Making the Connection Between Formal Human Resource Diversity Practices and Organizational Effectiveness: Behind Management Fashion

Formal human resource diversity programs have experienced rapid growth; yet research on how these initiatives influence organizational effectiveness remains insufficient. This research explores formal diversity programs' influence on organizational effectiveness using universalistic and contingency frameworks. Our findings show that universally, diversity practices strongly and negatively relate to turnover. Organizations with innovative strategies coupled with formal diversity practices had improved productivity and market performance supporting contingency notions. Future research should employ both the universalistic and contingency theories in combination for a more in-depth understanding of construct relationships.