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Models of group process propose that stressful social environments develop when there is a lack of consensus among group members about issues of relevance to the group. Based on these models, we expected that levels of consensus would be positively related to the average levels of psychological well-being in naturally occurring work groups. An examination of data from 3,546 respondents within 73 work groups revealed that levels of consensus about leadership and peer relations were positively related to the average psychological well-being of the group members, even after controlling for absolute level effects and covariates. In contrast, levels of consensus were not related to the average psychological well-being of group members when identical analyses were conducted using pseudogroups.