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2.  Theoretical Background & Hypotheses  Methods  Results  Discussion  Implications

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4.  “Determining the “health” and functioning effectiveness of an organization by examining such factors as morale, teamwork, and communication. This is accomplished through some or all of the following: group and/or individual interviews, observations, surveys or questionnaires, and reviews of records and reports.” DoD 1350.2

5.  Formally defined as "aggregate member perceptions about the organization's diversity-related formal structure characteristics [e.g., diversity-related policies, practices, and procedures] and informal values" (Gonzalez & DeNisi, 2009, p. 24). o Linked to more sustainable integrations and smoother collaborations between diverse employees in the workplace

6.  Increasing globalization and migration, growing individual mobility, and demographic changes in populations have created diverse work settings.  Need to amplify the potential positive outcomes of diversity (e.g., innovation and creativity) while preventing its negative aspects (e.g., increasing group conflict and discrimination)  A more thorough understanding of discrimination is essential due to its negative effects for employees (e.g., increase in work tension and stress, reduced satisfaction and health), as well as for companies (e.g., costly lawsuits, decrease in employee commitment and morale, flawed public images).  Diversity climate is an indicator of diversity attitudes of an organization.

7. Diversity Climate Discrimination Performance

8.  Firms with a strong diversity climate are typically involved in distinct personnel practices (e.g., regarding recruiting and promoting) which are positively perceived by the employees. o Social exchange theory o Perceived as a balanced relationship  Also explained by potentially reduced levels of conflict stemming from decreased categorization and social identity-based processes; weaken in-group bias

9.  Positively related with organizational commitment and negatively with turnover intention  Previous research has found a positive association between higher levels of a pro-diverse work climate and unit performance and productivity.

10.  H1: Diversity climate is positively related to group performance

11.  Research typically proposes diversity climate as related to positive employee attitudes and outcomes like organizational commitment or job satisfaction. o We propose a model that suggests the mitigation of harmful attitudes and behavioral processes.

12.  A pronounced diversity climate can function as a clear point of orientation and as a strong behavioral guideline for both employees and supervisors.  Work groups with a strong diversity climate take reports of discrimination very seriously and take early corrective actions.  Because discriminatory behavior can be regarded as a clear violation of such a pro-diverse professional policy, it is expected that diversity climate has a negative effect on perceived discrimination within work groups.

13. H2: Diversity climate is negatively related to work group discrimination

14.  Negative outcomes of discrimination: o reduced levels of job involvement o career and work satisfaction o commitment o organizational citizenship behaviors  Regarding the effects of discrimination on performance, the literature is less explicit.

15.  First, group members who perceive any kind of discrimination against them may emotionally (or physically) withdraw from the group and its goals, resulting in a drop in their individual performance that may, in turn, also affect the performance of the whole group. o This assumption is in line with social exchange theory.  Secondly, employees’ attitudes toward their employers and work groups are dependent on their perceptions of whether their own opportunities and treatment are equal to those of other group members. o Explains why whole groups of employees may emotionally withdraw when they feel that members of their own in-group are treated unfairly or in a discriminative way.

16.  H3a: Work group discrimination is negatively related to group performance.

17.  Based on prior theoretical considerations in Cox's interactional model of cultural diversity (1994), we propose a mediation model.  In contrast to prior theoretical and empirical work, we do not rely on the mediating effects of positive employee attitudes, but propose work group discrimination – a negative behavioral pattern – as a mediator in the diversity climate-performance link.

18.  H3b: The relationship between diversity climate and group performance is mediated through work group discrimination.

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20.  Military members  The final data set consisted of: o 7,689 employees from 211 work groups o Mean group size: 36.44 employees (SD = 44.63) o The majority of the respondents were between 22 and 40 years old. o 81.4 % male  We deleted groups with less than three members and deleted the two largest work groups due to outlier analyses.

21.  Diversity climate was assessed with a 7-item measure o "Everyone in my work unit is treated fairly."  Discrimination was measured with 10 items focusing on various forms of discrimination (disability, age, religion, gender, ethnicity). Each dimension was captured with two items. o "A supervisor did not appoint a qualified worker with a disability to a new position, but instead appointed another, less-qualified worker." o We measured each separately; however, we computed one overall discrimination score for the analyses in the current study.  Group performance was assessed with 3 items. o "When high priority work arises, such as short deadlines, crash programs, and schedule changes, the people in my work group do an outstanding job in handling these situations.“

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23.  According to the classical stepwise approach to mediation testing, we first examined a model that allowed only a direct linkage between diversity climate and group performance (Step 1).  The results confirmed this relationship (ß =.16, t = 2.14, p <.05) and thus support Hypothesis 1.  Therefore, in our sample, groups with a higher diversity climate level seem to perform better. Supported Diversity Climate Group Performance

24. Supported  The estimates in the model also confirmed Hypothesis 2, which predicted a negative influence of diversity climate on discrimination (ß = -.51, t = -5.81. p <.001).  These results indicated that groups with a higher level of diversity climate showed lower levels of perceived discrimination. Diversity Climate Discrimination Performance

25.  Furthermore, we also found support for Hypothesis 3a which proposed a negative relationship between discrimination and performance (ß = -.36, t = -4.66. p <.001).  In our sample, work groups with higher levels of perceived discrimination seemed to perform less well. Supported Diversity Climate Discrimination Performance

26.  Finally, according to Hypothesis 3b, the relationship between diversity climate and group performance is expected to be mediated by discrimination.  Results showed a significant indirect effect from diversity climate on performance via discrimination. Thus, Hypothesis 3b gained further support. Supported Diversity Climate Discrimination Performance

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29.  All hypothesized relationships in our mediation model were found to be significant, including the full mediation of the diversity climate-group performance link via work group discrimination.

30.  Our study results are in line with and extend prior empirical work suggesting a clear "business case" for diversity climate.  Our results indicate that group perceptions of diversity climate positively relate to group performance.  Our study highlights the role of discrimination in the diversity climate-group performance link. o For leaders, this finding is important, as it sheds additional light on the question of how to prevent discrimination within work settings. o The active fostering of a strong and shared diversity climate can be recommended as a key preventive measure.

31. 1. Continuously apply fair and transparent policies, practices, and procedures with regard to all relevant activities. 2. The diversity perceptions of employees should be carefully monitored. 3. Organizations should think about the organization-wide implementations of specially designed diversity workshops and training events, educating both leaders and employees about the positive effects of a pro-diverse attitude and work behavior.