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A number of organizations across sectors have begun efforts toward managing workforce diversity. At the federal level in the United States, almost 90 percent of agencies report that they are actively managing diversity. However, very little empirical research has tied diversity management to work group performance or other work-related outcomes. This paper uses a survey of U.S. federal employees to test the relationships between diversity management, job satisfaction, and work group performance. The findings indicate that diversity management is strongly linked to both work group performance and job satisfaction, and that people of color see benefits from diversity management above and beyond those experienced by white employees.