Journal of Business Ethics

, Volume 21, Issue 1, pp 61–76 | Cite as

Diversity Management: A New Organizational Paradigm

  • Jacqueline A. Gilbert
  • Bette Ann Stead
  • John M. Ivancevich


Currently, an increasing number of organizations are attempting to enhance inclusiveness of under represented individuals through proactive efforts to manage their diversity. In this article, we define diversity management against the backdrop of its predecessor, affirmative action. Next, selected examples of organizations that have experienced specific positive bottom line results from diversity management strategies are discussed. The present paper also provides a conceptual model to examine antecedents and consequences of effective diversity management. Additional research areas identified from the model and literature review result in a number of research propositions intended to enhance the exploration and understanding of diversity management.


Economic Growth Management Strategy Conceptual Model Research Area Additional Research 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Adarand Constructors, Inc. V. Pena No. 93–1841, slip op. (U.S. June 12, 1995).Google Scholar
  2. Affirmative Action Update: 1996, Report to the President's Council, University of Houston, Office of Affirmative Action.Google Scholar
  3. Allen, R. B. and P. J. Appeldoorn (eds.): 1995 (May), Working Age, pp. 2–5.Google Scholar
  4. An Unbreakable Glass Ceiling: 1995 (March 20), Business Week, p. 42.Google Scholar
  5. Banerjee, N.: 1993 (September 10), ‘Battling Bias’, The Wall Street Journal, R9, R12.Google Scholar
  6. Barry, B. and T. S. Bateman: 1996, ‘A Social Trap Analysis of the Management of Diversity’, Academy of Management Review 21, 757–790.Google Scholar
  7. Berton, L.: 1996 (February 2), ‘First Female Senior Partner is Named by Price Waterhouse for Recruiting’, The Wall Street Journal, B2.Google Scholar
  8. Bowens, H., J. Merenivitch, P. L. Johnson, A. R. James and D. J. McFadden-Bryant: 1993, ‘Managing Cultural Diversity toward True Multiculturalism: Some Knowledge from the Black Perspective’, in R. R. Sims and R. F. Dennehy (eds.), Diversity and Differences in Organizations (Quorum Books, Connecticut), pp. 33–71.Google Scholar
  9. Burt, R. S: 1992, Structural Holes: The Social Structure of Competition (Harvard University Press, Massachusetts).Google Scholar
  10. Burt, R. S.: 1995, The Contingent Value of Social Capital. Paper presented at The Annual Meeting of the Academy of Management, Vancouver (August).Google Scholar
  11. Carroll, A.: 1990, ‘Principles of Business Ethics: Their Role in Decision Making and an Initial Consensus’, Management Decisions 28, 29–24.Google Scholar
  12. Chacko, T. I.: 1982, ‘Women and Equal Employment Opportunity: Some Unintended Effects’, Journal of Applied Psychology 67, 119–123.Google Scholar
  13. Cohen, C.: 1996, ‘Race, Lies, and “Hopwood”’, Commentary 101, 39–45.Google Scholar
  14. Cox, T. H.: 1991, ‘The Multicultural Organization’, Academy of Management Executive 5, 34–47.Google Scholar
  15. Cox, T. H., and S. Blake: 1991, ‘Managing Cultural Diversity: Implications for Organizational Competitiveness’, Academy of Management Executive 5, 45–56.Google Scholar
  16. Cox, T. H. and C. Smolinski: 1994, Managing Diversity and Glass Ceiling Initiatives as National Economic Imperatives (Working Paper #9410–01), University of Michigan, School of Business Administration.Google Scholar
  17. Dalton, D. R. and C. A. Enz: 1987, ‘Absenteeism in Remission: Planning, Policy, Culture’, Human Resource Planning 10, 81–91.Google Scholar
  18. Dalton, D. R. and C. A. Enz: 1988, ‘New Directions in the Management of Employee Absenteeism: Attention to Policy and Culture’, in R. S. Schuler and S. A. Youngblood (eds.), Readings in Personnel and Human Resource Management (West, St. Paul, MN: West), pp. 357–366.Google Scholar
  19. DeWitt, K. E.: 1973, ‘Strengthened EEOC Accelerates Action against Business, Labor Employee Discrimination’, National Journal 913–921.Google Scholar
  20. Duff-Bloom, G.: 1996, ‘Women in Retailing-is There a Glass Ceiling?’, Arthur Andersen Retailing Issues Newsletter 8.Google Scholar
  21. Dwyer, P., M. Johnston and K. L. Miller: 1996, ‘April 15, Out of the Typing Pool, into Career Limbo’, Business Week, 92–94.Google Scholar
  22. Ely, R. J.: 1995, ‘The Power in Demography: Women's Social Constructions of Gender Identity at Work’, Academy of Management Journal 38, 589–634.Google Scholar
  23. Equal Opportunity Pays: 1993 (May 4), The Wall Street Journal, 1.Google Scholar
  24. Female Managers Gain Overseas Assignments but Still Face Global Hurdles: 1994 (September 29), The Wall Street Journal, A1.Google Scholar
  25. Firefighters v. City of Cleveland, No. 84–1999, slip op. (U.S. July 2, 1986).Google Scholar
  26. Gaiter, D. J.: 1996 (April 16), ‘How Shoney's Belted by a Lawsuit, Found the Path to Diversity’, The Wall Street Journal, A1, A6.Google Scholar
  27. Gilbert, J. A. and B. A. Stead: 1996, Stigmatization Revisited: Does Diversity Management Make a Difference?, Unpublished manuscript.Google Scholar
  28. Giraldo, Z. A.: 1991, ‘Early Efforts at Achieving a Diversified Work Force: Going Beyond EEO/AA’, in M. A. Smith and S. A. Johnson (eds.), Valuing Differences in the Workplace (American Society for Training and Development, Virginia), pp. 3–6.Google Scholar
  29. Griggs, L. B.: 1995, Valuing Diversity (McGraw-Hill, Inc., California).Google Scholar
  30. Heilman, M. E.: 1994, ‘Affirmative Action: Some Unintended Consequences for Working Women’, Research in Organizational Behavior 16, 125–169.Google Scholar
  31. Heilman, M. E., S. R. Kaplow, M. A. Amato and P. Stathatos: 1993, ‘When Similarity is a Liability: Effects of Sex-based Preferential Selection on Reactions to Like Sex and Different Sex Others’, Journal of Applied Psychology 78, 917–927.PubMedGoogle Scholar
  32. Heilman, M. E., C. J. Block and J. A. Lucas: 1992, ‘Presumed Incompetent?: Stigmatization and Affirmative Action Efforts’, Journal of Applied Psychology 77, 536–544.CrossRefGoogle Scholar
  33. Heilman, M. E., J. C. Rivero and J. F. Brett: 1991, ‘Skirting the Competence Issue: Effects of Sex-Based Preferential Selection on Task Choices of Women and Men’, Journal of Applied Psychology 76, 99–105.Google Scholar
  34. Heilman, M. E., M. C. Simon and D. P. Repper: 1987, ‘Intentionally Favored, Unintentionally Harmed? The Impact of Sex Based Preferential Selection on Self-Perceptions and Self-Evaluations’, Journal of Applied Psychology 72, 62–68.Google Scholar
  35. Hirsch, J. S: 1996 (April 18), ‘Fleet Announces Plan to Improve Racial Sensitivity’, The Wall Street Journal, C12.Google Scholar
  36. Ibarra, H.: 1992, ‘Homophily and Differential Returns: Sex Differences in Network Structure and Access in an Advertising Firm’, Administrative Science Quarterly 37, 422–477.Google Scholar
  37. Ibarra, H.: 1993, ‘Personal Networks of Women and Minorities in Management: A Conceptual Framework’, The Academy of Management Review 18, 56–87.Google Scholar
  38. Jackson, S. E.: 1992, ‘A Preview of the Road to be Traveled’, in S. E. Jackson and Associates (eds.), Diversity in the Workplace (The Guilford Press, New York), pp. 3–12.Google Scholar
  39. Jackson, S. E. and E. B. Alvarez:. 1992, ‘Working through Diversity as a Strategic Imperative’, in S. E. Jackson (ed.), Diversity in the Workplace (The Guilford Press New York).Google Scholar
  40. Jenkins, J: 1996 (April 17), ‘Downtown is New Home of Women's Business Council’, Houston Chronicle, 1.Google Scholar
  41. Johnson v. Santa Clara County No. 85–1129, slip op. (U.S. March 25, 1987).Google Scholar
  42. Johnston, W. B.: 1987, Workforce 2000 Executive Summary.Google Scholar
  43. Kanter, R. M.: 1977, Men and Women of the Corporation (Basic Books, New York).Google Scholar
  44. Konrad, A. M. and F. Linnehan: 1995, ‘Formalized Hrm Structures: Coordinating Equal Employment Opportunity or Concealing Organizational Practices?’, Academy of Management Journal 38, 787–820.Google Scholar
  45. Kotkin, J.: 1987, ‘Selling to the New America’, Inc 9, 44–52Google Scholar
  46. Labich, K.: 1996 (September 9), ‘Making Diversity Pay’, Fortune, 177–178, 180.Google Scholar
  47. LaFramboise, T. H., L. K. Coleman and J. Gerton: 1993, ‘Psychological Impact of Biculturalism: Evidence and Theory’, Psychological Bulletin 114, 395–412.CrossRefPubMedGoogle Scholar
  48. Larkey, L. K.: 1996, ‘Toward a Theory of Communicative Interactions in Culturally Diverse Workgroups’, Academy of Management Review 21, 463–491.Google Scholar
  49. Lindenberg, S. K.: 1991 ( January 7), ‘Managing a Multi-ethnic Field Force’, National Underwriter, 16–18, 24.Google Scholar
  50. Milliken, F. J. and L. L. Martins: 1996, ‘Searching for Common Threads: Understanding the Multiple Effects of Diversity in Organizational Groups’, Academy of Management Review 21, 402–433.Google Scholar
  51. Minority set-asides: Change ahead: 1995 (October), Nation's Business, p. 24.Google Scholar
  52. Mobley, M. and T. Payne: 1983 (September), ‘Backlash! The Challenge of Diversity Training’, Security Management, 35–42.Google Scholar
  53. Morrison, A. M.: 1992, The New Leaders: Guidelines on Leadership Diversity in America (Jossey-Bass, Inc., San Francisco).Google Scholar
  54. Murphy, P. E.: 1988, ‘Implementing Business Ethics’, Journal of Business Ethics 7, 907–915.Google Scholar
  55. Nacoste, R. W.: 1987, ‘But Do They Care about Fairness?: The Dynamics of Preferential Treatment and Minority Interest’, Basic and Applied Social Psychology 8, 117–191.Google Scholar
  56. Nacoste, R. W.: 1989, ‘Affirmative Action and Self-Evaluation’, in F. Blanchard and F. Crosby (eds.), Affirmative Action in Perspective (Springer-Verlag, New York), pp. 103–109.Google Scholar
  57. Nemeth, C.: 1985, ‘Dissent, Group Process and Creativity: The Contribution of Minority Influence’, in E. Lawler (ed.), Advances in Group Processes 2 ( JAI Press, Connecticut), pp. 57–75.Google Scholar
  58. Nemeth, C. J.: 1986, ‘Differential Contributions of Majority and Minority Influence’, Psychological Review 93, 23–32.Google Scholar
  59. Nemeth, C. J. and J. Wachtler: 1983, ‘Creative Problem Solving as a Result of Majority vs. Minority Influence’, European Journal of Social Psychology 13, 45–55.Google Scholar
  60. Nkomo, S. M. and Cox, T.: 1989, ‘Gender Differences in the Upward Mobility of Black Managers: Double Whammy or Double Advantage?’, Sex Roles 21, 825–839.Google Scholar
  61. Pfeffer, J.: 1995, ‘Producing Sustainable Competitive Advantage through the Effective Management of People’, Academy of Management Executive 9, 55–69.Google Scholar
  62. Pradhan, A.: 1989 (November 6), ‘Ethnic Markets: Sales Niche of the Future’, National Underwriter, 18.Google Scholar
  63. Reitman, V.: 1994 (April 13), ‘It's All Relative’, The Wall Street Journal, R7, R12.Google Scholar
  64. Rice, F.: 1994 (August 8), ‘How to Make Diversity Pay’, Fortune, 79–86.Google Scholar
  65. Rice, F: 1996 (May 13), ‘Denny's Changes its Spots’, Fortune, 133–135, 140, 142.Google Scholar
  66. Robinson, R. K.: 1992, ‘Affirmative Action Plans in the 1990s: A Double-edged Sword?’, Public Personnel Management 21, 261–272.Google Scholar
  67. Robinson, G. and K. Dechant: 1997, ‘Building a Business Case for Diversity’, Academy of Management Executive 11, 21–31.Google Scholar
  68. Rynes, S. and B. Rosen: 1995, ‘A Field Survey of Factors Affecting the Adoption and Perceived Success of Diversity Training’, Personnel Psychology 48, 247–270.Google Scholar
  69. Saltzman, A.: 1991 ( June 17), ‘Trouble at the Top’, U.S. News & World Report, 39–47.Google Scholar
  70. Salwen, K. G.: 1994 (April 12), ‘The Checkoff’, The Wall Street Journal, A1.Google Scholar
  71. Sessa, V. I.: 1992, ‘Managing Diversity at the Xerox Corporation: Balanced Work Force Goals and Caucus Groups’, in S. E. Jackson (ed.), Diversity in the Workplace (The Guilford Press, New York).Google Scholar
  72. Sharpe, R.: 1994 (March 29), ‘Women Make Strides, but Men Stay Firmly in Top Company Jobs’, The Wall Street Journal, A1, A8.Google Scholar
  73. Shellenberger, S.: 1995 (February 24), ‘Sales Offers Women Fairer Pay, but Bias Lingers’, The Wall Street Journal, B1, B14.Google Scholar
  74. Sheridan, J. H.: 1994 (September), ‘Dividends from Diversity’, Industry Week, 23–26.Google Scholar
  75. Siconolfi, M. and M. A. Jacobs: 1996 (May 24), ‘Wall Street Fails to Stem Rising Claims of Sex Harassment and Discrimination’, The Wall Street Journal, C1, C6.Google Scholar
  76. Smith, R. R.: 1978 (February), ‘A Third-rate Case Shouldn't Make Hard Law’, MBA, 39–40, 42, 44, 50, 52, 56.Google Scholar
  77. Summers, R. J.: 1991, ‘The Influence of Affirmative Action on Perceptions of a Beneficiary's Qualifications’, Journal of Applied Social Psychology 21, 1265–1276.Google Scholar
  78. Survey Shows More Women Sitting on Corporation Boards: (August 5, 1995), Houston Chronicle, 6D. Tajfel, H. and J. Turner: 1979, ‘An Integrative Theory of Intergroup Conflict’, in W. G. Austin and S. Worchel (eds.), The Social Psychology of Intergroup Relations (Brooks/Cole California), pp. 33–47.Google Scholar
  79. The Gender Gap: (March 29, 1994), The Wall Street Journal, A1.Google Scholar
  80. The New Bias on Hiring Rules: 1981 (May 25), Business Week, 123–124.Google Scholar
  81. Thomas, R. R.: 1991, Beyond Race and Gender: Unleashing the Power of Your Total Work Force by Managing Diversity (AMACOM, New York).Google Scholar
  82. Thomas, R. R.: 1992, ‘Managing Diversity: A Conceptual Framework’, in S. E. Jackson and Associates (eds.) Diversity in the Workplace (The Guilford Press, New York), pp. 306–317.Google Scholar
  83. Triandis, H. C., L. L. Kurowski and M. J. Gelfand: 1994, ‘Workplace Diversity’, in H. C. Triandis, M. D. Dunnette and L. M. Hough (eds.), Handbook of Industrial and Organizational Psychology 2 (Consulting Psychologists Press, Inc., Palo Alto, California), pp. 769–827.Google Scholar
  84. Tsui, A. S., T. D. Egan and C. A. O'Reilly: 1992, ‘Being Different: Relational Demography and Organizational Attachment’, Administrative Science Quarterly 37, 549–580.Google Scholar
  85. U.S. v. Paradise. No. 85–999, slip op. (U.S. February 25, 1987).Google Scholar
  86. Valasquez, M.: 1996 (Winter), ‘Thinking Ethically’, Issues in Ethics, 2–5.Google Scholar
  87. Weiss, S.: 1992, ‘Inland Steel Industries, California’, The Business Enterprise Trust, 1–21.Google Scholar
  88. Whitmire, R.: 1984 ( June 15), ‘Reagan Defends Stance on Quotas’, U.S.A. Today, 9A.Google Scholar
  89. Women Beware: 1996 ( January 16), The Wall Street Journal, A1.Google Scholar
  90. Women Make Strides: 1994 (March 29), The Wall Street Journal, A1, A8.Google Scholar
  91. Women Paid Less Throughout the World: 1995 (August 25), Houston Chronicle, 24A.Google Scholar
  92. Wright, P., S. P. Ferris, J. S. Hiller and M. Kroll: 1995, ‘Competitiveness through Management of Diversity: Effects on Stock Price Valuation’, Academy of Management Journal 38, 272–287.Google Scholar
  93. Wygnant v. Jackson Board of Education, No. 84–1340, slip op. (U.S. May 19, 1986).Google Scholar
  94. Wynter, L. E.: 1994 (December 21), ‘Diversity is All Talk, No Affirmative Action’, The Wall Street Journal, B1.Google Scholar
  95. Yang, C., M. Mallory and A. Cuneo: 1995 (February 27), ‘A “Race-Neutral” Helping Hand?’, Business Week, 120–121.Google Scholar

Copyright information

© Kluwer Academic Publishers 1999

Authors and Affiliations

  • Jacqueline A. Gilbert
    • 1
  • Bette Ann Stead
    • 2
  • John M. Ivancevich
    • 2
  1. 1.Management and Marketing DepartmentMiddle Tennessee State University, College of BusinessMurfreesboroU.S.A
  2. 2.Department of Marketing, College of Business AdministrationUniversity of HoustonHoustonU.S.A

Personalised recommendations