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This article examines the use of team‐based discipline in performance management, with a view toward incorporating literature on punishment and discipline in the context of team dynamics. Using the Arvey and Jones four‐stage model of discipline as the starting point, the article develops a set of propositions regarding differences between discipline in traditional work designs and team‐based discipline. Stage one involves member observation of the rule infraction. Stage two is team determination – whether to ignore or to punish the transgression. Stage three is the choice of discipline method, and stage four involves the employee's perception of the disciplinary action (as well as the perceptions of teammates). Finally, the article concludes with some suggestions for the effective use of team‐based discipline.

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