A field study of group diversity, workgroup context, and performance

Abstract We explore how the context of an organizational workgroup affects the relationship between group diversity and various performance outcomes. In particular, we theorize and empirically examine the moderating effects of three categories of workgroup context variables: cultures (people‐ and competition‐oriented), strategies (stability‐, growth‐ and customer‐oriented), and human resource practices (diversity‐ and training‐oriented). We perform analyses on 1528 workgroups from a Fortune 500 information‐processing firm. The results showed, for example, that members of groups diverse in functional background were paid higher composite bonuses when their workgroup context emphasized people‐oriented cultures and lower levels of bonuses in contexts with a focus on stability‐oriented strategies. In addition, members of groups diverse in level of education were awarded higher amounts of bonuses in workgroup environments that emphasized customer‐ and growth‐oriented strategies. However, members of such groups had lower levels of composite bonuses in environments that focused on training‐ and diversity‐oriented human resource practices. We discuss future research directions regarding diversity, workgroup context, and performance outcomes and outline some implications for managers and group leaders. Copyright © 2004 John Wiley & Sons, Ltd.