Social categorization theory developed by Turner (1978) describes the categorization of people based on salient attributes like gender, ethnicity or age, resulting in stereotyping on the basis of these differences. Social categorization theory posits that similarities and dissimilarities of demographics can lead formation of different group with resulting effects on member of in-group favorably themselves to the detriment of members of out-groups social (Turner, Brown & Tajfel, 1979).
Self-categorization theory explains when individuals categorize themselves by assigning to themselves the manners, actions and other characteristics they link with association within a specific group (Schmitt, Branscombe, Silvia, Garcia, & Spears. 2016). By means of self-categorization and membership of a group, people cultivate a social identity that functions as a social-cognitive scheme (customs, standards and attitudes) for their group associated action. The tendency is for the perceiver to consider these attributes as vital to his or her own personality and thus use these attributes to label others (Hoffman Harburg, & Maier, 2014). Some vital end results of social identity and self categorization include stereotyping, prejudice and conflict (Tajfe & Turner, 2004). That is, as the identity groups engage in in-group, the out-group members are likely to be discriminated. The formation of sub-groups (“us” versus “them”) within an organization due to demographics diversity may pose