Cross-level effects of workplace diversity on sales performance and pay

Aparna Anand Joshi, Hui Liao, Susan E. Jackson

Research output: Contribution to journalArticle

125 Citations (Scopus)

Abstract

Drawing on social identity theory and status-based perspectives, we describe how in-group/out-group dynamics affect performance differences and earnings inequalities between members of higher-status majorities (whites, males) and lower-status minorities (people of color, women). Among sales employees on 437 teams in 46 units of a large company, team demographic composition and unit management composition moderated the relationship between individual demographic attributes and pay. Ethnicity-based earnings inequalities were smaller in teams with proportionately more people of color, and gender- and ethnicity-based inequalities were smaller in units with proportionately more women and people of color as managers. Partial mediation by performance was found.

Original languageEnglish (US)
Pages (from-to)459-481
Number of pages23
JournalAcademy of Management Journal
Volume49
Issue number3
DOIs
StatePublished - Jan 1 2006

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Sales
Color
Chemical analysis
Managers
Personnel
Workplace diversity
Level effect
Sales performance
Industry
Demographics
Earnings inequality
Ethnic groups
Large companies
Employees
Mediation
Social identity theory
Minorities
Outgroup
Group dynamics

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

Cite this

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Cross-level effects of workplace diversity on sales performance and pay. / Joshi, Aparna Anand; Liao, Hui; Jackson, Susan E.

In: Academy of Management Journal, Vol. 49, No. 3, 01.01.2006, p. 459-481.

Research output: Contribution to journalArticle

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