Diversity is becoming increasingly common in business communities today. In the workplace diversity can incorporate many different aspects such as personality, intelligence and cultural heritage as well as expertise, training and work experience. Calvard, Parker and Collins (2010) differentiate between surface and deep diversity. For example, cultural diversity belongs in the former category because it is more visible. However, functional diversity, which is defined as the 'breadth' of functional perspectives each team member has (Bunderson & Sutcliffe 2002), is deeper. What are the implications of these forces producing diversity for intragroup dynamics? One outcome is the increased opportunity for creativity and higher information exchange between team members. Research has shown that creative solutions can be better achieved by groups with a range of different perspectives (e.g. Mumford & Gustafson 1988). Group members challenge each other's assumptions about the way the world works, and this encourages individuals to think outside the box. Another potential outcome of group diversity is an increase in flexibility. Heterogeneous groups may have a greater range of skills to draw on and can be more flexible to changing demands from the market and other organisational groups. Associated with this is the broader and deeper understanding diverse groups may have of customers. If customer intimacy (Wiersema 1997) is a key organisational objective, having a workforce that better matches the diversity of the customer base is vital.

However, diversity may also introduce conflict, discrimination and culture clash. Differences of opinion cause arguments and prejudices to come to the fore. Culturally diverse teams have been found to suffer from a low level of engagement, infrequent communication, a reduced effort to understand each other's viewpoints or help each other (Calvard et al. 2010).