One of the most important differences between American and Japanese cultures is the difference in group interaction. The Japanese have been described as group-oriented and Americans as individualistic. In Japan, groups are hierarchical and usually make decisions by consensus. Japanese groups play an important role in the lives of their members, and the same group may serve several purposes. In contrast, American groups are less hierarchical, and decisions are usually made by voting or by an appointed person. Purposes of groups tend to be compartmentalized, i.e. each group serves only one main purpose. This paper offers an examination of various types of groups, including the family, clubs, the university, and the company, in order to bring details of their contrasting characteristics and interaction styles to light. Americans and Japanese working together in groups should learn as much as possible about each other's attitudes, values, and behaviors. Americans need to be more patient while the group arrives at a consensus, and Japanese should make an effort to express their own opinions during the discussion process. (Seventeen references are attached.) (SR)