Today's educators are faced with the challenge of preparing undergraduate students to be productive employees who can communicate effectively, work well in teams, and solve problems, as well as demonstrate content knowledge. Group projects are one tool that educators can use to help students develop these key skills. Educators may be tempted to try client-based projects in which students consult with real companies, an approach that may involve extensive preparation for the faculty member, or opt instead for a less labor-intensive option, such as having students work on hypothetical problems for established companies. Faculty must decide what type of project will most benefit their students and, at the same time, will not be too complex to administer. In this article the authors discuss literature regarding group projects using real world clients (client-based learning) and they empirically test whether the nature of the project has any influence on how the students perceive the project as a motivational tool, a learning device, and a contributor to their skill development, and the personal benefits they receive from completing the project. Understanding these issues will help instructors to better design and administer group projects.

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