SVKM’S NMIMS SOL, NAVI MUMBAI

SVKM’S NMIMS SCHOOL OF LAW, NAVI MUMBAI,

MAHARASHTRA

TITLE: AN ANALYSIS OF WORKFORCE DIVERSITY AND ITS

MANAGEMENT WITH CASE STUDIES FROM DIFFERENT
INDUSTRIES.

Under the directions of Dr Keshab Nandy

Name: Ryssa Lemos

Roll no: A158

Email id: ryssa.lemos060@nmims.edu.in

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DECLARATION
I, Ryssa Lemos declare sincerely the content of this research paper titled “AN ANALYSIS OF
WORKFORCE DIVERSITY AND ITS MANAGEMENT WITH CASE STUDIES FROM
DIFFERENT INDUSTRIES.” to be a representation of my work and analysis. I furthermore
assure you that this work has not previously been published for academic or publishing
purposes. The material used has been given due credits wherever necessary.

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ACKNOWLEDGEMENT

I would like to take this opportunity to thank my Professor, Dr Keshab Nandy for his continued
support and encouragement and also to the director and the faculty in charge Miss Manisha
Band of our School of Law who has constantly pushed us to do better without which the
completion of this research paper wouldn’t have been possible. I would also like to extend my
gratitude towards my classmates for their cooperation.

Finally, my deepest gratitude to my caring and loving parents whose support worked like a
miracle in rough times. My heartfelt thanks.

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Sr. TABLE OF CONTENTS Pg

No No

1. ABSTRACT 5

2. INTRODUCTION 6

3. REVIEW OF LITERATURE 7

4. OBJECTIVES OF RESEARCH 9

5. RESEARCH QUESTION 10

6. RESEARCH METHODOLOGY 10

7. RESEARCH ANALYSIS 11

8. CONCLUSION 18

9. REFERENCES 19

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ABSTRACT
In today’s globalised world, a diverse workforce is essential to an organization’s success and
development. Having a workforce that reflects the communities in which its members live and
work is crucial to the success of any business, but it also provides other advantages, such as a
greater pool of ideas and a head start on the competition. Nonetheless, it may be difficult for
businesses to cope with a diverse workforce. This paper’s overarching goal is to examine case
studies that explore how diversity in the workplace is handled in a variety of sectors. The
paper’s secondary objective is to catalogue successful methods for dealing with racial and
ethnic diversity in the workplace. This paper’s research strategy includes a literature evaluation
of books, papers, and journals covering the topic of managing a diverse workforce. This
research uses a qualitative case study methodology to investigate the ways in which various
sectors of the economy handle issues of workforce diversity. The paper includes case studies
from the technology sector, the healthcare sector, the hospitality industry, and the industrial
sector. The substance of the case studies is studied in depth. This study's results suggest that
there is no universally applicable strategy for managing workplace diversity, and that diversity
management methods differ considerably depending on the industry.

Keywords: Workforce diversity, racial, ethnic, management, case studies, technology,

healthcare, hospitality, manufacturing, best practices.

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INTRODUCTION
In today’s globalised world, attracting and retaining a diverse workforce is essential to any
company's success and development. The term “diversity in the workplace” is used to describe
the many ways in which workers vary from one another, including but not limited to their
‘sexual identity’, ‘age’, ‘race’, ‘culture’, ‘religion’, ‘ethnicity’, and ‘sexual orientation’. It
describes and encompasses the wide variety of characteristics that give each employee their
own identity. Including people from different backgrounds and experiences into the workforce
may boost productivity, efficiency, and invention.

Managing a diverse workforce requires companies to foster a welcoming and productive

atmosphere for all workers, which may be challenging to achieve.

There are a variety of advantages for businesses when they hire a multicultural workforce. It
has the potential to boost originality, innovation, and business success. New ideas and
approaches may be generated with the support of a varied workforce because of the wide range
of experiences and viewpoints represented there. Moreover, it aids businesses in retaining
employees from a wide range of backgrounds.

Despite the fact that individuals of various origins are being eliminated at an alarming rate from
companies, it is a primary objective of contemporary businesses to recruit an increasingly
diverse workforce. There is a pressing need to raise public awareness through a variety of
policies and initiatives so that all workers are treated with dignity and respect. That’s why
tapping into employees’ full potential and achieving organisational goals is a key part of
diversity management. In some places today, it is seen as a company’s greatest asset since it
allows for the most productive use of workers' time.

Nonetheless, it may be difficult for businesses to cope with a diverse group of employees. The
difficulties stem from things like a lack of common language and understanding, as well as
racial and cultural inequalities, and the prevalence of implicit prejudice. Thus, businesses must
adopt efficient diversity management techniques to provide a welcoming and productive
workplace for all employees.

This paper’s overarching goal is to examine case studies that explore how diversity in the
workplace is handled in a variety of sectors. The paper's secondary objective is to catalogue
successful methods for dealing with racial and ethnic diversity in the workplace.

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REVIEW OF LITERATURE
Employees might vary from one another in a number of ways, including their gender, age,
colour, nationality, faith, culture, language, level of education, skill set, and experience. In a
wide range of fields, the ability to effectively manage a diverse workforce has emerged as a
critical factor in achieving business success and expansion. The purpose of this literature
review is to examine the meaning and management of diversity in the workplace, from its
advantages to its difficulties and its recommended procedures. Mujtaba, B. (2007)1

Diversity’s Positive Effects: Saxena, A. (2014)2

Several studies have shown the positive effects of a diverse workforce on businesses, including
higher productivity, creativity, and even competitiveness. One research by the consulting firm
McKinsey & Company, for instance, indicated that businesses with more racially and
ethnically diverse staffs had financial returns that were much higher than their respective
industries. Increased customer satisfaction is another benefit of diversity, since it helps
businesses cater to a wider range of clients. A staff that reflects the communities in which it
operates is more likely to be engaged in its job and to retain its personnel.

Difficulties in Diversity Management: Pitts, D. W., & Recascino Wise, L. (2010)3

Notwithstanding the upsides, diversity in the workplace may be difficult to manage.

Unconscious biases are a significant obstacle since they may lead to prejudice and inequitable
treatment of particular groups. It is also important to foster an atmosphere where workers of
diverse backgrounds and perspectives are treated with dignity and respect as part of the process
of managing diversity in the workplace. This may be difficult since people have varying
viewpoints and life experiences, which can spark disagreements and miscommunication.

Best Methods for Handling Diversity in the Workplace:

Organizations should adopt policies that provide a welcoming and supportive atmosphere for
all employees if they want to successfully manage diversity in the workplace. Training and
education activities that highlight diversity and inclusion are one example of what to do.

1
Mujtaba, B. (2007). Workforce diversity management: Challenges, competencies, and strategies (pp. 207-229).
Llumina Press.
2
Saxena, A. (2014). Workforce diversity: A key to improve productivity. Procedia economics and finance, 11,
76-85.
3
Pitts, D. W., & Recascino Wise, L. (2010). Workforce diversity in the new millennium: Prospects for
research. Review of public personnel administration, 30(1), 44-69.

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Unconscious bias training, for instance, may assist workers in becoming aware of and
overcoming their own prejudices. A company's ability to recruit and maintain a talented and
diverse staff depends on measures like reaching out to traditionally underserved populations
and providing for more flexible work schedules. Lastly, businesses should set up mentorship
programmes and employee representative groups to help minority employees feel more
included. Martín Alcázar, F., Miguel Romero Fernández, P., & Sanchez Gardey, G.
(2013)4

This research review emphasises the value of a diverse workforce and the advantages that come
from effectively managing such diversity. It also highlights the difficulties of diversity
management and suggests solutions that businesses may use to promote harmony in the
workplace. Organizations may benefit from diversity in a number of ways by putting these
ideas into action. They can attract and retain top talent; they can boost innovation and
competitiveness; and they can foster an atmosphere where workers feel appreciated and
respected. Kharroubi, D. (2021)5

4
Martín Alcázar, F., Miguel Romero Fernández, P., & Sanchez Gardey, G. (2013). Workforce diversity in
strategic human resource management models: A critical review of the literature and implications for future
research. Cross Cultural Management: An International Journal, 20(1), 39-49.
5
Kharroubi, D. (2021). Global workforce diversity management: Challenges across the world. Ekonomicko-
manazerske spektrum, 15(1), 28-37.

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RESEARCH OBJECTIVES
With the goal of assessing how a more culturally diverse workforce affects productivity and
morale, this study’s overarching objective is to investigate how employees’ perspectives on
diversity and inclusion in the workplace vary across sectors.

1. The goal of this study is to determine how diversity in the workplace influences
productivity, morale, and employee retention across various sectors.
2. The purpose of this study is to assess the efficacy of diversity and inclusion policies
and practises across a variety of sectors.
3. To learn the challenges faced by companies while practicing and managing diversity.

RESEARCH METHODOLOGY
This study employs a qualitative research strategy and a systematic literature review to examine
the topic of workforce diversity across various sectors. This research compares and contrasts
the outcomes of the workforce diversity from the perspectives of different sectors. The study
is based on a thorough analysis of books, publications, and articles from the academic and
business literature. The obtained data underwent a thematic analysis to reveal the answers to
the research objectives. The research uses a comparative methodology to deconstruct its
conclusions, drawing attention to how a culturally diverse workforce affects innovation and
creativity.

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RESEARCH ANALYSIS
1. The goal of this study is to determine how diversity in the workplace influences
productivity, morale, and employee retention across various sectors.

The fabric of contemporary civilization is woven from the many different cultures that have
emerged as a result of globalisation and technological progress. Notwithstanding this
interdependence, division is on the rise, both in the real and virtual worlds, fuelled by populism
and the revival of nationalist ideologies. It’s hardly remarkable that the social and cultural
forces at play in our personal lives also play out in the workplace. The fact that a diverse
workforce is better able to inspire ideas, new perspectives, and compassion than one that is
more monolithic. Yet in order to fully realise its potential, this priceless resource requires
attentive care and deliberate management.

As a result of increased international trade and travel, gender, colour, and ethnicity are no
longer the only factors considered when assessing workplace diversity today. The workforce
has expanded to include people of many cultural origins, sexual orientations, financial statuses,
and physical limitations. Businesses are realising that there are tangible advantages to fostering
an inclusive work environment for all employees.

A more accepting, varied, and open society is one that has been largely shaped by and benefits
from the contributions of the business sector. Only by working from within can we hope to
achieve this goal. Intuitively, many of us understand that a more diverse workforce is more
successful. Every year, the argument for fostering a genuinely diverse workforce at all levels
of a business becomes stronger. The ethical case is strong, but the monetary effect is
undeniable, as shown in a number of studies.

The fact that people from many walks of life and cultures may and do coexist in today's urban
centres and suburban neighbourhoods is a major contributor to the emergence of original
concepts and approaches. Because to this mingling of cultures, we may enjoy the delicious
foods of today. Popular music genres such as jazz, rock & roll, and hip hop all developed from
the blending of elements from many civilisations.

So, what do the four most innovative, disruptive, and successful cities in the world—New
York, Dubai, London, and Singapore—have in common? A vast number of people from all
over the globe have settled in each of these areas. Studies show that economies and rates of
innovation improve in places that embrace highly competent immigrants.
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The benefits of diversity to a business have been well-documented, and include higher profits,
more innovative problem-solving, improved governance, and more effective leadership. By
contributing their unique viewpoints, skills, and experiences, employees from a wide range of
backgrounds help businesses thrive in a competitive market and outperform their less diverse
counterparts.

According to research by the Boston Consulting Group, businesses with more racially and
ethnically diverse executive teams generate 19% more income as a direct result of their
employees’ creativity. As a result, this discovery is particularly important for IT firms, start-
ups, and other sectors where new ideas drive expansion. This demonstrates that diversity is
more than a desirable goal; it is essential to the bottom line of any successful company.

Although the majority of these investigations are being carried out in the West, nations in Asia
are delving into the topic of gender equality at their own speed. Changes in social norms during
the past four decades have resulted in a greater female labour force participation rate in South-
East Asia than everywhere else in the world; at 42%, it's far above the worldwide average of
39.1%.

The 2018 Hays Asia Diversity and Inclusion study found that the top three advantages of
diversity were an enhanced business culture, stronger leadership, and more creative ideas. A
sizeable minority of respondents, nevertheless, believed that variables including age, handicap,
ethnicity, gender, family obligations, marriage status, colour, religion, and sexual orientation
may limit the chances available to those of comparable aptitude.

The ability to adapt and thrive in ever-changing circumstances is becoming more important for
people, businesses, and nations together, and there is no better place to develop these skills
than in a setting rich in cultural diversity. In order for the contemporary workplace to
appropriately represent and serve the people of the area, assumptions must be questioned, talks
must be conducted, and corporate culture must be changed.

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2. The purpose of this study is to assess the efficacy of diversity and inclusion policies
and practises across a variety of sectors.

Workforce Diversity in the technology sector:

Tech businesses have a history of responding to requests for inclusion at work by publishing
yearly figures and reiterating dedications to fostering more equality. Although these initiatives
were certainly welcome, they have been mostly ineffective since statistics reveal that people of
colour, women, and LGBTQ+ people still endure discrimination, underrepresentation, and
inequity in the tech sector despite these efforts.

Nonetheless, attitudes started to improve after the year 2020. Disparities in income,
opportunity, and achievement for underrepresented groups in the workplace have received
fresh attention in the wake of the Black Lives Matter rallies, the MeToo movement, and the
rising awareness surrounding LGBTQ+ rights. Companies in the computer industry are under
increased pressure to demonstrate their dedication to reducing the equality and diversification
gap in the industry, and many are reacting by implementing more stringent standards than in
the past. We dwell into the case study of Apple-the giant in the technology sector

Apple has a long history of embracing diversity in the workplace. In fact, "Inclusion stimulates
creativity" has become Apple's new mantra for recruiting. This philosophy guides the
organisation as it strives to make the office as welcoming and inclusive as possible for all
employees. The demographics of Apple's staff show that Whites make up 55% of the firm,
Asians 15%, Hispanics 11%, and Blacks 7%.

Apple, too, is working hard to ensure that women are treated fairly in the workplace. The
gender ratio at Apple is around 70% men to 30% women worldwide. Tim Cook is also helping
to promote the gender equality movement by advocating for more diversity and inclusion in
the IT sector throughout the globe. To be sure, Cook and Apple are aware of the positive effects
diversity can have in the IT business.

According to its tagline, diversity in the workplace promotes and stimulates innovation, which
is essential in the technology sector. If a tech business just recruits people who are just like
them in terms of their degree, experience, and background, it will end up with extremely narrow
thinking. Tech companies lose their advantage when their employees get too focused on one
thing. Yet, tech businesses may benefit greatly from a more diverse workforce by actively
recruiting people from a wide range of demographics, including but not limited to those from

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underrepresented groups. Not only does this promote original thought, but it also motivates
innovation by capitalising on many perspectives and worldviews. When a tech company has a
varied staff, they may explore additional avenues for product development.

The tech business is very competitive, and American tech firms must learn to compete in
international markets. A more flexible workforce is another benefit of a diverse workforce. To
begin, the IT business benefits greatly from increased multilingualism thanks to increased
diversity.

Diverse teams can help IT businesses tap into previously untapped international markets.
Companies benefit from having employees from a variety of cultural backgrounds because it
helps them connect with customers in a wider range of marketplaces. Tech businesses that are
able to adapt to changing market conditions are more likely to succeed both domestically and
internationally.

It is reasonable to anticipate that as Apple's diversity efforts continue to gain traction, other
tech firms will jump on board.

Workforce Diversity in the healthcare sector:

Healthcare providers may benefit both their clients and their employees by investing in
diversity and inclusion initiatives. Some examples of healthcare industry best practises with
regards to diversity and inclusion are as follows:

• Create an advocate group to promote diversity and inclusion: Diversity and inclusion
advocates elevate the importance of understanding other cultures. They have the
potential to question established procedures that may make some patients feel uneasy.
• Raise awareness of diversity and inclusion concerns by making them part of regular
conversation: Diversity and inclusion training should be ongoing and integrated into all
aspects of the business. Establishing daily team group meetings that provide a safe area
for open dialogue is one way for businesses to guarantee consistent interaction among
employees.
• To promote learning and growth: The value of a formal education should not be
underestimated. Employees may learn to recognise and combat unconscious prejudice
through training and development programmes.
• Make advancement chances available to women and minorities. Minorities and women
are less likely to be given tasks that will further their careers. But hospitals and other
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healthcare facilities can't just create programmes and assume their work is done.
Business leaders should promote programmes to employees and get the word out that
they are available.

When it comes to healthcare, why is it crucial that we embrace diversity and inclusion?

The healthcare industry has an obligation to provide a more welcoming and accepting
environment for its employees and patients. Employees from all walks of life will have a better
time working for your company if you try to promote diversity and inclusion. This will help
you find and keep talented employees. The hospital experience for patients from
underrepresented groups is enhanced by a staff that reflects the community it serves. Patient
health and quality of life are directly affected by efforts to increase diversity and inclusion.

Improving employee morale and satisfaction, as well as the quality of care provided to patients,
depends critically on a diverse and inclusive workforce. The healthcare industry may benefit
greatly from these tried-and-true methods for promoting diversity and inclusion in the
workplace.

Workforce Diversity in the Hospitality Industry:

Increased profitability and more appeal as an employer come from a company's commitment
to diversity. Without a doubt, a company’s success depends heavily on its ability to attract and
retain a diverse workforce. So why is it so vitally important for hotel chains specifically? As a
matter of fact, it’s due to the business itself. The hospitality industry, more than any other,
spans the globe and employs individuals with a wide range of skills and identities. The business
world is open to anybody and everyone.

In 2011, as part of its recruiting gamification approach, Marriott developed a game called “My
Marriott Hotel” on its Facebook jobs and employment page. Since then, the international hotel
chain has revamped its online job board to showcase real workers' faces and allow potential
hires to better see themselves in the company's culture. Marriott’s initiatives, which included
humanising the hiring process and a commitment to constant innovation, were successful. In
2021, Marriott was inducted into the Diversity Inc Hall of Fame as the first and only hospitality
firm. A real commitment to accept diversity in its whole is necessary to make sure these factors
work together to provide welcoming hospitality experiences. In the modern hotel industry, DEI
is the lone factor that will set your brand apart from the rest, both among consumers and

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potential employees. But, due to the complexity of the hotel business, you'll need a well-defined
recruiting strategy and a scalable method for attracting and hiring diverse candidates.

Since 2015, when Airbnb first started using storyboards to depict the whole applicant process,
the company has made concerted efforts to strengthen its acceptance and diversity policy. The
team's hiring process is guided by the principle of radically connecting and engaging with
candidates, which requires them to politely decline applicants who aren't a good fit for the
position, to communicate their expectations for the length of the process and to highlight the
positive effects that diversity has on the company.

Obviously, this candidate-first mindset has helped the hotel and tourist company secure the
long-term commitment of an impressively varied group of employees.

The international hotel chain did not stop there, though. Airbnb was named a “Disability
Equality Index- Best Place to Work for Disability Inclusion” in 2021 for their efforts to
welcome and empower the world’s one billion-plus disabled people.

When it comes to clients and potential employees in the modern hotel industry, DEI will be the
lone distinction that will set your business apart from the rest. But, due to the complexity of
the hotel business, you’ll require an organized recruiting strategy and a scalable method for
attracting and hiring diverse candidates.

3. To learn the challenges faced by companies while practicing and managing

diversity.
• True diversity in the workplace is distinguished by openness and tolerance for
employees of all identities and origins. Although there are many positive outcomes that
may result from employing a diverse workforce, there are also many obstacles that must
be overcome. These are some of the many obstacles that businesses confront when
attempting to manage diversity: Organizational diversity management faces its greatest
obstacle in the form of a communication gap. It is possible that visitors from other parts
of the world won't be able to communicate in the local tongue.
• The company’s diversity rules are not being effectively implemented, resulting in
dissatisfaction among the company's varied personnel.
• The company’s diversity rules are not being effectively implemented, resulting in
dissatisfaction among the company's varied personnel.
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• When persons of different ages and generations fail to adequately comprehend one
another’s plights, this presents a difficulty.
• When persons of different ages and generations fail to adequately comprehend one
another's plights, this presents a difficulty. Discrimination against employees of other
backgrounds on the part of native workers, who may not appreciate or even appreciate
at all the unique qualities that come with each of the many cultures represented in the
world.
• People’s inability to accept and respect those from different cultural backgrounds often
demonstrates itself in feelings of envy towards their co-workers. In turn, this lowers the
efficiency of the company’s staff.
• A significant problem that this company encounters is getting its employees to adapt to
the company’s culture.
• Prejudice towards co-workers of other races and cultures on the part of the direct
manager.

Recommendations for better Workforce Diversity Management

• The management of a company may do a better job of managing diversity if it has

precise and well-articulated policies in place.
• The organization's diversity policies and processes should be made known to all
company employees.
• Effective diversity implementation in the workplace requires that individuals get
the appropriate instructions and training.
• Engage your staff more deeply in the company's mission so that everyone knows
they matter.
• Have an open line of communication with your varied team by soliciting feedback
and status reports on a regular basis.
• Motivate and energise staff so that they feel safe approaching the appropriate
organisational leader with any issues they are having.
• Treat individuals of all backgrounds with the utmost respect and decency.

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CONCLUSION
Although there is much that can be learned from diversity and inclusion pioneers, it's vital to
keep in mind that no two organizations' efforts in this area will look exactly the same. Many
individuals have varied meanings of diversity, and businesses must accommodate for those
variations. When it comes to diversity and inclusion, you can't just launch a campaign and then
forget about it. Fostering and nurturing them in the work environment is an ongoing process
that requires attention and care to be successful. The success of this shift depends on leadership
with empathy. For meaningful transformation to occur, it is essential that all leaders believe
deeply (emotionally as well as intellectually) in the importance of belonging.

There has to be a greater effort from the business community to spread the idea of a more
accepting and inclusive society. This is a tough fight, but the future of peace, wealth, and
development depends on it.

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REFERENCES
4. Ongori, H., & Agolla, J. E. (2007). Critical review of literature on workforce diversity. African journal
of business management, 1(4).
5. Pitts, D. W., & Recascino Wise, L. (2010). Workforce diversity in the new millennium: Prospects for
research. Review of public personnel administration, 30(1), 44-69.
6. Mujtaba, B. (2007). Workforce diversity management: Challenges, competencies and strategies (pp.
207-229). Llumina Press.
7. Saxena, A. (2014). Workforce diversity: A key to improve productivity. Procedia economics and
finance, 11, 76-85.
8. Kim, B. Y. (2006). Managing workforce diversity: Developing a learning organization. Journal of
Human Resources in Hospitality & Tourism, 5(2), 69-90.
9. Ongori, H., & Agolla, J. E. (2007). Critical review of literature on workforce diversity. African journal
of business management, 1(4).
10. Kharroubi, D. (2021). Global workforce diversity management: Challenges across the
world. Ekonomicko-manazerske spektrum, 15(1), 28-37.
11. Martín Alcázar, F., Miguel Romero Fernández, P., & Sanchez Gardey, G. (2013). Workforce diversity
in strategic human resource management models: A critical review of the literature and implications for
future research. Cross Cultural Management: An International Journal, 20(1), 39-49.
12. D’Netto, B., & Sohal, A. S. (1999). Human resource practices and workforce diversity: an empirical
assessment. International Journal of Manpower.
13. Kossek, E. E., Lobel, S. A., & Brown, J. (2006). Human resource strategies to manage workforce
diversity. Handbook of workplace diversity, 53-74.

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