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Drawing from social categorization theory, we found that greater demographic heterogeneity led to group norms emphasizing lower cooperation among student teams and officers from ten business units of a financial services firm. This effect faded over time. Perceptions of team norms among those more demographically different from their work group changed more, becoming more cooperative, as a function of contact with other members. Finally, cooperative norms mediated the relationship between group composition and work outcomes.
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