Michigan State University Extension
Diversity and Pluralism - 02170199
12/95/
ERIC TITLE NUMBER: ED222614 AUTHOR: Salipante, Paul F., Jr.
TITLE: Employment Discrimination and Organizational
Efficiency.
YEAR PUBLISHED: 1981
NOTE: 10 p.; Paper originally given at the Annual Community
Clinical Workshop (6th, Lanham, MD, November 4-6, 1976).
AVAILABILITY: Not available separately; see UD 022 565.
ABSTRACT: Managers' claims that reducing employment
discrimination will lead to higher costs and decreased
personnel efficiency in organizations are not supported by
theory or empirical evidence. Economic theories, in fact,
indicate that discrimination does not have a rational
economic basis and that reducing discrimination should lead
to increased, rather than decreased, efficiency in the long
run. Analysis of discriminatory practices in hiring,
selection, placement, and promotion within organizations
demonstrates that, while truly equitable employment
practices may result in greater costs and reduced efficiency
in the short run, most the negative efficiency and cost
impacts tend to be temporary. Futhermore, many existing
discriminatory practices are not attributable to efficiency
considerations. Proponents of employment equity should
understand the economic concepts in the efficiency versus
discrimination issues in order to distinguish between
accurate and fallacious arguments and turn efficiency
arguments in their favor. In dealing with racial attitudes
of organization members, various mechanisms to reduce
discrimination may be employed, depending on the
organizational sector and type of discrimination being
addressed. (Author/MJL)
KEY DESCRIPTORS: Affirmative-Action; Business-; Economic
Factors; Organizational-Change; Personnel-Policy
KEY DESCRIPTORS: *Cost-Effectiveness; *Efficiency-;
*Employer-Attitudes; *Employment-Practices; *Equal
Opportunities-Jobs; *Racial-Discrimination
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