Structuring reality through the faultlines lens: the effects of structure, fairness, and status conflict on the activated faultlines-performance relationship

Abstract

We investigate how activated team faultlines represent an informal sensemaking structure through which teammates interpret their social reality. Constructed from inter-subgroup comparisons, activated faultlines likely result in status perceptions that are ambiguous or illegitimate. Thus, activated faultlines threaten the justice climate within the team, which drives status conflict, impairing team performance. We explore the effects of team structure clarity in providing certainty or legitimacy around status and structure, ameliorating the negative effect of activated faultlines on team justice climate. We tested our model using a multi-source (three sources), multi-wave cross-lagged design (four waves) on a sample of 271 employees and 41 leaders in 41 teams. We found that the negative relationship between activated faultlines and team performance was mediated by the team justice climate—status conflict causal chain. We also found that team structure clarity reduced activated faultlines negative effect on team justice climate. The results highlight the value of using team faultlines, the social identity approach, and justice theories to understand how diverse teams interpret their social reality that influences their performance. Furthermore, our research provides practical guidance to managers in building clear team structures that minimize the harmful effects of activated faultlines on justice perceptions and team performance.