Diversity-focused HR practices and perceived firm performance: mediating role of procedural justice

Subhash C. Kundu (Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar, India)
Archana Mor (Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar, India)
Jahanvi Bansal (Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar, India)
Sandeep Kumar (Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar, India)

Journal of Asia Business Studies

ISSN: 1558-7894

Publication date: 21 March 2019

Abstract

Purpose

The purpose of this paper is to investigate the relationship between diversity management (i.e. diversity-focused human resource (HR) practices related to recruitment and selection, training and development, performance appraisal and compensation) and perceived firm performance, and the mediating effect of procedural justice.

Design/methodology/approach

Primary data based on 400 respondents of 162 organizations operating in India were analysed using statistical tools such as factor analysis, analysis of variance (ANOVA) and multiple regression analysis.

Findings

Multiple regression analysis indicated that diversity-focused HR practices had a positive association with perceived firm performance. Further, it was found that procedural justice played a partially mediating in the relationship between diversity-focused HR practices and perceived firm performance.

Research limitations/implications

This paper relied on self-report surveys for data collection, and there laid a possibility of common method variance in the result findings. Hence, future studies should collect data from multiple sources by using multiple methods (e.g. interviews, surveys, peer reports, etc.).

Practical implications

The first implication highlights that senior management’s support is a prerequisite to execute justice-based diversity management processes, which in turn aid in harvesting the true potentials of diversity. Second, organizations should adopt an egalitarian approach while formulating and implementing diversity management initiatives to accentuate the fair and just perceptibility of procedures among employees.

Originality/value

This study sheds new light on the effects of diversity-focused HR practices on firm performance (perceived) in Indian context.

Keywords

Citation

Kundu, S., Mor, A., Bansal, J. and Kumar, S. (2019), "Diversity-focused HR practices and perceived firm performance: mediating role of procedural justice", Journal of Asia Business Studies, Vol. 13 No. 2, pp. 214-239. https://doi.org/10.1108/JABS-02-2018-0032

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Publisher

:

Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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