Diversity:

Assume that people from demographic groups Pens and Pencils are employed at Fictitious Company, Inc. Both Pens and Pencils have a similar number of excellent performers and poor performers in their group. Workers from both groups expect fair performance evalua- tions, pay raises, and promotions based on their performance. After a period of working for and excelling in performance, high- performing Pencils realize that despite their high qualifications and strong performance, their performance is rated lower than that of Pens, their pay raises are lower, and they are not likely to be promoted. This perception is val- idated when Pencils consider the management and executive levels of Fictitious Company and see very few people from the Pencils category in those levels. What is the expected result on motivation and future performance of high- performing Pencils? Low- and average- performing Pencils are observing. They realize that high-performing Pencils, despite their high performance, receive low performance ratings and few-to-no raises and promotions. What is the expected effect on the motivation to work harder and the future performance of low- performing Pencils?

After a period of employment at Fictitious Company, Pens realize that they are continually rated highly and receive pay raises and promo- tions regardless of their performance. If they make their sales and quality goals, they receive

high raises and are promoted. If they miss their sales and quality goals, they still receive high raises and are promoted. If they are chronically late or absent on Mondays and Fridays, there are few-to-no negative consequences. What is the expected result on future performance and motivation of Pens who are truly good perfor- mers but observe Pens who miss sales and qual- ity goals still being promoted and rewarded? What is the expected result on the motivation to improve and the future performance of Pens who are low performers but receive rewards nonetheless?

To summarize, at Fictitious Company, high- performing Pencils receive clear messages that their high performance is not valued. Low per- forming Pencils receive messages that there is no reason to strive for high performance because people like them receive no reward for high per- formance. Pens receive messages that their low and high performers are valued and rewarded similarly, so there is no need to strive for excel- lence. What is the result of this scenario for the overall performance and competitiveness of Fictitious Clueless Company, Inc.?

Contrast this scenario to that of Fictitious Savvy Company, Inc., in which members of Pens and Pencils expect, and receive, fair per- formance evaluations, promotions, and raises. What is the expected result on the future moti- vation and performance of high, average, and low performers among Pens and Pencils in Fictitious Savvy Company, Inc.? What is the expected result on the organizational perfor- mance of Fictitious Savvy Company?