It is now accepted wisdom that a major challenge facing managers in the next century will be an increasingly diverse workforce. But what conclusions can be drawn from the research on demography and diversity about meeting this challenge? Is there, as some researchers suggest, a "value in diversity", or, as suggested by others, does diversity make group functioning more difficult? The purpose of this paper is to provide a systematic review of the literature on organizational demography and diversity as it applies to work groups and organizations. We review over 80 studies relevant for understanding the effects of demography as it applies to management and organizations. Based on this review, we summarize what the empirical evidence is for the effects of diversity and suggest areas for further research.