Only true starting in Dawn of Souls and subsiquent remakes. In NES and FF:Origins it has zero effect.
First playthrough was Fighter-Theif-Black Mage-White Mage. Upon discovering that Black Mages and Theives largely suck I eventually settled on:
Fighter-Fighter-Red Mage-White Mage. I'm not familiar enough with the DoS mechanics to have a favourite party there.