Does Increasing Racial Minority Representation Contribute to Overall Organizational Performance? The Role of Organizational Mission and Diversity Climate

Abstract

One underexplored question in the representative bureaucracy literature is whether public employees advocate for their demographic groups at the expense of other groups or their organizational roles. Many studies have focused on the link between passive representation, or the extent to which the public workforce reflects the demographic characteristics of its clients, and active representation, or the extent to which policies advance the interests of those people. However, little research has been done on whether and when increased representation by a certain group enhances overall organizational performance. This study examines the relationship between racial minority representation in U.S. federal agencies and the agencies’ goal achievement while considering the moderating role of organizational mission and diversity climate. The panel data analysis shows that increased minority representation lowers agencies’ goal achievement. However, a positive relationship exists between the two in agencies that mainly work to promote social equity for disadvantaged populations and foster a positive diversity climate in the workplace. These findings suggest that racial minority employees can better contribute to organizational success in agencies where they balance advocacy and organizational roles well and they are treated fairly and respectfully.