Examining the Draw of Diversity: How Diversity Climate Perceptions Affect Job‐Pursuit Intentions

Organizations must target talented applicants, who will often be demographically diverse, to attract the most competent and competitive workforce possible. Despite the bottom‐line implications of attracting the best and brightest, surprisingly little is known about how and why diversity recruitment strategies affect recruitment outcomes (e.g., job‐pursuit intentions). To gain insight into this question, we conducted an initial experimental study (N = 194) to test the premise that other‐group orientation moderates the relationship between perceived organizational value of diversity and job‐pursuit intentions. In a follow‐up experiment (N = 255), identity affirmation was examined as the mediating mechanism for the interaction observed in the first study. Mediated moderation analyses supported the proposed model. Collectively, the studies indicate that job seekers high in other‐group orientation are more intent on pursuing employment with organizations deemed to value diversity because they feel that their salient identities are likely to be affirmed. No such indirect effect is present for those lower in other‐group orientation.     

Why are Some Agencies Perceived as more Committed to Diversity than Others? An analysis of public-sector diversity climates

Positive diversity climates are associated with an array of benefits for public organizations. However, it is not clear why some agencies are perceived as more committed to diversity than others. This paper hypothesizes about how group and management characteristics, social identities, and procedural justice may shape perceptions of diversity climate. It then tests these expectations using cross-sectional data drawn from the US federal workforce. It shows that employees’ social identities and perceptions of procedural justice were strong predictors of perceptions of diversity climate. There was less evidence that the representativeness of management and personnel diversity were related to diversity climate.     

Employee involvement climate and organizational effectiveness

This study empirically examines the relationship between the perceived employee involvement (EI) climate and organizational effectiveness. Using a sample of insurance companies, results indicate that organizations with high levels of perceived EI climate lead to organizational effectiveness as measured through financial performance, turnover rate, and workforce morale. Implications of the results for research and practice are discussed. © 2005 Wiley Periodicals, Inc.     

Human resource diversity management practices in the Australian manufacturing sector

We examined employee perceptions of the benefits and challenges of workforce diversity and human resource (HR) diversity management practices adopted in the Australian manufacturing sector. We found that overt discrimination does not exist in the Australian manufacturing sector. However, Australian employers appear to adopt a ‘legalistic compliance approach’ and have not considered workforce diversity as a source of competitive advantage. Employers have not adopted effective HR diversity management practices. The Australian manufacturing sector has failed to value diversity or capitalize on the benefits of workforce diversity. Inadequate recognition of overseas skills, ineffective communication, increased training costs and social isolation were perceived as the main challenges, whereas a stronger work ethic among multicultural employees, greater opportunities to learn from other cultures, lower absenteeism and less labor turnover were regarded as major benefits of workforce diversity. Overall, we found migrant workers are disadvantaged in the Australian workplace.     

Linguistic diversity and English language use in multicultural organizations: is there a moderating effect of the age of organizational members?

Two great human resource management challenges face organizations in many parts of the world. The workforce is aging leaving fewer young people to take over. At the same time, globalization leads to a pressure for internationalization with great consequences for internal collaboration in many organizations. Accordingly, the link between employee age and language use is of increasing importance. In this study, we report on the findings of a survey using responses from 489 members of Danish multicultural organizations. We studied the effect of linguistic diversity on English language communication as well as the moderating effect of respondents' age. We found linguistic diversity to have positive associations with the two English language communication variables. We also found age to moderate the relationship between linguistic diversity and perceived use of English language by management. Since organizational language use and language management are an understudied topic, the results could have important theoretical and practical implications.     

Family-friendly management,organizational performance and social legitimacy

Research on family-friendly practices has concentrated on the predictors of their use, particularly from the perspective of either institutional theory or the high involvement or commitment management vogue. This paper first shows how such perspectives can be used to generate hypotheses about the link between family-friendly management and organizational performance. Second, the paper reports research designed to test these, using data from a national representative sample of workplaces across the British economy, the Workplace Employment Relations Survey of 2004 (WERS2004). The results support the high commitment thesis that family-friendly management will strengthen the relationship between commitment and key economic outcomes, as the relationships between workforce commitment and productivity or quality are stronger in organizations when friendly management is high, which is consistent with social exchange theory. Family-friendly management is not, however, related to the human resource outcomes of labour turnover and absenteeism. Nor does the study find support for the argument that its use in conjunction with high involvement management enhances the performance effects of both. Equally, there is no support for the hypothesis from the institutional thesis that family-friendly management has positive effects on the legitimacy of the organization.     

Who promotes a value‐in‐diversity perspective? A fuzzy set analysis of executives’ individual and organizational characteristics

Diversity perspectives are philosophies of or approaches to diversity held by organizations, groups, or executives. They are important for organizations because they can determine the success or failure of diversity in the workforce. However, little is known about the predictors of diversity perspectives among executives. Using fuzzy set qualitative comparative analysis, we analyzed 50 interviews with top executives in Germany to identify individual and organizational characteristics that predict executives' adoption of a diversity perspective, in particular of a value‐in‐diversity perspective. Specifically, we analyzed gender, age, education level, vocational background, and tenure (individual characteristics), as well as size, sector of organization, and competitive environment (organizational characteristics), as potential predictors. We found single characteristics did not predict adoption, but configurations of characteristics did. Drawing on the person‐situation‐interactionist perspective, we developed specific profiles of executives likely to foster a value‐in‐diversity perspective and identified characteristics of their work environments that support such an approach. Theoretical and practical implications are discussed.     

Why is group-based pay perceived as meaningful,meaningless or negative? Exploring the meanings of pay suggested by reflection theory

This study explored the propositions of the reflection theory of pay [Thierry (2001), Work Motivation in the Context of a Globalizing Economy, Mahwah, NJ: Lawrence Erlbaum Associates, pp. 149–166]. The theory is grounded in theories of individual motivation. However, in a group-based pay context more socially oriented motivational factors may also play a role. In addition, the theory does not take into account that pay may have negative meanings. In this study, we have adopted a qualitative approach to improve the understanding of what meanings group-based pay may have. The research questions were the following: (1) why is group-based result-oriented pay perceived as meaningful, (2) why is group-based result-oriented pay perceived as meaningless and (3) why is group-based result-oriented pay perceived to have a negative meaning. To study the meanings attached to group-based pay, we conducted 29 focus group interviews (88 employees) in six municipal organizations in Finland. The results showed that the reasons for perceiving group-based pay as meaningful were related to the value of money, compensation for performance, the positive messages signalled by the pay and positive outcomes. On the other hand, when pay was perceived as meaningless, the arguments were related to the weak instrumentality of money, weak links between performance and pay, incompatibility and lack of knowledge. The negative meanings were related to negative message conveyed by the pay and its outcomes. When these results were compared with four meanings proposed by reflection theory, all four categories were found in the speech of the interviewees. In addition, two new categories were found and designated as ‘messages’ and ‘outcomes’. These new categories were theoretically linked to social identity theory.     

Discriminatory practices in hiring: institutional and rational economic perspectives

A number of research studies have analysed the causes, conditions and consequences of discrimination. Most of these have focused on either gender or racial discrimination. Studies of discrimination on other grounds, including disability, have been relatively less common. This study attempts to theoretically and empirically explore the nature of discrimination against disabled job applicants from the rational economic, as well as institutional theory, perspectives. The rational economic perspective emphasizes individual self-interest, conscious decision-making, and economic optimization. Institutional theory focuses on organizational actions taken to gain legitimacy rather than for monetary or utility optimization. Legitimacy is important to secure stakeholders' trust and recognition, and translates into favourable outcomes, such as resource support, customer loyalty, and ease in attracting qualified personnel. We test these two theories, using data drawn from 227 New Zealand organizations, which collectively employ approximately 10 per cent of that country's workforce. The evidence suggests that both theories to some extent predict discrimination based on disability. Employer behaviour reflects both rational concerns for cost minimization and institutional concerns for perceived legitimacy in the eyes of key stakeholders. The strength of each concern appears to vary with each employer's circumstances.     

The adoption of chief diversity officers among S&P 500 firms: Institutional,resource dependence,and upper echelons accounts

The importance of workforce diversity has become a salient management concern given that demographic minorities comprise key sources of the workforce and consumers. As a result, some firms created chief diversity officer (CDO) positions to manage workforce diversity. This study takes a multitheoretic approach, drawing upon institutional, resource dependence, and upper echelons theories to explain firms' adoptions of this key position. Using Cox event history analyses based on a sample of S&P 500 firms, we find that, from an institutional theory perspective, firms are more likely to adopt CDOs when they are headquartered in legalized gay marriage states and the accumulative number of industry CDO adoptions is high. From a resource dependence perspective, we find that firm innovation intensity, diversification levels, transient institutional ownership, and industry female and African American employment bases can predict firms' adoptions of CDO positions. From an upper echelons explanation, we find that female top management team representation is positively associated with firms' adoptions of CDO positions.     

All for one and one for all: A mechanism through which broad‐based employee stock ownership and employee‐perceived involvement practice create a productive workforce

Drawing on social identity theory, this research frames a multimediational model that delineates how broad‐based employee stock ownership (BESO) and employee‐perceived involvement practice in tandem yield a productive workforce at the organization level. In our theoretical model, we propose that social cohesion and voluntary turnover are collective attitudinal and behavioral outcomes resulting from the shared perception of we‐ness that employees experience through both participatory practices. Our path analysis of a multisource, time‐lagged dataset from 176 large U.S. companies revealed the sequential mediating roles of social cohesion and voluntary turnover between these organizational practices and labor productivity. Our theoretical claims and empirical evidence will contribute to a systematic understanding of how and why BESO and employee involvement leverage greater organizational productivity from employees.     

Beyond the Business Case for Diversity in Organizations

Many organizations and institutions are spending extensive time, money, and resources to justify a focus on diversity. In this paper, we argue that, instead of justifying demographic diversity, the more appropriate focus is on properly managing the processes and outcomes of a diverse workforce. Demographic diversity in the workplace is a reality. In terms of both composition and sheer numbers, the workforce today is more demographically diverse than it has ever been, and there is every indication that it will be even more diverse in the future. Accordingly, this paper argues that we must go beyond the business case for diversity to effectively utilize the diversity that already exists and create a just workplace.     

The role of perceived organizational justice in shaping the outcomes of talent management: A research agenda

Talent management is in need of a theoretical foundation and empirical research at the level of the individual. To address these gaps, the current paper relies on the literature on workforce differentiation and provides a research agenda by introducing perceived organizational justice as a key mediator between talent management practices and differential employee reactions. We discuss employees' varying reactions to talent management on one hand and their underlying perceptions of organizational justice, on the other hand. In particular, we propose that, amongst others, an employee's high potential status serves as an antecedent for different distributive justice perceptions, while procedural interventions and relationship building can provide organizational latitude in shaping employee reactions to talent management. Research methods, challenges, and practical implications are discussed.     

Workforce diversity in manufacturing companies and organizational performance: the role of status-relatedness and internal processes

This study investigates workforce diversity at the organization level, which has been relatively overlooked. We focus on status-related processes that complement the ambiguities involving social categorization and information processing perspectives. We further identify the theoretically meaningful mediators (i.e. innovative climate, employee competence and employee satisfaction) of the diversity–performance relationship at the organization level. We empirically validate our hypothesis using time-lagged, multi-source data collected from 256 Korean manufacturing companies at 2 time points over a 2-year period. Results indicate that hierarchical position diversity is negatively related to employee competence and satisfaction, which in turn negatively affects operational performance. Education diversity positively affects innovative climate, employee competence and employee satisfaction, thus increasing the innovation and operational efficiency of an organization. This study elaborates the distinct implications of diversity dimensions with different levels of status-relatedness, and offers empirical contributions that highlight the mediating mechanisms through which diversity enhances different forms of organizational performance.     

The overlooked variable in managing human resources of Iranian organizations: workforce diversity – some evidence

The primary aim of this paper is to examine the nature and extent of equality of opportunities and diversity policies in employment in the novel context of the Middle East – with a particular focus on Iran. HRM and diversity management specialists argue that equal opportunity practices help organizations capitalize on the benefits of a diverse workforce in terms of reducing turnover and absenteeism, attracting the best workers, increasing sales and marketing efforts, enhancing creativity and innovation, and improving decision making. While such benefits might be true in the context of developed countries, we are critical of their existence in the context of less developed nations. The findings, based on a qualitative study of six cases across two industries, indicate that, in contrast to existing theories, economic evaluations such as cost-minimization of the diverse work groups are the major driving forces behind adopting equal opportunity and diversity practices in employment. Specifically, mutuality of matching the needs of the worker with the needs of the manager is seen to be a major factor influencing the workers' impression towards equality of opportunities and diversity policies.     

Reducing Organizational Politics in Performance Appraisal: The Role of Coaching Leaders for Age‐Diverse Employees

We examined whether a supervisor's coaching leadership style predicts the perception of organizational politics in performance appraisal (OPPA) reported by the collaborators. Additionally, we drew on social cognition and motivational life‐span development theories to hypothesize age‐related differences in perceived OPPA and its link with the coaching leadership style. Using hierarchical linear modeling (HLM) on a sample of 576 employees and 112 leaders, we found that coaching leaders are perceived as less manipulative in their performance ratings, especially by older employees. This article includes a discussion of the implications these results have for performance management of an age‐diverse workforce. © 2016 Wiley Periodicals, Inc.     

Property rights theory,transaction costs theory,and agency theory: an organizational economics approach to strategic management

Property rights theory has common antecedents with contractual theories of the firm such as transaction costs and agency theories, and is yet distinct from these theories. We illustrate fundamental theoretical principles derived from these three theories by analyzing the business case of oil field unitization. Theoretical principles and application of theory to oil field unitization are each summarized. From this, it is possible to see how property rights theory is well suited to explain business situations where inefficient economic outcomes persist. Additionally, property rights theory forges new theoretical connections with other branches of organizational economics, in particular, resource‐based theory. Copyright © 2005 John Wiley & Sons, Ltd.     

Bridging the gap between Gen X and Gen Y

The implications of the generational diversity inherent in the fabric of the current workforce have been a topic of much discussion, exploration, and debate among organizational scholars and researchers. What are the leadership implications of this generational diversity, and what forms of leadership can be used constructively to achieve performance outcomes that foster a positive and constructive relationship between generations? We turn to the theoretical developments associated with the Authentic Leadership model to synthesize learning lessons from the theory, research, and practice of authentic leadership. We illustrate how the components of authentic leadership can help in overcoming some of the leadership challenges that result due to the differences between Gen Xers and Gen Yers.     

Materiality and change: Challenges to building better theory about technology and organizing

Researchers have had difficulty accommodating materiality in voluntaristic theories of organizing. Although materiality surely shapes how people use technologies, materiality’s role in organizational change remains under-theorized. We suggest that scholars have had difficulty grappling with materiality because they often conflate the distinction between the material and social with the distinction between determinism and voluntarism. We explain why such conflation is unnecessary and outline four challenges that researchers must address before they can reconcile the reality of materiality with the notion that outcomes of technological change are socially constructed.     

Coming to America: work visas,international diversity,and organizational attractiveness among highly skilled Asian immigrants

Abstract

U.S. firms are increasingly seeking foreign workers to help satisfy growing demands for technical and highly skilled labor, and many immigrants continue to seek jobs in America. Despite this, few studies in the management discipline examine immigration issues as they relate to organizational attraction and recruitment. In an experimental study, we investigated the relationship between stated recruitment policies, perceived work-related expectancy, and organizational attractiveness among graduate students from Asia as potential job seekers to companies in the United States. We found a relationship between perceived work-related expectancy and either emphasizing international diversity or work visa sponsorship. However, emphasizing work visa sponsorship weakened the effect of international diversity on perceived work-related expectancy. Perceived work-related expectancy was also found to positively affect organizational attractiveness, resulting in a conditional indirect effect of international diversity statements on organizational attractiveness. Implications for organizations and directions for future research are discussed.