The purpose of this study was to examine the effects of group diversity on subsequent outcomes. According to the social categorization framework, demographic differences in groups should result in inter-group bias and poor subsequent outcomes, and research generally supports this contention. However, there are process variables that might also influence this pattern of results. One such variable is perceptions of diversity. Theoretically, it is not the actual differences, per se, which result in subsequent outcomes, but the perceptions thereof. Thus, actual diversity was thought to be positively related to perceptions of diversity (hypothesis 1). These perceptions were then thought to result in beliefs concerning more substantive issues, such as value similarity. That is, perceived group diversity was thought to be negatively related to the staff's value congruence (hypothesis 2). Finally, although most of the diversity research has examined organizational-related variables, it is also possible that the effects reach beyond the specific organization or work group. This study examined this possibility, as it was hypothesized that value congruence of the staff would be positively related to the life satisfaction of the coaches (hypothesis 3). Data were collected via questionnaire from members (n = 196) of 71 coaching staffs. High within-rater agreement values and eta square values justified aggregation to the group level. The hypotheses were then tested through observed path analysis using AMOS 5.0. Results indicated that the data fit the model well: chi-square (df = 7, n = 71) = 1.46, p = .98; SRMSR = .03; NFI = .97. As predicted, age diversity (b = .31, p < .001), tenure diversity (b = .32, p < .001), and racial diversity (b = .40, p < .001) were all significantly associated with perceived team diversity. Perceived staff diversity held a significant, negative association with the value congruence among the members of the coaching staff (b = -.22, p = .05). Finally, value congruence held a significant, positive relationship with the life satisfaction of the coaches (b = .46, p < .001). Thus, all three hypotheses were supported. The study makes two key theoretical contributions. First, this study addressed past concerns regarding the simplicity of past diversity research by considering two potential process variables: perceived diversity and value congruence. Second, this study is the first identified that demonstrates that the effects of diversity and value congruence extend beyond work-related outcomes (i.e., life satisfaction). Practical implications for managers are also apparent. Keyword(s): multiculturalism/cultural diversity, recreation