Riordan and Shore showed that in diverse organizations, employees are less considered to be committed or view that they are prone to grow in the organization. (Pitts; Jarry, 2005) With this contextual understanding we could have a comprehension of the 'Social Identification and Categorization Theory'. The social identification theory shows that people involve in several social comparisons to others on the basis of ethnicity, gender, religion, and socio-economic standing, amongst others. Empirical research has indicated that people mostly accord negative features to members of the out-group due to this process, understanding the out-group to be consisting of persons who are less honest, faithful, and cooperative or being intelligent. The procedures of categorization mostly include physical traits like ethnicity, gender, as well as age. Concerning that membership within the out-group is considered as a deficiency, this categorization mostly lead to persons assuming those from varied ethnicity as being essentially worse than what they actually are or at the very minimum, being unreliable. Social identification and categorization theory, further presumes that persons typecast and arrive at judgments in a quick manner regarding those who are from other groups. In a diverse organization, there are several out groups compared to in groups, a process that is considered to lead to increased difficulties with regard to communication, trust as well as cooperation. Thus, work procedures would be made much more problematic, thereby resulting in the final product ideology or remedies to be weaker. This theory ultimately recommends a negative linkage between diversity and organizational attitude. (Pitts; Jarry, 2005)

Now with regard to 'similarity/attraction theory' we can understand that the theory states that individuals having same backgrounds might consider that they have much more in common when compared to each other than when compared to others from varied backgrounds, making it more possible for them to function jointly and cooperate towards creating a product or resolving an issue. Studies have indicated that in a circumstance wherein a person has the scope to interact with one of several varied individuals, he or she is considered to choose a person who is found to be similar. That one is considered to be most attached to those with similar or same attributes shows a clear forecast for the link between diversity and organizational behavior. Early studies applying the similarity/attraction terms revealed that dissimilarity give rise to deficiency of attraction to others that fostered itself via reduced communication, distortion of message and communication problems. Like the social identification and categorization theory, similarity/attraction study would forecast that increased levels of diversity are considered giving rise to defective work processes. Such defective work process, would contrarily give rise to low performance. (Pitts; Jarry, 2005)

Even though there have been studies and theories showing a negative relationship between diversity and organizational performance, there have been studies and theories which show a positive link. The 'Information & Decision-Making theory' is one such theory. The 'Information & Decision-Making theory' is based on the concept that the composition of the organization would influence the manner in which the group refines information, communicates and formulates decisions. The studies on information as well as decision-making in organizations reveal that, for these couple of particular operations, the defective procedures that come from high degree of heterogeneity are surpassed by advantages achieved by more creativity, a greater amount of ideas and a larger reservoir of information. Research has revealed that even in circumstances where diversity has an apparent adverse influence on work processes, the enhancement in information accessible to the group that evolves from diversity is sufficient for counteracting the process difficulties. The idea that diversity brings about a plethora of new opportunities to the table, enabling an organization to be more successful, has been the base for several claims that differentiation is a source of strength and resource for the organizations. Diversity is most possible to entail positive outcomes when the responsibility is to resolve a complicated issue, create a group of productive ideas or innovations, or create a new product. In such cases, the additional information and perspectives that are evident, the more likely the group would be to arrive at a maximum remedy. (Pitts; Jarry, 2005)

Research analyses indicating a positive link have evolved from both laboratory as well as field experiments. To illustrate, Watson and others generated 36 groups of students in a management course and told them to involve in a series of various case studies. The categories...

Mc Leod and Lobel accorded a brainstorming session to a large sample involving college students who were both graduates as well as undergraduates, being categorized into different groups. While the diverse groups did not generate a greater amount of ideas or that of remedies, the ideas as well as remedies they generated were of greater quality compared to those which were produced by homogeneous categories. Two current field studies entail proof for a direct link between diversity as well as performance. Mullen & Cooper revealed that in-groups as well as out-groups varied during the course of the responsibility, like that the initially-generated groups, on the basis of task-irrelevant concerns, disappeared and new categories evolved which was more job-specific. They revealed that in-groups as well as in out-groups which were particularly associated with the responsibility were not against the organization in attaining positive results. O'Reilley and others, analyzed an organization having a reputation for giving importance to employee diversity, discovering that, inside the work teams of the organization, diversity generated positive, performance associated outcomes. (Pitts; Jarry, 2005)
Further a study of a large financial services firm, performed by associate professor Robin Ely as well as Professor David Thomas, both from the Harvard Business School, recommend regarding the way groups regard diversity is at the minimum as significant as the extent of diversity they demonstrate. Based on employee surveys as well as data regarding sales and client satisfaction attained from 480 of the retail branches of the company, Ely and Thomas arrived at the conclusion that racial diversity increased performance in units that considered diversity as a means for innovation and wisdom. Another analysis conducted by Susan Jackson and Aparna Joshi, considered team leaders as a major impact on the link between diversity and performance. On evaluating sales teams at another wide ranging information-processing company, they decided that ethnic diversity was related to superior performance wherein teams were guided by minority-group members, however not when the managers were white-skinned. When considered together, indicates Thomas Kochan of MITs Sloan School of Management, controller of the multiyear project, such analyses emphasizes the significance of promoting a more nuanced comprehension of the manner in which varied types of diversity impact the manner in which individuals function. Further they recommended the necessity to move ahead of the simple aspect of the business case with regard to diversity. The promoters of this perspective, that attained prominence during the 1990s, consider that diversity provides advantage to businesses by increasing team performance and enhancing their capability to cater to a diverse client base. (Kwak, 2003)

Thus diversity might give rise to several encouraging results for decision making teams. Think of an illustration of an academic selection committee probing for a department chair. The diverse views of the members would unquestionably affect the decision processes. If handled well, their deliberations would finally lead to the selection of a Nobel laureate. And if not properly managed, others at higher strata would usurp the choice of the selection committee with regard to a new leader. (Guzzo; Salas, 1995)

Professor Taylor Cox of Michigan University recommends critical factors as to why it is pertinent to become an efficient culturally diverse organization. Cox indicated that diversity increases the productivity and problem solving capabilities of the organization. Once an organization can include diversity, unexploited talent as well as energy would be concentrated on attaining the objectives of the organization. Further it has been said by Cox that diversity is ethically, morally and socially the correct aspect to be done. As humans we have an affinity to support in-group members compared to the out-group members that entails in dominant-subordinate concerns. Simultaneously, one of the important values of our nation is with regard to equal scope. An attempt to deal with in-group as well as out-group bias would increase equal scope. Another point is that diversity influences the performance of employees belonging to the minority group. Cox's study reveal that if an employee feels that he or she is being undervalued, irrespective of what the organization reveals, then the work performance of an employee would be influenced. This gives rise to an increased turnover level for an organization. Finally, Cox indicates that diversity is a legal necessity. (Schauber, 2001)

In the United States, equal scope is favored by means of laws like the "Equal Pay Act,…