Final answer:
A formal reward system can either create competition or foster collaboration within a group, depending on its structure and the type of rewards. Well-aligned reward systems can enhance group cohesiveness, while those that promote individualism can decrease it. The influence of such systems also depends on cultural contexts and the nature of the group.
Step-by-step explanation:
The formal reward system can significantly influence group cohesiveness in various ways. For example, it can create competition among team members if the rewards are based solely on individual accomplishments, potentially leading to reduced cooperation and weakened group unity. This would correspond to answer choice A: It creates competition among team members. On the other hand, when the formal rewards system is structured to promote and recognize the achievements of the group as a whole, it can foster a more collaborative and cohesive group environment. This aligns with answer choice B.
Individual performance often varies based on whether a reward is expected or given as a surprise. Rewards that are expected can diminish intrinsic motivation , while unexpected rewards may maintain it. Furthermore, group leaders offering incentives, such as solidary incentives or material incentives, can also play a crucial role in promoting group cohesiveness and overcoming the free rider problem.
However, the impact of a formal reward system on group cohesiveness can vary greatly depending on the nature and structure of the reward system, the type of group, and cultural contexts. Formal reward systems that align well with the goals and structure of a group can enhance cohesiveness, while poorly aligned systems can do the opposite.