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5.5 Key Diversity Theories

3 min readjune 24, 2024

Diversity theories shape how organizations handle differences among employees. promotes innovation, while similarity-attraction fosters cohesion. These concepts influence team dynamics, decision-making, and overall performance in the workplace.

Social identity and schema theories explain how people categorize and perceive others. These frameworks impact interactions, biases, and group dynamics in diverse settings. The reveals when prejudices surface, affecting organizational culture and employee experiences.

Diversity Theories and Their Impact on Organizations

Cognitive diversity vs similarity-attraction

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  • Cognitive diversity hypothesis suggests diverse groups possess wider range of knowledge, skills, and perspectives enhances problem-solving and decision-making capabilities leads to increased creativity and innovation (brainstorming sessions, cross-functional teams)
  • proposes individuals are attracted to and prefer working with others who are similar to themselves results in homogeneous groups that may experience better communication and cohesion but lack diverse perspectives and suffer from (hiring practices, team formation)
  • Impact on group performance cognitive diversity can lead to improved performance due to increased range of ideas and solutions (product development, strategic planning) while similarity-attraction can lead to better communication and faster decision-making in the short term but diverse groups may face initial challenges in communication and cohesion can outperform homogeneous groups in the long run (marketing campaigns, customer service)
    • within an organization can significantly influence the effectiveness of diverse teams and their ability to leverage cognitive diversity

Social identity vs schema theories

  • suggests individuals categorize themselves and others into social groups based on characteristics such as race, gender, or age people tend to favor their in-group and may discriminate against out-groups can lead to and conflict in diverse organizations (team dynamics, leadership)
  • proposes individuals use mental frameworks to organize and interpret information about others based on past experiences, stereotypes, and cultural norms can lead to biased perceptions and expectations of others in diverse organizations (performance evaluations, promotions)
  • Influence on perceptions and interactions both theories explain how people process information and form judgments about others social identity theory emphasizes group membership and intergroup dynamics (employee resource groups, diversity training) while schema theory focuses on individual-level cognitive processes and biases both can contribute to misunderstandings, stereotyping, and discrimination in diverse workplaces (, )
    • recognizes that individuals may belong to multiple social identity groups simultaneously, influencing their experiences and interactions in complex ways

Justification-suppression model in prejudice

  • Justification-suppression model explains how and when people express or suppress prejudiced attitudes and behaviors assumes that people hold both genuine prejudices and a desire to maintain a non-prejudiced self-image
  • Justification factors are social norms, roles, or situations that allow individuals to express prejudice without appearing biased examples include
    1. Organizational culture that tolerates discrimination
    2. Lack of diversity policies
    3. Ambiguous situations (subjective performance evaluations)
  • Suppression factors are personal standards, values, or beliefs that motivate individuals to suppress prejudiced attitudes and behaviors examples include
    1. Egalitarian values
    2. Fear of social disapproval
    3. Strong organizational diversity policies (zero-tolerance policies)
  • Acting on prejudices in the workplace prejudiced attitudes are more likely to be expressed when justification factors are strong and suppression factors are weak individuals may discriminate when they can attribute their actions to factors other than prejudice justification>suppressionjustification > suppression prejudice is more likely to be suppressed when organizational norms and personal values strongly discourage discrimination suppression>justificationsuppression > justification

Psychological Processes in Diverse Environments

  • occurs when individuals from underrepresented groups are present in small numbers, leading to increased visibility, pressure, and potential isolation
  • is the fear of confirming negative stereotypes about one's social group, which can negatively impact performance and well-being in diverse settings
  • suggests that under certain conditions, increased contact between different groups can reduce prejudice and improve intergroup relations in diverse organizations
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.

© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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