Decision performance and diversity structure: Comparing faultlines in convergent, crosscut, and racially homogeneous groups

Abstract Group diversity structure (the composition of racial and job-function diversity) and pre-discussion decision effects on group decision accuracy were tested in three-person groups. Evidence supported the social categorization model and the notion of multiple faultlines (i.e., subgroup boundaries). Crosscut diversity structure, where racial and job-function subgroup boundaries are crossed, weakened faultlines, enhanced information sharing and improved decision-making. Our data also supported the common knowledge effect. Groups in which members made pre-discussion choices arrived at incorrect decisions consistent with majority members’ pre-discussion preferences, based on a biased subset of information. Crosscut groups in which members did not make pre-discussion choices performed the best. Analyses of video taped interactions and attitudes toward the group help to explain these differences. We discuss the implications for managing demographically diverse groups and for future research on the impact of various attributes of diversity in groups.