Search results

The purpose of this paper is to investigate the impact of employee homogeneity on the financial performance of minority business enterprises (MBEs). It is widely postulated that MBEs tend to hire minorities that resemble the ethnicity of the founder(s) and that this is beneficial by helping to decrease minority unemployment rates as well as providing new opportunities to minorities that they might not otherwise receive at White-owned firms.

The study used hierarchical linear regression on archival data of 271 MBEs to determine if employee homogeneity will be a factor in understanding their financial performance. The authors also conducted exploratory interviews with a convenience sample of MBEs to gain insight into the concept of employee homophily.

The research uncovered that as homogeneity increases, MBE financial performance decreases, and this effect is more pronounced the longer the MBE is in business.

The data set is cross-sectional in nature and lack the perspective and clarity of time. The paper only contains a small set of exploratory interviews. The most significant implication from the study is that a lack of diversity decreases the long-term financial viability of MBEs which is to counter mainstream arguments that speak only to the positive aspects of MBEs hiring their own.

The research builds on the scant literature on the impact of diversity within MBEs. It also provides guidance to MBEs by suggesting they be strategic in diversifying their employee base in order to improve performance.

The purpose of this paper is to apply a spatial approach to organizational inequality to explore why unequal opportunity structures persist in an organization despite its commitment to diversity and employing highly skilled ethnic minority employees.

The (re)production of inequality is explored by linking research on organizational space with HRM diversity management. Data from an ethnographic study undertaken in a Danish municipal center illustrates how a substructure of inequality is spatially upheld alongside a formal diversity policy. Archer’s distinction between structure and agency informs the analysis of how minority agency not only reproduces but also challenges organizational opportunity structures.

The analysis demonstrates how substructures of inequality stabilize in spatial routines enacted in an ethnic zoning of the workplace and ethnification of job categories. However, the same spatial structures allows for a variety of opposition and conciliation strategies among minority employees, even though the latter tend to prevail in a reproduction rather than a transformation of the organizational opportunity structures.

The reliance on a single case study restricts the generalizability of the findings but highlights fruitful areas for future research.

The study sensitizes HRM practitioners to the situated quality of workplace diversity and to develop a broader scope of HRM practices to address the more subtle, spatially embedded forms of inequality.

Theoretical and empirical connections between research on organizational space and HRM diversity management have thus far not been systematically studied. This combination might advance knowledge on the persistence of micro-inequality even in organizations formally committed to diversity.

Diversity, equity and inclusion (DEI) have become prioritized goals of business, such as hiring more women and racial minorities. This study adds to the body of research regarding the value of diversity in organizations by examining the relationship between diversity at the workforce level and the financial performance of the organization. The empirical results of prior research have provided mixed results, finding mainly positive, but also negative, and nonsignificant relationships (Sharma et al., 2020; Vlas et al., 2022). The purpose of this study is to examine the current employment status of women and racial minorities in top US companies, then analyze if a correlation exists between a company’s profit margin and its percentage of women and racial minority employees and managers.

This study examined the top 200 companies in the Fortune 500 companies; these are the largest companies by revenue in the USA. Companies were ranked according to each variable (% of women employees, % of racial minority employees, % of women managers and % of racial minority managers) and then divided into equal quartiles. The mean profit margin for the top quartile was compared with the mean profit margin for the bottom quartile. T-tests were used to determine whether significant differences in profit margin exist between companies. This methodology of comparing top and bottom quartiles was developed in prior studies.

Fortune 200 companies have an average of 40% women and also 40% racial minorities in their workforce. Both women and racial minorities account for a smaller percentage of managers. Women account for 34% of managers, while racial minorities account for 29%. There is a significant positive relationship between profit margin and two of the variables. Companies with 45% or more women managers have a significantly higher profit margin than companies with the lowest percentages of women managers. Companies with 48% or more racial minority employees have a significantly higher profit margin than companies with the lowest percentages of racial minority employees. These findings are in-line with the existing body of research that has found mixed impacts of diversity on firm performance (cf. Hoobler et al., 2018; Leung et al., 2022) and draws attention to the need to consider the impact of gender and racial diversity on firms at various management levels within the firm to better understand the impact that increasing diversity has on firm performance (cf. Curado et al., 2022).

This paper adds to the body of knowledge by assessing the current status of women and racial minorities in top US companies and, then, analyzing if a correlation exists between a company’s profit margin and the number of women and racial minority employees and managers. Findings provide companies with further incentive to maintain DEI as a prioritized goal.

This study examined the psychological contract held by minority employees as it relates to diversity, and the implications of violating the contract on minority employee job satisfaction, commitment to the organization and organizational cynicism. Data were collected from 88 minority employees at four university campuses. Results support unique elements of the psychological contract for minority employees and negative outcomes associated with contract violation. Trust and justice were found to moderate employee interpretations of the violation, though not as was predicted by previous theoretical models. Implications for managers of a diverse work force and future research are discussed.

This paper aims to investigate consumer reactions to minority retail employees. The paper argues that despite the persistence of racism and homophobia in society, the vast majority of the population is strongly against these forms of discrimination. Because of the profound negativity of such behavior, the study hypothesizes that consumers will be motivated to see themselves unequivocally as individuals free of prejudice. As a result, rather than treating all people equally, the study proposes that consumers will overcompensate and exhibit favoritism toward a retail employee when the latter is a member of a minority group.

This study presents ten studies in which participants evaluated employees who were a member of a minority or majority group. Studies 1a–1d use sexual orientation to contrast reactions to majority or minority bank managers in four countries (USÀ, Germany, Italy and South Korea), whereas Studies 1e and 1f use ethnicity (White vs Black) to examine the same question (UK and Canada). Study 1g offers a single-paper meta-analysis, testing the robustness of the observed effect. Studies 2 and 3 examine the roles of political ideology and its associated values, and Study 4 examines choice of an advisor in an online, but consequential setting.

Across several contexts and countries, the study finds a consistent pro-minority bias in evaluations of service employees. The study show that, in the USA, this bias is prevalent among liberals, but not among conservatives. This difference in the impact of political ideology is explained by adherence to traditionalism.

This paper investigates consumer reactions to gays and Blacks and do not test for consumer reactions to other minority groups. Regarding employees’ sexual orientation, the findings of this study are limited to gay men only.

To elicit favorable evaluations from customers, managers may consider the match between employees’ sexual orientation or ethnicity and consumers’ liberal beliefs. In particular, managers may want to hire people from those minority groups in areas known for their liberal values. On the other hand, the findings suggest that managers should not worry about their new recruits’ sexual orientation and ethnicity in conservative areas, because the results suggest that conservatives show no favoritism toward employees in response to their group status.

To the best of the authors’ knowledge, this paper is the first paper in marketing investigating consumer reactions to employees who belong to minority groups. The study reports a pro-minority bias that holds across samples and countries, thereby attesting to the population validity of the hypotheses. Further, the study identifies boundary conditions of the effect of employees’ group status by identifying managerially relevant moderators (i.e. political ideology and traditionalism).

Building on the notion of “White fragility,” this study aims to explore how Whites react and cope with perceived discrimination at work. Specifically, the authors explore whether: (1) Whites react more negatively than minorities when they perceive discrimination at work and (2) Whites are more likely than minorities to restore the status quo by leaving the situation when they perceive discrimination at work.

Data for this study were obtained from the Professional Worker Career Experience Survey. In total, 527 working professionals from multiple organizations across the central USA participated in the survey.

The authors find evidence that Whites experience more negative psychological effects (i.e. lower job satisfaction and higher work stress) from perceived discrimination than minority employees and are more likely to act to restore conditions of privilege by leaving their current job and employer. The stronger negative effects of perceived discrimination for Whites (vs minorities) were restricted to work outcomes (job satisfaction, work stress, turnover intentions from one's employer) and were not evident with respect to perceptions of overall well-being (i.e. life satisfaction), suggesting that White fragility may play a particularly influential role in work settings, wherein racial stress may be more readily activated.

Consistent with the notion of White fragility, the study’s results demonstrate that the deleterious impact of perceived discrimination on employee work outcomes may, in some cases, be stronger for White than minority employees.

Primary data based on 1,083 observations were analyzed to examine the reactions and perceptions of male and female employees across categories about workforce diversity status in Indian organizations. Results indicated the prevalence of gender and category (racial) discrimination in Indian organizations. Male employees rated female employees less qualified, less competent, and less productive than females rated themselves. General category employees perceived that minority and socially disadvantaged employees were less competent and productive. Almost all employees believed that minority, socially disadvantaged, and disabled employees were provided with comparatively less organizational support in terms of working facilities, promotions, and salary increases. Even females of the general category believed that they had less chance of receiving working facilities, promotions, and salary increases than males from the general category. Further, each category of employees believed themselves to be more important than others. Females from all the categories valued diversity more highly than males. Females from the general category and both males and females from minority, disabled, and socially disadvantaged categories placed higher value on employers’ efforts to promote diversity compared with general category males.

The motivation behind Section 953(b) of Dodd–Frank Act was the increasing pay inequality and supposed CEOs' rent extraction. It required public companies to disclose CEO-to-employee pay ratios. Using the ratios reported by S&P 1500 firms in 2017–18, this paper examines whether companies led by women and minority CEOs have lower ratios than those led by white male CEOs.

This paper uses multivariate regression along with a matched sample analysis to examine whether female and minority CEOs have higher CEO-to-employee pay ratios compared to male and white CEOs, controlling for other determinants of pay ratios.

Results indicate that CEO-to-employee pay ratios are 22–28% higher for female CEOs compared to their male counterparts, controlling for other determinants of pay ratios. There is, however, no statistically significant difference between the pay ratios of minority vs white male CEOs. Minority female CEOs have lower CEO-to-employee pay ratios than white female CEOs. Consistent with literature, larger and more profitable firms have higher CEO-to-employee pay ratios.

While prior studies on determinants of CEO-to-employee pay ratios have used either industry-level or self-reported data for a small subset of firms (resulting in selection bias), this paper uses firm-level data that are available for all S&P 1500 firms due to new disclosure requirements due to the Dodd–Frank Act Section 953(b). Moreover, this is the first paper to test whether gender or ethnicity of a CEO affects within-firm pay inequality.

Every employee embodies manifestations of every demographic that attach to him or her different minority and majority statuses at the same time. As these statuses are often related to organizational hierarchies, employees frequently hold positions of dominance and subordination at the same time. Thus, a given individual’s coping strategies (or coping behavior) in terms of minority stress due to organizational processes of hierarchization, marginalization, and discrimination, are very often a simultaneous coping in terms of more than one demographic. Research on minority stress mostly focuses on single demographics representing only single facets of workforce diversity. By integrating the demographics of age, disability status, nationality, ethnicity, race, sexual orientation, and religion into one framework, the intersectional model proposed in this chapter broadens the perspective on minorities and related minority stress in the workplace. It is shown that coping with minority stress because of one demographic must always be interpreted in relation to the other demographics. The manifestation of one demographic can limit or broaden one’s coping resources for coping with minority stress because of another dimension. Thus, the manifestation of one demographic can determine the coping opportunities and coping behavior one applies to situations because of the minority status of another demographic. This coping behavior can include disclosure decisions about invisible demographics. Therefore, organizational interventions aiming to create a supportive workplace environment and equal opportunities for every employee (e.g., diversity management approaches) should include more demographics instead of focusing only on few.

The lack of career movement of members of ethnic minority groups in work organizations has been widely documented. The purpose of this paper is to gain insight into conditions for the realization of diversity goals in the case of talent development.

In a case study of management development in the Dutch national tax administration, the practice of fostering vertical mobility of ethnic minority personnel through diversity management has been analysed. The authors make use of theories regarding effective diversity management and career advancement of ethnic minority employees. Data were collected through semi‐structured interviews with 12 participants in the management development course, and a further 25 functionaries involved in the project.

With regard to diversity management as a means of fostering talent development of ethnic minorities, the authors come to the conclusion that key success factors mentioned in the literature such as top level commitment and strategic integration, are insufficient and overrated conditions. More important are “non‐issues” in the formulation of diversity strategies, organizational alignment of relevant organizational players, strategic coherence and organizational culture.

The case study design used in this research facilitates case‐sensitive analysis, but is limited in estimations of validity and explanatory strength of factors mentioned in the literature, as it is in generalizing across organizations.

Interventions aimed at fostering ethnic diversity in talent development should start with precise analysis of cultural and organizational conditions and processes underpinning standard practices of talent and career development, and not only seek strategic integration and top management commitment but arrange for broad‐based organizational alignment.

While there are many theoretical and normative models tracing diversity outcomes to organizational conditions and diversity management strategies, there is a dearth of empirical studies in this field. The case study explores the merits of these models and adds new insights on an empirical basis.