THE EFFECTS OF COMPETITION ON THE DECISION QUALITY OF DIVERSE AND NONDIVERSE GROUPS

Research has validated that intragroup cooperation, rather than compet ition, produces more positive group interaction and interpersonal acce ptance which leads to better performance. The unique values of cultura lly diverse group members, however, may influence group processes and performance if these group members respond differently to situational cues. Research on the interaction between cultural diversity and compe titive team situations would benefit organizations that employ an incr easingly diverse work force. The primary purpose of this study is to e xplore the effects of cultural diversity on group performance and grou p processes by comparing culturally diverse and culturally nondiverse groups under conditions of intergroup competition and noncompetition. This experiment was conducted using 500 upper-level undergraduate stud ents enrolled in a principles of management course at a large universi ty in the southwestern United States. The results of this experiment i ndicate that the competitive nondiverse groups performed better than d id the noncompetitive diverse groups in terms of quality of performanc e. Results also suggest that both the culturally diverse and culturall y nondiverse groups outperformed their best individual members' scores when they were matched with competitive situations that enhanced thei r innate group processing styles. Organizations can increase their eff ectiveness by appreciating that diverse and nondiverse groups respond differently under conditions of competition and noncompetition.