ABSTRACTPrior theoretical research suggests that group cohesiveness can be an important variable in the work, performance equation (Zander 1982; Littlepage, Cowart, and Kerr 1989). Empirical research, however, has not provided evidence of a consistent relationship. Recent developments suggest that groups need to be directed toward the work task if cohesiveness is to increase performance. Otherwise, groups may resort to undesirable behaviors such as excessive socializing. This study uses a multiple group, latent variable structural equations approach to examine the moderating influence of two directive mechanisms. The results suggest that leader initiating structure (an active mechanism), moderates the relationship in the hypothesized direction, but that group rewards (a passive mechanism) do not. Managerial implications and suggestions for future research are also discussed.