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Hogwarts School of Witchcraft and Wizardry is divided into four houses, each bearing the last name of its founder: Godric Gryffindor, Helga Hufflepuff, Rowena Ravenclaw and Salazar Slytherin. The Sorting Hat places students into Houses based on their personal traits.
There are four Houses at Hogwarts, each named after the founders of the school -- the four greatest witches and wizards of the age. At the beginning of the year, the first year students place the Sorting Hat on their head and it will sort them into the House they will belong to for the rest of their time at Hogwarts.