We consider the problem of tracking a group of mobile nodes, which have limited computational and energy resources, using noisy RSSI measurements and position estimates available within the group. Existing solutions such as clusterbased GPS duty-cycling, individual tracking, and multilaterationbased localization and tracking can only partially deal with the challenges of dynamic grouping scenarios where neighbourhoods and resource availability may frequently change. To efficiently cope with these challenges, we propose a new group-based multi-mode tracking algorithm. The proposed algorithm takes the group size and resource availability into consideration and determines the best solution at any particular time instance. We consider a clustering approach where a cluster head assigns the task of GPS activation and coordinates the usage of resources among the cluster members. We evaluate the energy-accuracy trade-off of the proposed algorithm for various fixed sampling intervals. The evaluation is based on the 2D position tracks of 40 nodes simulated using Reynolds' flocking model. For a given energy budget, the proposed algorithm reduces the mean tracking error by up to 20% in comparison with the existing energy-efficient cooperative algorithms. Moreover, the proposed algorithm is as accurate as the individual-based tracking while using around 50% less energy.