The Link Between Diversity and Equality Management Practice Bundles and Racial Diversity in the Managerial Ranks: Does Firm Size Matter?

Invoking strategic human resource management (SHRM) theory and tenets of the resource‐based view of the firm, we explore how two bundles of diversity and equality management (DEM) practices influence racial diversity in the managerial ranks. By considering the conceptualization of DEM practices and the moderating role of firm size, our study disentangles subtle nuances in the DEM practices–racial diversity in managerial ranks relationship. Based on a sample of 137 Fortune 1,000 firms over a two‐year period, our results suggest that minority opportunity‐based DEM practices and manager accountability DEM practices positively relate to racial diversity in managerial ranks, and these relationships are stronger in smaller companies than large ones. Theoretical and practical implications for a strategic perspective on future diversity management research are elaborated.     

Enhancing leader inclusion while preventing social exclusion in the work group

Research on inclusion and exclusion at work has grown in recent years, but for the most part has been treated as separate domains. In this paper, we integrate these literatures to build greater understanding of leader inclusion and leader exclusion. Leaders play a critical role in determining group member experiences of inclusion and exclusion through direct treatment of employees, and by serving as a role model (Bandura, 1977). According to social identity theory, when the leader is rewarded by the organization, this signifies that the leader is a prototypical organizational member who exemplifies the set of norms and behaviors most consistent with the organizational ideal (Hogg & van Knippenberg, 2003). We argue that through both social learning and social identity mechanisms, the leader can encourage inclusionary and exclusionary behavior in their work group. We first examine leader inclusion and present the types of behaviors that will aid in creating inclusive team member experiences. By exhibiting these behaviors, a leader can be a role model, an advocate and an ally for building work group inclusion. Next, we present the negative roles of ostracizer and bystander adopted by leaders that indicate support for behaving in an exclusionary manner, which can lead to exclusion among coworkers. We then describe leader remedies for social exclusion. Finally, we discuss the implications of our model and directions for future research.     

Matchmaking: community and business unit racial/ethnic diversity and business unit performance

Past studies examining how the match between organization and community racial/ethnic proportions influences performance have relied on the social categorization perspective on diversity, but have not offered strong significant results. However, the information and decision-making perspective on diversity suggests that organizational diversity fit based on variety, rather than a match of demographic proportions, leads to greater performance. This study considered both perspectives to test how both racial/ethnic proportions matching and diversity fit influence business unit financial performance. This was tested on a sample of 51 business units of a restaurant chain in the USA. The results show that business unit diversity was associated with higher performance in diverse communities but not in homogeneous communities. This suggests that racial/ethnic diversity is a valuable human resource conducive to greater performance but this is contingent upon community diversity. Implications for organizational diversity research and human resource management are discussed.     

If you're close with the leader,you must be a brownnose: The role of leader–member relationships in follower,leader, and coworker attributions of organizational citizenship behavior motives

Although scholars have recognized that organizational citizenship behavior (OCB) can be attributed to either self-serving or other-serving motives, little research has addressed the conditions under which different observers will make positive versus negative attributions for OCB. We draw on leader-member exchange (LMX) and attribution theories to propose that high-quality LMX relationships are associated with positive attributions of OCB motives by the follower and the leader but negative attributions of OCB motives by coworkers. We theorize that while high-quality LMX relationships are associated with attributions of pro-social and organizational concern motives by the follower and the leader, coworkers view OCB performed by those in high-quality LMX relationships as driven by impression management motives. We discuss implications for theory and research on OCB and LMX.     

Organizational Performance Consequences of Age Diversity: Inspecting the Role of Diversity‐Friendly HR Policies and Top Managers’ Negative Age Stereotypes

This paper seeks to advance the diversity literature by investigating organizational performance consequences of age diversity. Drawing from social‐identity and social‐categorization theory, we theoretically argue that, in age‐diverse companies, age‐based subgrouping processes occur, favouring a shared perception of a negative age‐discrimination climate. This perceived negative age‐discrimination climate in turn negatively relates to organizational performance. As the main contribution, top managers’ negative age‐related stereotypes and diversity‐friendly HR policies are introduced as organizational‐level moderators that increase and attenuate, respectively, the social categorization processes affecting performance in age‐diverse companies. We utilized structural equation modelling (SEM) to test the proposed hypotheses using a multisource dataset comprising 147 companies. The results supported all hypotheses, indicating that low negative top managers’ age stereotypes as well as high diversity‐friendly HR policies are potential organizational factors that can prevent the negative relation of age diversity with organizational performance transmitted through the negative age‐discrimination climate. These results are discussed in light of their contribution to the diversity literature and social‐categorization theory as well as their implication for practitioners.     

Leader–member exchange and follower creativity: the moderating roles of leader and follower expectations for creativity

We examined leader and follower expectations for creativity as moderators in the relationship between leader–member exchange (LMX) and follower creativity. The results of a survey among 193 leader–follower dyads from two high-tech companies in mainland China show that LMX positively relates to follower creativity, and that leader and follower expectations for creativity moderate this relationship. Specifically, the relationship between LMX and follower creativity is positive and significant when either leaders or followers, or both leaders and followers, set high rather than low expectations for creativity, with the highest level of follower creativity observed when leaders and followers congruently hold high creativity expectations. In contrast, the LMX–follower creativity relationship is blurred when leaders and followers congruently hold low expectations for creativity. We discuss the relevance of these results from theoretical and professional perspectives.     

The impact of racial and gender diversity in management on financial performance: how participative strategy making features can unleash a diversity advantage

How does racial and gender diversity in the management ranks affect the bottom line? Our findings indicate that participative strategy making (PSM) positively moderates the relationship between both racial and gender diversity in management and firm performance measured as return on assets. Specifically, PSM strengthens the positive relationship that exists between racial diversity in management and firm performance. Although no main effect is observed for gender diversity in management, our results reveal that gender diversity in management is positively related to performance when PSM is high. However, we find that gender diversity in management is negatively related to performance when PSM is low, while gender homogeneous management experience superior performance. We offer implications for diversity research to embrace and consider the role of PSM and ‘inclusiveness’.     

Interpreting IS alignment: A multiple case study in professional organizations

This paper centers on the interpretation attributed by organizational members to the information systems (IS) alignment concept. Its objective is to study IS alignment in professional organizations. Specifically, it reports on an interpretive study conducted in five Chilean organizations; four professional and one entrepreneurial, of which two are private and three are public. The theoretical background of our study is derived from three IS strategic alignment conceptualizations: managerial, emergent and critical. These concepts formed our theoretical framework that guided data collection and analysis. The study centers on the meanings organizational members assigned to IS strategic alignment, as well as their views on the barriers that hinder achieving this level of organizational integration. The analysis results are summarized in seven hermeneutic themes that point out the different connotations the organizations assigned to IS alignment. The significance of the findings are summarized in four insights that formulate theoretical and practical implications. These insights refer to: (1) the difficulties of achieving alignment for professional organizations, particularly public ones, (2) the limitations these organizations have in being agile, (3) the rationale for acquiring technology and determining IT skills, and (4) the imperative meaning that CIOs attribute to IS alignment. The paper concludes with a reflection on the limitations and relevance of the research.     

A model of multinational enterprise subsidiary staffing composition

A large proportion of the multinational enterprise (MNE) literature focuses on parent country national (PCN) expatriates. The high costs of managing and supporting PCNs on foreign assignments, however, have made these assignments less attractive for MNEs and, as a result, MNEs are more actively exploring ways to effectively utilize third country nationals (TCNs) and host country nationals (HCNs), as well as PCNs to satisfy international subsidiary staffing needs. Grounded in the person–environment (P–E) fit theory, we delineate three environmental dimensions (strategic, national and organizational) to offer some propositions that may serve to guide this exploration. These propositions are based on an integrative model that examines the MNE subsidiary staffing composition under different combinations of strategic, national and organizational dimensions. We conclude with suggestions for future research.     

Developing the Leadership Capacity and Leader Efficacy of College Women in Science,Technology, Engineering,and Math Fields

The current study examined the extent to which college women in science, technology, engineering, and math (STEM) majors demonstrated differential levels of leadership capacity and/or leader efficacy than their non‐STEM, female peers. Data represented 14,698 women from 86 institutions of higher education in the United States. Results indicated similar levels of leadership capacity but significantly lower leader efficacy for women in STEM majors. Implications explore unique predictors of leader efficacy for women in STEM majors along with recommendations for changes to policy and professional practice that might address how the differential organizational contexts shape leadership development.     

Demographic Diversity in the Boardroom: Mediators of the Board Diversity–Firm Performance Relationship

Whereas the majority of research on board diversity explores the direct relationship between racial and gender diversity and firm performance, this paper investigates mediators that explain how board diversity is related to firm performance. Grounded in signalling theory and the behavioural theory of the firm, we suggest that this relationship operates through two mediators: firm reputation and innovation. In a sample of Fortune 500 firms, we find a positive relationship between board racial diversity and both firm reputation and innovation. We find that reputation and innovation both partially mediate the relationship between board racial diversity and firm performance. In addition, we find a positive relationship between board gender diversity and innovation.     

Exploring the performance effects of visible attribute diversity: the moderating role of span of control and organizational life cycle

Research on how cultural diversity – especially visible attributes such as race and gender – impacts organizational performance remains practically nonexistent. We examine the effect of racial diversity and gender diversity on firm performance utilizing a contingency framework. Empirical findings from a field study support the hypothesized contingent effects of an organization's structure, specifically managerial span of control, on both racial and gender diversity's pre-assumed benefits. In addition, the study highlights the role of life-cycle stage when modelling the diversity–performance relationship. Future research directions and managerial implications are discussed.     

The relationship between HRM avenues of political influence and perceived organizational performance

This article explores the relationship between the human resource management function's access to avenues of political influence and perceived organizational performance. We examine responses from 441 Australian senior HRM managers who participated in an online survey of a national HRM professional association. Drawing from political influence theory, we develop a model and related hypotheses to investigate the impact of opportunities for the HRM function to manage and control the shared meaning of HRM on perceived organizational performance. Although there was no evidence of a moderating effect of avenues of HRM political influence, CEO support and organizational support for HRM predicted perceived organizational performance. HRM representation on the board of directors appears to serve a symbolic function only. Theoretical and practical implications are discussed in response to the identified importance of CEO and organizational support. © 2007 Wiley Periodicals, Inc.     

Strategic human resources management is irrelevant when it comes to highly skilled professionals in the Canadian new economy

The goal of this paper is to explain the commitment behaviour of highly skilled professionals in Canadian business-to-business (B2B) technology services companies that do not have a formal and explicit managerial commitment strategy and to emphasize the need to take the organizational context into consideration when developing a theory that seeks to account for differences in employee's organizational commitment. Our contribution is to reappraise the relevance of the traditional organizational commitment definition in this organizational context, a new organizational form. We demonstrate that in the companies which are different from the traditional bureaucratic organizational forms and which employ highly qualified professionals, the employment relationship is based on a psychological contract that is not accounted for in the strategic HRM theory.

Indeed, the basic principles of strategic HRM dictate that an organization's most valuable asset is its employees; it is therefore incumbent on management to do whatever is necessary to retain its workforce, readily described as a key resource, and to use human resources management (HRM) practices as tools to elicit commitment. In a study of highly skilled workers in Canadian business-to-business (B2B) technology services companies belonging to the so-called ‘new economy’, we observed that although the competitive advantage enjoyed by these companies depends to a large degree on the creativity and innovativeness of their workforce, these companies barely have any official HRM policies, and the HR department plays a very unobtrusive role. Yet, no one could say that the employees in these firms are not committed – on the contrary! This situation has several implications in terms of career for these professionals, in terms of HR practices for the employers.

Nevertheless, until now, existing theoretical models of organizational commitment have shown little interest in highly skilled workers in general and even less in new economy professionals.     

Sources of Selection in Strategy Making

This paper elaborates theory inductively by following the evolution of 14 strategic initiatives from an exploratory case study. The study examines the context and character of such initiatives over an 8‐year period. Based on these initiatives, the paper proposes a two‐stage selection mechanism for the intra‐evolutionary strategy process that explains the long‐term mutation of organizations. The mechanism operates by selecting according to both fit with the strategic intent and feasibility of the initiative. These two elements combine into an organizational principle that is perceived as permanent in character but mutates through constructive confrontation. This principle contributes to the organizational identity but, being a low‐level element of such identity, it can be modified through learning while retaining an attribute of endurance as perceived by organizational members.     

No,I Do Belong: How Asian American and Asian Canadian Professionals Defy and Counter Workplace Racial Violence during COVID-19

We explore the different types of racial violence encountered by Asian American and Asian Canadians (whom we refer to as Asians) in the workplace during COVID-19 and how they respond. Using a grounded theory approach, we found that during the COVID-19 pandemic, Asians experienced different types of workplace racial violence, most of which manifested as microaggressions, including a revival of the yellow peril trope, physical manifestations of bordering behaviour, and identity denial. In some cases, manifestations of physical violence also emerged. The data revealed that Asians demonstrated various types of agentic responses to challenge and counter unwanted and incorrect identities conveyed by the racial microaggressions. We enhance theory by shedding light on the experiences of Asians whose voice has largely been ignored in the organizational literature. Our study draws together and contributes to the theory on racial violence and racialized identity by highlighting the different types of racial violence faced by Asians and exploring the challenges they encounter in the face of racial microaggressions. Finally, we discuss practical implications of our study results and offer insight into how organizations can help support their Asian employees.     

Linking top management team age heterogeneity to firm performance: juxtaposing two mid-range theories

Previous research on top management team heterogeneity and firm performance has focused almost exclusively on the non-visible attributes (e.g. functional background, tenure) of cultural diversity as opposed to the visible attributes (e.g. age, race and gender). The few studies there are show inconsistent results. For example, most field work - consistent with social identity theory notions - shows that cultural diversity, in isolation has negative organizational consequences. Only a few laboratory studies, however - consistent with information and decision-making theories - show that diversity in groups relates to favourable organizational outcomes. As social identity theory suggests, we find that top management team (TMT) age heterogeneity, in isolation, relates negatively to return on assets. On sales growth (i.e. organizational growth), the relationship is positive, lending support for information and decision-making theories. However, we find a curvilinear relationship between TMT age heterogeneity and sales growth, supporting both the mid-range theories. More specifically, TMT age heterogeneity is positively related to sales growth at low and medium levels and negatively related to sales growth at high levels. In addition, results reveal that context moderates linear and non-linear relationships. The results provide evidence of the importance of cultural diversity in TMTs for competitive advantage but also suggest the complexities of increasing it to observe these benefits.