Abstract
Deutsch (1973) proposed that positive, negative, or independent goal interdependence greatly affects the dynamics and outcomes of interaction, but his theory has had little impact on organizational research. Employees (N = 73) of a municipal engineering organization volunteered to be interviewed and to complete questionnaires about their relationships with peers and supervisor. Both the interview and questionnaire data support Deutsch's theory. Postively linked situations were characterized by optimistic expectations, exchange of resources, low embarrassment, feelings of success, improved relationships, and productivity, compared to negatively linked situations. Independent goals had similar dynamics to negatively linked ones, but there was less embarrassment and hostile feeling.