ABSTRACT

Members of work groups often encounter a conflict between maximizing individual interests (defection) or working for the good of the team as a whole (cooperation). This is particularly true in organizations that have adopted work groups as a basic organizational unit. For instance, a member in a research project team must decide how much time and effort to devote to a project to make it successful. On the one hand, the member can choose not to do anything about the project, hoping others will do all the work so that she can enjoy the benefits of success at minimal cost. On the other hand, if every member chooses to do so, the project will fail and no one benefits from it. Motivating members to work hard for the group project is a major concern for many managers and supervisors in organizations, especially with the increasing emphasis on the importance of teams for organizational success in the modem economy.