Strategic Management of Workforce Diversity: An Evolutionary Game Theory Approach as a Foundation for AI-Driven Systems

Abstract

In the complex organisational landscape, managing workforce diversity effectively has become crucial due to rapid technological advancements and shifting societal values. This study explores strategic workforce management through the novel methodological framework consisting of the evolutionary game theory concept integrated with replicator dynamics and traditional game theory, addressing a notable gap in the literature and suggesting an evolutionarily stable workforce structure. Key findings indicate that targeted rewards for the most Enthusiastic employee type can reduce overall costs and enhance workforce efficiency, although managing a diverse team remains complex. The study reveals that while short-term incentives boost immediate productivity, long-term rewards facilitate favourable behavioural changes, which are crucial for sustaining organisational performance. Additionally, the role of artificial intelligence (AI) is highlighted, emphasising its potential to integrate with these theoretical models, thereby enhancing decision-making processes. The study underscores the importance of strategic leadership in navigating these dynamics, suggesting that leaders must tailor their approaches to balance short-term incentives and long-term rewards to maintain an optimal workforce structure.