Evaluations play an important role in an organization's efforts to increase diversity. In this chapter we discuss two common evaluation biases - out-group discrimination and in-group favoritism - that are particularly relevant for concerns of increasing diversity. We examine the ethical implications of these biases, as well as the reasons individuals attempt to avoid displaying them. Some research has considered the adjustments individuals make to avoid the appearance of out-group discrimination (Carver, Glass, & Katz, 1978; Gaertner & Dovidio, 1986); however, little research has considered the adjustments individuals may make to avoid the appearance of in-group favoritism. We discuss two critical factors that may impact when the latter adjustment is more likely to occur: the relative size and status of subgroups. Paradoxically, these adjustments may negatively impact organizational efforts to increase the diversity of their work force. We discuss the implications for evaluation processes (e.g., hiring, firing, promotion) in organizations.