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Effect of Diversity Management on Employees’ Intention to Quit: Mediating Role of

Employee Motivation

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EFFECT OF DIVERSITY MANAGEMENT

ON EMPLOYEES’ INTENTION TO QUIT:
MEDIATING ROLE OF EMPLOYEE
MOTIVATION
Subhash C. Kundu* , Lovika Mehra**, Archana Mor***
*Professor, Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar,
Haryana, India. Email: [email protected]
**Research Scholar, Haryana School of Business, Guru Jambheshwar University of Science and
Technology, Hisar, Haryana, India. Email: [email protected]
***Research Scholar, Haryana School of Business, Guru Jambheshwar University of Science and
Technology, Hisar, Haryana, India. Email: [email protected]

Abstract  The purpose of the present paper is to examine the relationship between diversity management and employees’ intention to quit.
This study also accounts for the mediating role of motivation in the above-mentioned relationship. Primary data based on 547 respondents
including both males and females from 234 organisations operating in India has been analysed to test the stated hypotheses. Using multiple
regression analysis, the study highlighted a significant and negative relationship between diversity management and employees’ intention to
quit. Further, the results revealed that employee motivation partially mediates this relationship. Managerial implications and guidelines for
forthcoming studies have also been discussed in this paper.

Keywords:  Diversity Management, Intention to Quit, Motivation, India

Introduction positive relationship between diversity management and

employee performance (Pelled, Eisenhardt, & Xin, 1999;
With increasing evidences of effects of diversity on Jehn, Northcraft, & Neale, 1999), majority of research have
organisational as well as employees’ performance (Jauhari & focused on this specific subject. However, most of the studies
Singh, 2013), diversity management (DM) has progressively on diversity management have been conducted in the western
gained much attention in both the academic and practitioner nations (Peretz, Levi, & Fried, 2015) and they may not reflect
literature (Gilbert, Stead, & Ivancevich, 1999; Lorbiecki & the exact status of Asian economies that significantly differ
Jack, 2000). Kundu (2003) has accentuated that sustainability on the basis of culture (Magoshi & Chang, 2009). Moreover,
of a diverse workforce not only offers massive opportunities Van Der Zee, Atsma, and Brodbeck (2004) pointed out that
to the firms but also provides potential challenges to the most of the existing studies on diversity issues have oriented
individuals for their possible contributions in achieving on diversity among team members and its impact on team
organisations’ agenda (Adler & Gundersen, 2007). performance. However, the impact of diversity management
on employee attitudes has been extensively disregarded
Employee personal development, self-esteem, morale, especially in Indian settings. The present study thus, aims
involvement toward organisation is enhanced by diversity to study the impact of diversity management on employee
management and these are some factors that contribute in motivation in the Indian context.
positive employee attitudes and behaviours (Manning,
Curtis, & McMillan, 1996). Further, when employees get Studying employee motivation, as an employee outcome,
socio-emotional benefits from their organisations, they feel is of interest to us as it refers to that underlying behaviour
obliged to respond in ways favourable for organisations that is regarded as willingness and volition (Guay, Chanal,
(Magoshi & Chang, 2009). Ratelle, Marsh, Larose, & Boivin, 2010) that eventually
triggers their tendency to continue. Additionally, motivation
Numerous studies have highlighted that diversity management has been found to be a critical determinant in employee
helps in yielding the benefits from diversity (Foldy, 2004; behaviour (Weiner, 1985). Thus, the impact of diversity
Ely & Thomas, 2001). With the growing evidences of the management on motivation will validate its utility as a
 Further, we chose India as a spot for this research as India is best known for its extremely
diversified society in many ways i.e. caste, creed, culture, religion, languages (Kundu, 2003;
Shenoy, 2013) and less attention has been paid here on this subject (Cooke & Saini, 2010;
Venkata Ratnam & Chandra, 1996). Secondly, viewing the increasing attrition trends in Indian
18   Journal of Strategic Human Resource Management Volume 6 Issue 3 October 2017
organisations, a systematic investigation is required at this time to identify the key factors behind
significant HR initiative to intensify employee performance. trends in Indian organisations, a systematic investigation
Further,high employees’
in this competitiveturnover
world, intentions. This makes
retaining potential ‘diversity
is required management’
at this an the
time to identify imperative
key factorsHR behind
employees is a key problem encountered by majority of high employees’ turnover intentions. This makes ‘diversity
subject that offers a rich ground for finding its effects
organisations. Researches have proved that an appropriately
on employees’ behaviours. In light of the
management’ an imperative HR subject that offers a rich
designed HR programme will
above-mentioned help this
section, in maintaining
study aims and to fill
groundthisforresearch
finding itsgap
effects
byonfacilitating
employees’ behaviours.
a more In
retaining employees (Kundu & Gahlawat, 2016). In this light of the above-mentioned section, this study aims to fill this
context,systematic
advocates of investigation
diversity managementby examining the effect
have suggested of gap
research diversity management
by facilitating on employee
a more systematic investigation
that diversity initiatives may be helpful in holding employees by examining the effect of diversity management on
motivation and intention to quit, as no such studyemployee
with them (Choi, 2009; McKay, Avery, Tonidandel, Morris,
has been empirically conducted in the Indian
motivation and intention to quit, as no such study
Hernandez, & Hebl,
settings. In 2007).
light of preceding discussion, the study has beenalsoempirically
seeks to conducted in the Indianrole
find the mediating settings.
of In
light of preceding discussion, the study also seeks to find
Further,motivation
we chose India as arelationship
in the spot for this between
research as India management and employees’ intention to quit. A
diversity the mediating role of motivation in the relationship between
is best known for its extremely diversified society in many
diversity management and employees’ intention to quit. A
conceptual
ways i.e. caste, creed,framework (Fig. 1)
culture, religion, is proposed
languages here to signify the hypothesized relationships among
(Kundu,
conceptual framework (Fig. 1) is proposed here to signify
2003; Shenoy, 2013) and less attention has been paid here
the chosen variables in this study. the hypothesized relationships among the chosen variables
on this subject (Cooke & Saini, 2010; Venkata Ratnam &
in this study.
Chandra, 1996). Secondly, viewing the increasing attrition

H3 (-)

Employees’
Employee’s
Diversity intention to quit
H1 (+) H2 (-) intention to quit
Motivation
H4

Control variables: gender, age of employees, work experience of employees, nature and ownership
form of the firm

<Figure head> Fig. 1: Proposed conceptual model

Fig. 1:  Proposed
Notes: –––– line represents the direct relationship Conceptual
between independent Modelvariables.
and dependent
+ and – signs depict the direction of the relation between independent and dependent variables.
- - - - -––––
Notes: line shows the mediating
line represents effect
the direct of motivation.
relationship between independent and dependent variables.
+ and – signs depict the direction of the relation between independent and dependent variables.
- - - - - line shows the mediating effect of motivation.
<A level> Literature Review
Literature Review effects on employees’ attitudes (Simons, Friedman, Liu,
& McLean Parks, 2007; Buttner, Lowe, & Billings-Harris,
In this
In this study, study, thebetween
the relationship relationship
diversitybetween
managementdiversity management
2010; and employees’
Milliken & Martins, 1996). outcomes is
and employees’
observed outcomes is observed
with the help of with theexchange
social help of social
theoryAccording
(Blau, 1964). The underlying
to Wright, Gardner, & principle
Moynihanbehind
(2003), HR
exchange theory (Blau, 1964). The underlying principle
management may be viewed as a reflection of organisation’s
behind this
this theory
theory is the ‘norm of reciprocity’,
reciprocity’,which
which states
strategythat
thatan employee’s behaviour is directly
‘norm of
intends to boost employee attitudes. Therefore,
states that an employee’s behaviour is directly affected
similar to other HR practices diversity management
by the values and benefits, s/he has received from the 3
practices may trigger similar effects on employee attitudes.
organisation (Collier & Esteban, 2007). Further, viewing the
Based on this, Lount and Phillips (2009) confirmed that
social exchange relationship, Hicks-Clarke and Iles (2000)
effective implementation of diversity management triggers
highlighted that diversity management acts as a critical
the employee motivation. Through a study of Japanese and
determinant in employee outcomes. In the same manner,
Korean employees, Magoshi and Chang (2009) confirmed
Farren and Nelson (1999) underlined that employees feel
that diversity management practices trigger positive
associated with those organisations which carry out diversity
employees’ attitudes. Analogously, Carr, Hodgson, Vent, and
programmes compared to those who do not. Researchers
Purcell (2005) have stressed that pay-diversity is a factor
have long maintained that diversity management has positive
 Effect of Diversity Management on Employees’ Intention to Quit: Mediating Role of Employee Motivation   19
in influencing an employee’s motivation level. Empirical 1996). According to Gonzalez and Denisi (2009), diversity
research done in Lithuania showed that employee oriented management significantly affects employees’ turnover
practices have a significant and positive relation with intentions. Likewise, Siong, Mellor, Moore, and  Firth
motivation (Skudiene & Auruskeviciene, 2002). Therefore, (2006) highlighted that diversity management is helpful
on the basis of above discussion, we frame the hypothesis in enhancing employees’ retention in the organisation.
as follows: Further, studies have reported that employees are positively
motivated with the diversity management efforts by
Hypothesis 1: Diversity management is significantly and
organisation (Ferner, Almond, & Colling, 2005; Hertel, Kerr,
positively related to motivation.
& Messé, 1999). In this regard, Lount and Phillips (2007)
Motivation is directly related to various employee’ attributes pointed that employee motivation is enhanced by diversity
i.e. satisfaction level (Ololube, 2006), positive recognition management. Further, researches explained the significance
and appreciation, feeling personal accomplishment and of the mediating role of work motivation in the predictor-
receiving positive feedback (Mullins, 2006; Greenberg & dependent relationship (Wang, 2016; Lin & Liu, 2012).
Baron, 2008), that leads to positive performance (Ryan & Based on a cross-sectional survey of 593 employees from 64
Deci, 2000). Supporting this, Kummer (2008) propounded Norwegian savings banks, Kuvaas (2006) has claimed that
that through motivation an organisation can retain its motivation acts as a mediator between performance appraisal
employees. Based on the synthesis of employee’ motivation satisfaction and turnover intentions. Similarly, based on a
theories i.e. need theories, equity theory, expectancy theory, sample of 563 respondents from 204 firms operating in India,
and job design, Ramlall (2004) explored that employees’ Kundu and Gahlawat (2016) have found that motivation
motivation significantly affects their turnover intention. In serve as a mediator between high performance work system
the same way, numerous researchers have highlighted that and employee’ intention to quit. Hence, on the basis of above
there exists a negative and significant relationship between literature, following hypothesis is advanced:
employees’ intrinsic motivation and their turnover intentions
Hypothesis 4: The relationship between diversity
(Houkes, Janssen, de Jonge, & Nijhuis, 2001; Richer,
management and intention to quit is mediated by motivation.
Blanchard, & Vallerand, 2002). Elangovan (2001) adduce
that high motivation among employees shows high degree
of organisational commitment, which thereby decreases Research Methodology
their intent to quit the organisation. On this basis, following
hypothesis can be raised:
Sample
Hypothesis 2: Motivation is negatively related to employees’
intention to quit.
The data were collected from 547 respondents belonging to
Previous research shows that employee’s intention to quit is 234 organisations. In terms of demographic characteristics of
significantly related to their perceived organisational diversity the respondents (Table 1), the sample depicts that there were
climate (Baruch, 2016; Groeneveld & Verbeek, 2012). In a 27.8% females and 72.2% males. Age of the respondents
longitudinal study of 34,962 employees, Groeneveld (2011) was measured in groups that showed 24.30% employees
has explored that if employees perceive diversity policy under the age of 25 years, 51.20% in the age group of 26-
positively then they would be less inclined to quit the firm. 30 years, 20.50% in the age group of 31-40 years, 2.90% in
In the same manner, Moynihan and Landuyt (2008) opine the age group of 41-50 years, 1.10% above 50 years and the
that presence of diversity policies in organisational agenda mean age of the respondents was found to be 29.75 years.
obliges employees to respond with positive attitudes. Work experience of the respondents was measured in groups,
Furthermore, in a meta-analysis Wise and Tschirhart (2000) which show that 71.30% of them had less than 5 years of
have confirmed that diversity is likely to facilitate in retaining work experience, 23.03% had 6-10 years, 2.38% had 11-15
personnel. After discussing this, the following hypothesis is years, 1.46% had 16-20 years, 0.18% had 21-25 years, 1.65%
posited: had more than 25 years’ experience in the organisations, and
average tenure was 4.79 years for the respondents. According
Hypothesis 3: Diversity management is negatively
to the nature of the organisations, 26.90% of the respondents
related to employees’ intention to quit.
were working in the manufacturing sector and 73.10% in
Past researches have investigated a positive relationship the service sector. Further, the percentage of respondents in
between diversity management and employees outcomes Indian and foreign firms were 65.10 and 34.90, respectively.
(Moshabaki, Madani, & Ghorbani, 2013; Delaney & Huselid,
 20   Journal of Strategic Human Resource Management Volume 6 Issue 3 October 2017

Table 1: Demographics Characteristics of the Sample

Variables Categories Number Percentage Average

Age of employees Under 25 Years 133 23.4  
26-30 280 53.1
31-40 112 19.7
41-50 16 2.7
Above 50 Years 6 1.1
Total 547 100 29.75
Gender Male 395 72.2
Female 152 27.8
Total 547 100
Work experience of the employees 0-5 Years 390 71.30
6-10 years 126 23.03
11-15 years 13 2.38
16-20 years 8 1.46
21-25 years 1 0.18
Above 25 Years 9 1.65

Total 547 100 4.79

Nature of the firm Manufacturing 147 26.90
Service 400 73.10
Total 547 100
Ownership form of the firm Indian 356 65.10
  Foreign 191 34.90
Total 547 100.00  

Measures turnover intentions (Kundu & Gahlawat, 2016). A five-point

Likert scale ranging from 1 (strongly disagree) to 5 (strongly
Diversity (Independent Variable) agree) was used for the measurement. The items were ‘I
often think about resigning’, ‘It would not take much to
The scale was adopted from the studies of Langford (2009), make me resign from this organisation’ and ‘I will probably
Green, López, Wysocki, and Kepner (2002), and Galbreath be looking for another job soon’. The Cronbach’s alpha
(2010). The responses were measured on five-point Likert value of this scale was 0.884 greater than the acceptable
scale ranging from 1 (strongly disagree) to 5 (strongly agree). value (Hair et al., 1998).
Items mentioned in this scale were ‘Sexual harassment is
prevented and discouraged’, ‘Discrimination is prevented Motivation (Mediating Variable)
and discouraged’, ‘My organisation has programmes that
encouraged diversity of employees (in terms of age, race, Five-point Likert scale statements ranging from 1 (strongly
gender, religion, disability etc.)’, and ‘Internal policies disagree) to 5 (strongly agree) was used to measure employee’
prevent discrimination in employees’ compensation and motivation, adapted from Skudiene and Auruskeviciene
promotion’. The calculated Cronbach’s alpha value of this (2010). This five items scale included ‘The more difficult
scale was 0.812 higher than permissible value of 0.7 (Hair, the problem, the more I enjoy trying to solve it’, ‘No matter
Black, Babin, Anderson, & Tatham, 1998). what the outcome of a project, I am satisfied if my company
provides truthful information to the society’, ‘I want my
work to provide me with opportunities to develop my career’,
Intention to Quit (Dependent Variable)
‘I am more comfortable when I am involved in decision-
making process’, and ‘I prefer to work for the organisation
The scale for intention to quit was taken from Boshoff and
which is involved in community’s development’. The alpha
Allen (2000) study. This scale has been consistently and
coefficient for this scale was 0.863 meeting the condition of
reliably used by various researchers to measure employees’
reliability (Hair, Black, Babin, Anderson, & Tatham, 1998).
 Effect of Diversity Management on Employees’ Intention to Quit: Mediating Role of Employee Motivation   21
Control Variables these three constructs ranged from 0.812 to 0.884, thereby
providing a support for good internal reliability (Hair, Black,
The analyses used a total of five control variables i.e. gender, Babin, Anderson, & Tatham, 1998). For further validation of
age of employees, ownership form of the firm, nature of the constructs, CFA was employed. The 12-items loaded on
the firm and work experience of employees. Males and their expected latent constructs while allowing the constructs
females were classified under gender category. Based on to correlate. The test results of CFA highlighted that all the
the ownership form, firms were classified as Indian and standardised factor loadings were found to be significant (p ≤
foreign. Considering nature of the firm, classification is done 0.001) and more than 0.691 (Table 2). Composite reliability
as manufacturing and service. Age of the employees was (CR) values for these constructs fluctuated between 0.813
categorised into under 25 years, 26-30 years, 31-40 years, and 0.884, higher than the suggested value of 0.70 (Hair,
41-50 years, and above 50 years. Work experience was Black, Babin, & Anderson, 2010). The calculated average
classified into six categories: 0-5 years, 6-10 years, 11-15 variance extracted (AVE) for each construct ranged between
years, 16-20 years, 21-25 years and above 25 years. 0.521 and 0.717, which is greater than the acceptable value
of 0.50 (Hair, Black, Babin, & Anderson, 2010). Overall,
Results these values described a satisfactory convergent validity
for our latent variables (Zhao & Cavusgil, 2006). To assess
the discriminant validity, we calculated maximum shared
variance (MSV) and average squared shared variance (ASV)
Factor Analysis for every construct. The computed values of MSV and ASV
were found lower than AVE for all the constructs, thus,
For verifying the factor structure of the set of observed
establishing the discriminant validity of the study variables
variables, both exploratory factor analysis (EFA) and
(Alumran, Hou, Sun, Yousef, & Hurst, 2014). Further, all
confirmatory factor analysis (CFA) were employed. Initially,
model fit indices were in the acceptable range, depicting a
all the 12 variables regarding diversity, motivation, and
good model fit. The calculated value of χ2/df is 2.456 which
intention to quit were subjected to principal component factor
is lower than standard value of 5 (Harrison & Rainer, 1996),
analysis with varimax rotation. Factors with eigen value more
comparative fit index (CFI) is 0.976 which is higher than the
than 1.00 and factor loadings above 0.700 were adopted as a
acceptable value of 0.90 (Hu & Bentler, 1998), Tucker-Lewis
selection criterion. The results indicated a solution of 3 factors
index (TLI) is 0.970 which is greater than the permissible
with eigen values greater than one. Communalities values
value of 0.90 (Hu & Bentler, 1998), and root mean square
ranged from 0.582 to 0.819. Eigen values of all the three
error of approximation (RMSEA) is 0.052 which is quite
factors extracted were 5.480, 1.453, and 1.318, explaining
lower than the maximum value of 0.08 (Garver & Mentzer,
68.766 percent of the variance. Cronbach’s alpha values for
1999). Table 2 shows the results regarding EFA and CFA.
Table 2:  Measurement Variables with EFA and CFA Loadings, Validity, and Reliability Values

Average Maximum Average

Factor Factor Composite
Cronbach variance shared shared
Factors and measurement items Loading Loading reliability
alpha extracted variance variance
(EFA) (CFA) (CR)
(AVE) (MSV) (ASV)
Diversity 0.812 0.813 0.521 0.410 0.346
Sexual harassment is prevented and dis- 0.774 0.709
couraged.
Discrimination is prevented and discour- 0.788 0.752
aged.
My organisation has programs that encour- 0.747 0.726
aged diversity of employees (in terms of
age, race, gender, religion, disability etc.).
Internal policies prevent discrimination in 0.701 0.699
employees’ compensation and promotion.
Motivation 0.863 0.863 0.558 0.410 0.351
The more difficult the problem, the more I 0.779 0.744
enjoy trying to solve it.
No matter what the outcome of a project, I 0.703 0.691
am satisfied if my company provides truthful
information to the society.
 22   Journal of Strategic Human Resource Management Volume 6 Issue 3 October 2017

I want my work to provide me with opportu- 0.777 0.773

nities to develop my career.
I am more comfortable when I am involved 0.741 0.749
in decision-making process.
I prefer to work for the organisation which is 0.781 0.776          
involved in community’s development.
Intention to quit     0.884 0.884 0.717 0.293 0.287
I often think about resigning. 0.837 0.844
It would not take much to make me resign 0.866 0.825
from this organisation.
I will probably be looking for another job 0.856 0.871          
soon.
Notes: a)  These three latent variables accounted for 68.766% of the variance as a result of exploratory factor analysis.
b)  All the loadings related to CFA were significant at 0.001 level.
c)  Model fit statistics: χ2/df = 2.456; CFI = 0.976; TLI = 0.970; RMSEA = 0.052.

Descriptive Statistics diagnosis was computed. Calculated value of variation

inflation factor (VIF) ranged from 1.051 to 2.468, which
Table 3 shows means, standard deviations, and bivariate is significantly lesser than 10 and therefore falls within the
correlations values. These correlations supported the acceptable interval (Bowerman & O’Connell 1990). The
hypothesized relationships between diversity, motivation, lowest tolerance value was 0.20, evidently distant from the
and employees’ intention to quit. For testing the probabilities value of 0.40 (Allison, 1999). Thus, multi-collinearity was
of multicollinearity among predictor variables, collinearity not found to be an issue.
Table 3:  Descriptive Statistics and Cronbach α Values

Variables No. of Mean SD 1 2 3 4 5 6 7 8  Cronbach

items Alpha
Age of em- - 2.050 0.814 -
ployees
Gender - 0.280 0.448 -0.091* -
Work experi- - 4.790 4.881 0.766*** -0.134** -
ence of the
employees
Ownership - 0.350 0.477 -0.043 -0.026 -0.053 -
form of the
firm
Nature of the - 0.730 0.444 -0.006 0.210*** -0.025 -0.019*** -
firm
Diversity 4 4.352 0.529 0.150*** -0.132** 0.162*** 0.070 -0.009 - 0.812
Motivation 5 4.387 0.538 0.126** -0.082 0.098* 0.043 -0.005 0.537*** - 0.863
Intention to 3 1.783 0.857 -0.093* 0.157*** -0.019* 0.062 -0.001 -0.452*** -0.477*** - 0.884
quit
Note: ***p ≤ .001, **p ≤ .01, *p ≤ .05.

Regression Analysis variable (intention to quit) must be significant. Third,

the relationship between the predictor variable and the
To test four respective hypotheses, mediated regression dependent variable must be significant in the absence of
analysis was used while fulfilling all the three conditions mediating variable. For partial mediation, the relationship
of Baron and Kenny (1986). First, the predictor variable between the predictor variable and the dependent variable
(diversity management) must have a significant relationship must be weaker when the mediator is added in regression
with mediating variable (motivation). Second, the equation; and for full mediation, the relationship between
relationship between the mediating variable and dependent the predictor variable and the dependent variable must
 Effect of Diversity Management on Employees’ Intention to Quit: Mediating Role of Employee Motivation   23
be insignificant in the presence of the mediating variable. that there is a significant and negative effect of diversity
Table 4 validates that all the conditions of mediation were management on employees’ intention to quit (β = -0.443,
fulfilled. Calculated F- statistics of the regression model p ≤ 0.001), therefore the results support hypothesis H3. In
was found to be significant (Table 4). Model 1 depicts the model 5, when diversity management and motivation were
base model that included the control variables only (i.e. age taken altogether into the regression model as independent
of employees, gender, work experience of the employees, variables, effect of diversity management substantially
nature of the firm, and ownership form of the firm) and reduced (from β = -0.443, p ≤ 0.001 to β = -0.268, p ≤
was found significant according to F-statistics (p ≤ 0.001). 0.001) but still found to be significant, whereas the effect
Further, the results indicated that the coefficient of diversity of motivation still has significant and negative impact on
management is significantly and positively associated with employees’ intention to quit. Thus, the results illustrated that
motivation (β = 0.531, (p ≤ 0.001) in model 2, thus providing motivation played a partial mediating role between diversity
a support to hypothesis H1. In model 3, the coefficient of management and employees’ intention to quit. Henceforth,
motivation is found to be significantly and negatively related supporting hypothesis H4 (Table 4). The outcomes of
to employees’ intention to quit (β = -0.468, p ≤ 0.001), regression analysis can be evidently seen through the model
thereby supporting hypothesis H2. Model 4 indicated shown in Fig. 2.

Table 4:  Results of Multiple Regression Analysis Testing the Mediating Effects of Motivation

  Dependent Variables
Intention to quit Motivation Intention to quit
Independent Variables Model 1 Model 2 Model 3 Model 4 Model 5
Constant 1.828*** 1.943*** 4.967*** 4.836*** 5.856***
Age of employees -0.042 0.090 0.016 -0.013 0.016
Gender 0.153*** -0.012 0.119** 0.102** 0.098**
Work experience of the employees -0.045 -0.058 -0.047 0.001 -0.019
Nature of the firm -0.024 0.003 -0.014 -0.008 -0.008
Ownership form of the firm 0.057 0.007 0.080* 0.093* 0.095**
Diversity - 0.531*** - -0.443*** -0.268***
Motivation - - -0.468*** - -0.330***
R2 0.036 0.292 0.250 0.223 0.300
Adjusted R2 0.027 0.284 0.242 0.214 0.291
F statistic 4.047*** 37.155*** 30.035*** 25.823*** 32.968***
N 547 547 547 547 547
Note: ***p ≤ .001, **p ≤ .01, *p ≤ .05.      
-0.443***

-0.268***
Employees’
Diversity
0.531*** -0.468*** intention to quit
Motivation
-0.330***

Control variables: gender, age of employees, work experience of employees, nature and ownership
form of the firm

<Figure head> Fig. 2: Results of regression analysis for derived model

Fig. 2:  βResults
Note: The standardized coefficientsof
areRegression
presented in Fig.Analysis
2. for Derived Model
***p ≤ .001, **p ≤ .01, *p ≤ .05.

Note: The standardized β coefficients are presented in Fig. 2.

***p ≤ .001, **p ≤ .01, *p ≤ .05.
<A level> Discussion

With the emergence of global markets, diversity has become a business necessity. With the
implementation of diversity management, an organisation can add variety of skills in its reservoir
of human resource and harness a pool of persons with distinct qualities (Harrison & Klein,
 24   Journal of Strategic Human Resource Management Volume 6 Issue 3 October 2017

Discussion Moreover, just implementation of these practices is not

sufficient; HR managers need to work hard to ensure that
With the emergence of global markets, diversity has the efforts of the organisations are properly communicated
become a business necessity. With the implementation of to the employees. Further, as proclaimed by the advocates
diversity management, an organisation can add variety of diversity, top management’s support is a significant factor
of skills in its reservoir of human resource and harness a in framing and executing diversity management initiatives
pool of persons with distinct qualities (Harrison & Klein, (Guillaume, Dawson, Priola, Sacramento, Woods, Higson,
2007). This amalgamation of diverse entities enhances Budhwar, & West, 2014); therefore, HR policy makers need
employees’ performance (Kundu & Mor, 2015). By using to be committed to the successful application of diversity
multiple regression analysis on a sample of 547 respondents management in the organisation.
from 234 firms operating in India, the present study has
emphasized on the importance of diversity management in Conclusions
Indian organisations. Further, the empirical findings of the
study indicate the positive effect of diversity management The regression model undertaken in this study progressed our
on motivation and simultaneously shows negative effect on understanding of how diversity management in organisations
employees intent intent to quit the organisation. This may can affect employee outcomes. The results highlight that
be due to the fact that employees from various backgrounds adoption of diversity management programmes can help in
feel more encouraged and confident in their capability (Kim enhancing employees’ motivation level and simultaneously in
& Lee, 2014) which make them feel motivated. Further, reducing their turnover intentions in organisations operating
employees are more likely to work for that organisation in India. Admittedly, the present study has several limitations
that prioritises inclusivity in diversity, which consequently that should be addressed by forthcoming researches. The
results in decreased intention to quit (Groeneveld, 2011). first limitation of our study is that it was limited to those
This finding also confirms recommendations from Cooke organisations that are operating in India only; therefore a
and Saini (2010) that organisations need to pay more caution is warranted when generalising the current findings.
attention to diversity issue to hold key talent with them. Second, both motivation and intention to quit are temporary
The study also highlighted that motivation has a noteworthy attitudes of individual and vary from sector to sector. Thus,
negative relationship with employees’ turnover intentions future researches are recommended to account for the
implying that low level of motivation among employees sectoral differences. Finally, the present study examined the
leads to increase in their intention to leave the organisations. mediating effect of single variable i.e. motivation. It would
The logic behind this finding is that employees having be interesting to examine other variables that might mediate
fascinating and enjoyable duties are less likely interested in or moderate the relationship between diversity management
extrinsic rewards proposed by other organisations and are and employees’ intention to quit.
not interested in leaving their current job.
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