $g^{-1}$)
It is sometimes convenient to write a group as a quadruple $(G,\cdot,-^{-1},1)$.
An example of a group is the group of bijections $\mathrm{Sym}(T)$ on a set $T$, with the law of composition given by function composition. The identity is exactly the identity map $\mathrm{id}_T$ and the inverse of a bijection $f: T \to T$ is exactly the inverse map $f^{-1}: T \to T$.
There are certainly groups which are not of the above form. One way of seeing this is that for $|T|>2$ the group $\mathrm{Sym}(T)$ is not Abelian, meaning that the law of composition is not commutative. This is because given distinct elements $x,y,z\in T$, we can define bijections $f_1,f_2: T\to T$ by
$$f_1(x)=y,f_1(y)=x, f_1(w)=w \quad \text{for $w\in T\setminus\{x,y\}$}$$
$$f_1(y)=z,f_1(z)=y, f_1(w)=w \quad \text{for $w\in T\setminus\{y,z\}$}$$
In other words, $f_1$ switches $x$ and $y$ and leaves everything else fixed, and $f_2$ switches $y$ and $z$ and leaves everything else fixed. Then
$$(f_1\circ f_2)(y) = f_1(f_2(y))=f_1(z)=z$$
$$(f_2\circ f_1)(y) = f_2(f_1(y))=f_2(x)=x$$
are unequal, so $f_1\circ f_2 \neq f_2 \circ f_1$.
However, $\mathbb{Z}$ with addition is Abelian, so it can't be of the form $\mathrm{Sym}(T)$ for any set $T$.
What is true, however, is that every group is (isomorphic) to a subgroup of $\mathrm{Sym}(T)$ for some set $T$. This is known as Cayley's Theorem.
By subgroup of a group $(G,\cdot,-^{-1},1)$ we mean a subset $H\subset G$ for which $H$ is closed under $\cdot$ and taking inverses, and contains $1$.
Given a group $(G,\cdot,-^{-1},1)$, consider $\mathrm{Sym}(G)$. We then associated each element $g\in G$ to the function $\tau_g: G \to G$ defined by $\tau_g(h) = g\cdot h$. This is invertible, since $\tau_g \circ \tau_{g^{-1}} = \mathrm{id}_G$. More generally, $\tau_g \circ \tau_h = \tau_{g\cdot h}$. This allows us to treat $G$ like a subgroup of $\mathrm{Sym}(G)$.