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

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shagufta Showkat ◽  
Siddharth Misra

Purpose Present 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/approach The 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. Findings The 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/implications This 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 implications The 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/value This 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.

2015 ◽  
Vol 36 (7) ◽  
pp. 1012-1033 ◽  
Author(s):  
Anastasia A. Katou

Purpose – The purpose of this paper is to investigate the impact of human resource management (HRM) systems (expressed by content, process and climate) on organizational performance through the mediating role of psychological contracts (expressed by employer and employee promises fulfilment). Design/methodology/approach – The study examines theoretical relationships in the Greek context, based on structural equation modelling (SEM) estimation, using a sample of employees from both private and public sector organizations. Findings – The study finds that the impact of HRM content on organizational performance is less strong compared to its impact through HRM process. Additionally, the study finds that psychological contract partially and positively mediates the HRM – performance relationship, where the impact of HRM on organizational performance through employee promises fulfilment is stronger than that through employer promises fulfilment. Research limitations/implications – The study does not allow for appropriately investigating dynamic causal inferences due to the cross-sectional nature of data. Additionally, considering that Greece is experiencing a severe economic and financial crisis, the findings from this unique context may not generalize across borders. Practical implications – For improving organizational performance, managers and decision makers should make their HRM systems more visible, understandable, legitimate and relevant. At the same time they should make HRM systems more instrumental, valid and consistent of HR messages. Originality/value – Investigations into the relationship between HRM systems and organizational performance have become increasingly common. Nevertheless, empirical studies that measure the influence of HRM systems, which integrate both content and process, on organizational performance are still rare. This paper partially fills this gap.


2019 ◽  
Vol 3 (1) ◽  
pp. 50-69 ◽  
Author(s):  
Malam Salihu Sabiu ◽  
Kabiru Jinjiri Ringim ◽  
Tang Swee Mei ◽  
Mohd Hasanur Raihan Joarder

PurposeThe purpose of this paper is to investigate the influence of human resource management (HRM) practices, (recruitment and selection) and organizational performance (OP) through mediation role of ethical climates (ECs) in Nigerian educational agencies.Design/methodology/approachQuantitative data were collected from 181 educational agencies represented by director of administration; SmartPLS-SEM was used in testing the relationship, as well as testing the mediating effect of ECs.FindingsThe results revealed strong support for the mediating role of ECs on the relationship between HRM practice (recruitment and selection) and OP.Research limitations/implicationsPolicy makers and executives in educational agencies need to consider making appropriate decision in terms of effectively adopt and implement performance-based HRM practices that can encourage and create ethical behavior of employees’ and within organization. Through the adoption and utilization of these practices, educational agencies can enhance OP.Practical implicationsThis study contributes to the understanding of the relationship between HRM and OP by clarifying a pathway between these variables. This study also generalizes consistent findings on the HRM practices and OP relationship to a different discipline and context, i.e. educational agencies.Originality/valueThis study adds to the domain of resource-based view by incorporating EC as a mediator between HRM practices and OP.


2018 ◽  
Vol 38 (7-8) ◽  
pp. 606-636 ◽  
Author(s):  
Alima Aktar ◽  
Faizuniah Pangil

Purpose The purpose of this paper is to examine the mediating role of organizational commitment (OC) on the relationship between human resource management (HRM) practices and employee engagement among banking employees in the context of an emerging economy namely Bangladesh. Design/methodology/approach The survey data include 383 employees from 30 private commercial banks in Bangladesh. For analyzing the data, structural equation modeling is employed with the bootstrapping method. Findings This study finds that HRM practices such as career advancement, employee participation, job security, performance feedback, rewards and recognition, training and development are the significant predictors of employee engagement. Results also identify OC as a partial mediator on HRM practices and employee engagement relationship which suggest that direct relationship of predictors and criterion variables are stronger than indirect association. More interestingly, findings indicate that the mechanism of black-box stage is not always work on the relationship between HRM practices and employee performance. Originality/value Exploring the role of OC on the relationship between HRM practices and employees’ behavioral outcome, i.e. employee engagement, is appeared as an initial effort in the academic literature. Furthermore, empirical research that examines the association of different organizational factors with employee engagement through OC is rarely been investigated. Thus, the findings of this study act as a strategic tool for the bank managers to design their organizational policies in such a way that fosters their employee’ level of engagement.


2018 ◽  
Vol 39 (7) ◽  
pp. 913-928 ◽  
Author(s):  
Taraneh Foroutan ◽  
Ahmet Tarik Timur ◽  
Abubakar Mohammed Abubakar

Purpose The purpose of this paper is to investigate the impact of localized human resource management (LHRM) on host country nationals’ (HCNs) intention to remain (ITR) and extra-role performance (ERP) through the mediating role of person-organization fit (POF). Design/methodology/approach Data were gathered from 494 employees in two Chinese subsidiaries in Iran via two-stage self-administered survey and analyzed with AMOS 21. Findings The results show that LHRM positively affected employees’ ITR and ERP. However, there was no significant relationship between LHRM and POF and between POF and ERP. Originality/value Previous studies in the international human resource management literature have focused more on Western and South Asian countries. The present study, to the best of our knowledge, is the first inquiry of its kind in an Iranian context. Hence, this paper contributes to the existing knowledge by testing LHRM in two large Chinese multinational companies in Iran. Additionally, the results of this study will increase our understanding of LHRM and provide practitioners with superior insights into some practices that could elevate HCNs’ ERP and ITR.


2019 ◽  
Vol 16 (2) ◽  
pp. 181-193 ◽  
Author(s):  
Adnan Iqbal

PurposeDespite the strategic importance of the approaches, most of the approaches consider “internal fit” or “external fit”, and do not consider the role of creative climate. The purpose of this paper is to explore the relationship between approaches to strategic human resource management (SHRM) and organisational performance through a creative climate.Design/methodology/approachThis paper has divided into three parts. First, the paper explores the literatures on the constructs. Second, it examines the relationships between constructs dealt with in the literature. Third, the review identifies the gaps in the literature and describes future recommendations of research for this field.FindingsThis study can serve as a starting point for future research on the relationship between SHRM practices, creative climate and organisational performance in terms of financial, human resource and customer retention. Researchers and practitioners need to understand the relationship between the three constructs.Originality/valueThe paper helps managers need to design strategic HRM policies and practices that are aligned with creative climate and organisational performance. Furthermore, it helps scholars/researchers focus their research on the relationship between HRM approaches (universal and contingency approaches), organisational performance and examining the role of creative climate as a mediator to overcome its causal limitations.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Willie Chinyamurindi ◽  
Janatti Bagorogoza Kyogabiirwe ◽  
Jolly Byarugaba Kabagabe ◽  
Samuel Mafabi ◽  
MTutuzeli Dywili

PurposeThere is noted emphasis on the role of small businesses as conduits for economic development especially in emerging economies. Given this, there is need for constantly seeking for ways to assist small businesses achieve success. Calls exist in the literature to investigate the combined role that strategy and human resource management practices can play leading to efforts of financial success.Design/methodology/approachA structured questionnaire was utilised and data collected from 401 small businesses operating in the Eastern Province of South Africa. Pearson product–moment correlation and hierarchical regression were used in the data analysis.FindingsThe results confirm that a direct relationship exists between strategy and financial performance. Further, the relationship is made significant only through the mediation effect of human resource management practices.Practical implicationsTo fully realise the enactment of strategy within small businesses there is need to pay attention to the role that human resource management practices may potentially have on financial performance. Small business owner-managers need to ground their strategies with sound human resource management practices. Through this, firm financial performance can be attained.Originality/valueThe paper sheds light and presents a model that illustrates the mediating role of human resource management practices on the relationship between strategy and financial performance.


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