Do Workgroup Faultlines Help or Hurt? A Moderated Model of Faultlines, Team Identification, and Group Performance

Abstract

I n this study we examine a moderated model of group faultlines, team identification, and group performance outcomes. We extend research on faultlines by showing how different faultline bases (social category and information-based faultlines) may have differential effects on the performance of groups. In addition to faultline strength (the extent of demographic alignment across members within a group), we examine the distance between faultline-based subgroups (e.g., two members of age 20 are closer in age to two members of an opposing subgroup of age 25 than of two members of age 50). We test our model using an archival field methodology and multiple-source data (qualitative and quantitative) from 76 workgroups in a Fortune 500 information-processing company. Our results revealed that groups with social category faultlines had low team discretionary awards. Faultline distance further exacerbated the negative effects of strength in groups with social category faultlines and produced similarly negative effects in groups with information-based faultlines. Team identification served as a moderator enhancing performance of groups with information-based faultlines.

Diversity faultlines, shared objectives, and top management team performance

“…Molleman, 2005). Speaking more to the categorization dynamics underlying faultlines, Bezrukova et al (2009) showed that faultlines are more disruptive the greater the difference between subgroupings (cf. comparative fit), and also obtained some evidence that faultlines may be less problematic the more members identify with the team (which was also interpreted in terms of comparative fit).…”

Subgroups in Agile and Traditional IT Project Teams

“…While some studies suggest that subgroups also have positive effects for team members [10,12], the majority highlights their negative consequences. In general, any type of faultline may have both, positive and negative impacts [13].…”

“…In general, any type of faultline may have both, positive and negative impacts [13]. Positive effects of subgroups are mainly found related to knowledge-based subgroups [10,12]. They have the advantage that they bring different forms of knowledge into one team [12].…”

“…Subgroups within project teams are an issue in practice, because they influence the way how the team members interact and communicate with each other [11]. Due to this the performance of the project is also affected by the existence of subgroups within the team [10][11][12][13].…”

“…Due to these differences in the way the team collaborates and the team conducts tasks, the formation of subgroups is supposed to differ between projects with agile methods and projects with traditional methods. Practitioners should consider the formation of subgroups when applying these project management methods, because they influence the performance of the project [10][11][12][13]. Additionally, if they are aware of the possible formation of subgroups, they can initiate actions that hinder the formation, like staffing and managing the project differently.…”