This article addresses the effect of racial conflict on organizational performance as an issue that needs theoretical support in the foundational theories of human resource development (HRD). While the field of HRD recognizes theories from multiple disciplines, the field lacks a theoretical framework to inform leadership in managing racial conflict. In this article literature across multiple disciplines was reviewed to identify research and theory that links racial conflict, racial groups, organizational groups, and performance outcomes. The findings indicate Critical Race Theory (Bell, 1993; Delgado, 1995; Ladson-Billings & Tate, 1995) and Embedded Group Theory (Alderfer & Smith, 1982) provide useful frameworks for addressing inter-group conflict by offering counter discourse through storytelling. This article also suggests a conceptual framework for HRD to begin theory-building research of its own. (Contains 2 figures and 1 table.)