The primary purpose of this study was to explore the challenges and benefits associated with cultural diversity within groups. The research hypotheses were proposed to test the effects of cultural diversity on group performance and group processes by comparing culturally diverse and culturally homogeneous groups under conditions of intergroup competition and noncompetition. This experiment was conducted using 500 upper-level undergraduates enrolled in the principles of management course for the fall semester.

Major changes in organizational structural paradigms have been occurring. Recent journal articles propose that the older philosophies of expanding organizations and increasing internal specialization are no longer viable means to enhance competitiveness as espoused in earlier journal articles. Downsizing, rightsizing, and business process reengineering have all been used as methods of accomplishing organizational work force reduction (OWFR) and enhancing organizational posture. It has been established that as organizations grow, specialization increases. Causes for OWFR have not been established nor have effects upon structure been studied. Previous structural factor studies have focused upon organizations engaged in end-game strategies done during periods of internal and economic growth. This study evaluates the impacts of OWFR and its relationship to the structural factor of specialization during a non-munificent economic period. Three independent variables, dis-integration, change in the number of employees, and change in technology, were used as measures to determine whether specialization decreased when organizations downsized. The dependent variable, specialization, was obtained through a pre-tested questionnaire. The three independent variables were obtained using the Compustat data base as a secondary source of information. The Compustat data was verified using data from Compact Disclosure. Questionnaires were mailed to fifty-one fully integrated oil companies. Forty were …