The nexus between diversity management (DM) and organizational performance (OP): mediating role of cognitive and affective diversity

Abstract

PurposePresent day organizations are considering workforce diversity as one of the main challenges in the human resource management. This study aims to find out the relationship between diversity management (DM) in the context of strategic human resource management (SHRM) and organizational performance (OP). An attempt is made to find out the mediation effect of cognitive diversity (CD) and affective diversity (AD) in the relationship between DM and OP.Design/methodology/approachThe constructs investigated in the present study include DM, OP, CD and AD. Structural equation modeling has been used to test the model fit. The data was collected from 50 human resource professionals working in different organizations in the information technology (IT) sector in Bangalore, India. Confirmatory factor analysis has been used for establishing the reliability.FindingsThe results show that there exists a significant relationship between DM and OP. This significant positive relationship can be attributed to the mediating role of CD and significant negative relationship is because of the AD.Research limitations/implicationsThis study has several limitations. In this study, only three DM practices have been considered. The generalization of the results is another limitation as the study has been conducted in the IT sector in Bangalore, India. Similarly, sample size also affects the implications of an empirical study and sample size in this study is small. This study has investigated only the impact of two aspects of diversity, cognitive and affective, while neglecting the effect of communicational and symbolic processes.Practical implicationsThe results indicate that organizations must consider that by providing intercultural trainings (ICTs), work–life balance (WLB) and work-time flexibility options, the negative aspects of diversity can be minimized. Moreover, organizations should encourage the task conflict which leads to better decision-making as well as creates a sense of group identification, which may help in the avoidance of negative consequences of AD.Originality/valueThis study is undertaken to find out the effect of certain diversity-oriented SHRM practices such as flexible working times, WLB, ICT and its impact on the OP in the Indian IT industry. This study has investigated the mediating role of CD and AD on the relationship between diversity-oriented SHRM practices and OP, which is the novelty of this study. Third, the study has been undertaken considering that there is a dearth of research on the impact of AD and CD on OP in the Indian context.