Role of Leadership for Diversity Management and Organizational Performance: Moderation Model of Diversity and Functional Leadership Dimensions in Pakistan

Abstract

Purpose:
The most important objective of this study is to investigate the associations of diversity
management practices (DMP) and organizational performance with moderating role of
functional leadership dimensions in Pakistan.
Methodology:
DMPs have been assessed employing EPDMP scale and functional leadership dimensions
were measured with scale developed by Santos et al., 2015 on a total sample size of 499
employees serving in HEI in Pakistan. The data was collected from employees of higher
education sector institutions. The PLS-SEM technique was applied for effective data analysis.
Findings:
Results of the study reveal that greater diversity may not necessarily generate inclusive
environment-certain diversity inclusive functional leadership dimensions and are essential
to encourage diversity workplace environment where personnel think respected and valued.
Results also indicate that diversity-inclusive functional leadership dimensions regulate the
association among workforce diversity management and the organizational performance.
Conclusions:
The Study concluded that the diversity management has significant direct and positive
impact on the organizational performance. Therefore, leaders who creates plans, ideas and
make policies especially those who carried out a business and governments institutions need
to formulate such HR statutes, regulations, rules, policies, and practices that promote
heterogeneous personnel in organizations and bid equal opportunities to all personnel
unrestricted by their individual employee’s characteristics such as race, gender, ethnicity,
religion, etc,
Practical implications:
The results are very supportive for HR directors for the effective workforce diversity
management to boost the organizational performance.
Originality/value:
The study describes the relationship of the diversity management and organizational
performance with the moderating role of diversity inclusive functional leadership
dimensions.