This study examined the interactive effect of management by group goals and job interdependence on employee's activities in terms of task and contextual performance. A survey was conducted among 140 Japanese employees. Results indicated that management by group goals was related only to contextual performance. Job interdependence, however, had a direct effect on both task and contextual performance. Moreover, moderated regression analyses revealed that for work groups requiring higher interdependence among employees, management by group goals had a positive relation to contextual performance but not to task performance. When interdependence was not necessarily required, however, management by group goals had no relation to contextual performance and even negatively impacted task performance, respectively. These results show that management by group goals affects task and contextual performance, and that this effect is moderated by job interdependence. This provides a theoretical extension as well as a practical application to the setting and management of group goals.
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