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Studies indicate that diverse employee teams and workforces tend to be less effective and creative than groups made up of people who are all alike.

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Final answer:

Studies have shown that diverse employee teams can be more creative and effective than homogenous ones, as they bring a range of skills and perspectives that enhance problem-solving and decision-making. While communication challenges can arise in diverse teams, these are often outweighed by the benefits. Gender balance and intergroup contact can particularly improve team performance and reduce workplace prejudice.

Step-by-step explanation:

Contrary to the misconception that homogenous teams outperform diverse ones, studies show that diverse employee teams and workforces often result in enhanced creativity and effectiveness. Organizations that value cultural 'fit' over diversity might inadvertently impede innovation by limiting perspectives. However, teams consisting of individuals with varied backgrounds bring together a wider range of skills, experiences, and ideas which can lead to improved decision-making and greater success in achieving complex tasks.

For instance, the study by Hoogendoorn, Oosterbeek, & van Praag (2013) found that gender-balanced teams were more successful in terms of sales and profits compared to male-dominated teams. Moreover, Pettigrew and Tropp's (2006) meta-analysis revealed that intergroup contact could significantly reduce prejudice under the right conditions, thereby potentially enhancing teamwork. Workplace diversity training aims to bridge cultural differences and improve collaboration among employees from varied backgrounds.

While there is a potential for communication challenges and interpersonal issues within diverse teams, these can be balanced by the increased skill set and variety in perspectives that contribute to the team's overall performance. Additionally, avoiding homogeneous teams is crucial as it limits exposure to different views and may foster environments where stereotype and prejudice can thrive, ultimately leading to dysfunction and poor performance.

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