The Truth About High-Performing Diverse Teams

Workplace diversity is increasingly recognized as a critical driver of innovation and success. A diverse team brings together individuals with different backgrounds, experiences, and perspectives, leading to new and innovative ideas, better decision-making, and improved performance. However, to truly harness the potential of a diverse team, it is essential to foster high levels of social capital among its members.

What is Social Capital?

Social capital refers to the networks, norms, and trust that facilitate cooperation and coordination among individuals and organizations. In the workplace context, social capital can be seen as the level of trust, cooperation, and engagement among team members, directly impacting the team's performance. According to a review of the literature by Francis and Lau (2010), social capital has been linked to improved work outcomes such as job satisfaction, productivity, and creativity.

The Importance of Social Capital in a Diverse Team

Diverse teams bring a wealth of new perspectives, experiences, and skills. However, with high levels of social capital, diverse teams can communicate effectively, collaborate, and build trust. Lack of social capital within teams can lead to reduced engagement, poor decision-making, and, ultimately, reduced performance.

Researchers have conducted numerous studies to understand the impact of social capital on diverse teams. In a study by Cox and Blake (1991), researchers found that high levels of social capital were positively associated with increased Diversity in the workplace. Another study by Jackson, Ruderman, Nesic, Ducharme, and Bricker (2010) found that social capital was critical in promoting workplace diversity and improving team performance.

Moreover, research by Cox and his colleagues (1994) has shown that social capital can play a critical role in overcoming the challenges posed by Diversity. They found that high social capital levels can help mitigate the adverse effects of prejudice and discrimination, leading to better collaboration and improved performance among diverse teams.

Conclusion

In conclusion, the research indicates that high levels of social capital are critical to the success of diverse teams. By fostering trust, cooperation, and engagement among team members, social capital can help to overcome the challenges posed by Diversity and improve the performance of diverse teams. As organizations strive for greater workplace diversity, it is increasingly important to focus on developing high levels of social capital among team members.

Bonus

Please watch the webinar below, where Professor Regan discusses the correlation between Social Capital and the performance of High-performing teams and shares four critical factors on his journey of expanding Equity, Diversity & Inclusion at MIT.

References

Cox, T. H., & Blake, S. (1991). Managing Cultural Diversity: Implications for organizational competitiveness. Academy of Management Executive, 5(3), 45-56.

Cox, T. H., & colleagues. (1994). Effects of Diversity and racial identity attitudes on group cohesion. International Journal of Intercultural Relations, 18(2), 199-221.

Francis, D., & Lau, A. K. (2010). The impact of social capital on work outcomes: A literature review. Human Resource Management Review, 20(1), 1-12.

Jackson, S. E., Ruderman, M., Nesic, A., Ducharme, L. J., & Bricker, J. (2010). Diversity in work teams: Research paradigms for a changing workplace. Washington, DC: American Psychological Association.