Abstract: This paper 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 & McGrath (1994), in which 72, 3-person groups worked on idea generation, intellective, and judgment tasks in either computer- mediated or face-to-face discussions. Straus and McGrath found that in comparison to face-to- face groups, computer-mediated groups were less productive across tasks and expressed lower satisfaction in the judgment task. The present paper adds to findings about group outcomes by showing that computer-mediated groups expressed lower cohesiveness than did face-to-face groups. Analysis of communication processes shows that computer-mediated 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, computer-mediated groups did not engage in more attacking behavior and they exchanged higher rates of supportive communication than did face-to-face 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 processes such as task focus and equality of participation are due to the rates by which computer-mediated and face-to-face groups operate and not necessarily because of any inherently depersonalizing feature of electronic communication.