INTERDEPENDENCE AND GROUP EFFECTIVENESS

This study investigated the differential effects of task design and reward system design on group functioning; the effectiveness of ''hybrid'' groups, in which groups' tasks and/or rewards have both individual and group elements; and how individuals' preferences for autonomy moderate their responses to interdependence at work. An intervention in the reward system at a large U.S. corporation created group, individual, and hybrid rewards for 150 existing teams of technicians that had group, hybrid, or individual tasks. Groups performed best when their tasks and outcomes were either pure group or pure individual. Hybrid groups performed quite poorly, had low-quality interaction processes, and low member satisfaction. Task and outcome interdependence affected different aspects of group functioning: Tasks influenced variables related to cooperation, while outcomes influenced variables related to effort. Individuals' autonomy preferences did not moderate the effects of task and reward interdependence but, instead, were themselves influenced by the amount of interdependence in the work. These findings have implications for the design of work and reward systems for work groups.