Page 130 - Discrimination at Work The Psychological and Organizational Bases

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5. ORGANIZATIONAL-LEVEL DISCRIMINATION
different (Hiller & Day, 2003). Yet, because LMX relationship quality is
thought to be pivotal for the access that subordinates receive to resources,
information, important networks, and opportunities, high-quality LMX
relationships with diverse subordinates are one key to combating discrim­
ination in organizations (Douglas, Ferris, Buckley, & Gundlach, 2003). Ul­
timately, those managers who establish high quality LMX relationships
with all of their employees without discriminating against minority sub­
ordinates will be in a better position to utilize all of their human resources
(Douglas et al., 2003). Indeed, recent evidence demonstrated that depart­
ments in which racial minorities reported high-quality LMX relationships
with their managers had higher profits than departments where minori­
ties reported low-quality LMX relationships (Nishii, Mayer, Goldstein, &
Dotan, 2004).
Strategy

When strategies for advancing diverse employees and creating a culture
of inclusiveness are embedded within an organization's strategic business
plan, consequent levels of discrimination tend to be lower (Catalyst, 1993;
U.S. Department of Labor, 1995). Actually including EEO as part of a
company's business strategy is important because statements of nondis­
crimination are a very tangible and salient sign that discrimination is not
tolerated within an organization (Morrison & Von Glinow, 1990). Further,
publicly stating the importance of diversity as a basis of competitive
advantage and human resource quality fosters the belief that diversity
represents an opportunity for the organization rather than a problem (Cox
& Blake, 1991).
Although the specific business case for reducing discrimination may dif­
fer across organizations or industries, there are several business rationales
for being committed to the recruitment, retention, and advancement of di­
verse employees. They include better customer-oriented decision making
resulting from a better reflection of a company's consumer base within
the company's workforce and management (Robinson & Dechant, 1997);
attracting both customers and qualified applicants as a result of gaining a
reputation as a good place to work for all types of employees (Cox, 1994);
the full utilization of the organization's human capital (Wentling & Palmas-
Rivas, 1997); lower costs because of reduced turnover, absenteeism, and
discrimination lawsuits (Jackson & Alvarez, 1992); and increased work­
force productivity and improved organizational health (Jackson & Alvarez,
1992).
There is also a theoretical basis for expecting that organizations that pur­
sue an innovation strategy will be motivated to capitalize on the diversity