Final answer:
Studies support the positive impact of gender and racial diversity on business team performance and organizational functionality. Increased diversity can lead to better sales, profits, and workforce perspectives, essential for business expansion and market competitiveness.
Step-by-step explanation:
Research on the Value in Diversity perspective indicates both the benefits and the complexities of diversity in business settings. Gender diversity has been linked to increased performance in teams, as a study by Hoogendoorn, Oosterbeek, & van Praag (2013) has shown that gender-balanced teams yielded better sales and profits compared to male-dominated teams. The exact mechanisms, such as interpersonal relationships, learning, or skill mixes, are still being explored though. Furthermore, organizations have a profit incentive to cater to diverse populations and may boost their sales and customer base through racial diversity. Notably, having a diverse workforce can help tap into various perspectives, fostering a positive work environment and encouraging new ideas. Conversely, if businesses rely solely on a homogeneous pool of workers for recruitment, they may struggle to expand and innovate effectively.
Overall, while there may be challenges such as potential communication issues and group conflict, the consensus leans towards a positive impact of diversity on organizational functioning. As such, the affirmative insights from various studies support the stance that diversity is beneficial for a firm's progression and competitive edge in the global market.