AI Article Synopsis

  • Increasing ethnic diversity in teams has mixed effects on performance, leading to contradictory findings in research.
  • The role of leaders is crucial; those who are visionary but also categorize team members can harm communication and performance in diverse teams.
  • In contrast, visionary leaders who avoid categorization can enhance outcomes for ethnically diverse teams, supported by a study conducted in 100 retail outlets.

Article Abstract

Despite the increasing prevalence of ethnic diversity, findings regarding its effects on team performance remain contradictory. We suggest that past inconsistencies can be reconciled by examining the joint impact of leader behavior and leader categorization tendencies in ethnically diverse teams. We propose that leaders who exhibit high levels of visionary leader behavior and also have the tendency to categorize their team members into in- and out-groups will facilitate a negative effect of ethnic diversity on team communication and financial performance, whereas leaders who exhibit visionary behaviors but do not tend to categorize will lead ethnically diverse teams to positive outcomes. We find support for these ideas in a study of 100 retail outlets.

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http://dx.doi.org/10.1037/a0025583DOI Listing

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