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Race-Related Differences in Promotions and Support: Underlying Effects of Human and Social Capital

“Race-Related Differences in Promotions and Support: Underlying Effects of Human and Social Capital,” by Erika Hayes James, examines possible explanations for racial disparity between black and white managers. The study asks whether there are work-related experiences and outcomes that differ in the two groups and what might account for them.

One argument is that discrimination exists because of racism. The majority of research has shown that whites receive more favorable treatment in the workplace than blacks. Human and social capital could also be factors in treatment disparity. Human capital includes attainment of education and training, and social capital involves networking and creating close work relationships.

The author uses promotion rate and perception of social support to develop hypotheses about work-related outcomes. Treatment discrimination could be a reason for different experiences between blacks and whites and can occur on an individual, group, and organizational level.

At the individual level, stereotypes of blacks as occupying low status and inferior roles come into play. Prejudicial behavior, or acting on negative stereotypes, is the result. For example, in one study, black and white job candidates that matched in terms of sex, age, appearance, and other qualifications applied for the same job. White candidates were chosen over black ones in 29 percent of the cases, whereas blacks were favored only 5 percent of the time.

On the group level, blacks experience the negative consequences of social closure practices, or exclusionary activities. These are prejudicial behaviors by whites that make it difficult for blacks to participate fully in the organization. For example, whites may reserve special opportunities for members of their own group. As a result, blacks may not be able to gain access to people who will accept them into networks or develop relationships that may enhance their career and provide social support. These relationships can lead to promotions, salary increases, and more challenging positions.

At the organizational level, minority status can adversely affect career outcomes. Personal and occupational pressures on those in an underrepresented group have been shown to negatively influence their achievements. In addition, sometimes unconscious and institutionalized practices in an organization can be discriminatory. In one study of clerks, black new hires were four times more likely than whites to be assigned to a black supervisor. Despite the lack of an explicit policy for racial congruence in the organization, blacks were being directed to certain jobs.

The results of James’ research include: 

  • Black managers reported being promoted at a slower rate and receiving less psychosocial support than their white counterparts. 
  • No differences were reported between black and white managers in their participation in company-sponsored training or in educational attainment, both of which are a form of human capital. 
  • Blacks felt that they had less social capital than whites. 

Even though the human capital investment was the same for both groups, promotion rates differed. In short, blacks were treated differently than whites, which affected important work-related experiences and outcomes. The fact that blacks perceived less social capital lends support to the theory that blacks are excluded from opportunities to develop strong ties to network members, which may have had an effect on their career advancement.

The study shows that both race-based arguments, such as treatment discrimination, and non-race-based explanations, such as human and social capital, contributed to the variance in promotion rates and psychosocial support. The findings also imply that there may be a race-specific model for promotion. For example, because there was a differential payoff for training, the research suggests that human capital rewards are more likely to be applied to whites than to blacks.

To request a copy of the full journal article as posted in Organization Science, please contact Erika at  

www.erikahayesjames.com/contact/.

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