Unfair discrimination assumes that everyone in a group is the same rather than looking at the characteristics of individuals within the group. This discrimination is often very harmful for employees as well as for organizations. Discrimination can occur in many ways, and its effects can vary depending on organizational context and the personal biases of employees.

Like stereotype threat, actual discrimination can lead to increased negative consequences for employers, including reduced productivity, conflict, and increased turnover. Whether it is overt or covert, intentional or unintentional, discrimination is one of the primary factors that prevent diversity. On the other hand, recognizing diversity opportunities can lead to an effective diversity management program and ultimately to a better organization.