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In its general form, discrimination relates to drawing meaningful and valid distinctions between alternatives. Discrimination can be wellor ill-intentioned, conscious or subconscious, legal or illegal, and relevant or irrelevant to meaningful success criteria. For example, making accurate and relevant distinctions can occur on the basis of legitimate factors such as among persons in the context of hiring or promotion decisions. In this case, the ability of selection methods such as standardized tests or interviews to discriminate among those more likely to succeed in various academic or professional contexts might be of interest. From an Equal Employment Opportunity (EEO) and compliance perspective, two forms of discrimination are illegal: disparate treatment—wherein individuals are treated differently based on their demographic or social group membership(s); and disparate impact—which occurs when the equal application of employment criteria (e.g., standardized test, physical trait requirement) has a disparate effect on one or more protected groups. Illegal forms of discrimination are harmful due to losses for members of the group(s) discriminated against and the losses suffered by organizations that do not benefit from the talent and potential contributions of members of these groups.

Conceptual Overview

A primary focus of discrimination research in organizations has been workforce diversity. This research has tended to focus on discrimination as it relates to social groups protected by equal rights legislation, including that regarding sex, ethnicity, and age. Empirical organizational research has determined that discrimination occurs in both the formal procedures used to select, train, place, appraise, compensate, and promote employees, and informal aspects of organizational life such as social exclusion from networks.

Much discrimination research comes from economic theory such as Becker's “tastes and preferences” approach to labor market discrimination, and research from social psychology on social identity/ self-categorization and intergroup dynamics. Becker argues that discrimination is the result of prejudice, and that discrimination plays out as an ecumenical equation, specifically how much one is willing to pay to reduce or otherwise minimize one's contact with individuals from various low-status groups. A person discriminates when he or she forgoes some income to indulge this preference. Thus, the degree of discriminatory preference is indicated by the amount of income an employer or employee is willing to sacrifice to maintain social distance. In other words, discriminating employers would hire members of undesirable groups only to the extent that their lower market wage offsets the desire to discriminate. The gains reaped in saved wages would have to balance the undesirable consequence of closer contact. Thus, uninhibited market forces should punish discriminators since other firms would benefit from the lower costs of nondiscrimination.

Other significant discrimination research in organizations has emerged from seminal social-psychological research on intergroup dynamics. This research asserts that value and emotion attached to social group membership(s) motivate individuals to make favorable distinctions between in-groups/members and out-groups and their members. Establishing favorable distinctions for one's in-groups serves to affirm and maintain a positive self-concept. Social identity (SIT) research has incorporated notions of group-based stereotyping and expectancy confirming dynamics, wherein individuals' preconceived notions of different others (out-group members) play a significant role in eliciting anticipated behavior. These expectancy confirmation processes subsequently justify continued discriminatory attitudes and behavior.

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