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

Aparna Joshi, Hui Liao, Susan E. Jackson

Research output: Contribution to journalArticle

134 Scopus citations

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 - Jun 2006

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All Science Journal Classification (ASJC) codes

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

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