How does a supervisor initiate in-group or out-group relationships with subordinates? The decision may be based on personal compatibility and subordinate competence. Assignment into a group is based on the results of the supervisor’s least-preferred coworker scale. Subordinates are allowed to move freely between the in-group and out-group. Newer employees comprise the in-group until they learn their jobs, at which point they transfer to the out-group. The relationships develop in a random, unpredictable fashion. See Answer The decision may be based on personal compatibility and subordinate competence.