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Many theories relevant to managing the diverse workforce center on an individual's reactions (such as categorization and assessment of the characteristics of others) to people who are different from the individual. Competing viewpoints attempt to explain how diversity is either harmful or beneficial to organizational outcomes.

The cognitive diversity hypothesis suggests that multiple perspectives stemming from the cultural differences between group or organizational members result in creative problem solving and innovation. The similarity-attraction paradigm and social identity theory hold that individuals' preferences for interacting with others like themselves can result in diversity having a negative effect on group and organizational outcomes. The justification-suppression model explains under what conditions individuals act on their prejudices


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