Subgroup formation and team climate in culturally diverse work teams

While organisational policies and practices may have opened the door to diverse individuals, exclusion due to the tendency of people to form subgroups based on perceived interpersonal similarities and dissimilarities still prevents many individuals and teams from reaching their full potential. Cultural diversity is a salient characteristic upon which these subgroups are often formed. Using research from the social psychology and organisational behaviour literature a model is developed that depicts the inclusiveness versus exclusiveness of a team’s climate, the responses of culturally similar and dissimilar team members toward their team and team performance as being dependent on the tendency of both culturally similar and dissimilar team members to form subgroups. It is proposed that when individuals engage in group segmentation a team is likely to have an exclusive team climate which will have a negative impact on both team and individual level outcomes. Conversely, when team members do not engage in group segmentation, it is proposed that the team is likely to have an inclusive team environment which will have a positive impact on both team and individual level outcomes. This model is an important development in the literature as it provides some guidelines to management professionals as to considerations for the selection, training and development of culturally diverse work teams