Expanding Insights on the Diversity Climate–Performance Link: The Role of Workgroup Discrimination and Group Size

• DOI: http://doi.org/10.1002/hrm.21589
• Author: Björn Michaelis,Kizzy M. Parks,Daniel P. McDonald,David J. G. Dwertmann,Florian Kunze,Stephan A. Boehm
• Published date: 01 May 2014
• Date: 01 May 2014

Human Resource Management, May–June 2014, Vol. 53, No. 3. Pp. 379–402

© 2014 Wiley Periodicals, Inc.

Published online in Wiley Online Library (wileyonlinelibrary.com).

DOI:10.1002/hrm.21589

Correspondence to: Stephan A. Boehm, Center for Disability and Integration (CDI-HSG), University of

St. Gallen, Rosenbergstrasse 51, CH-9000 St. Gallen, Switzerland, Phone (+41) 71 224 3181,

E-mail: stephan.boehm@unisg.ch.

EXPANDING INSIGHTS

ON THE DIVERSITY CLIMATE–

PERFORMANCE LINK: THE ROLE

OF WORKGROUP DISCRIMINATION

AND GROUP SIZE

STEPHAN A. BOEHM, DAVID J. G. DWERTMANN,

FLORIAN KUNZE, BJÖRN MICHAELIS, KIZZY M.

PARKS, AND DANIEL P. MCDONALD

The present study extends knowledge of the performance consequences of

workgroup diversity climate. Building upon Kopelman, Brief, and Guzzo’s

(1990) climate model of productivity, we introduce workgroup discrimina-

tion as a behavioral mediator that explains the positive effects of diversity

climate on workgroup performance. In addition, we investigate group size as

a moderator upon which this mediated relationship depends. We test these

moderated-mediated propositions using a split-sample design and data from

248 military workgroups comprising 8,707 respondents. Findings from struc-

tural equation modeling reveal that diversity climate is consistently positive-

ly related to workgroup performance and that this relationship is mediated

by discrimination. Results yield a pattern of moderated mediation, in that the

indirect relationship between workgroup diversity climate (through percep-

tions of workgroup discrimination) and group performance was more pro-

nounced in larger than in smaller workgroups. These results illustrate that

discrimination and group size represent key factors in determining how a

diversity climate is associated with group performance and, thus, have sig-

nifi cant implications for research and practice. © 2014 Wiley Periodicals, Inc.

Keywords: diversity climate, discrimination, workgroup performance,

group size, structural equation modeling

380 HUMAN RESOURCE MANAGEMENT, MAY–JUNE 2014

Human Resource Management DOI: 10.1002/hrm

While we seem to

know that a pro-

diversity climate has

a positive impact on

performance, we

know surprisingly

little about how such

effects occur and

which intervening

processes and

mechanisms are

important to explore.

While we seem to know that a pro-diver-

sity climate has a positive impact on per-

formance, we know surprisingly little about

how such effects occur and which interven-

ing processes and mechanisms are important

to explore (McKay et al., 2009; Shore et al.,

2011). Indeed, diversity climate research has

to date largely neglected which processes

might function as a linkage between diversity

climate and collective performance (Avery &

McKay, 2010; McKay etal., 2009).

Our study addresses this “black box” of

diversity climate effects by building on the

theoretical work of Schneider and Reichers

(1983), who have proposed that climate might

impact outcomes primarily through its effects

on various forms of organizational behavior.

In other words, climate as a normative envi-

ronment first has to change relevant behav-

iors in order to take effect. Building upon this

notion, Kopelman, Brief, and Guzzo (1990)

developed a model of climate, culture, and

productivity. They proposed organizational

climate to influence productivity through

its positive effects on cognitive and affective

states (such as work motivation and job sat-

isfaction) as well as on salient organizational

behaviors (such as employee attachment, per-

formance, and citizenship). We theoretically

anchor our study in Kopelman etal.’s (1990)

model and extend it by introducing discrimi-

nation as a behavioral mediator and group

size as a structural moderator of the diver-

sity climate–workgroup performance link. By

doing so, we contribute to the diversity cli-

mate literature in several important ways.

First, from an empirical perspective, our

study contributes to the diversity climate lit-

erature, as it is one of the very few pieces actu-

ally testing important elements of Kopelman

etal.’s (1990) model, such as the translation of

climate into behavior, which, in turn, affects

performance. Up to now, research on such

transfer processes has been scarce (Schneider,

Ehrhart, & Macey, 2011).

Second, by focusing on discrimination1 as

a potential mediator, we propose and empiri-

cally test a behavioral mechanism that has

not yet attracted the attention it deserves

in the diversity climate–performance link.

Complementing and extending the behaviors

Introduction

Trends like increasing globalization

and migration, growing individual

mobility, and aging populations

have created diverse work settings in

which employees of different gen-

ders, age groups, races, ethnicities, nationali-

ties, sexual orientations, and disability status

work together (Doverspike, Taylor, Shultz, &

McKay, 2000; Fullerton & Toossi, 2001;

Gonzalez & DeNisi, 2009). As a result of this

development, scholars and practitioners are

focusing on research and practical activities

to amplify the potential positive outcomes of

diversity (e.g., innovation and

creativity) while preventing its

negative effects (e.g., increasing

group conflicts and discrimina-

tion) (Kunze, Boehm, & Bruch,

2013; Van Knippenberg, De Dreu,

& Homan, 2004).

One concept that has gained

considerable attention in this

regard is diversity climate, which

describes members’ shared percep-

tions of an organization’s diver-

sity-related policies, practices, and

procedures (Gelfand, Nishii, Raver,

& Schneider, 2005; Kaplan, Wiley,

& Maertz, 2011; Mor Barak, Cherin,

& Berkman, 1998). At the individ-

ual level of analysis, perceptions of

a positive diversity climate within

organizations have been linked

to various desirable outcomes

such as increased job satisfaction,

increased career and organiza-

tional commitment, increased cross-cultural

sales, reduced turnover intentions, and low-

ered absenteeism (Avery, McKay, Wilson, &

Tonidandel, 2007; Buttner, Lowe, & Billings-

Harris, 2010; Chen, Liu, & Portnoy, 2012;

McKay, Avery, Tonidandel, Morris, Hernandez,

& Hebl, 2007). At the business unit or collec-

tive level of analysis, diversity climate has been

shown to relate positively to key performance

indicators such as store sales (McKay, Avery,

& Morris, 2009), return on profit (Gonzalez

& DeNisi, 2009), and/or customer satisfaction

(McKay, Avery, Liao, & Morris, 2011).