Experts generally agree that workforce diversity can produce positive outcome such as novel and diverse ideas. However, research evidence indicates that workforce diversity can lead to undesirable outcomes as well. For example, research indicates that performance of a sample of managers was lower when assigned to a diverse group. Another study found that, while performance of some women is higher in a mix-sex group than in same-sex group, men's performance is higher in an all-male group. The main purpose of this paper is to put forward an analytical framework that can help to explain why diverse employees do not always produce desirable outcomes. Using Social Exchange, Organizational Citizenship Behavior, and Organizational Commitment theories the paper explains why and how diverse employees respond to the treatment they receive from the organization and its members. The framework yields research and practical implications for managing diversity.

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