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Several of the most valid predictors used to make employment decisions create a diversity-validity dilemma (Pyburn, Ployhart, & Kravitz, this issue, 2008). This diversity-validity dilemma can be resolved by (a) reducing adverse impact through a variety of technical steps (Ployhart & Holtz, this issue, 2008) or (b) using affirmative action to increase representation of the disadvantaged groups. This paper focuses on the second approach. The paper begins with a very brief review of the legal bases of affirmative action and a summary of the research on affirmative action attitudes. This is followed with reviews of research on the ongoing existence of workplace discrimination, the economic impact of affirmative action on target groups and organizations, and stigmatization of target group members by others and by target group members themselves. Most problems with affirmative action apply only or primarily to preference-based forms, so nonpreferential approaches to affirmative action are recommended to increase the attraction, selection, inclusion, and retention of underrepresented group members.
Organizations face a diversity-validity dilemma when they base employment decisions on valid predictors that produce large subgroup differences (Pyburn, Ployhart, & Kravitz, 2008). One way to resolve this dilemma is to reduce subgroup differences in the selection system (Ployhart & Holtz, 2008). A second approach is to increase representation of disadvantaged groups through affirmative action, defined as "any measure, beyond simple termination of a discriminatory practice, adopted to correct or compensate for past or present discrimination or to prevent discrimination from recurring in the future" (United States Commission on Civil Rights, 1977).
Affirmative action is a controversial policy. To explore the basis of the controversy, this paper begins with a brief summary of research on affirmative action attitudes. It then reviews research on five questions: (a) Does discrimination still occur? (b) What is the economic impact of affirmative action on target groups? (c) What is the economic impact of affirmative action on organizations? (d) Does affirmative action lead to stigmatization of target group members by others? (e) Does affirmative action lead to self-stigmatization by target group members? All this research indicates that most problems with affirmative action occur only or primarily when it gives, or is thought to give, preferences to women or racioethnic minorities. Such preferential forms of affirmative action are almost always...