Cultural diversity\u27s impact on firm performance: The moderating influence of diversity initiatives and socialization tactics

The primary purpose of this dissertation is to test the hypothesized relationships between cultural diversity and firm performance. Specifically, this dissertation examines whether or not socialization tactics and diversity initiatives moderate the relationship between diversity and firm performance. This dissertation uses ROA, ROE, and employee productivity in order to capture an accurate picture of firm performance. My second purpose is to test competing hypotheses that are based on different theories. Theories relating to diversity suggest that there may be both positive and negative effects of a heterogeneous workforce. Therefore, it is necessary to isolate those instances in which diversity can be a competitive advantage. This dissertation uses competing hypotheses to test these theories. All of the hypotheses were tested using hierarchical regression analysis. According to Cohen and Cohen (1983: 120) “it is one of the most useful tools for extracting information from a data set.” Hierarchical regression analysis allows for the testing of hypothesized contingency relationships. In addition, this technique is considered to be a conservative method for testing interaction effects because the interaction terms are tested after the other independent variables are entered into the equation. Therefore, significant changes in adjusted R2 provide support for the hypotheses (Delery & Doty, 1996). This study offers several contributions to the diversity management literature. In particular, empirical support is provided for the relationship between diversity and firm performance. By testing competing hypotheses, limited support was found for the social identity theory framework in diversity research. Limited support was also found for the contingency theory framework combined with the resource based view of the firm. In other words, left alone, racioethnic diversity can have a negative impact on performance. However, if managed properly, the negative impact can be lessened and a positive impact can be achieved

Reconciling Employee Dissimilarity And P-O Fit

Organizational diversity and person-organization fit have been found to have both positive and negative effects on organizational outcomes. These negative consequences of diversity are often attributed to a lack of fit between traditional employees and employees who differ based on observable or unobservable characteristics. The positive consequences of P-O fit are attributed to a lack of diversity within an organization. Thus, the question emerges: is it possible to have both a diverse workforce and one with high levels of P-O fit? If so, then perhaps it is possible to harness the positive outcomes of diversity and P-O fit and to minimize some of the negative consequences. We propose that the organizational climate and socialization tactics of the firm are a key factor in achieving balance between diversity and fit. We suggest that some organizational climates are better at embracing diversity than others and thus result in a higher level of P-O fit despite the degree of diversity among employees. In addition, we suggest that certain socialization tactics encourage inclusion and acceptance and thus result in a higher level of P-0 fit despite the number of dissimilar employees. Accordingly, we offer a framework in which organizational climate and socialization tactics moderate the relationship between employee dissimilarity and perceptions of P-O fit

Prerequisite Coursework As A Predictor Of Performance In A Graduate Management Course

There have been many studies published concerning predictors of academic performance but few of these studies have examined the impact of prerequisites. As such, we investigated the impact of a prerequisite management course on graduate student performance in an Organizational Behavior (OB) course. In this longitudinal study, we explored predictors of performance in a Master of Business Administration (MBA) Organizational Behavior course. In particular, we found that the grade received in the prerequisite was positively related to subsequent performance in the Organizational Behavior course. In addition, mode of instruction (online versus on campus) was significantly and negatively related to the grade received in Organizational Behavior

The Role Of Organizational Justice And Ethical Frameworks On Attitudes Toward Affirmative Action: The Moderating Role Of Organizational Support

The current study explores some of the challenges associated with Affirmative Action (AA) by clarifying the relationship between individuals’ ethical frameworks and equality justice norms and their effects on attitudes toward AA specifically targeting African Americans.  The study reveals that employer support for affirmative action plans and programs not only reduce negative attitudes toward AA but also moderate the effects of ethical frameworks and equality values on such attitudes. More specifically, consequentialist ethical values relate negatively and nonconsequentialist ethical values relate positively to attitudes toward affirmative action.  Additionally, organizational support positively moderates the relationship between both equality norms and consequentialist ethical values and attitudes toward affirmative action for African Americans. Implications for future research and practice are offered

Why Didnt I Get The Job? White Nonbeneficiaries Reactions To Affirmative Action And Diversity Programs

The purpose of this study was to investigate how justifications for hiring procedures and hiring decisions impact white nonbeneficiaries perceptions of fairness. The results for the procedural and distributive justice hypotheses were strikingly similar. Both the diversity justification and no justification were perceived to be fairer than the affirmative action justification for both procedural and distributive justice. Interestingly, however, the respondents perceived no justification to be fairer than the diversity justification. Of the three different scenarios, no justification was perceived to be the most fair and affirmative action was perceived to be the least fair justification

Antecedents and consequences of psychological contracts: Does organizational culture really matter?

Exploring the role of psychological contracts, this study proposes that different organizational cultures are associated with relational psychological contracts compared to transactional contracts while both types of contracts serve as mediators. While clan cultures positively impact relational contracts and are negatively associated with transactional contracts, hierarchical cultures have the reverse effect. In addition, psychological contract types mediate the two culture types' relationship to both organizational commitment and employee yearly earnings. In sum, clan cultures relate to more positive organizational outcomes than hierarchical cultures, a finding which as implications for future research and practice.Psychological contracts Relational contracts Transactional contracts Organizational culture Clan culture Hierarchy culture Affective commitment Yearly earnings