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This article examines the effect of communication media on group processes and the consequent effect of processes on group cohesiveness, satisfaction, and productivity using mediated regression analysis. Data are based on Straus and McGrath (1994), in which 72 three-person groups worked on idea generation, intellective, and judgment tasks in either computer-mediated (CM) or face-to-face (FTF) discussions. Straus and McGrath found that in comparison to FTF groups, CM groups were less productive across tasks and expressed lower satisfaction in the judgment task. This article adds to findings about group outcomes by showing that CM groups expressed lower cohesiveness than did FTF groups. Analysis of communication processes shows that CM groups had higher proportions of task communication and disagreement and greater equality of participation. In contrast to prior reports that people using electronic communication are depersonalized, CM groups did not engage in more attacking behavior and they exchanged higher rates of supportive communication than did FTF groups. Mediated regression analysis reveals that the group process accounted for the effect of communication mode on cohesiveness and satisfaction but not on productivity. Results suggest that media effects on outcomes, as well as on processes such as task focus and equality of participation, are due to the rates by which CM and FTF groups operate and not necessarily because of any inherently depersonalizing feature of electronic communication.