Managing diversity at work: Does psychological safety hold the key to racial differences in employee performance?

Abstract

Previous diversity research has neglected the role of psychological mechanisms that underlie the relationship between diversity climate and employee performance. Drawing on social and racial identity theories, we hypothesized that psychological safety mediates the relationship between diversity climate and employee performance. Furthermore, we proposed that race moderates both stages of the mediation, whereby the relationships between diversity climate and psychological safety and between psychological safety and performance are stronger for minorities than for Whites. Results, based on a survey of employees and their colleagues, revealed that the relationship between diversity climate and employee performance was mediated by psychological safety. We also found that the diversity climate-psychological safety and psychological safety-extra-role performance relationships were moderated by race, such that these relationships were stronger for minorities than for Whites. Further, the indirect effects of diversity climate on extra-role behaviours via psychological safety were also moderated by race, such that these relationships were stronger for minorities than for Whites. For efficient management of diversity in organizations, research and practical implications are also discussed. Practitioner PointsIn the midst of increasing workforce diversity, the study highlights the importance of a psychologically safe work environment where employees feel confident in expressing their true selves without fear of being judged as inferior or incompetent. By necessitating the creation of psychologically safe work environments, the study establishes psychological safety as a principal motivator of employee performance behaviours in a racially diverse work setting.

An examination of the role of psychological safety in the relationship between job resources, affective commitment and turnover intentions of Australian employees with chronic illness

“…Positive work outcomes in response to job demands and resources have, however, been found for other minority groups, with the effect being stronger for the minority group than for employees in general. Perceptions of psychological safety have been demonstrated to mediate the relationship between employee perceptions of diversity climate and the performance of organizational citizenship behaviours, with the relationship being stronger for racial minority groups of employees than for whites (Singh et al, 2013). The authors suggest that a psychologically safe work environment assists all employees, but is of particular importance in assisting minority groups in overcoming feelings of insecurity at work.…”

“…Psychological safety refers to employees' 'sense of being able to show and employ one's self without fear of negative consequences to self-image, status or career' (Kahn, 1990, p. 708). Employees who occupy a peripheral status have heightened sensitivity to issues of respect and inclusion, and have improved task-related behaviour and increased organizational citizenship behaviours within a psychologically safe work environment where they feel respected, trusted and valued (Kirk-Brown & Van Dijk, 2011;Singh, Winkel, & Selvarajan, 2013).…”

Managing diversity in organizations: An integrative model and agenda for future research

“…These beliefs about, perspectives on, or attitudes towards diversity refer to an individual's generalized evaluations about the value of diversity to work group functioning, and are often thought to be instilled, besides other factors such as stereotypes and prior experience , by a positive diversity climate (Avery & McKay, 2010;Groggins & Ryan, 2013). Empirical evidence by and large supports the idea that diversity climate has a positive effect on work outcomes; diversity climate decreased absenteeism (Avery, McKay, Wilson, & Tonidandel, 2007) and lead to higher performance Singh, Winkel, & Selvarajan, 2013). Likewise, diversity beliefs have been found to increase identification with a work group (van Dick et al, 2008;, and lead to more favorable impressions of dissimilar others (Flynn, 2005; (Homan et al, 2008;Homan et al, 2007), and work group functioning (Ely & Thomas, 2001).…”

Diversity as Polyphony: Reconceptualizing Diversity Management from a Communication-Centered Perspective

“…For instance, some scholars suggest that organizations should encourage 'cosmopolitan communication' (Grimes and Richard, 2003) and thus demonstrate their appreciation of the differences between individuals in order to sustain competitive advantage (e.g., Grimes and Richard, 2003). Other scholars recommend that organizations should create environments in which 'diverse' employees (e.g., in terms of ethnic background) feel safe and are encouraged to speak their mind, because this will induce them to contribute subsequently to the organization's success by doing more than their role prescriptions require (Singh et al, 2013). Further empirical studies imply that a favorable organizational culture, or 'climate' (Cox Edmondson et al, 2009), in which the value of diversity is addressed, increases employee satisfaction and commitment and leads to desirable outcomes for the organization (e.g., Cox Edmondson et al, 2009;Groggins and Ryan, 2013;Nelson and Wolf, 2012).…”