Premium
The impact of diversity and equality management on firm performance: Beyond high performance work systems
Author(s) -
Armstrong Claire,
Flood Patrick C.,
Guthrie James P.,
Liu Wenchuan,
MacCurtain Sarah,
Mkamwa Thadeus
Publication year - 2010
Publication title -
human resource management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.888
H-Index - 94
eISSN - 1099-050X
pISSN - 0090-4848
DOI - 10.1002/hrm.20391
Subject(s) - work systems , disadvantaged , diversity (politics) , productivity , workforce diversity , promotion (chess) , business , performance management , workforce , work (physics) , service (business) , work performance , industrial organization , marketing , economics , business administration , economic growth , political science , engineering , mechanical engineering , law , politics
This article demonstrates that a diversity and equality management system (DEMS) contributes to firm performance beyond the effects of a traditional high‐performance work system (HPWS), which consists of bundles of work practices and policies used extensively in high‐performing firms. A DEMS typically includes diversity training and monitoring recruitment, pay, and promotion across minority or other disadvantaged groups. Our analysis of quantitative data from service and manufacturing organizations in Ireland confirms that HPWS practices are associated with positive business performance and finds specifically that DEMS practices are positively associated with higher labor productivity and workforce innovation and lower voluntary employee turnover. © 2010 Wiley Periodicals, Inc.