This study investigated the differential effects of task design and re
ward 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 mode
rate their responses to interdependence at work. An intervention in th
e reward system at a large U.S. corporation created group, individual,
and hybrid rewards for 150 existing teams of technicians that had gro
up, hybrid, or individual tasks. Groups performed best when their task
s and outcomes were either pure group or pure individual. Hybrid group
s performed quite poorly, had low-quality interaction processes, and l
ow member satisfaction. Task and outcome interdependence affected diff
erent 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 ta
sk and reward interdependence but, instead, were themselves influenced
by the amount of interdependence in the work. These findings have imp
lications for the design of work and reward systems for work groups.