Impact of Transformational Leader Behaviors on Diverse Team Performance and Persistence

Abstract

Scholars have studied diversity and diverse teams for more than 60 years. While some studies show that diversity is positively linked to team performance outcomes, many others show the opposite. Indeed, some scholars now refer to diversity as a "double-edged sword" because although it can have its benefits, it can also impose costs on the team. Reagans et al. (2004) suggest that one reason for these conflicting results is a pair of network structural variables in the team: external network range and internal network density. Diverse teams are known for being strong in the former, but weak in the latter. With both variables known to be positively related to team performance, weak internal network density represents an area that leaders can focus on to improve overall performance.

Additionally, an organization's approach to diversity has also been shown to drive diversity-related concerns according to a member's social group representation within a larger group. Specifically, Apfelbaum et al. (2016) studied two approaches that are commonly used across different organizations, and although both are meant to value diversity, they each increase concerns in different social groups and ultimately drive different members away from the organization.

This thesis proposes an experiment that triggers a leader to increase team member support in order to increase internal network density and stave off further costs typically associated with diverse teams. The research presents an agent-based model to simulate multiple team scenarios using both Monte Carlo and single simulations. Though in its early form and needing further empirical validation, the simulations suggest that addressing diversity-related concerns with supportive behaviors can increase internal network density, which in turn can reduce absences and team member turnover. Perhaps more importantly, the model represents a foundation for further study and associated incorporation of additional diversity-related phenomena.