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The principles of group development, formation of group structure, and functioning of informal, natural groups as a background and context for the study of the behavior of formal organizations are reviewed. It is the first of five literature reviews of scientific investigations of group behavior, isolation, and stress, focused on the problems of organization, management, supervision, and human relations at AC+W sites in the Alaskan Air Command. Emphasis is placed here on the basic processes of group formation, development of group structure, social power (and leadership), communication of information, and group norms as regulators of behavior. Implications for military commanders are discussed from the view-point that the military commander, at every level, is an appointed leader who must exploit principles of human behavior effectively in order fully to realize his role and accomplish his mission.