This research investigates the effects of negative social cues on worker quantitative task performance, internal work motivation, and job satisfaction. Negative social cues may create an effect similar to a class of social dilemma phenomena in small groups known as the "sucker effect." The sucker effect was originally identified as a particular form of social loafing and stems from the perceptions that others in the group are withholding, or intend to withhold, effort. Individuals who hold this perception then withhold effort themselves to avoid being played for a "sucker" Although most social loafing research has examined the sucker effect in situations where individuals performed additive or disjunctive tasks, this experimental research investigates the degree to which the sucker effect occurs among individuals working in co-acting groups. Two common managerial strategies, goal setting and punishment, are examinedfor their ability to reduce the sucker effect. The results show that the sucker effect does occur in co-acting groups and that both punishment and goal setting may be used to reduce it. Further, goal setting was a more effective strategy than punishment.