Being Different Yet Feeling Similar: The Influence of Demographic Composition and Organizational Culture on Work Processes and Outcomes

Drawing from self-categorization theory, we tested hypotheses on the effects of an organization's demographic composition and cultural emphasis on work processes and outcomes. Using an organizational simulation, we found that the extent to which an organization emphasized individualistic or collectivistic values interacted with demographic composition to influence social interaction, conflict, productivity, and perceptions of creativity among 258 MBA students. Our findings suggest that the purported benefits of demographic diversity are more likely to emerge in organizations that, through their culture, make organizational membership salient and encourage people to categorize one another as having the organization's interests in common, rather than those that emphasize individualism and distinctiveness among members.