WHENEVER AN ORGANIZATION IS FACED WITH THE RESOLUTION OF COMPLEX AND UNIQUE PROBLEMS, WHETHER ROUTINELY OR PERIODICALLY, A TEAM APPROACH IS BEST. TEAM BUILDING IS A STRATEGY TO DEVELOP SKILLS AND BEHAVIORS THAT FACILITATE TEAM FUNCTIONING. ORGANIZATIONAL DEVELOPMENT REFERS TO A PLANNED AND SUSTAINED EFFORT OF APPLYING BEHAVIORAL SCIENCE KNOWLEDGE FOR IMPROVING ORGANIZATIONS. WHEN ORGANIZATIONAL DEVELOPMENT IS ATTEMPTED THROUGH TEAM BUILDING, THE UNDERLYING PREMISE IS THAT EACH ORGANIZATION OR SUBUNIT WITHIN AN ORGANIZATION HAS THE REQUISITE RESOURCES, KNOWLEDGE, AND SKILLS TO SOLVE ITS OWN PROBLEMS. THE TASK OF TEAM BUILDING IS NOT SO MUCH TO CREATE RESOURCES AS IT IS TO UTILIZE RESOURCES. IN TAKING A POSITIVE APPROACH TO HUMAN BEHAVIOR IN ORGANIZATIONS, TEAM BUILDING ASSUMES THAT PEOPLE ARE CAPABLE OF AND CAN BE MOTIVATED TO IMPROVE THEIR OWN ORGANIZATION. TEAM BUILDING ADVOCATES THE OPEN CONFRONTATION OF CONFLICT AS A CATALYST FOR PROBLEMSOLVING. A SERIES OF BRIEF BUT CAREFULLY PLANNED INTERVENTIONS COMPROMISES TEAM BUILDING AS A PLANNED CHANGE PROCESS. PHASES OF TEAM BUILDING EMPLOYED IN THE MICHIGAN CRD PROJECT INVOLVING HALFWAY HOUSES INCLUDE PLANNING AND ENTRY, STAFF ORIENTATION, ASSESSMENT AND EVALUATION, TEAM CONCEPTS WORKSHOP, DATA ANALYSIS AND PROBLEM IDENTIFICATION, PROBLEMSOLVING, AND REASSESSMENT AND REEVALUATION. THE FOLLOWING CAN BE EXPECTED FROM ORGANIZATIONAL DEVELOPMENT THROUGH TEAM BUILDING: ESTABLISHMENT OF GOALS AND OBJECTIVES, STAFF COMMITMENT TO GOALS AND PROCEDURES, EFFECTIVE USE OF LEADERSHIP AND AUTHORITY, KNOWLEDGE OF WHEN TO MAKE DECISIONS, EFFECTIVE PROBLEMSOLVING, IMPLEMENTATION AND FOLLOWTHROUGH ON ACTION PLANS, ROLE DEFINITIONS AND ROLE OVERLAP, EFFECTIVE UTILIZATION OF STAFF, MANAGEMENT OF STAFF CONFLICT AND DEVELOPMENT OF COOPERATION, TRUST BETWEEN STAFF, AND EFFECTIVE WORK RELATIONS BETWEEN AN ORGANIZATION AND OTHER ORGANIZATIONS. REPORTED CHANGES MADE AT SIX HALFWAY HOUSES IN THE MICHIGAN CRC PROJECT ARE LISTED. (DEP)