Diversity Management and its Impact on Employees: A Literature Review

COMPONENT B Dissertation

Table of Contents
INTRODUCTION...........................................................................................................................3
Overview of the topic.............................................................................................................3
Problem statement..................................................................................................................4
Research aim, objectives and questions.................................................................................5
Rationale of the research........................................................................................................5
Significance of the research....................................................................................................6
LITERATURE REVIEW................................................................................................................8
Introduction............................................................................................................................8
Main body...............................................................................................................................8
How does diversity management influence, employees?.......................................................8
The concept and main characteristics of diversity management............................................9
The relationship between diversity management and employees........................................11
An effective strategy that supports improvement in employees..........................................13
Conclusion of literature review............................................................................................14
RESEARCH METHODOLOGY...................................................................................................16
REFERENCES..............................................................................................................................24

INTRODUCTION
Overview of the topic
Diversity management can be defined as a process of creating a effective working
environment that is considered to be both inclusive and diverse. It generally means that every
employee or individual brings something unique and innovative on the table so that business
organisation can achieve high success and growth in the market. For an organisation to grow in
the competitive market, it is important to employ diverse employees that have belongs to
different background and have various skills (Tassinari and Maccarrone, 2020). Diversity within
an organisation not only includes how individuals or employees identify themselves within the
business organisation but also how they other employees or senior members working perceive
them. Diversity in the workplace encompasses gender, race, age, ethnic groups, military service,
citizenship status and physical and mental conditions as well as different differences present in
the people. Organisations that focus on recruiting and hiring diverse workforce have a chance to
choose talented and qualified employees from the large pool of applicants that help in attaining
success in the market. Diverse workforce tends to be more creative and helps the business in
bringing new changes and ideas for doing the work in an effective and efficient manner.
Diversity and equality plays a very important role in an organisation as it helps in leading to a
better functioning teams, more revenue and happier employees. Happier employees are more
productive and efficient in their work as they are highly motivated and are receiving better
support from their senior members within the business organisation. Diversity management is a
part of the human resource management which is considered to be a company action taken in
order to promote the inclusion of diversified employees from different backgrounds. Diversity
management and employees are interrelated with each other which results in creating a better
workplace environment where they feel motivated and inspired for attaining the set objectives of
the business (Velte, 2018). The process of diversity management mainly includes implementing
strategies and policies in recruiting, training, management and many more.
The main aim of diversity management in an organisation is to promote equality and
fairness for employees so that they feel inclined towards the business for attaining high
profitability and growth in the competitive market. With the advancement of technology in the
market, it is important for the business to hire diversified employees so that each and every

employees have different knowledge related to the company work. It is important for the
company employers to train and guide employees from diversified field to work as a team so that
they deal with the uncertainty in the market in a more significant market. When employees feel
valued by the employers for their good work, this help in increasing their working capability and
efficiency to work in the business in a more productive manner (Whysall, Owtram and Brittain,
2019). Managing diversity in the workplace mainly help in improving communication among
team members in order to reduce the level of conflicts and for completing the work on the given
period of time. Encouraging diversity within the workplace mainly helps in engaging employees
in taking equal participation in the process of decision making so that they deal with the
competitiveness in the market properly. Happy workers stay more longer in the company and
tends to provide more effective and productive results within the business organisation which in
return saves the time of recruiters and company money.
There are several benefits of implementing diversity management in the company so that
they build equality among the team members for developing more variability in the business
market (Elmagrhi and et. al., 2019). Companies having greater and high level of diversity within
the workplace outperform their big competitors, increase engagement among employees and
achieve higher revenue and profits. Improving the performance of employees mainly helps in
achieving high reliability and growth in the market which results in solving the business
problems and in increasing the productivity of the business in an effective way (Lythgoe and et.
al., 2021). Employees are the main asset of the business that are responsible for achieving the
predefined goals and objectives of in the competitive market. For surviving in the highly
competitive environment, it is important for the business organisation to focus on training and
developing diversified employees in the right direction and towards work. Creating and positive
working culture for employees results in increasing their level of motivation and inspiration
towards work so that work in a more effective and growing competitive market. Taking care of
employees and making them comfortable with the working environment is necessary because
this results in dealing with the business opportunities so that they deal with the competitiveness
in the market in an efficient manner.
Problem statement
The problem identified in the current research is treating all employees equally
irrespective of their religion, caste, age, and so on. This creates conflicts and negative

environment for employees to work in an organisation and this results in decreasing their overall
profitability in the market. Another problem that they face is the problem of employing diverse
employees within the company which helps in dealing with the business problems in a more
effective and efficient manner. It is important for the business organisation to focus on
implementing diversity management with the business in a more better manner so that they bring
new ideas and creativity in their work.
Research aim, objectives and questions
Research aim
To review the main characteristics of diversity management along with its relationship
with employees.
Research objectives
 To analysis about the concept and main characteristics of diversity management.
 To determine the relationship between diversity management and employees.
 To suggest an effective strategy that supports improvement in employees.
Research questions
Describing and Exploring
 What are the characteristics of diversity management?
 How has the concept of diversity management changed over time?
 What are the main factors of diversity management?
 How has diversity management dealt with and related to the employees?
Explaining and testing
 What is the relationship between diversity management and employees?
 How does diversity management influence, employees?
Evaluating and Acting
 What are the benefits of diversity management?
 What can be the effective strategy to improve employees?
Rationale of the research
The main purpose of the current research is to understand about the concept of diversity
management and its role in the business organisation for employing creative and innovative
employees. Workplace diversity helps in developing a better and healthy workforce so that they
achieve growth and success in the highly competitive market in a significant way. Understanding

the needs and wants of employees is a task of the employers because it helps in improving their
working efficiency and capability for the work assigned (Shore and Chung, 2022). Workplace
diversity is an important part of the business as it helps in bringing new knowledge and
preferences for gaining high competitive advantage in the market. While conducting the study,
the researcher has achieved two objectives which are known as personal and professional
objectives. In terms of personal objectives, the researcher will attain effective knowledge about
the research topic so that they know about different employees and their role in the business
organisation. This helps in gaining growth in their personal life and also helps in getting good
and productive job opportunity. On the other hand, in terms of professional objective, the
researcher will gain optimum skill and knowledge related to the topic in order to achieve the
research aim and objectives in an effective manner. This also helps in attaining variability in the
business as it helps in dealing with the business opportunities in a proper manner so that they
achieve a good working opportunity in the company.
Significance of the research
The research is quite significant for the researcher as this helps in gaining understanding
about the topic that is diversity management in a proper manner and how it is useful for the
business organisation. Diversity management helps in encouraging diversified workforce in the
business in order to bring new and different innovative ideas for doing the work in a more
effective and efficient manner (Greenop and et, al., 2018). In this research, the researcher has
used quantitative method so that better analysis of collected data can be attained and for
achieving research objectives in a proper way. This particular research is helpful for the students
as they get detailed knowledge about the concept of diversity management and how it is helps in
employing new and talented staff members within the business organisation. The current study
mainly helps in determining the relation between diversity management and employees and how
this helps in achieving high growth and success in the business market. Employing diversity
management within the business organisation helps in improving the business culture and results
in building a positive and heathy working environment for employees. This mainly helps in
expanding the business in the competitive market as they give full chance to each and every
employee within the business to take part in the process of decision making. Diversity mainly
brings new perspectives and ideas as the company relies on listening to each and every