A TALE OF TWO CLIMATES: DIVERSITY CLIMATE FROM SUBORDINATES’ AND MANAGERS’ PERSPECTIVES AND THEIR ROLE IN STORE UNIT SALES PERFORMANCE

Applying Zohar's (2000) multilevel model of organizational climate, this study assessed the main and interactive effects of subordinates’ and managers’ diversity climate perspectives on store sales performance. Across 654 store units of a large U.S. retail organization, we observed main effects of subordinate and managerial diversity climates on unit sales percentage change and a significant subordinate × manager diversity climate perspective interaction. The greatest sales growth was found in stores wherein subordinates and management perceived highly pro-diversity climates (positive consistency). In contrast, the lowest sales growth was evident for stores in which both subordinates and managers reported less hospitable diversity climates (negative consistency). Our findings underscore the positive financial ramifications of highly consistent perceptions that diversity is valued in a work context.

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