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The age diversity climate construct is gaining greater attention in the organizational literature due to the demographic changes in the workplace. While the few existing studies on age diversity climate (ADC) are rather encouraging, this construct is still at an early stage of conceptual and operational development. This chapter helps to advance this field of research by analyzing the conceptual issues stemming from the theoretical definition and empirical measurement of the ADC construct. We first review and compare ADC with other age-focused climate concepts, highlighting overlapping and diverging factors regarding their conceptual framework and operationalization. Subsequently, we consider several open issues related to the operationalization of ADC, including the level of analysis, the choice of referent, and the dimensions of analysis. We conclude the chapter by outlining possibilities for future research on ADC.

The purpose of this study is to investigate the impact of the age diversity of the top management team (TMT) on firm performance and on the managerial ability of the TMT. Furthermore, this study investigates how the relationship between age diversity and firm performance is mediated by managerial ability and the contextual nature of the relationship.

This is an empirical study which uses regression analyses and mediation analyses to evaluate the hypotheses.

The authors observe a negative relationship between age diversity and firm performance and also between age diversity and managerial ability of the TMT. Further, the authors find that that the negative relationship between age diversity and firm performance is mediated by managerial ability. The authors also find that the relation between performance and age diversity is context specific – the negative relationship between age diversity and firm performance is ameliorated during times of financial crisis.

In an environment where diversity is beginning to be valued, insights into the impact of different types of diversity on performance become important. Age diversity is a critical component of diversity. Therefore, insights into the impact of age diversity on performance will be of interest to managers, academics and even regulators.

To the best of the authors’ knowledge, this study is the first to evaluate the impact of age diversity on the market perception of firm performance of US firms using a large, comprehensive, multi-year data set. Furthermore, this is the only study to evaluate the impact of age diversity on managerial ability and show the mediating effect of managerial ability on the relationship between age diversity and firm performance.

The purpose of this paper is to examine the extent to which negative age-based metastereotypes mediate the relationship between the representation of older workers and two forms of stereotype threat in the workplace: own-reputation and group-reputation. Adopting a social identity perspective, this paper also explores whether age diversity beliefs moderate the relationship between negative age-based metastereotypes and stereotype threats.

A cross-sectional design was adopted with bootstrapped mediation and moderation analyses. The data were collected from 567 older workers working in 15 manufacturing companies.

The analyses provide support for partial mediation and for a moderation effect of age diversity beliefs in the relationship between negative age-based metastereotypes and own-reputation threat. The results hold while controlling for age, objective organizational age diversity, and organizational tenure.

The limitations of this study include its cross-sectional nature and the need for further work regarding older workers’ metastereotypes about middle-aged workers.

For stereotype threat interventions to be effective they must identify beforehand the target and the source of the threat. Moreover, interventions should aim for the development of a sense of identity on the organization as it may pave the way for members of different age groups to build bonds and for intergenerational boundaries to be blurred.

This paper contributes to the literature by showing the importance of negative age-based metastereotypes in workplace age dynamics. It also provides further support for a multi-threat approach to the experience of age-based stereotype threats in the workplace.

Due to demographic changes in most industrialized countries, the average age of working people is continuously increasing, and the workforce is becoming more age-diverse. This review, together with the earlier JMP Special Issue “Facilitating age diversity in organizations – part I: challenging popular misbeliefs”, aims to summarize new empirical research on age diversity in organizations, and on potential ways to support beneficial effects of age diversity in teams and organizations. The second part of the Special Issue focusses on managing mutual perceptions and interactions between different age groups.

A literature review is provided summarizing and discussing relevant empirical research on managing mutual perceptions and interactions between different age groups at work.

The summarized research revealed a number of challenges to benefit from age diversity in organizations, such as in-group favoritism, age norms about appropriate behavior of older workers, intentional and unintentional age discrimination, differences in communication styles, and difference in attitudes towards age diversity. At the same time, managerial strategies to address these challenges are developed.

Together with the first part of this Special Issue, this is one of the first reviews on ways to address the increasing age diversity in work organizations based on sound empirical research.

Acknowledging that only examining the main effects of diversity may be limiting, the authors explore integrating van Knippenberg et al.'s (2004) categorization–elaboration model (CEM) of workgroup diversity as a linchpin in the relationship between empowering leadership and performance in age-diverse work groups. While prior research has focused almost exclusively on the impact of transformational leadership in diverse contexts, few studies have found the positive effects of transformational leadership to be diminished in certain age-diverse contexts. Consequently, the authors investigate whether empowering leadership may be a better approach in this context due to its emphasis on accommodating and participative behaviors.

Using survey data gathered from work group members across a wide array of industries (N = 214), the authors test for the moderating effects of empowering leadership on the relationship between age diversity and work group performance and its indirect relationship via information elaboration (while controlling for transformational leadership).

Empowering leadership positively moderated the direct relationship between age diversity and work group performance and the indirect relationship via information elaboration, whereas transformational leadership had the opposite effect. “Coaching” and “showing concern/interacting with the team” drove the positive effects of empowering leadership, and “personal recognition” and “intellectual stimulation” predicted the negative effects of transformational leadership.

This research offers insights into how managers can lead age-diverse work groups more effectively (i.e. by utilizing an empowering as opposed to a transformational leadership approach, with a particular emphasis on “coaching” and “showing concern/interacting with the team” behaviors).

The study identifies an “alternative” moderating contingency to the age diversity–performance relationship (empowering leadership).

This paper aims to examine the impact of individual and group-level variables on knowledge exchange and identification in age diverse teams. From a diversity perspective, influences of age-related diversity perceptions and diversity beliefs (level 1) are compared with effects of objective age diversity (level 2). From a management perspective, the paper goes beyond age diversity and investigates the incremental effects of team and individual characteristics from a team learning perspective.

Questionnaire data of 516 team members and their supervisors in 73 organizational teams were analyzed in a multilevel approach.

Objective age diversity had a negative effect on knowledge exchange and identification. Beyond that, age-related diversity perceptions and positive diversity beliefs on the individual level predict the effect of objective diversity. Relativizing the impact of diversity, individual characteristics (knowing the team experts, clear understanding of goals) and team characteristics (team climate, time for knowledge exchange) explain the largest proportion of variance in the dependent variables underlining the importance of team learning variables.

Compared to objective diversity, subjective diversity perceptions and diversity beliefs are relevant predictors of processes and attitudes in heterogenic teams.

There are multiple leverages for management strategies beyond the mostly fixed age diversity in teams on the individual and group level.

This paper evaluates the cross-level interplay between objective diversity, perceived subjective diversity and diversity beliefs and revalues the impact of HR-management in age diverse teams.

Past research on how to compose a team is ambiguous, especially with respect to diversity dimensions. The authors argue that previous inconsistencies in results have arisen for two main reasons. First, there is a lack of clarity about the concept of age diversity, as age separation, age variety and age disparity are frequently used synonymously, but capture very different aspects of diversity. Second, in many research settings, age and tenure diversity have been intertwined. When staffing teams, many staff managers ask for staffing advise concerning staff diversity in order to enhance efficiency. This staffing problem is mainly a question how homogeneous and heterogeneous teams should be composed. In this paper, the authors capture both – age and tenure diversity – as well as their interaction and argue that age separation and tenure variety are most likely to affect team performance in a routine task. The paper aims to discuss these issues.

The authors are testing the hypothesis using rich quantitative field data from a steel company.

The results show that age separation decreases performance while tenure variety increases performance. Moreover, the beneficial effects of tenure variety cannot arise when age separation is too large.

The authors show that diversity research is very sensitive to the operationalization of diversity.

Managers can benefit from the study by learning how to optimally staff teams: while age diversity should be low, tenure diversity can be high.

Due to the unique data set, the authors can separate the influence of tenure and age diversity.

This study aims to investigate the direct effect of directors’ age diversity, and its interaction effect with the effectiveness of TMT meetings on bank performance.

Quantitative data were extracted from the bank’s annual reports for the six years 2011–2016. Age diversity was calculated using the coefficient of variation, and the bank’s performance was measured as return on assets and return on equity. The frequency of directors’ meetings was used as a proxy for the effectiveness of TMT meetings.

Based on the hierarchical regression analysis, the results do not support the hypothesis that there is a negative influence between age diversity on performance. However, the results support the hypothesis that age diversity has a positive effect on performance because of the high effectiveness of TMT meetings.

The limitations of the study include the use of only samples of the banks registered with Bank Indonesia. The subsequent research could use cross-country bank samples. In addition, the research uses age-related diversity variables only. Therefore, further research could consider other types of diversity such as education, functional or tenure. Furthermore, this study is limited to the effectiveness of the director (TMT) meetings as the only moderating variable. Further research could improve on this by including other moderating variables.

The findings of this study indicate that the existence of age diversity in TMT will aid bank governance if it is accompanied by effective meetings among groups of directors of varying ages. This age composition of directors will make meetings more effective as rich information for strategic decisions will be generated from different points of view because of the wide spectrum of age categories, and hence, there will be a positive impact on bank performance.

This study indicates that effective meetings of TMT groups of different ages will minimize the rise of “self-esteem”. Therefore, they will benefit the creation of a better quality relationship among TMT individuals. Accordingly, TMT within a company will have more opportunities to discuss in providing bright ideas for the company on how to innovate and create a new strategy to improve its performance.

This study, being the first to explore the effectiveness of TMT meetings to bank performance in the contexts of directors’ age diversity, contributes to the literature in this area, and especially to the body of knowledge about companies implementing a two-tier governance system.

Based on socioemotional selectivity theory, the authors aimed to develop and test hypotheses that identify the direct effect of top management team (TMT) age diversity on firms’ financial performance (return on equity [ROE], return on assets [ROA]) and the interactive effect of TMT age diversity and TMT average age on firms’ financial performance.

The paper presents results from a quantitative study of 867 TMTs in Korean manufacturing firms. Multiple hierarchical regression analysis was used to test the hypotheses.

The results show that TMT age diversity had a negative and significant main effect on ROE but not on ROA. They also indicate that the negative relationship between TMT age diversity and firm performance (ROE) was attenuated when the members of TMTs were relatively older.

First, this study extends existing TMT research, which mainly focuses on macro factors, such as industry and environment, by using micro factors, including TMT age diversity and TMT average age. Second, this paper combines and extends previous TMT studies, which have been dominated by either “property” or “tendency”, by examining the interactive effect of the distributional property (diversity) and central tendency (average) of TMT age on firms’ financial performance. Finally, this study indicates that socioemotional selectivity theory may be useful to explain the link between TMT age diversity and firms’ financial performance.

The study hypothesized that the impact of board diversity on financial distress (FD) is not direct but rather mediated by the firm’s corporate social responsibility (CSR) activities. Consequently, the purpose of this study is to examine the impact of CSR as a mediator in the board diversity–FD relationship.

The study examined six board diversity dimensions – age, gender, nationality, education and tenure in 81 nonfinancial Pakistan Stock Exchange (PSX)-listed firms from 2010 to 2021. The CSR engagement of the sample firms is evaluated using a multidimensional financial approach and the likelihood of FD is computed using Altman’s Z-score. The system-generalized method of moments estimator is used to meet the study objectives. In addition, several tests are run to determine the robustness of the study’s findings.

Based on the procedure for mediation analysis outlined by Baron and Kenny (1986), the authors found that CSR is significantly inversely associated with the likelihood of FD. Second, board diversity variables age, gender and national diversity were positively associated with CSR. Third, board age, gender and national diversity are significantly inversely related to FD. Finally, it was found that there is partial mediation between board age diversity and FD, whereas full mediation is shown between board age diversity and FD and between board nationality diversity and FD.

This study provides practical insights into PSX’s board diversity for companies, regulators and policymakers.

This research studies the connection between board diversity and FD. In addition, the current study extended the analysis by testing for the first time the mediating role of CSR in the diversity–distress relationship, particularly in the context of an emerging economy.