Purpose The purpose of this paper is to investigate the relationship between diversity management (i.e. diversity-focused human resource (HR) practices related to recruitment and selection, training and development, performance appraisal and compensation) and perceived firm performance, and the mediating effect of procedural justice. Design/methodology/approach Primary data based on 400 respondents of 162 organizations operating in India were analysed using statistical tools such as factor analysis, analysis of variance (ANOVA) and multiple regression analysis. Findings Multiple regression analysis indicated that diversity-focused HR practices had a positive association with perceived firm performance. Further, it was found that procedural justice played a partially mediating in the relationship between diversity-focused HR practices and perceived firm performance. Research limitations/implications This paper relied on self-report surveys for data collection, and there laid a possibility of common method variance in the result findings. Hence, future studies should collect data from multiple sources by using multiple methods (e.g. interviews, surveys, peer reports, etc.). Practical implications The first implication highlights that senior management’s support is a prerequisite to execute justice-based diversity management processes, which in turn aid in harvesting the true potentials of diversity. Second, organizations should adopt an egalitarian approach while formulating and implementing diversity management initiatives to accentuate the fair and just perceptibility of procedures among employees. Originality/value This study sheds new light on the effects of diversity-focused HR practices on firm performance (perceived) in Indian context.

Purpose The purpose of this paper is to investigate the relationship between employees’ perceptions of diversity within management levels (i.e. senior management, middle management and lower management levels) and perceived organizational performance. The study also examines differences in perceptions of diversity within different levels of management across nature and ownership forms of organizations. Design/methodology/approach Primary data were gathered from a sample of 400 employees from 162 organizations of diverse industries operating in India. Statistical techniques like analysis of variance and stepwise multiple regressions were used to analyze the data. Findings Employee perceptions of diversity at the senior, middle and lower management levels of organizations are weakly, most significantly and positively, and negatively related to perceived organizational performance. It has also been found that the perceptions of diversity within different levels of management differ across nature and ownership forms of the organization. Research limitations/implications The study relies on self-reported questionnaires as the method of data collection, which can lead to common-method bias. Hence, further studies can collect data by using multiple sources. In addition, future researchers can employ both subjective and objective measures to fetch results that are more valid. Practical implications To harvest the benefits of diversity, organization should foster positive perceptions among employees toward diversity. Originality/value The study gives new insight into why employees’ perceptions are significant in considering the possible outcomes of diversity.

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