The relationship between unit diversity and perceptions of organizational performance in the military

Structural equation modeling techniques are used to examine the relationship between demographic diversity and perceptions of organizational performance in military units. Analyzing data from the Military Equal Opportunity Climate Survey reveals higher female and minority representation reduces females’ and minorities’ perceptions of organizational effectiveness, respectively. Identical factors appear to influence the perceptions of organizational performance across these two subgroups of employees. The results demonstrate the importance of conducting separate analyses for subgroups in examining the effects of demographic diversity on organizational performance.