Thank you for the reply - Outlook 2013 is auto configured and we do see the GAL listings in the dialog as shown in your screen shot.
What my users are asking for is to see the Directory group in Outlook 2013, like they do in OWA. Basically, the same info in the GAL dialog, but displayed as a group listing on the left as it is in OWA.
The only method I've found is to manually add contacts from the GAL to the users personal contacts, but that is a manual process for each individual.