Abstract

Organizations are becoming more and more3 diverse that requires inclusion of diversity management by HR managers. The studies, suggest organizations to support full participation of all the flavors of workforce for reaping optimal organizational performance, otherwise, a poorly managed diversity may cause this performance as low. In this regard, the studies elaborating the fostering effect of diversity management HR policies for achieving sustainable competitive advantage are very rare. Thus, the main purpose of the research is to explain the relationships between diversity management practices and organizational performance. Hypotheses has been developed and the diversity management practices, and the organizational performance have been measured using the Employees’ perception of diversity management practices (EPDMP) scale and on a sample size of 500 employees from public and private sector organizations across Pakistan. The results confirm the relationship between diversity management practices and organizational performance. It has been concluded that higher workforce diversity does not automatically produce an inclusive climate, specific working environment is required to support workforce diversity where diverse employees are valued and appreciated. Practical implications for policy makers have also been discussed

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