As it is affecting all facets of the economy, these topics have witnessed increased attention at present. Stahl, et.al (2009) did a meta analysis in unravelling the effects of cultural diversity in teams: A meta-analysis of research on multicultural work groups. They hypothesized that task complexity and structural aspects of the team, such as team size, team tenure and team dispersion, moderate the effects of cultural diversity on teams. They tested the hypotheses with a meta-analysis of 108 empirical studies on processes and performance in 10,632 teams. Results suggest that cultural diversity leads to the process losses through task conflict and decreased social integration, but to process gains through increased creativity and satisfaction. The effects are almost identical for both levels and types of cultural diversity. Moderator analyses reveal that the effects of cultural diversity vary, depending on contextual influences, as well as on research design and sample …show more content…
The study suggests that organizations' ability to attract, retain, and motivate people from diverse cultural backgrounds, may lead to competitive advantages in cost structures and through maintaining the highest quality human resources. Further capitalizing on the potential benefits of cultural diversity in work groups, organizations may gain a competitive advantage in creativity, problem solving, and flexible adaptation to change.
Pelled et.al (1996) argued that diversity attributes such as functional, educational, or industrial background to capture experiences and perspectives relevant to the tasks performed by most work groups and these factors play vital role in undermining the team’s performance, as all the members are from different culture and everyone wants to perform the tasks in one’s own