EFFECT OF DIVERSITY ON HUMAN RESOURCE MANAGEMENT AND ORGANIZATIONAL PERFORMANCE

Abstract

This paper critically reviews the literature on managing diversity through human resource management (HRM). We discuss the major issues and objectives of managing diversity and examine the state of human resource diversity management practices in organizations. Human resource management (HRM) Organizational performance Age diversity Professional tenure diversity Expertise diversity Fashion styling industry Extant research on strategic human resource management (HRM) primarily focuses on manufacturing and large scale service organizations. However, given the significant economic contribution of, and the employment opportunities provided by, Taiwan's fashion styling industry, the effectiveness of the organizations in this industry is a topic worth examining. By employing a resource-based view and taking an information/decision-making perspective, this study investigates (1) the relationship between a firm's HRM system and its performance and (2) the interaction effect of age diversity, professional tenure diversity, and expertise diversity in the fashion styling industry. The study collects data from both managers and front-end professional service employees in the fashion styling industry and uses multiple regression analysis to test the proposed hypotheses. The paper also discusses implications for theory and practice.