With the increase in technological developments and advent of globalization, the work environment is undergoing a constant transformation. Globalization seems to affect every aspect of business including human, social, political, and financial. Pertaining to such global trends, the management has to deal with a diverse workforce having different backgrounds, origin, skills, and qualifications.
... [Show full abstract] Diversity Management becomes a very crucial component of HRM policies and programs so as to ensure just and fair work environment. Further, as the organizations operate on a global level, continuous profitability and growth becomes a challenge. In this regard, diversity management of employees help to develop competitive edge for the organizations by enhancing their innovation and collaborative decision making. Furthermore, it also helps to build a stronger foundation of organization's corporate social responsibility. This further highlights that HR department helps to fulfil the moral as well as financial objectives of the organization by developing diversity training programs. Human capital, being the most significant asset in the organization requires effective leadership and organizational support. For this, diversity management policies reflect anti-discriminatory framework to encourage employee inclusiveness. This has a positive implication on organization's productivity and enhances employee performance. Thus, globalization gives rise to the need of diversity management through HR activities and policies for ensuring long term profitability, social responsibility, and sustainability.