Impacts of Workplace Discrimination on Organizational Performance

Abstract

Discrimination leads to disparities and reinforces them, which can negatively influence an organization’s performance by decreasing commitment,  increasing turnover, and lowering employee morale. This research proposal outlines a suggested design for a study that would empirically examine how workplace discrimination affects worker productivity. The topic will be introduced at the outset. It then moves on to the literature reviews, which support the study’s justification and shows how completing the study will resolve the problem by discussing the age, gender and racial discrimination, its impacts, and the gaps. After defining the dependent and independent variables for the hypothesis, the study will establish a null hypothesis and an alternative hypothesis in the proposal. The paper will show whether there is a significant or no relationship between age/gender/racial discrimination and organizations’ performance and their relationships. The methods section next discusses how the study will be carried out, including how participants will be chosen, the data collected, and the research design. The suggested study’s internal and external validity will next be covered. It will also go over the benefits and drawbacks of the proposed sampling, design, and data collection methods. Finally, it will examine the potential short- and long-term effects of study involvement on participants. 

Introduction

Workplace discrimination is mistreating or acting unfairly toward other employees because of age, marital status, gender, national origin, color, race, sexual orientation, pregnancy, and gender (Stypinska & Turek, 2017). Discrimination occurs at all employment levels and phases, from hiring to termination, remuneration to shifting job duties. Direct or indirect discrimination against people is possible.

When someone is mistreated due to a personal trait, this is known as direct discrimination. Direct discrimination frequently occurs due to unjustified presumptions about the abilities and limitations of individuals with particular unique features (Kline, Rose, & Walters, 2021). When an unreasonable requirement, condition, or practice has a detrimental impact on a person because of a personal characteristic, this is called indirect discrimination (Halley et al., 2018). A society or organization may develop institutionalized discriminatory practices and behaviors that target an individual or group that possesses a particular set of personal qualities (Stypinska & Turek, 2017). These actions frequently integrate into an organization’s culture and are supported by rules or guidelines. If a company receives several complaints about the same or closely related problems, systemic discrimination, also known as entrenched prejudice, may be to blame. Discrimination can happen in the workplace and places of public accommodation like clubs, schools, and retail establishments (Halley et al., 2018). Discrimination at work frequently hurts the productivity of the company’s employees. Even though it is illegal, the practice nevertheless continues. Each year, there are thousands of documented examples of employment discrimination, and many more do not get reported (Kline, Rose, & Walters, 2021). Discrimination can take many forms, and the results can differ based on the organization’s culture and the individual prejudices of its employees (Stypinska & Turek, 2017). The study will see in a moment how employment discrimination harms the efficiency of a firm.

Although discrimination is pervasive worldwide, it is most prevalent in the U.S., and most people are affected by it. Because of globalization and possibly the danger of finding safer neighborhoods, better lifestyles, or better jobs, most individuals from developing countries migrated to or relocated to developed countries (Stypinska & Turek, 2017). The coexistence of all peoples in one area has led to the development of modern civilization. However, individuals in America have different standards and are prejudiced against foreigners for a variety of reasons. They experience discrimination in every aspect of their stay in the United States. The most discriminated against groups were Indians, Muslims, and Black Africans. Workplace discrimination is a huge problem that may prevent people from being able to survive in their country (Kline, Rose, & Walters, 2021). Their way of life is challenging since they are not free to adhere to and respect traditions. Workplace discrimination is influenced mainly by various factors and is not centered on a single issue (Halley et al., 2018). Along with non-Americans, Americans experience discrimination frequently due to their distinctive qualities. Most prejudice is directed against Black Africans, then Muslim and Indian communities. But discrimination in the workplace has happened to Americans, including women.

The United States Equal Employment Opportunity Program describes the different types of discrimination and the various laws and regulations to counteract it. At work, there is much discrimination against employees, which causes many significant issues for the company and the employees. Many firms are getting concerned about workplace discrimination because it affects many employees daily and causes them to perform poorly, ultimately hurting the company. Workplace discrimination is the biggest issue affecting how effectively organizations perform (Kline, Rose, & Walters, 2021). Investigating the numerous factors of workplace discrimination and possible solutions is the goal of the topic selection. Even though multiple studies have been conducted on this subject, statistics show that workplace prejudice is, unfortunately, increasing rather than decreasing with time. One of the main concerns facing the corporate community is discrimination (Kline, Rose, & Walters, 2021). The globalization thesis claims that diversity in population or culture leads to variety in organizations, where people from various origins and cultures coexist. Discrimination against different groups results in misunderstandings and misconceptions, making it harder to accomplish the company’s objectives (Halley et al., 2018). Office discrimination is a problem that practically all businesses encounter. Businesses have created welcoming workplace environments and policies and regulations that forbid workplace discrimination to combat discrimination.

In the past, studies have looked at the detrimental effects that discriminatory behavior has on both victims and organizations (Stypinska & Turek, 2017). Previous research employing the Job Demand-Resources model has found a correlation between perceived discrimination and reduced well-being (Kline, Rose, & Walters, 2021). A person’s “job demand” is when their employment demands negatively influence their physical or psychological health. High job demands may have a detrimental impact on employee well-being and may also cause disengagement. The factors that affect job resources, such as social support and organizational resources, can also cause a decrease in job demand (Halley et al., 2018). Resources at work give employees, among other things, the ability to participate in decision-making and strengthen their control over their positions. Previous research has looked at the harmful effects on the health of victims who see discrimination as a source of stress or a necessity at work (Tesfaye, 2011). Minority stress is used in this context to describe victims’ effects. An adversarial and unpleasant social setting brought on by discrimination, prejudice, and stigma impairs mental health. The impact of bias in the workplace on workers who are not members of a disadvantaged group has not been thoroughly studied (Halley et al., 2018).

There is evidence that employees may find it hard to work in a hostile atmosphere due to sexual harassment and gender discrimination (Kline, Rose, & Walters, 2021). This could harm the employee as well as the company. Even if individuals do not experience discrimination regularly, the worry about it could still be stressful. Despite anti-discrimination laws for over 50 years, many believe they are biased targets. Three-quarters of all working adults have encountered ageism at work in some form. There is prejudice in the workplace, according to 35% of Black employees and 49% of Black HR specialists (Halley et al., 2018). According to research, members of the LGBTQ+ community face severe prejudice in all spheres of their lives, including employment and medical care. Employees will be impacted despite the belief that the workplace is secure.

In the workplace, discrimination may hurt everyone and take many different forms. Discrimination can take many forms, some of which are overt indications of negative behavior and others more covert. Anyone at work, including coworkers, clients, and customers, is capable of acting in a harassing manner. The Equal Employment Opportunity Commission prohibits all forms of discrimination. Anti-discrimination laws restrict sexual harassment, which is a type of discrimination (Kline, Rose, & Walters, 2021). Any distinction, exclusion, or preference at work that lessens or abolishes equality of opportunity or treatment is considered discrimination. People engage in discrimination when they are subjected to a lesser standard due to traits that have no bearing on their skills or job requirements (Halley et al., 2018). Businesses must always follow the non-discrimination policy. For all hiring and training decisions and the promotion of their employees at all levels, companies should encourage and support suppliers using qualifications, skills, and experience as the foundation.

Literature Review

Workplace discrimination is the most significant problem faced by many multinational corporations or other businesses with staff from varied backgrounds. Organizations benefit from diversity since it helps to open up new employment chances or points of view, which helps to grow business operations and contribute to company success. However, the discrimination the employees embed in their behavior is the barrier that prevents diversity from being mangled or driving it in a constructive direction. Later, the company will become weaker, leading to its eventual collapse and a sharp decline in profits. Various academics and researchers agree with various forms of workplace discrimination based on their research on multiple firms to understand the effects of discrimination at work. The research proposal suggests looking at how prejudice affects the workplace (age discrimination, race discrimination, color discrimination, and gender discrimination). Various researchers conduct numerous studies on these forms of discrimination (Abbas, Hameed & Waheed, 2010). Male and female employees frequently experience gender discrimination when treated differently at every business level.

Gender discrimination

People believe that because women are given fewer opportunities inside a company, they are incapable of handling demanding tasks or lack the necessary skills to complete their assignments. one study of research on Barriers to career advancement for women in the workplace versus inequality (Stypinska, & Turek, 2017). When it comes to hiring, many clients would instead work with male personnel than with female employees with the same qualifications and work experience (Desai, Chugh, & Brief, 2014). Compared to men, women are more prevalent in jobs with lower pay scales. It’s a common belief that men perform these technical occupations better than women, which deters women from applying. Due to this, women do not pursue careers or jobs with better pay and benefits than males do. In a patriarchal society, women are also more responsible for their families than men, forcing them to choose careers that allow them to combine their social and professional lives in a flexible and accommodating manner (Desai, Chugh, & Brief, 2014). Given that they are in charge of raising their children and responding to their needs more than men, many women find that they do not have as much time as their male counterparts to devote to work. Various preconceptions in the workplace tend to give male employment patterns higher importance. Despite having the same skills and qualifications, a male employee is more likely than a female employee to be promoted at work (Heilman, & Caleo, 2018). These gender stereotypes are prevalent in technical fields like factories and construction firms. Due to their capacity to juggle work and home obligations, managers and supervisors doubt women’s potential to perform better at higher levels in these positions. That explains why several female candidates for promotions at work are passed over.

Some individuals believe that a woman’s low self-confidence is why she cannot handle obstacles. Through her investigation, the woman learned how the male perspective on gender equality places many obstacles in the way of a woman’s success. Michailidis, Morphitou, & Theophylatou (2012) learned who is preventing their professional growth and mistreating them at work. These are the opinions of the staff members working with women, but the company’s attitude toward them differs. It offers them a range of resources to help and inspire them as they advance their professions while preserving an excellent work-life balance.

In the United States, 42 percent of working women report having experienced workplace discrimination based on gender (Parker & Funk 2017). Various specific circumstances, ranging from earning less than male peers for doing the same job to being passed over for import duties, are described in a recent analysis of female survey data from the Pew Research Center. Gender prejudice can affect all stages of hiring, retaining, and recruiting new employees. Between 3 to 51 percent, with an average of 17 percent, men and women receive different wages (Abbas, Hameed & Waheed, 2010). Employers must consider that more women are restricted to lower-level positions in low-paying industries and unable to advance due to biases and the “glass ceiling” when analyzing the gender pay gap. Due to these unequal possibilities, women are unable to grow professionally and are unable to earn as much as males. For job possibilities, mentorships, promotions, and wage hikes, women confront barriers that put them at a disadvantage. Korvajärvi (1998), for instance, found that men and women had different work styles and demonstrated how men’s methods obtained better incentives as they attained the organizational efficiency target than women’s did. This study shows that discrimination still occurs covertly and that one gender is consistently seen as straying from the norm despite organizations’ claims that their rules and practices are gender-neutral (Abbas, Hameed & Waheed, 2010).

Sexual harassment can demoralize everyone around it. Therefore, it frequently harms the entire company’s productivity (Badgett, 2014). There are a few ways that employees can combat prejudice at work by alerting their employer to their perceptions of harassment or discrimination. Since the victim does not make it apparent that the behavior is inappropriate and unpleasant, numerous unlawful acts of discrimination and harassment go undetected or unpunished. Employers should take complaints of discrimination seriously by requesting written reports for each instance of harassment or discrimination that is reported. Allegations of discrimination should be looked into, and offenders should face disciplinary or remedial action. Employers are required by law to look into any allegations of harassment and discrimination right away. Some businesses are subject to severe fines due to legal actions or when they disregard regulations intended to prevent employment discrimination. Affirmative action rules that help increase workplace diversity would be one illustration. Companies that aggressively combat prejudice and promote a diverse workplace can avoid most of these consequences. They also benefit from having a much more varied corporate culture.

Age Discrimination

The research by Stypińska & Nikander (2018) demonstrates how age discrimination occurs in the workplace. Employers are more likely to hire young people in most organizations because they are energetic. The company incurs fewer maintenance costs because there are no medical costs associated with them than with employees close to 50. The company incurs more expense in retaining them. They preserve the youthful force with them and work to save costs. The fact that they fire the elderly and do not give them any other job options due to their age is immoral (Stypińska, & Nikander, 2018). Despite their excellent talent level, no one even gave them a chance. According to the study, these workers are subjected to discrimination because of their high hiring expenses (Kline, Rose, & Walters, 2021).

Racial Discrimination

When employers discriminate against their employees based on their racial groups, racial discrimination is the most prevalent issue in many businesses. African Americans are the racial group that experiences the most discrimination in most organizations, and this is also true of my organization. The U.S. government has created different regulations, however, to combat the issue of discrimination in the workplace by levying hefty taxes or fines on offending businesses.

An organization with a racism issue may learn about it from a public event. Two black males were detained at a Starbucks in Philadelphia, purportedly for trespassing, and Starbucks was faced with a nightmare. Their only “crime” was waiting for a friend while seated at a restaurant without making a purchase. The training was a component of Starbucks’ quick response to the situation. Starbucks offers a one-day racial bias training class to all employees in reaction to the event. The program’s objectives were to increase empathy, raise awareness of implicit bias, and establish social relationships. The seven-minute “The Story of Access” film comprised first-person testimonies from black people, highlighting the emotional and psychological toll of living with racism daily. After viewing the video, managers and staff discussed their encounters with racism and racial theory. Interventions like speaking out against racism in the workplace may help lower the risk of employment-related discrimination. Because anti-discrimination rules are constantly changing, employers must train their employees on how to identify and address discrimination. Additionally, employers need to ensure that workers feel at ease talking about implicit bias and that they don’t wait for outright racist behavior to happen.

Religion Discrimination

Cases of EEOC discrimination based on religion have grown dramatically in recent years. Religion-based claims have climbed by 41% between 1997 and 2015, while payments have increased by almost 174 percent (Chuah, 2016). Religion covers religious, ethical, and moral beliefs as well as established official faiths as well as new, unconventional, unrelated to formal or structured religions, or only adhered to by a very tiny percentage of the population. Research demonstrates that employees are happier when their employers address their belief with them than when they dismiss or deny it exists. The likelihood of attracting top personnel is higher for these companies. As America has become increasingly diverse, religion has become a severe workplace concern. Depending on their religious practices, some employees may need continual accommodations while others only need periodic adjustments. Religious prejudice, retaliation, and the inability to make the necessary spiritual adjustments have severe and expensive effects on organizations. To settle EEOC accusations of religious discrimination, employers could pay up to $300,000 (Abbas, Hameed & Waheed, 2010).

Effects Of Discrimination On Organisations

Numerous businesses are paying millions of dollars in fines for their discriminatory actions. In one of the incidents covered in the study, the New York City Park Department was ordered to pay $20 million in damages for treating its Hispanic and African American employees unfairly by denying them access to higher-paying jobs and promotions (Wallace, 2017). Despite the government’s successful efforts, most organizations still practice racial discrimination. The other form of discrimination is used frequently in the workplace, nearly every day, to target Africans by calling them names behind their backs to get them angry.

Numerous companies wonder to what extent they must allow employees’ religious manifestations or practices, which may involve persuading other workers to share their beliefs in religion, ethics, or morality. The extent to which employers must permit employees to express their ideas while on the job and to what time they must give resources like access to facilities or equipment may also be questioned by employers. Even when it is legal to accommodate honestly held moral convictions, ethical and religious, employers may worry that doing so would alienate some employees, particularly those with different religious, ethical, or moral practices and beliefs. By creating rules and processes that respect all religious views and, when possible, allow for employee viewpoints, organizations can increase worker productivity and morale while minimizing their chance of facing legal challenges.

Despite current legislative safeguards, prejudice against pregnant people is nevertheless pervasive. The U.S. received close to 31,000 complaints of pregnant discrimination (Salihu, Myers, & August 2012). Over time, the volume of complaints was essentially constant. These claims have been thoroughly investigated, and current data on women’s labor force participation demonstrates that discrimination against pregnant workers persists across all industries, racial and ethnic groups, and states. Pregnancy discrimination affects women of all racial and ethnic backgrounds but disproportionately affects black women (Kline, Rose, & Walters, 2021). Black women submitted nearly 3 out of 10 pregnancy discrimination allegations (28.6%) while only making up 14% of women in the workforce between the ages of 16 and 54 (Kline, Rose, & Walters, 2021). Black women are more prone to develop pre-term labor, preeclampsia, and hypertensive problems during pregnancy. Due to pregnancy prejudice, it becomes more difficult for them to maintain their health insurance and income. The Pregnancy Discrimination Act passed almost 40 years ago was a significant step toward establishing equality for pregnant workers. Women report experiencing pregnancy discrimination at work, regardless of their state of residence, job line, race, or ethnicity. Better safeguards for pregnant workers are required to combat and eradicate pregnancy discrimination in this nation.

According to a National Institute for Health study, there is a link between reported workplace discrimination and employee’s poor mental and physical health (Tamers et al., 2020). Employees who have encountered discrimination are more likely than those who have not to endure psychological anguish and health-related issues. The emotional and mental health of the victim of workplace discrimination may be in danger. It may even jeopardize personal relationships and cause someone to lose their sense of self-worth. It might potentially lead to substantial anxiety and tension. As a result, productivity declines, and morale and job satisfaction quickly decline.

There may be an increase in insurance claims and sick days. Extreme employee rage that results in explosive and even violent outbursts might be a symptom of the condition. Employees who experience injustice often leave their employment, which forces the company to invest more time and money in finding and training new hires while also dealing with the low productivity of a new hire. Emotional and physical well-being are intimately related. Various NIH investigations have revealed that, while racial discrimination might result in smoking, workplace bullying and sexual harassment may lead to heavy drinking among employees as a coping mechanism (Badgett, 2014). Employees may accrue many sick days or frequently arrive late to avoid prejudice. An employee’s workload may suffer due to absences, which may manifest as nervousness and concern about upcoming deadlines or presentations. She might therefore be taking an antidepressant. Another kind of physical prejudice is someone who refuses to engage in social conversation, smile, look coworkers in the eye, or maintain grooming practices.

This type of prejudice may have a negative financial or high turnover impact on a business’s effectiveness. Employees who believe they are not receiving fair treatment from their employer are inclined to quit as soon as they have the option to avoid discrimination. As a result, the productivity of the business would suffer. Alternately, they might begin seeking work right away, resulting in workers coming and going so often that it would be challenging to keep pace with hiring and training. For instance, the expense and time involved in administering, teaching, and training new employees on corporate regulations and technologies put a strain on the budget. Because of all the legal issues, it would face, discrimination might reduce a company’s effectiveness. Employees who can prove discrimination may bring a lawsuit against the company or report the incident to the police. Federal legislation forbids several forms of job discrimination (Abbas, Hameed & Waheed, 2010). Legal repercussions may include court costs incurred by a firm defending itself against a discrimination claim. Because job searchers examine companies before applying for positions, they will not apply for jobs at places with numerous discrimination cases. Therefore a company with a history of legal issues will not hire a new employee. For instance, the government may demand that a business reimburse a worker who was wrongly terminated or treated or that a company rehires a worker who was fired in error. It might also hurt everyone’s morale. Even if they are not directly involved, sexual harassment can prevent men and women from doing their jobs in the workplace (Badgett, 2014).

Gaps in Discrimination

Research indicates that there are still many loopholes in the laws addressing job discrimination (Puhl & Brownell, 2013). Workplace discrimination can be expensive and damage a company’s reputation if not managed appropriately. There are several measures that businesses can implement to assist reduce the danger of workplace discrimination, even if it can be difficult to avoid it. No matter how minor or severe, workplace discrimination must not be tolerated. Although it may be challenging to abolish all types of discrimination, employers will be equipped with the information and tools necessary for both employees and employers to address these issues in the workplace.

Hypothesis

What effects does workplace discrimination have on the effectiveness of an organization? The following hypotheses will guide the proposed research work at hand

H1a. There is a significant relationship between age discrimination and organizational performance

H1o. There is no significant relationship between age discrimination and organizational performance

H2a. There is a significant relationship between gender discrimination and organizational performance

H2o. There is no significant relationship between gender discrimination and organizational performance

H3a. There is a significant relationship between race discrimination and organizational performance.

H3o. There is no significant relationship between race discrimination and organizational performance

RQ1. What is the relationship between age discrimination and organizational performance?

RQ2. What is the relationship between gender discrimination and organizational performance?

RQ3. What is the relationship between race discrimination and organizational performance?

Methodology

Participant Selection:

The study will make use of the probability sampling method. The samples will be chosen using straightforward random procedures that give each population participant an equal opportunity to be selected. The participants will be separated into strata according to gender, age, and race, with individuals from each category chosen randomly. According to information from the U.S. Census Bureau, 6.1 million employer firms operated nationwide in 2019. 100 Employees of 10 companies will be picked randomly and used in the study. H.R. managers of the selected companies will be used in the study as well. The Taro Yamane formula will be used to calculate the sample size at a 0.05 level of significance or a 95 percent confidence level.

Data Collection Measure:

Data will be gathered through techniques such as conducting interviews, watching people, and taking samples. This study will use a professionally designed questionnaire to collect data from the respondents as its primary source of information. Managers and employees from various organizations will also receive questionnaires. The staff of different organizations will receive the questionnaires at random.

The following interview questions will be asked of managers and staff members working for various companies: “Have you ever seen or experienced race/gender or age discrimination in your company? If so, have discriminations impacted your performance and the performance of the organization? Do workers file reports of discrimination, if there are any? How frequently do human resource managers deal with discrimination cases, if any, and empowerment? What are some of the strategies your company uses to prevent discrimination?”

Selected workers of the selected companies will be interviewed to examine how tasks are distributed and assess the dynamic between workers and managers. The study will keep track of the gender split in each position and make observations. The nature of the organizational structure, such as communication channels and worker grouping, will be observed. Additionally, a random personnel selection process will be used for the interview. This study’s primary form of data collection will be employee interviews. The WPR can be used to conduct critical policy analysis based on problem representation.

Research Design:

A research design is a plan for the investigation that specifies where, when, and how the information will be acquired. A form of observational study known as a cross-sectional survey design, a component of a quasi-experimental research design, looks at data collected from a population during a specific period. The association between workplace discrimination and organizational performance will be investigated using the survey study design. 

Discussion

The dependability of the data will be assessed using Cronbach’s alpha calculation. Workplace discrimination by race, age, and gender is a variable, and positive alpha values are anticipated for these variables (Vanhove & Gordon, 2014). Additionally, it is expected that the organization’s performance metrics items would yield beneficial results (Tesfaye, 2011). The study findings could benefit numerous firms by improving performance and bringing fairness to the workplace. The research will outline potential remedies for employment discrimination situations (Vanhove & Gordon, 2014). The suggested solution may address some unfair workplace practices, such as pay gaps based on age and gender (Stypińska & Nikander, 2018). Other academics who want to research employment discrimination may use the findings as a jumping-off point. Due to the possibility that the independent variables influenced the dependent variables, participant bias could affect the research conclusion.

Interviewing could be used to get the participant’s point of view while avoiding judgment. The participants may feel relieved publicly addressing stigmatizing and traumatic employment discrimination incidents. Due to revealing the wrongdoings of prejudice by their coworkers, the participants may still encounter additional discrimination. The participants may be more motivated because they anticipate taking steps to end workplace discrimination and create a positive work environment for all employees. There may be a decrease in job discrimination for participants. Long-term, the participants might have favorable experiences, and their ability to produce may improve.

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