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This study examines the joint effects of diversity composition (as manifested in faultline strength) and diversity management (as manifested in diversity climate) on loyal behavior. Using data gathered from a sample of 1,652 managerial employees in 76 work units, we assess the cross-level effects of unit-level relationship- and task-related faultline strength and diversity climate on individual-level loyal behavior of managerial employees. We find a negative relationship between gender faultline strength and loyal behavior, and a positive relationship between diversity climate and loyal behavior. In addition, we find that work unit diversity climate moderates the relationships between the strength of gender and function faultlines and loyal behavior; specifically, a supportive diversity climate reduces the negative consequences associated with relationship-related faultlines and increases the positive consequences associated with task-related faultlines. The results highlight the value of simultaneously considering faultlines and diversity climate in understanding and managing workforce diversity.
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